Can management company fund legal costs associated with planning objections

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fungie20

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The residents association where I live (not explicitly the management company but large overlap obviously) want to use funds from our management company (unclear if from sinking fund or from other areas) to fund legal and consulting costs associated with a planning objection to a proposed nearby development. Planning permission has been granted and they're planning on appealing and could eventually end up in court.

My main question is can they fund their costs with management company funds as this action doesn't directly effect our development, such as repairs, signage, etc?

I'm personally against the objections as it's blatant nimbyism in this case and don't want my management contributions funding legal challenges of this nature. I've been trying to read mud act to get better informed but unfortunately for me, it's as clear as mud.
 
The funds belonging to the management company can be used as described in the constitution of the company and would be authorised by the directors of the company.

If the directors used the funds for something beyond the remit, then they would be challenged by the members at the AGM or EGM
 
fungie20 said:
The residents association where I live (not explicitly the management company but large overlap obviously) want to use funds from our management company (unclear if from sinking fund or from other areas) to fund legal and consulting costs associated with a planning objection to a proposed nearby development. Planning permission has been granted and they're planning on appealing and could eventually end up in court.

My main question is can they fund their costs with management company funds as this action doesn't directly effect our development, such as repairs, signage, etc?

I'm personally against the objections as it's blatant nimbyism in this case and don't want my management contributions funding legal challenges of this nature. I've been trying to read mud act to get better informed but unfortunately for me, it's as clear as mud.
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i would be surprised if the articles of the co made provision for such an action, as you say a cost like this has no relation to the common areas of the property which is the mgt co's remit.

Sounds like a subset of busybodies that are looking for the majority to fund their appeal, if they feel that strongly let them use their own money.
 
The residents' association has no call on the funds of the OMC. They are different organisations with different memberships and charters.

As above, if the RA needs a project funded, then let them raise their own money. The funds in the OMC, a legal entity with strict legal responsibilities, is not there to be called on to underwrite a different organisation's projects. I'd be amazed if the OMC's directors even considered this within their remit.
 
Thanks I sent an email to RA effectively stating they're distinct entities and money should not flow between them.
 
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