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Old 19th October 2020, 12:36   #1 (permalink)
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Annual General Meeting: Legal Challenge?

We have just had our AGM and the following decisions were taken:

1. That the third party site management provider can write their own contract/specification in consultation with the HOA. Can this be legally challenged?

2. We tendered for a new Clubhouse provider (essentially a cafe and bar). We shortlisted 2 companies. One scored higher and we put that to a vote. The higher scoring candidate did not secure the approval of the AGM.

A question was not asked on whether the lowest scoring candidate (the incumbent) would automatically be entitled to the new contract? I now understand that the incumbent is negotiating the terms of a new contract. Is this legally possible? On what authority would discussions on a new contract be possible? Surely we should advertise again and tender? Or should we call an emergency AGM to have a vote on the incumbent?

Help and advice please. We few we have taken 2 steps back.

None of this seems permissible or for that matter legal!

Help!!!!
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Old 19th October 2020, 17:22   #2 (permalink)
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Re: Annual General Meeting: Legal Challenge?

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Originally Posted by stephenhillcoat View Post
We have just had our AGM and the following decisions were taken:

1. That the third party site management provider can write their own contract/specification in consultation with the HOA. Can this be legally challenged?

2. We tendered for a new Clubhouse provider (essentially a cafe and bar). We shortlisted 2 companies. One scored higher and we put that to a vote. The higher scoring candidate did not secure the approval of the AGM.

A question was not asked on whether the lowest scoring candidate (the incumbent) would automatically be entitled to the new contract? I now understand that the incumbent is negotiating the terms of a new contract. Is this legally possible? On what authority would discussions on a new contract be possible? Surely we should advertise again and tender? Or should we call an emergency AGM to have a vote on the incumbent?

Help and advice please. We few we have taken 2 steps back.

None of this seems permissible or for that matter legal!

Help!!!!
Firstly I must state that i am not a lawyer but i have a fair bit of experience on condominium management committees. I have to say that I am astonished if the service specifications were not part of the decision making process at the agm ?

A lot depends on what your agm has authorised your Board of Management to do.or what it can do and what it cannot. Usually your AGM minutes would include this .

In terms of legal challenge, your objection should be officially heard and noted at the time that the agm resolution is passed. If you attended then you have a specific time (4 weeks) in which to pursue court action. Similarly, if you did not attend then you have a specific time ( 1 month) to object to the court from the time you were first notified of the issue that you wish to object to.

I quote the following which will maybe be helpful

]ARTICLE 27. The main property shall be managed by the board of condominium owners and the method of management shall be decided by the said board, subject to the imperative provisions of the law.

NB MY UNDERSTANDING IS THAT THE BOARD OF CONDOMINIUM OWNERS EQUATES TO ALL OWNERS ON YOUR SITE (ie the votes eligible to be cast at the AGM)


ARTICLE 32. The main property shall be managed according to the resolutions taken by the board of condominium owners according to the agreement, the management plan and the provisions of the law.
All condominium owners and their heirs and general legatees and managers and controllers shall abide by the resolutions passed by the board of condominium owners.

ARTICLE 33. (Amended first parag. : 14/11/2007-5711/ art 17) Each condominium owner who has attended but used dissentive vote in the board meeting in accordance with the provision of Article 32 in one month from the date of adjudication, and each condominium owner who has not attended in the board meeting in one month from the date s/he learns the
board resolution but in six months from the date of adjudication at the latest can file a nullity suit against the resolutions of the board of condominium owners at the court of peace of the place in which the said main property is located; and in the cases the resolutions of the board of condominium owners are deemed invalid due to absolute nullity there will be no time
restriction to apply to the court. One or more condominium owner who suffer because one of condominium owners or any person who continuously makes benefit of her / his flat based on the lease agreement, right of occupation or any other reason does not fulfill her / his debts or obligations can apply to the court of peace authorized in that place and plead for the intervention of judge.
The judge, after having heard the parties, shall immediately render his judgment according to this law and the management plan or in the absence of these according to general legislation and the rules of equity and shall notify the party concerned verbally or in writing to comply thereto within a short time to be fixed by the judge."
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