Laxmi Realestates Inc., 10221821 Canada Inc., 2405125 Ontario Corporation, and A.J. Medical Centre Inc. (Applicants) own medical clinics within a commercial condominium managed by TSCC 2470.
They filed a motion seeking the appointment of an Administrator under Section 131 of the Condominium Act, 1998, citing corporate governance failures, financial mismanagement, and a lack of trust in the Board.
Key Allegations:
Governance Issues: Failure to hold required meetings (AGMs and Board), improper financial disclosures, and a lack of transparency.
Financial Mismanagement: The reserve fund was severely underfunded, invoices were unpaid, and the Reserve Fund Study was delayed.
Maintenance Failures: Complaints about cleanliness, garbage collection, and delayed repairs, especially concerning water leaks and roof issues.
Conflicts of Interest: Alleged favoritism by the Board, dominated by restaurant owners, over the medical clinics.
Court Decision:
Motion Dismissed: The court dismissed the application but allowed the Applicants to return if progress is insufficient by January 1, 2025. While mismanagement was evident, the appointment of an Administrator was seen as a costly last resort.
