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August 08, 2012 Mario D. Deo
Posted in General Interest

Dealing with Disruptive Directors

One of the common issues we are asked to address relates to directors who are, to say the least, "disruptive."  For instance, we have been advised of directors who are obstructionist.  They are offensive at board meetings and bring up many technical, procedural issues. These directors seem to be doing these things for no rhyme or reason.  The end result is that the atmosphere is so unbearable that all of the other directors on the board can’t stand it anymore and want to resign.

Sadly, this situation happens far too often within many boards of condo corporations. The situation is easier to deal with if the corporation has passed a by-law dealing with specific sanctions against directors, where those directors have breached a stated Director's Code of Conduct and Ethics. Specifically Fine & Deo is, to the writer’s knowledge, the only firm that has drafted a by-law which allows a board to remove a director that has breached the such a Director's Code of Conduct and Ethics on three occasions.
Mario D. Deo

Mario D. Deo Partner

B.A., LL.B.

mdeo@finedeo.com
905.760.1800 x225
905.760.0050

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