Is it a good idea to revive our association incorporated status?
Bob Theisz
incorporating the cottage association.
I will be sending an email to the association soon and I would like to
try using Google Groups as the discussing forum - emails can be
painful ...
Thanks
Bob
Bob Theisz
I am told our association was incorporated in 1960 and remained
incorporated for 35 years. Sometime in the nineties our incorporated
status lapsed - we didn't renew.
What has happened to make us reconsider incorporation?
• The road lawsuit involving the cottagers using Fire Route 208, aka:
the east side. Their lawyer noted their position would be stronger if
our association were incorporated.
• The recent mining claim along our lake (Uranium) reminded us we need
to work collectively. As far as we know the mining claim is still
active; the issue isn't gone.
• Our lake isn't as secluded as it once was. I suspect with our close
proximity to Parry Sound, the seemly increased activity at the
municipal beach and increase presence of squatters we may want a
collective and legally recognized voice.
In a nut shell, our lake isn't so hidden anymore. Do we want to be
heard as individuals or as a collective?
Next steps:
• The cottagers involved in the law suit are looking into costs
associated with reviving the association (the province of Ontario
website says $100, plus a catch up fee.)
• We also should look into the cost of having liability insurance,
which would include coverage for the officers of the association;
otherwise who would want to be an officer.
• Present the information to the association
• Seek legal advice. Anyone know a lawyer?
• Discuss
• Vote. Everyone can join the discussion, but only members in good
standing - people who have paid the annual fee - will have a vote.
You can still pay your annual fee.
Bob Theisz
Update:
Shirley Pate with my permission has revived the Nine Mile Lake
Cottagers' Association incorporated status.
I didn't have a problem with the revival because our association was
incorporated for 35 years without incident. I was also assuming the
revival process would take a bit a time to complete and, in the
meantime, we could discuss our options. I did not anticipate a one
week turn around ... Good for Shirley for moving forward on our
behalf.
Our next decision:
General liability insurance for the corporation and directors: I was
at the cottage show today and had a good chat with the FOCA insurance
representative. We talked in generalities and in his opinion we could
function without insurance because we really don't do very much on the
lake except maintain the roads. Liability insurance is needed by
associations when they control, own, or organize something such as, a
road, a building or an annual regatta. Given our history and
activities we don't have any assets or activities. Having said this,
we have to remember we can't predict the future. This information is
consistent with the information provided by Klaas at the 2010 AGM. The
corporation insurance would be $500 annually and would give the
corporation general liability protection. For an additional $250 the
directors of the corporation (the executive) would also be covered.
In summary, for $750 annually we would have basic liability coverage.
Our individual cottage annual fees would increase from $25 to $125. I
believe only 10 of the 15 cottages on the lake are paid members of the
association. If all cottages were paid member the annual cost per
cottage would be $85.
I will obtain a formal quote for insurance and, as mentioned in my
previous email, share the information with everyone.
Thanks to everyone for their patience
Bob
Michael
My now be a moot point bellow after your recent e-mail.I've been
contemplating the implications of reinstating the corp... I own an
incorporated company so I 'get it'... Still unsure of my position and
frankly was going to let it digest for awhile, but since I'm being
listed as a director... Here's some of the considerations that were
top of my mind:
Reinstating the corp strengthens the Pates right of way dispute, how?
Are the Pates planning on having the corp hold the right of way? Is
that the reason it is now a pressing issue? We all contribute and
have access to another way in? Possible A and B shares of the corp
for road access? Is the administrative, financial and directors
liability burden worth the trouble? I think we'd all like to help
the Pates however we can but lets make sure the effort will have an
impact.I found this article on the benefits of incorporating an
association helpful:http://www.lexology.com/library/detail.aspx?
g=49d3dabe-8f35-4e5e-b971-5c2c93c79b73
Possible benefits? Could membership be tax deductable? Eg: for road
improvements, rather then sharing improvement expenses individually
could the contribution be made through the corp and become tax
deductible?Being Inc. would be a good step if we were to take action
to stop mineral development on the lake. However, I think FOCA
membership effectively gets us recognised as a group.....
Mike