How to Challenge a Decision of an ОСМД General Meeting

What is important to know about challenging a decision of an ОСМД general meeting was explained by Ivan Topor, Head of the Real Estate and Construction Practice at the law firm “DE-JURE,” attorney, PhD in Law.

What can be challenged in court

A co-owner of an ОСМД may file a claim in court on the following grounds:

• recognition of a general meeting decision as invalid (in full or in specific provisions);
• recognition of the absence of legal consequences (for actions of the board/chairperson arising from the disputed decision);
• an order to refrain from performing or to perform certain actions (recalculation of contributions, bringing internal regulations into compliance, etc.);
• cancellation of registration actions as a consequence of the declared invalidity.

When formulating claims, it is important to demonstrate which specific subjective right or legitimate interest has been violated (participation/voting rights, access to information, property interest in contributions) and what document confirms this.

Which court to apply to

A dispute between a co-owner of an ОСМД and the ОСМД itself regarding the validity of a general meeting decision is a corporate dispute and is therefore heard by the commercial (economic) court according to territorial jurisdiction — at the location of the defendant (the ОСМД). However, if the claimant is not a member of the ОСМД, there is no corporate relationship, and the dispute falls under civil court jurisdiction.

Challenging ОСМД general meeting decisions is an effective tool for protecting co-owners’ rights in cases where decisions are made in violation of the law or the association’s charter. It is important to promptly collect evidence of violations, correctly determine jurisdiction, and clearly formulate the claims.