Hi,
Our Directors have decided to use "general funds" to discharge a substantial insurance bill because of fire safety issues. The bill in the past has been apportioned by the schedules in the leases. There are a mix of apartments, houses, townhouses and duplexes. The Houses, town houses and duplexes all have their own rebuilding insurance, however the directors thought best to use the "general funds" to fund a large increase in insurance costs so the management fees would not rocket for the apartment owners. I would have thought the insurance cost regardless of the amount should have been applied in accordance with the leases?
There was a vote at the AGM and it narrowly passed, by 2 or 3 votes.
The OMC and directors are holding firm but I believe regardless of the cost is should be apportioned in accordance with the schedules in the original leases?
Any thoughts would be welcomed.
Thanks in advance.
Our Directors have decided to use "general funds" to discharge a substantial insurance bill because of fire safety issues. The bill in the past has been apportioned by the schedules in the leases. There are a mix of apartments, houses, townhouses and duplexes. The Houses, town houses and duplexes all have their own rebuilding insurance, however the directors thought best to use the "general funds" to fund a large increase in insurance costs so the management fees would not rocket for the apartment owners. I would have thought the insurance cost regardless of the amount should have been applied in accordance with the leases?
There was a vote at the AGM and it narrowly passed, by 2 or 3 votes.
The OMC and directors are holding firm but I believe regardless of the cost is should be apportioned in accordance with the schedules in the original leases?
Any thoughts would be welcomed.
Thanks in advance.