Buying Time

In late April, 2015 a Petition to remove the co-op's property management company was signed by many members and deposited with the Board of Directors.  The reasons for the Resolution was concern about the Property Manager's interactions with members, the methods being employed, as well as a dubious hiring process.

On May 25, 2015 a letter from the co-op's lawyer was distributed to all members stating that the Board of Directors voted not to "act on it".  An excerpt of the letter is as follows:

Had the directors passed a resolution to terminate the contract with XXX, that would have exposed [the co-op] and its directors to a claim for damages for breach of contract.  In my view, such a resolution is not therefore one that, in the words of the governing legislation, "may properly be passed" by directors . . .  Furthermore, the petition contained erroneous statements about the Co-op's by-laws.

The Board of Directors called a Special Meeting on Sunday, June 28, 2015 at 6:15 p.m. - off premises.  The Agenda did not state the purpose of the meeting.  There was barely a quorum at the meeting and the resolution was not passed.

 The Co-operative Corporations Act R.S.O. 1990, c. C.35, s. 70. states:

 (8) Where a by-law or resolution in respect of which a meeting of directors is requisitioned under this section is not passed or confirmed at a meeting of the members, no requisition for a meeting of directors in respect of a similar by-law or resolution shall be made for a period of at least two years. 

There is strong contention in the co-op that this whole process was rigged top down from beginning to end to ensure that the property management company remains firmly in place for years to come.

Collusion at its best!