A substantial sum has been approved for repairs. A new building manager has been appointed. A new method of allocating costs has been introduced, or a decision concerning the common parts has been adopted with which you disagree. You receive the minutes of the general meeting and the first question is entirely natural: “Can I challenge this decision?”
In everyday language, people usually speak of “appealing” or “challenging” a condominium decision. In legal terms, the Condominium Management Act allows an owner to apply to the court for the setting aside of an unlawful resolution of the general meeting.
It is important, however, to understand that not every resolution that is inconvenient, expensive, or unacceptable to an individual owner is unlawful.
When can a resolution of the general meeting be challenged?
For there to be grounds for setting a resolution aside, there must be a breach of the law. The breach may relate to the substance of the resolution itself, but very often the problem lies in the way the general meeting was convened and conducted.
For example, it is necessary to check whether the meeting was convened in accordance with the prescribed procedure, whether the owners were properly notified, whether the required quorum was present, and whether the particular resolution was adopted by the required majority.
The way in which the ideal shares were calculated, participation through authorised representatives, and whether the resolution actually corresponds to the matter put to the vote may also be relevant.
Can the general meeting decide on something that was not included in the agenda?
The agenda is not a mere formality. It must enable the owners to understand in advance which matters will be discussed and what they will be asked to vote on.
Imagine that the notice states that routine repairs will be discussed, but during the meeting a completely different and financially significant resolution is adopted. An owner who did not attend because the announced issue did not concern them may in practice have been deprived of the opportunity to participate in the discussion of the resolution that was actually adopted.
For this reason, where a dispute arises, the notice, the announced agenda, and the contents of the minutes of the meeting should be compared.
Quorum and majority must also be checked
In condominium matters, it is not always enough simply to count how many people voted “for” and how many voted “against”.
The Condominium Management Act contains rules on quorum and on the majority required for different types of resolutions. In certain cases, the ideal shares held in the common parts of the building are relevant.
Incorrectly calculated ideal shares, problems with representation, or an incorrectly calculated majority may therefore be significant when assessing whether a resolution is lawful.
The minutes of the general meeting are one of the most important documents
When a dispute arises, conversations between neighbours are rarely enough. The documents need to be reviewed.
The minutes of the general meeting are particularly important. They should make it possible to establish who participated, how they were represented, what proposals were discussed, how the voting took place, and what resolutions were adopted.
Alongside the minutes, it is advisable to review the notice convening the meeting, documents relating to the posting of the notice, attendance lists, powers of attorney, and any annexes to the minutes.
What is the time limit for challenging a condominium resolution?
This is where one of the most common practical mistakes occurs – the owner begins discussions with the building manager and neighbours, waits for another meeting, or hopes that the matter will be resolved voluntarily. In the meantime, however, the time limit for seeking judicial protection may expire.
The Condominium Management Act provides a 30-day time limit for requesting the setting aside of an unlawful resolution of the general meeting. The starting point is linked to receipt of the resolution in accordance with the procedure prescribed by law.
This time limit is particularly important. Therefore, where there is a suspected breach, the first step is to establish when the resolution was duly communicated and whether the right to seek judicial protection is still available.
Where is the resolution challenged?
An application to set aside an unlawful resolution of the general meeting is brought before the district court with territorial jurisdiction over the location of the condominium property.
The court does not decide whether the resolution adopted was the most sensible one for the building, nor does it substitute its own judgment for the will of the general meeting. It reviews the lawfulness of the challenged resolution and the breaches on which the owner relies.
What should you do if you believe the resolution is unlawful?
Above all, do not delay reviewing the matter simply because the dispute is still being discussed between neighbours.
Gather the notice convening the general meeting, the minutes and their annexes, any available powers of attorney, and the documents relating to the communication of the minutes. It is then necessary to establish whether a requirement of the Condominium Management Act has actually been breached and whether the time limit for judicial protection has expired.
Sometimes a review of the documents shows that the resolution was adopted correctly. In other cases, the relevant problem is found in the notice, the quorum, the voting procedure, or the minutes, and this may affect the lawfulness of the resolution.
Practical conclusion
If you disagree with a resolution of the general meeting, the most important question is not simply “Is this fair?”, but “Was it adopted in accordance with the rules?”
In condominium disputes, procedure is extremely important and the time available to act is short. A prompt review of the documents may therefore avoid a prolonged conflict and establish whether there are genuine grounds for seeking judicial protection.
If you have a dispute concerning a resolution of the general meeting or another issue related to the management of the building, you can seek assistance from Anelia Ivanova Law Firm for condominium matters.
Frequently Asked Questions
Can a resolution of the condominium general meeting be challenged?
In everyday language, the term “appeal” is often used, but under the Condominium Management Act an owner may apply to the court to have an unlawful resolution of the general meeting set aside.
What is the time limit for challenging a condominium resolution?
The Condominium Management Act provides a 30-day time limit for requesting the setting aside of an unlawful resolution. The starting point is linked to receipt of the resolution in accordance with the procedure prescribed by law.
Can I challenge a resolution simply because I voted against it?
No. Disagreement with the resolution alone is not sufficient. There must be a breach of the law relating either to the procedure by which the resolution was adopted or to the resolution itself.
Can a resolution be set aside because there was no quorum?
Breaches of the rules on quorum, majority, or the calculation of ideal shares may affect the lawfulness of the resolution.
What documents are needed when challenging a resolution of the general meeting?
The documents usually reviewed include the notice convening the general meeting, the minutes and their annexes, attendance lists, powers of attorney, and documents relating to the communication of the minutes.
Which court hears an application to set aside the resolution?
An application to set aside an unlawful resolution of the general meeting is brought before the district court with territorial jurisdiction over the location of the condominium property.
The information in this article is provided for general information purposes and does not constitute individual legal advice. In a specific case, particularly where the law provides a time limit for taking action or seeking judicial protection, it is advisable to obtain a timely legal assessment.
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