What is the legal test for appointing an administrator to a strata corporation?

British Columbia, Canada


The following excerpt is from 1049442 B.C. Ltd. v The Owners, Strata Plan LMS 1669, 2018 BCSC 1631 (CanLII):

As it relates to the appointment of an administrator, the test is set out in Lum v. Strata Plan VR519, 2001 BCSC 493 at para. 11, where the court. provided the following factors informing the exercise of the court’s discretion to appoint an administrator: (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.

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