The last requisition
“Less politics, more administration.”
—Porfirio Díaz

By the summer of 2006, YCC #42 was on its last legs.

The work that was ordered by the city had to be done. If the condo refused, the city would have the work done and have the costs added to the owners’ property taxes. That would be a very expensive way of paying for the work.

The reserve fund was practically empty and there was a huge operating deficit that needed to be covered.

There were two possible avenues that the corporation could take. It could borrow between five and ten million dollars or it could levy a special assessment for that amount.

Loan bylaw
The board held discussions with financial companies and decided on taking out a loan. A notice for a special owners meeting to be held in June 2006 was mailed to all the owners. The information package gave all the necessary information on why the loan was needed, the size of the loan, the interest rates and the amortization period.

Not enough owners were present at the special meeting, either by proxy or in person, to meet the required 50% plus one to be able to hold a vote for the loan bylaw. A loan was not possible.

Special assessment
So Plan A had to be abandoned so it was on to Plan B. The board sent the owners a notice that it was implementing a special assessment so it could pay its obligations.

The reaction was quick and furious. Large groups of owners gathered in a crowd in the doorways of two of the directors' units demanding that the special assessment be withdrawn. One director quickly resigned due to the intense intimidation.

Homeowners’ Action Committee
A group of homeowners called themselves the Homeowners’ Action Committee and started distributing leaflets and canvassing owners to sign a requisition to remove the present board and elect a new one. This group hired a law firm to represent them. The meeting was to be held on 27 July 2006.

This group promised to stop the special assessment, roll back the 14% fee increase, fire the present property management company, fire the corporate law firm and cancel all the construction contracts. Thousands of leaflets were printed and distributed throughout the buildings, some of them accused the directors of corruption.

Bowing to the intense pressure, the board rescinded the special assessment.

Application for an administrator
The board headed off the 27 July 2006 special owners meeting by asking the courts to appoint an administrator to manage the corporation’s affairs.

The board listed all of YCC #42’s financial difficulties, described the inability of the owners to effectively govern their corporation and the intimidation that the directors were under as reasons why an administrator was necessary.

In his affidavit Hameed Shah stated that the corporation was paying its creditors in rotation and only paid the security company, which was three months in arrears, because they threatened to cancel their services. The condo did not pay last month’s gas bill and has a large electricity bill it cannot pay.

The board requested the court to appoint Andrew Atrens, a neutral third party, as administrator.

The opposition responds
A group of owners appeared in court to respond to the board’s request.

A director, Shahnamaz Ishaque submitted an affidavit that stated that he was left out of some of the board’s deliberations and that an independent auditor should be appointed to be the administrator who should conduct new elections, supervise the new board until they are capable to perform their duties up to a certain level, investigate the finances of Aimin Li and Mr. Hameed Shah and investigate who was informing the city of the property defects which lead to the issued work orders.

Proposed alternative administrator
The respondents requested that the court appoint Paul Endres as administrator as he was the property manager at YCC # 42 in 1998 and 1999.

The applicants opposed Mr. Endres appointment because he previously
worked for the condo corporation and therefore was not, in their opinion, a neutral third party.

Court judgment
On 28 August 2006 Justice Lederman suspended the board of directors and appointed Andrew Atrens to act as the corporation’s administrator.


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