Forcing a showdown
The very day that
he heard of Campbell's latest decision, Khan called for an emergency
board meeting for that very night. His e-mail stated:
“Therefore Mareeka mgt is advised not
to hand over charge of YCC #42
properties to MARK
CIANFERANI OF VISTA MGT till
a resolution signed by
the Majority of remaining legal directors 1. SHAH JAHAN KHAN
2. ANVER KARIM 3. SAFDER SARDAR as per Condo act and Ycc 42 bye law
and under the direction of Justice NEUBOLD, Ont Superior Court.
Therefore today an emergency Board
meeting FRIDAY, NOV 29/2013 at 2.00
PM in 330 board room is here by called by two directors namely ANVER
KARIM and SHAH JAHAN KHAN to pass a resolution in this critical
situation
Meeting must be attended by SAFDER SARDAR, Anver Karim and Shah Jahan Khan. Note:
This notice to AMINA GURE and SANDEEP GOSAL is for information purpose only.”
Amina &
Sandeep's position
Amina and Sandeep took the position, backed up by two independent legal
opinions, was that Campbell did not have the authority to re-open the
AGM and change his mind on the election results. Only the courts have
the authority to re-open an AGM once it was closed.
So they were staying as active directors on the board until the court
determined that they were not and that Khan and Karim where acting in
their best interests and not in the best interests of the home owners.
Khan's
political strength
Among a flood of e-mails going back and forth among the owners, in
early
December Khan
sent this reply to an owner who suggested that Khan (who holds the
owner-resident position) could be removed in a election.
“... I am telling you that occupied
owners in last six month in my knowledge became 421. Lot of people buy
apt and moved in. Pakistani= 10 Bengladashi=4, Somali= 10, india= 07,
Chinese=10 others= 10
These are more than my previous removal. so your target became
difficult Now you need 212 for my removal than again like last time I
will get
more than you ----- than Again you need another motion for my removal
than I will join MALICK (100 votes) + anver= 75 plus my 175 plus
RESHPAL =100 than again I will get 400 in general.
In politics again Malick will be with me. I will accept him as President
If you combine Malick (PAK) + KHAN (PAK) + ANVER= 320 same ANVER HAD before in 2012
So John do not make mistake in bringing motion. My community is with me
even I collected for AMINA 195 ask her excluding SOMALI votes.
My community is my community”
Amina &
Sandeep's strength
Amina
and Sandeep had the support of Safder Sardar, the other director. He
was elected the previous year and therefore was still on the board.
They also had the support of the Home Owners Association and
the owners who were following the political fighting on the
board and who were affected by the lack of maintenance, the crime
and the vandalism on the property.
They also gained support because shortly after they were elected, the
owners were given permission to
attend the weekly board meetings as observers. They saw the infighting,
the yelling, the threats and how Khan and Karim would walk out of the
board meetings whenever they were not getting their way, sometimes to
return and sometimes not.
Its one thing to feel that the board was
dysfunctional and quite another to witness it.
Derrick
Fulton's opinion
On 03 December 2013, Derrick Fulton sent an e-mail to the directors of
the old and new boards stating:
“As corporate counsel to YCC42 it is
my opinion that YCC#42 has no
alternative but to conduct a further election and there is no reason
this cannot be held at the next AGM. This is a practical solution and
one that requires a practical approach. Some may argue that the
election result can only be changed by Order of the Court – I do not
agree. ...
So we are clear: because of the de-certification, no new directors were
elected. That means that the directors that were up for re-election are
still directors until the next AGM or re-election. Regardless of the
term, directors remain directors until replaced by an election duly
called or unless they have resigned.”
Fulton sees the old board (that includes Ataul Haq Malick and Waqar
Khan) as the legitimate board and that they will remain so until new
elections are held.
The problem remains that the two new board members and their lawyer do
not agree that the old board remains in power or that Fulton is the
corporation's lawyer. In December 2013, the new board replaced Fulton
with a different law firm that practiced condominium law.
Go to court?
On
06 December 2013, Anver Karim sent an e-mail to Fulton recommending
that he talk to Safder Sardar to support our motion in the
next board meeting to reconvene the elections or alternatively you have
no choice but to go to court.
The board's
position
On 17 December 2013 Mark Cianfarani sent Derrick Fulton an e-mail
stating that
the Board has instructed Mark to advise Fulton not to provide any
legal
opinions concerning the affairs of YCC #42
without specific instructions given to him by the Board of Directors
through the management office.
Soon afterwards, the new board terminated Fulton as the corporation's
lawyer and hired a different
law firm. The difficulty was that Fulton did not recognize the new
board as being the legitimate board and he was taking his instructions
from a minority on the new board and two, possibly three, directors who
made up the majority of the old board.
Cheques
can't get cashed
The corporation had their bank accounts set up so that all
withdrawals had to be signed by three directors. This is a reasonable
defense against improper payments. However Anver Karim and Shah Jahan
Khan were
refusing to sign cheques in an attempt to force a new election
The BMO bank was hounded by the directors who claimed that Sandeep and
Amina were not directors and that the bank should not accept any
cheques that had their signatures on them.
Mark tried to assure the bank that Sandeep and Amina were legally
elected but on 09 December 2013, the bank said that they would only
accept cheques that were signed by Khan, Karim and Sardar.
Any changes to this would be made only if the board passed a resolution
and all five directors signed new signing authorization documents.
This created a crisis for the corporation because Anver Karim and Shah
Jahan signatures were now required if the YCC #42 was to pay its bills.
Bank
account
effectively frozen
Since the two directors refused to sign cheques unless Sandeep and
Amina agreed to step down, Mark could not pay for supplies or the
contractors.
The security company was not paid for its services for the months of
November and December. Its services ended at the end of the year and
for the first two weeks of 2014, YCC #42, had no security as Vista
could not hire anyone since they could not pay them.
All maintenance, except for emergancy work, came to a halt.
BMO gives
notice
Finally, BMO had enough. Khan went there and showed them the
decertification of the two directors by Mr. Campbell.
The bank did not want to involve in a questionable situation or
dispute so it advised the corporation that it was terminating their
accounts as of 23 January 2014 and would accept no new deposits after
15 January.
For the second time in a year, YCC #42's bank terminated its
relationship with the corporation.
Opening a
new bank account
Mark Cianfarani and three of the board members needed to
keep the corporation operating so they went to the RBC to open a new
bank account and to have that bank accept Amina and Sandeep's
signatures as two of the required three required director signatures.
Khan and Karim attempted to prevent this new account from being opened.
Owners
alarmed
Some owners were alarmed by the two directors trying to force
an election that they thought would be tainted by more proxy fraud.
There was talk of starting a requistion to remove Karim and Khan.
In resonse Khan e-mailed:
“Stop this resign or removal story
every day. If Anver resign than you do not have better replacement of
him. Stop this thing or ask Safder to resign, I will give you ANVER resignation.
Call election for two DD (disposed
directors) and two Safder and Anver positions and end this story for
ever. Conditional I am also willing but if I win again you will pay my
cost also.
Today CTV is in ycc 42 recording
comments about heating pipe water leak in three apts.
Yes rusted 40 year old building
rusted pipes had this problem. MGT called the plumbers and are fixing. Last
year it happened too because of circulating pressure/hot water.
KHAN”
Khan responsed again to the owners' concerns on 08 January 2014:
“HI every one
Do not believe in misleading
information spread by group of raciest people against me and Anver.
Making accusation is easy job. We know, how is difficult working
in
Board, when one vote out of 897 play the game.
No administrator is coming not Board
is applicant for administrator. Yes Board members if surrender their
powers before the judge to appoint administrator is different story. If
group of 153 still want they can wish but you need petition signed by
Valid 451 votes or signatures. Collecting 153 sign mean nothing. We
knew these people.
Any way security, Mgt, HArrish Ali,
Banking matters will be solved soon. ...”
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