Requisition To Remove Directors – Defamation

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 director¹ 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."