Definition : Board of directors - Contestation

Legal proceeding initiated by a co-owner or a director to annul or modify a decision of the board of directors. The action is forfeited unless instituted within 90 days after the decision of the board of directors.

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At a meeting of the board of directors, directors must not make any decision that is biased, or with the intention of harming the co-owners (or any of them) or disregarding their rights. In case of defect, the co-owners (or a director) can now take legal proceedings to oppose decisions taken by the ​Board of directors. Article 1086.2 of the Civil Code of Quebec, which came into force on January 10, 2020, allows the court to set aside or, exceptionally, to correct a decision of the board of directors. The proceedings must be initiated within 90 days of the decision of the board of directors. In order to promote stability of the Board’s decisions, the legislator allows to bring such recourses only in certain circumstances.
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