Suur tn 12: annual report approval void because document inspection procedure was not communicated

Applicant XX sought to set aside or establish nullity of the annual report approval decision; the court examined prior access to documents.

Applicant XX challenged item 2 of Narva linn, Suur tn 12 korteriühistu’s meeting decisions of 11 October 2022 approving the 2021 annual report. The applicant said members received an audit report and an income and expenditure report, while the annual report later filed with the register differed in content. Preparation for voting and completeness of information were also challenged. The association objected that alleged inaccuracies in accounting documents did not themselves justify setting aside the decision. It considered posting a meeting notice and allowing members to request the full report from the board sufficient. It cited noticeboards’ limited size to explain the amount of information displayed. The court focused on inspection arrangements. The notice gave date, time, place and agenda but not where and how to inspect the documents for approval. The materials supplied beforehand did not contain all the essential data, including expenses for each apartment ownership. The court held that an opportunity to approach the board independently does not replace the mandatory communication of inspection arrangements. This prevented applicant XX from voting on the annual report on an informed basis. The ruling of 19 August 2024 found only challenged item 2 without legal effect from adoption, or void, because of a material convening breach. The court did not consider other meeting decisions and found other objections to reporting figures unnecessary to resolve this question. Costs were allocated to the association and a 50 euro fee awarded to applicant XX. The outcome therefore concerns the report approval procedure and does not confirm all allegations of inaccurate accounting data.

Grant the application and declare item 2 of the association’s meeting decision of 11.10.2022 approving the 2021 report void. Allocate all costs to the association and award applicant XX a 50 euro fee.