The first reported strata corporation to force the winding up of the entire strata corporation with only 80% approval of the owners is The Owners, Strata Plan VR 2122 v Wake, 2017 BCSC 2386.
Earlier in 2017, another strata corporation attempted to force the wind up of itself, but was unsuccessful because the resolution was deficient.
The legislature in adopting the recommendations in the BCLI report 2015 recognized that increasing repair and maintenance costs or aging strata buildings, increasing land values, and municipal policies for increasing densification, encourages some owners to gain the financial benefit of redevelopment. The legislature recognized the difficulty in obtaining unanimous agreement, and amended the SPA to require 80% of the eligible voters to pass a resolution for the voluntary winding-up termination of the strata corporation.
It was significant to the Court that the money each owner would realize from the winding-up would enable each owner to buy a similar (and even better) unit in the same area of the city.
While I understand the reasons why each of the opposing respondents do not want to move, I conclude that it would be significantly unfair to the majority of the owners if the orders sought by the petition were not granted; more than 80% of the owners would have their wishes thwarted by a small minority. Each owner of the supermajority would suffer a significant financial loss: the opportunity to receive roughly two and a half times what they would receive if they were to sell their unit individually, and the opportunity to remain in the community.
The orders sought were granted, the strata corporation would be wound up, and the strata corporation’s costs of the application were ordered to be paid out of the sale of the strata corporation.