Four ways to replace the  board

There are four ways to replace the directors. Each has its strengths.

Requisition a meeting of owners
A requisition for a special owners meeting can be used to replace one or more directors or the whole board.

The board must hold an owner’s meeting if 15% of the registered owners sign a petition requesting one. However, to remove a board member or members you need 50% plus one of all owners to vote for the removal, either in person or by proxy. That is a tough hurtle and it is designed to to be difficult to remove the directors in all but the most extreme cases.

The higher the number of renters residing in the building the harder it is to get sufficient signatures.

Elections at the AGM
As long as your board holds Annual General Meetings, you have a chance to elect different candidates to the board. If a quorum of 25% of the owners is present, either in person or by proxy, then the candidates with the most votes are elected.

Go to court
If you cannot vote the incumbents out of office, you can apply for relief from the courts. This is the most effective way of implementing change but it is also the most expensive.

Wear them out
A stubborn, a power hungry or a corrupt board will hang on to office for as long as they can. However, weak, lazy, incompetent or disinterested directors will, sooner or later, tire of the infighting and will either resign or will not run for re-election.

top   contents   chapter  previous  next