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| Reserve Fund Question | Mark |
| I understand that it's normally not permitted to transfer funds from a Reserve Fund account to an Operating account.
That said, it appears that our (soon be "former") PM had paid for condo window replacements out of our operating account and not from the Reserve Fund. This "oversight" has caused a significant shortfall in our operating account and thus, may require a special assessment to our owners. The money for the window replacements is still in our Reserve Fund account and I would like to know if it's permitted to transfer this money from the Reserve Fund to our operating account to cover this shortfall as the expense should have originally come from the Reserve Fund in the first place. Thanks in advance for your opinion. |
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| ORIGINAL POST | Posted At: 2010-05-05 10:48:23 |
| Elsie Lee | |
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In my view, you should bring this matter to the board to discuss and approve.Under the circumstances, Formally to call a meetings: The Act of S.35(1),(2) & (3) allows a quorum of directors to call meetings of the board for this matter. You shall give a written notice of the meeting to every director of the corporation (a)at least 10 days before the day of meeting, unless the by-laws specify otherwise; and (b)by delivering it to the director personally or sending it by prepaid mail, courier delivery or electronic communication addressed to the director at the latest address as shown on the records of the cporporation, unless the by-laws specify othrwise. In addition, the notice shall state the time and place of the meeting and the matter of the business to be discussed at the meeting. |
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Posted At: 2010-05-08 08:53:31 | |
| Elsie Lee | |
| Again, it should be passed by the Board and recorded in the minutes .
Otherwise, a quorum of the Board meeting will be held for this matter. PM does not have the right to operate or transfer the fund from one account to the other without the Board permission. |
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Posted At: 2010-05-09 08:18:42 | |
| Mistaken payment from Op.Acct. | Janet McDonough |
| If the Majority of the Board recognizes that it was a mistake to pay
for the project to be paid from the Operating Account, then the extra budgeted money for that project should be transferred back to the Operating Account. This is because the Reserve Account must be adequate and sufficient, according to Section 93(6) and 94(1). Right now, it is overfunded. It must not be under-adequate or over-adequate. When a Reserve Account is over-adequate, that means that the Corporation has taken too much in contributions from the Owners. That is not fair....Jade |
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Posted At: 2010-07-28 08:23:01 | |
| Jade | |
| Hello Mark, can you tell us what happened? Did the money get allocated to te righjt place?.....Jade | |
Posted At: 2010-08-27 20:01:07 | |