Agent appointed and paid without an AGM/EGM

[lantus]

Can anyone interpret or advise on the following.

A budget was approved at an AGM and new directors also were appointed.

No service fees were issued for the year but they appointed an agent and have spent every last penny in the account paying them (almost 20k)

Does this constitute a change of budget that should of required an EGM?

Directors are allowed to make spending that isn't discretely contained in any budget but this is a fundamental change and relates to tend of thousands of money being spent before a single service fee goes out.

If we are to believe everything then they have also spent significant sums of money on common buildings where there was no money to do so. i.e. service fees from houses cannot be spent on apartments as per the contract lease. This doesn't seem to bother them. Especially when its there own apartments!

Is this the 'its your own fault for appointing bad directors?' situation as I fear or would the spend on the agent in advance of any service fees or budget change approval process be a breach of the MUD act?

Cheers

 

[mathepac]

Call an EGM and ask the directors to answer for their actions. The fact that they are directors of the OMC does not give them carte blanche, they are still answerable to the shareholders.

 

[Joe_90]

If there were no service charge invoices issues then there was no income for the year?

If they paid €20k to the agents did the agents carry out all the repairs, pay the insurance, arrange for the rubbish to be collected?

Are the residents unhappy with the level of service?

 

[lantus]

Not sure calling an egm would be helpful just to make them answer. Aside from asking questions and getting some answers there is no legal onus on directors to comply or legally answer any inquiry.

Just to clarify there was no agent last year. Services were appointed directly using contractors as required which is quite a bit cheaper. The rumours are a service fee uplift of 200 to 300% could be required to pay for this new appointment. So quite a change.

They would need to go to an agm or egm to get actual approval to keep the agent at thext normal agm. My fear is that the owners will reject this budget and 20k of years of hard saving will of been wasted and also that the very inexperienced directors have signed a contract that favours the agent that may require us to pay his fee if we approve the budget or not for the next 3 years.