At our last annual co-owner's meeting, the board of directors informed us that it was going to take $10,000 from our contingency fund to set up a self-insurance fund. To justify their decision, the directors said that this will allow to avoid putting up a special assessment. Several co-owners seemed to agree.
Question: Can the board unilaterally decide to use part of the sums accumulated in the contingency fund to set up a self-insurance fund without consulting or obtaining the approval of the co-owners? And if so is this a good way to manage the funds of our co-ownership?
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Your co-ownership is exposed to various types of risks, such as fire, water damage, theft and vandalism. Among these risks, there is one that is often overlooked, that of fraud. Those who can commit it are sometimes unsuspected or unsuspecting people. This is the case for the director, the co-owner, the condo manager, service providers and third parties. Therefore, it would be wise to observe the behaviour of potential suspects, in order to detect potentially fraudulent acts. There can be no question of conducting a witch hunt in a building, nevertheless, certain warning signs should arouse mistrust and command vigilance.