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Decision, Thursday Oct 15: Administrator appointed for 26 condo corporations

· Condominium Owners Network

At a glance

What the judge decided

Justice Steele released her written endorsement and signed the order this afternoon. She found that the test for appointing an administrator under section 131 of the Condominium Act is met for the unopposed corporations:

There is unquestionably a “demonstrated inability of the board[s] to manage the corporation[s]” because there are no boards.

She also weighed the cost of an administrator against the cost of doing nothing:

While there are costs associated with appointing an administrator, there are also significant potential costs with not having insurance or having utilities disconnected, among other things.

On timing, the judge noted counsel’s point that owner meetings need at least 15 days’ notice and that the Condominium Act has no way to shorten that. In her words, these corporations would otherwise be “rudderless until early to mid-November.”

On notice, she said she was satisfied that notice has been given, given how public the SIREG insolvency proceedings are. The order also has a “comeback” clause (paragraph 19) that lets anyone with standing ask the court to change or set aside the order.

Which corporations are covered

The order lists these 26 corporations:

Leeds Standard Condominium Corporation No. 48 was taken off the list. Essex Standard Condominium Corporation No. 168 and Lambton Condominium Corporation No. 11 were added after they stopped opposing.

If your corporation is not on this list, the order does not cover it. The opposed corporations are scheduled to be heard on October 22.

What the administrator can do

The order gives Mr. Antman the powers and duties of each board. Among other things, he is authorized and required to:

Anyone holding property or records of these corporations must tell the administrator and hand them over on request. SIREG, its chief restructuring officer and the Proposal Trustee must reasonably cooperate with him, at the administrator’s cost.

Shadow boards and the 45-day limit

Within 30 days of the order (by about November 14), the administrator must call a meeting of owners in each corporation to elect a shadow board. A shadow board has no decision-making power of its own. It meets regularly with the administrator to learn how the building runs, so it can take over later.

As soon as possible after the shadow boards are elected, and in any event within 45 days (by about November 29), the administrator must report back to the court and ask for an order discharging him and returning each corporation to self-governance.

Costs

What happens next

Documents

We’ll share more as it becomes available.

This is general information only, not legal advice. Questions? Email owners@condoownersnetwork.com.

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