2020 AGM Minutes Commentary

 

 

The last Strata AGM took place on the 11th of January 2020 and the on-going lawsuit was discussed by owners and the ExCo. Following the release of the January 2020 AGM Minutes DRAFT, we believe some areas mentioned in those minutes need clarification and correction. 

 

Portions of the Minutes are quoted below followed by commentary.

 

  • “Mike Mrvica said that the books of account were available at BCQS, so why did the plaintiff not just go there?”

    • Comment:  As the timeline with attached documents clearly demonstrate, multiple written requests were made to BCQS and were acknowledged by them.  However, ExCo failed to respond.  A copy of the September 2019 requests for Strata financials with acknowledgement from BCQS is included in the Timeline of Events.

  • “Alan said that the EC was seeking legal advice on this matter when the Summons from the Plaintiff, was served.”

    •  Comment: By-Law 8.1.16 allows two business days for a response for the request sent to BCQS.  After failing to receive any communication from ExCo or its attorneys for over two months, the lawsuit was filed.  As noted in the Timeline of Events, ExCo has a history of lengthy delays in responding as occurred with the 4+ month delay on the modification of the Rules of Occupancy. 

  • “Alan added that if the plaintiff withdraws his claims, some agreement can be reached.”

    • Comment:  As noted in the Timeline of Events with attachment, the plaintiff placed the lawsuit on hold for 40 days starting on January 28, 2020 to give ExCo adequate time to discuss a resolution if this was desired.  No response to this offer was ever received.  The lawsuit is now proceeding.

  • “Mike Mrvica also said the plaintiff was on the EC for a period and asked if the Plaintiff had Minutes of any meetings held whilst he on the EC?”

    • Comment: Minutes were kept by this EC and were recorded by Alan Hall.  You are welcome to request these from Mr. Hall.  That ExCo also hired a professional accountant to clean up the Villas Pappagallo financials and hired BCQS to manage the Strata and its financials going forward.  These financial records should be available to you at BCQS.  

  • “Lee MacNeil said that a new Data Protection Law came into force in Cayman in October 2019."

    • Comment: In our opinion, this Data Protection Law has no relevance to the request for release of Strata financial information.  However, Cayman financial professionals familiar with the failure of ExCo to release Strata financials have flagged possible issues relating to the Cayman Islands Proceeds of Crime Law and Anti-Money Laundering Regulations.  This may bring about unwelcome scrutiny from government authorities in addition to the Strata’s lawsuit issues.

  • “Lee MacNeil offered thanks to Alan Hall for all his work in relation to this matter, adding that it is extremely stressful to deal with and Alan’s input has been invaluable.”

    • Comment: Lee had been ExCo chairperson working with Alan since 2011.  The requests for standard Strata financial information are simple to fulfill and should not be stressful for an ExCo that informs owners “There is complete transparency with regards to VP governance.”

  • “Mike Mrvica moved to have the budget for 2020 approved as drafted.”

    • Comment: This budget contained $85,000 in legal fees (approximately $2000 per unit on average) with ExCo having been less than transparent at the AGM regarding basic legal facts. (See Mr. Mrvica’s misguided remark in the first quote above, and related attachments in the Timeline of Events).  The Cayman Islands have a loser pays legal system. Clearly explaining the facts and liabilities of the lawsuit is a fiduciary duty of your ExCo.

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