- Fraudulent acts (fraud) : Fraudulent acts (fraud)
Definition : Fraudulent acts (fraud)
Serious misconduct in the exercise of a mandate (director, provisional director, condo manager). Such acts of misappropriation include several types of serious misconduct such as embezzlement, diversion of assets, and accounting or financial frauds (e.g. falsification of accounts). In the case of fraud affecting a syndicate of co-owners, any interested party can ask the court to determine if the directors who participated in the misdeed or have made a profit therefrom are liable for the damage suffered by the syndicate.
La webradio du mercredi 15 mars 2023 a porté sur la fraude en copropriété et les mécanismes à mettre en place pour l’éviter. Une copropriété n’est pas à l’abri d’une fraude. Parmi ceux qui pourraient la commettre figurent les administrateurs, les copropriétaires, le gestionnaire de la copropriété, les fournisseurs de services et les tiers. Par conséquent, il serait sage d’observer les comportements d’éventuels suspects, afin d’y déceler des actes potentiellement frauduleux. Il ne saurait être question de mener une chasse aux sorcières dans un immeuble, néanmoins, certains signes avant-coureurs devraient susciter la méfiance et commander la vigilance. Comment identifier ces actes frauduleux et se prémunir des conséquences économiques relatives à ce type d’activité criminelle?
The day-to-day administration of the syndicate may even be entrusted to a co-ownership manager who may, but need not be, chosen from among the co-owners. The syndicate of co-owners can thus delegate to the co-ownership manager other tasks and responsibilities that are generally the responsibility of the board of directors (collect the syndicate's claims, publish a notice of legal hypothec on the fraction of defaulting co-owner, instituting legal proceedings for all matters concerning his administration, giving releases and discharges, etc.). Yet, anyone who is in charge of administering property that is not his own or that is not only his own assumes significant responsibilities. That is why - and notwithstanding the co-ownership manager’s best intentions- it is advisable to take out insurance to cover his faults, errors or omissions.
Responsible for the orderly management, the manager plays a key role in a co-ownership. Its function is generally under the authority of the board of directors. Similarly to the directors, his function ensues from the preservation of the immovable for which he is responsible. The objective is to ease the director’s tasks, and not to replace them, so that they can better exercise their decision-making powers. Truly the one man band of a co-ownership, the manager must deploy his experience and knowledge for the benefit of the syndicate of co-owners for whom he works.
A review of the various aspects of his function.
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.
Section 339 of the Civil Code of Quebec establishes as a basic rule that the term of office of a director is one year. The By-law of the immovable usually describe all the terms and conditions specific to the office of director, including the duration of his mandate. Thus, a syndicate of co-owners may, at the end of the By-law of the immovable, extend the duration of the building to more than one year (for example to two or three years). At the end of the stipulated term, the term of office shall continue if it is not denounced. Consequently, if no co-owner objects to the actions of the directors, they may continue to exercise the powers conferred on them. A director remains in office until the next annual meeting, whether before or after the end of one year. He is a director at the meeting until he has been replaced by the election of a new director in order to prevent the syndicate from being without a director in the event that the election cannot be held at that time as a result of an adjournment or otherwise.
The director of a co-ownership is called to play a key role in the sound management of the co-ownership and preservation of the patrimony of the co-owners. To strengthen and maintain the relationship of trust with them, every director must be fair, honest and loyal toward the Syndicate and the co-wners. The director must also respect ethical standards and the Code of conductstipulated by the Civil Code of Quebec and the declaration of co-ownership. In case of doubt, directors must act according to the spirit of those principles and rules. They must also arrange their personal affairs in such a manner that they cannot interfere with the performance of their duties.
25 juillet - L'Affaire Jacques Paquet se poursuit. Une décision sur la sanction à imposer à l'égard de ses agissements a finalement été rendue cette semaine. Le Conseil de discipline de l'Ordre des administrateurs agréés du Québec (OAAQ) a rendu sa décision ce 23 juillet 2012. Tristement célèbre pour avoir dérobé des milliers de dollars à au moins cinq syndicats de copropriété dont il avait la gestion, Jacques Paquet avait d'ailleurs fait l'objet d'une émission La Facture de Radio-Canada.