The owners responsibility

As this LA Times column states, the condo owners also have an important role to play in preventing and discovering fraud in their corporation.

If you read the previous pages in this chapter, you will realize that it is usually an owner or a minority director who is the first to raise the alarm about corruption.

What steps should an owner take to protect their investment:
Read the yearly audited financial statements and keep your copies so you can refer to them later.
Attend all owner meetings and ask the auditor to explain anything that you do not understand.
Ask to read the current and the previous Reserve Fund Studies. Look for any changes that don't seem right.
Examine the current utility bills to see if they are being paid in full and on time.
Ask to look at the monthly cancelled cheques and compare them to the invoices. See if they match.
If you are not allowed to examine the corporation's records, or if outrageous fees are demanded before you can see them, then be very suspicious that the board is trying to hide something.
If there are major expenses being spent but there is no sign of much work being done, then something is wrong.
Start a requisition for a special owners meeting to remove the directors.

If you strongly suspect corruption, or election fraud, and the other owners don't care, then sell your unit and move on. You can't be a victim if you are off title.

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