What is the test under s. 174(2) of the Strata Plan for appointing an administrator?

Section 174(2) does not require an ongoing or threatened breach of duty of the strata corporation before an administrator may be appointed, but only that the appointment be “in the best interests of the strata corporation”. The test under s. 174(2) was considered in Lum v. The Strata Plan VR 519, 2001 BCSC 493, where Harvey J. identified the following factors to be considered at para. 11: (a) whether there has been established a demonstrated inability to manage the strata corporation, (b) whether there has been demonstrated substantial misconduct or mismanagement or both in relation to affairs of the strata corporation, (c) whether the appointment of an administrator is necessary to bring order to the affairs of the strata corporation, (d) where there is a struggle within the strata corporation among competing groups such as to impede or prevent proper governance of the strata corporation, (e) where only the appointment of an administrator has any reasonable prospect of bringing to order the affairs of the strata corporation.