Requisition to Remove Directors - Defamation

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Owners who take part in signing a requisition to remove a director should be carefully reviewing what they sign or they may be finding themselves involved in a lawsuit where they could be held personally liable.

This was the case in a recent Small Claims Court decision, Swan v. Goan, involving a requisition to remove a director and the commencement of five separate claims by the President of the board against two other board members, the condominium corporation and the property manager.

The requisition to remove the President listed the following reason for his removal:

"failure to act honestly and in good faith, and failure to exercise the care, diligence and skill that a reasonably prudent person would exercise in the circumstances."

These words come directly from the director's Standard of Care provisions in Section 37(1) of the Condominium Act.

Please see full article below for more information.

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Published In: Business Organization Updates, Business Torts Updates, Personal Injury Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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