Preparing a forecast annual budget is an unavoidable task in co ownership. Its preparation, preliminary examination and adoption will ensure the proper functioning of the syndicate of co-owners. It is up to the Board of Directors to define its terms, in view of the expenses that will have to be paid to allow a syndicate to meet its obligations. The budget also makes it possible to fix the amount of the contributions of each co-owner to the expenses of the co-ownership.
It will be prepared by the Board of Directors or property manager, based on the amounts spent in preceding financial periods, as well as anticipated non-recurring expenses. The preparation of the budget forecast requires time and rigor.
With respect to the Annual General Meeting, the article 1087 of the Civil Code of Québec provides that certain documents must be attached to the notice of meeting.These documents are to be sent to co-owners so that they can ascertain the exact nature of the questions and issues to be discussed.
Some of these documents, described in the agenda, are a prerequisite to the validity of the decision (such as, a draft amendment to the declaration of co-ownership ). Other documents are, on the other hand, necessary for the information of the co-owners (such as, the budget forecast and the report of the Board of Directors)
The work to be done in the common portions is subject to rules of which it is useful to know all the ins and outs. The syndicate of co-owners acts in this matter through its two bodies, the board of directors and the meeting of the co-owners. It is up to the board of directors to analyze the scope and budget of the work, and to organize, when required by law, a meeting of co-owners (annual meeting or special meeting.) which will aim to vote by majority the final decision. The majorities to be obtained in a vote will not necessarily be the same, depending on the type of work.