AGM-auditor-re-appointment

Re-appointment of the auditor

The auditor gives an oral report on his findings, answers questions and then leaves. There is no vote to accept his report; the board passed a motion to accept his findings on their financial statements so thats that.

The next business on the agenda is the re-appointment of the auditor.

This where the owners need to be alert s the chair and the board assume that the re-nomination process will face no opposition.

The chair will say:

"I need a motion to re-appoint the auditor and authorize the board to set the auditor's renumeration. Do I have a motion? A seconder;? All in favour? Against? Carried."

It has been done so fast that no one understands just how much power the owners have just surrendered to the board.

No issues with the auditor
When the corporation has a good auditor that gives a comprehensive report on the board's financial statements, notes violations of the Condo Act in his Notes, gives the owners a balanced opinion of the condo's finances, then there is no harm done by the above re-appointment process.

Issues with the auditor
However, if there are serious financial problems and auditor does not mention in his report that:
1. The Reserves are underfunded.
2. Questionable expenses have occurred.
3. The receivables are a concern.
4. Money has been removed from the Reserves to pay operating costs

Plus the auditor deflects owners' questions or says that he will have to look at the figures and will get back to the owner by passing on his reply to the board, who will relay the answer to the owner; then you know that this auditor may be acting in the best interests of the management company and the existing board but is not acting in the best interests of the owners.

Responding to the motion to re-appoint
There are two issues that the owners need to be corrected.

One
The immediate asking for a vote without the chair calling for debate on the motion must be challenged. There must be a debate on the motion.

Two
The motion brought forth to the owners contains two separate questions.

1.	The first question is whether or not the owners wish to re-appoint the auditor. A majority vote of those in attendance at the AGM will make that decision.
	If the owners vote not to renew the auditor's contract, then the owners should have the name of a credible candidate and a letter/e-mail confirming that if elected, he/she is willing to accept the position.
	Otherwise, the board will take it upon themselves to find a replacement.
2.	The second question is whether the owners are willing to give the board the power to set the auditor's renumeration.
	There shouldn't be a problem with this.