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
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