How to liquidate an HOA with debts voluntarily or by court decision? How to properly liquidate an HOA (step-by-step instructions with sample documents)

An HOA may terminate its activities if the owners consider that it has fulfilled all its statutory tasks and there is no need for its further existence.

The legislation defines the following reasons for the liquidation of an HOA:

• violation of the law;
• the court declared the reorganization invalid;
• the number of members is less than 50 percent of the list of resident owners;
• the court made a corresponding decision;
• decision of the meeting of homeowners.

Step-by-step instructions for canceling an HOA

In order to stop the activities of the HOA, you can use one of two existing methods.

If the management of the partnership is against its closure, it is necessary to act according to the following algorithm:

Pay attention! In the event that all HOAs unanimously and voluntarily agree to liquidate the partnership, the general meeting makes a decision to terminate its activities.

The decision of the meeting must be recorded in the minutes. This document is necessary to initiate liquidation proceedings, and it is possible that it will later need to be produced in court if it comes to that.

The minutes of the meeting must contain the following information:

• full name of the HOA, its details and legal address;
• composition of the meeting - chairman, secretary, number of residents present, list of invited persons present;
• the fixed agenda is the liquidation of the HOA;
• voting results (how many were in favor, against and abstaining);
• decision to appoint a liquidation commission, indicating its members with full names and passport details.

The most common reason for owners to make such a decision is the HOA’s failure to fulfill or improperly fulfill its statutory tasks.

The HOA is liquidated when:

• the contributions established by the partnership are not paid on time;
• the house is not maintained or is poorly maintained;
• sanitary standards are not observed;
• technical condition does not meet standards;
• the rights of residents of the house who are not members of the partnership and those who are members of it are infringed.

As a rule, the liquidation commission is selected from among the members of the partnership. If the decision on liquidation is made by the court, then the commission can be appointed from representatives of third-party organizations, for example, a management company, city hall, etc.

The liquidation commission should act in the following order:

Two months after posting information about the termination of the HOA, the commission draws up an interim balance.

Reference! The interim balance sheet displays information about what property the HOA has, account balances, claims made by creditors, and what decisions were made on these claims.

Then settlements with creditors are carried out. After all calculations have been made, the final liquidation balance sheet is drawn up. It is approved by the founders of the partnership or the body that decided to liquidate it.

The liquidation of any organization, including HOAs, is registered. To officially register the process of liquidation of an HOA, you must provide the following documents:

• an application for registration of completed liquidation is signed by the chairman of the HOA;
• balance sheet (liquidation);
• a receipt indicating payment of the state duty.

How to properly close an HOA by court decision?

It has already been said above that the court can terminate the activities of a partnership in cases where the current legislation is grossly violated.

For example, the number of members of the HOA is less than established by law, the rights of both members of the partnership and persons who are not members of the partnership are infringed, violations of the law were revealed during the creation of the HOA, the partnership was declared bankrupt in a court hearing.

The initiators of liquidation through the court can be both residents and regulatory authorities, for example, the prosecutor's office or the tax service. If the initiators are homeowners, they create an initiative group that is engaged in collectively filing a lawsuit in court.

Advice! If the reason for liquidation is that the number of members of the HOA is less than the established norm, you can immediately file a claim. In this case, the court unconditionally takes the plaintiff’s side.

In other cases, in case of violations of the law or financial discipline, the initiative group must first file a complaint with a supervisory authority, for example, the prosecutor's office. All facts indicating existing violations must be documented.

After contacting the regulatory authority, an inspection of the economic or financial activities of the partnership follows. If the facts stated in the application are confirmed, the HOA will be given time to correct the shortcomings.

During this pre-trial settlement period, all violations must be corrected. Otherwise, the controlling body itself will sue.

The court can impose sanctions on the management of the partnership or decide on its liquidation in two ways:

Features of cancellation of partnerships

The processes of reorganization, as well as liquidation of legal entities, including HOAs, are regulated by the Civil Code of the Russian Federation, in particular Article 57.

Reference! The main feature of the HOA, in contrast to commercial structures, is that the primary right to create, reorganize, and liquidate the partnership is granted to the general meeting of homeowners, members of the HOA. That is, it can be liquidated only by decision of the owners or in court.

HOA that did not carry out activities

Even if the partnership did not carry out its activities, the meeting of home owners, in accordance with clause 2. Clause 2 of Article 145 of the Housing Code of the Russian Federation, also has the right to make a decision on its liquidation.

The liquidation procedure will be the same as in the case if the HOA was working and it was decided to cancel it by decision of the residents of the house. The only difference is one liquidator is appointed instead of the liquidation commission, who will deal with all documentation issues.

Bankruptcy of an HOA with debts

The HOA is not a commercial organization, so it does not receive profit from its activities. This means that the debts the partnership has, let’s not touch on the reasons for their occurrence, it has nothing to cover.

A partnership with debts can be liquidated only by declaring it bankrupt. The recognition procedure in this case will be regulated by Federal Law No. 127 of October 26, 2002 “On Insolvency (Bankruptcy)”.

The process can be initiated by both the members of the partnership themselves and its creditors by filing a petition in court to declare the HOA insolvent.

Pay attention! The process of declaring an HOA bankrupt can only begin if the partnership does not fulfill its obligations for more than three months, and its current debt exceeds one hundred thousand rubles.

To satisfy the claims of creditors, The court may preliminarily prescribe one of the following procedures:

• financial recovery;
• bankruptcy proceedings;
• external control.

To correct the current situation with debts, by a court decision, the HOA is given a period of 1 year. If, after the expiration of the period, it turns out that solvency has not been restored, the HOA has no working capital or property and its further activities are impossible - the partnership is declared bankrupt. And this means its liquidation.

Conclusion

Liquidation of an HOA can be voluntary— the owners themselves make the decision to close the partnership.

This decision is expressed in the minutes of the general meeting. The form of the meeting can be either in person or in absentia.

If the HOA does not agree to voluntary liquidation, the initiative group of apartment building residents, without convening a general meeting, conducts a survey of owners, and records the results in the minutes of the meeting. Each owner endorses his response included in the protocol with his signature. Indicate your full name, surname, patronymic, apartment number, and area.

Liquidation may also be forced by a court decision. The initiators of going to court can be both dissatisfied residents and regulatory authorities.

Closing a partnership through the court is possible if violations are identified in the activities of the HOA, its creation, infringement of the rights of residents, or the number of members of the partnership is less than the established percentage of the list of homeowners living in the house.

Liquidation of the HOA (homeowners' association) becomes necessary when this form of house management becomes insufficient, which does not allow fully satisfying the needs of the residents of an apartment building. In such cases, residents at their own discretion abandon the HOA and choose a different form of house management. So, how do you opt out of an HOA?

So, how to liquidate an HOA? A housing organization is recognized as a legal entity, and its termination is carried out in the manner prescribed by civil law.

Thus, it has been established that any enterprise can be closed in the following ways:

• on a voluntary basis;
• under duress.

On a voluntary basis, organizations are closed by decision of the persons who founded them. The manager or official does not have the right to make the relevant decision. They can only submit the issue of liquidation to the founders for consideration if necessary.

How to close an HOA? This organization is subject to liquidation by decision of the apartment owners. To make such a decision, an initiative group of apartment owners, an HOA official or another governing body calls an extraordinary meeting of residents and puts the relevant issue up for discussion.

If the meeting makes an affirmative decision, then the officials begin the liquidation procedure. Otherwise, the HOA continues its activities as usual.

If residents do not know how to get rid of an unnecessary organization, then this can be done forcibly.

Forced closure is possible under the following circumstances:

• in case of certification of bankruptcy according to a court order;
• in case of non-compliance by the enterprise with legal norms;
• if the organization does not comply with the requirements of the legislation identified during an inspection by the supervisory authority, as well as by the court.

The procedure for liquidating an HOA is such that the inspection agency is the housing inspection, the prosecutor's office and Rospotrebnadzor. According to a statement from one of the designated government agencies, the court may close the housing organization. At the same time, samples of cases that they recognized as violations, in the form of protocols and decisions, must be presented to the court.

In the same way, any apartment owner can go to court to force liquidation against the will of the majority of residents. However, he will have to prove the inexpediency of the existence of the HOA, violation of the law by the governing bodies, and so on. Indication of the grounds in the claim is mandatory.

In this case, the following circumstances are recognized as the grounds for the submission of a closure application by designated bodies or residents:

• if the HOA does not meet the legal requirements in the field of sanitary, technical and operational maintenance of multi-apartment housing;
• if residents do not pay fees to the HOA account, as a result of which the organization is unable to perform its function;
• violation of the powers of apartment owners who are members of the relevant partnership.

Other grounds for liquidation of a partnership are the following circumstances:

• The HOA is subject to liquidation if the period for which the organization was founded in accordance with the charter expires, unless the meeting of owners makes a different decision before the expiration of such period;
• performing the tasks for which the HOA was established (improvement of the local area, construction of certain buildings, repairs, and so on).

The basis is only a reason to start the procedure, but not the procedure itself. The liquidation procedure is quite precisely regulated and requires a lot of time and careful work. Typically, the phased cessation of activities is completed by deregistration of the organization.

The procedure for liquidating an HOA on a voluntary basis first involves convening a meeting of apartment owners. It is necessary to decide on the closure issue, and in case of a positive decision, to adopt a document establishing the powers of the liquidation commission.

In this case, the step-by-step instructions look like this:

1. The initiator of the meeting (owner, official or other governing body of the HOA) must put on the agenda the issue of liquidating the organization. After this, it is necessary to bring to the attention of the HOA members evidence of unprofitability or other need for liquidation.
2. The final decision is approved by voting of each participant.
3. A decision is accepted only if more than half of the meeting participants vote for it. The organization's charter may provide for other rules. For example, it may be established that the decision on liquidation is made by 60% of the votes.

The decision on liquidation must determine the following main points:

• composition of the commission for the liquidation of the HOA;
• the period within which the commission must liquidate the HOA.

After accepting such a document, the commission must submit the documents to the registration authority and notify the tax authority. If the period within which the specified authorities were notified exceeds 3 days from the date of such decision, then the liquidation is considered invalid and a fine will be imposed on the HOA.

A protocol on the actions of the commission must be drawn up. If the HOA has counterparties under business contracts or legal relations with other government bodies, then they must be notified within a week from the moment the liquidation commission begins its work.

Creditors have the right to familiarize themselves with the decision of the meeting and the minutes drawn up at the meeting.

Thus, the protocol must contain the following information:

• the nature of the meeting (regular or extraordinary);
• information about the person who initiated it;
• voting procedure;
• quota (the number of voters in relation to the total number of HOA members);
• voting eligibility (quorum or presence of a minimum of owners for legitimacy);
• issue raised for resolution (liquidation of the HOA);
• description of the speeches of the initiator, objectors, and so on;
• voting results;
• management and secretary sign the protocol.

It is worth noting that if there is no quorum, that is, the minimum number of meeting participants to make a decision, then the meeting is postponed to another date. It is additionally communicated to each member of the HOA individually.

The protocol must also contain the indicated information.

The activities of liquidators cannot last more than two months. Notified creditors of the HOA are required to submit their claims no later than the specified period. And those who were not notified have the right to appeal the closure in court. In this case, the protocol must be transferred to creditors for review.

If a new organization is established instead of an HOA, then the apartment residents have the right to determine that the new organization will be the successor to the liquidated partnership. In such a situation, all debts are transferred to the new organization, and with them all obligations under business contracts and the consequences of liability to government agencies.

Liquidation of an HOA with debts is a rather complicated procedure. All debts of a liquidated HOA must be repaid at the time of deregistration and before the distribution of residual funds among the apartment owners. Otherwise, the decision on which the closure was made may be cancelled.

The audit commission in a housing organization is the only supervisory body. It, along with state supervisory authorities, checks the activities of governing bodies, the chairman, the accounting department and monitors compliance with the law.

In general, the functions of the audit commission include the following powers:

• checking the proper condition of the HOA property, the procedure for disposing of it;
• legal and financial assessment of agreements concluded between the HOA and its counterparties;
• control over compliance with the procedure for maintaining accounting documentation;
• supervision over the correct fulfillment by the HOA of its tax obligations;
• supervision over the legality of decisions of the chairman of the HOA or other governing body;
• drawing up and submitting recommendations indicating violations, advice on how to conduct HOA activities.

Any decision made by the HOA audit commission is formalized in the form of a separate act. In the same way, the commission has the right to determine the advisability of terminating the partnership.

When the commission comes to this conclusion, it is the initiator. When the HOA charter includes the authority of auditors to make a decision to close the partnership, then it is not necessary to convene the residents. Then persons who are dissatisfied with the specified decision of the commission can appeal it in the manner specified in the charter of the partnership or through the court. Each member of the partnership must be notified of the resolution. If no one objects to the closure order, it will be approved by the residents.

In this case, auditors take on the responsibilities of liquidators. And the commission carries out all the actions necessary to close the activities of the partnership.

Forced reorganization and liquidation of an HOA or any other organization is possible only by a court order. The liquidation of the HOA is thus carried out at the request of any of the designated initiators. However, the court will not satisfy such an application and will refuse it if the initiator does not have sufficient grounds. The law does not distinguish such grounds into a separate legal category.

But as practice shows, judicial authorities will consider an application for liquidation if the following circumstances exist:

• if the managing body or the chairman of the partnership regularly (more than once) violate the norms and other requirements of the current legislation;
• if the organization does not perform the tasks assigned to it effectively or does not perform them at all;
• if the majority of the members of the partnership do not make the prescribed payments to carry out the activities of the organization and fulfill the tasks assigned to it.

It is quite difficult for the initiator to convince the court that the above circumstances occur. After all, for this it is necessary to provide evidence. In this sense, the most convincing evidence can be the decision of the audit commission or the result of any audit, regardless of whether it was carried out by a private organization or a government agency.

In addition to the indicated grounds, in the presence of which the court accepts the claim for closure for its consideration, the law identifies some reasons why the judicial authority will indisputably issue a closure order.

Such grounds include the following circumstances:

• if, when registering a partnership as a legal entity. persons there have been violations of current legislation;
• if, as a result of the work of the organization, damage was caused to residents or apartment housing, which in the future cannot be compensated or restored;
• if the content of the constituent documents does not comply with the law or they were approved and adopted in violation.

After the relevant court order, closure is carried out in the general manner prescribed for voluntary liquidation.

So, according to the court order, a liquidator is appointed. All further responsibility for the actions of the organization will fall on the shoulders of the appointed persons.

Bankruptcy of organizations is a fairly common phenomenon in modern society. Unfortunately, this phenomenon affects not only commercial enterprises, but also non-profit organizations like HOAs. It all starts with growing debts and a lack of funds for business activities.

Closing an HOA due to bankruptcy is the same as for any other organization. This procedure is usually initiated by the tax authority. However, the law allows the initiation of bankruptcy by any of the creditors or founders of the organization, including the owner of the property.

The main points of declaring a partnership bankrupt, which distinguish the procedure from the usual one, are as follows:

• homeowners as founders are not responsible for the debts of the partnership, unless otherwise specified by a court order due to the nature of the debt (for the supply of utilities, for home repairs, and so on);
• when a partnership is closed due to bankruptcy, a court manager is not appointed, who must exercise control over the organization’s finances;
• the partnership is not subject to reorganization;
• the partnership is not declared bankrupt when the initiator is the housing inspection, and the HOA has certain money in its operational account;
• the partnership is not declared bankrupt due to tax debts.

Thus, the partnership in this sense is in a more privileged position in comparison with other organizations.

Usually, in the case of bankruptcy of non-profit organizations, the court makes a decision quickly.

After all, there is no point in maintaining the activity of this type of enterprise unless one or more founders, and in this case the residents, oppose it.

The activities of HOAs are regulated by housing and civil legislation. This organization is created on an indefinite basis and can operate until violations are identified or the will of the owners is expressed. We will tell you how the liquidation of an HOA takes place and provide step-by-step instructions for closing it in 2018.

It often happens that a partnership is forced to close. This can happen by voluntary decision of the members or by forced decision of the judiciary. In this article we will consider both situations.

Liquidation of an HOA is a complete cessation of the partnership's activities. It entails full settlement with employees and utility providers, as well as the closure of the personal current account. After liquidation, the owners will have to make a decision on the further management of the common economy.

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To close an HOA there must be substantial grounds. Reasons for liquidation may be as follows:

• the end of the period for which the opening of the HOA was planned;
• achieving the goal for which the partnership was formed;
• violation of legal norms when opening a partnership;
• dissatisfaction with the activities of the HOA among the majority of its members;
• recognition of the reorganization of the HOA as invalid in court;
• recognition of the partnership's actions as illegal in court.

We can say that there are two groups of grounds for terminating the activities of a partnership: forced circumstances and one’s own initiative. If more than half of the owners express a desire to leave the partnership, it is subject to liquidation. In addition, at the general meeting a decision may be made to terminate work and enter into an agreement with the management company.

Forced liquidation is always associated with identified violations. Quite often they become the reason for the initiation of legal proceedings. As a result, the closure of the HOA occurs on the basis of a corresponding court decision.

The initiator of liquidation may be:

• homeowners of an apartment building;
• government bodies that control the work of the partnership;
• judicial authorities.

If the issue of liquidation was not considered at the general meeting or this is impossible, the initiator will have to go to court. There are no other options.

Step-by-step instructions and liquidation features

The process of liquidating an HOA can be divided into two stages – preparation and liquidation. The first stage involves the following algorithm of actions:

1. Definition of initiator.
2. Formation of a list of HOA participants.
3. Filling out a statement of intent to liquidate the partnership. All homeowners who agree with the need for closure must sign it.
4. Submitting the application to the board of the partnership or to the judicial authority involved in the consideration of the case.

The second stage will have the following steps:

1. Making a decision to close the HOA. This may be formalized by a general protocol or a court decision.
2. Formation of a special commission for liquidation of the partnership.
3. Notification of the Federal Tax Service. You will need to fill out an application for making changes to the Unified State Register of Legal Entities.
4. Informing all apartment building owners. This can be done with the help of the media. For example, through a local newspaper.
5. Preparation of interim financial statements to calculate debts to government authorities and public utilities.
6. Paying off debts.
7. Formation of liquidation balance sheet.
8. Sending documentation to the Federal Tax Service for closing the HOA.

A specially created liquidation commission checks how correctly the documents have been prepared, the calculations have been made and whether legal norms have been complied with. In addition, a complete inventory check is carried out and this data is reconciled with the original balance.

Documents

To liquidate an HOA you will need the following documents:

• application for termination of activity - certified by a notary;
• liquidation balance sheet;
• receipt of payment of state duty;
• papers confirming the notification of the Pension Fund of the Russian Federation about the reduction of employees.

In addition, depending on the situation, it is required to provide minutes of the general meeting or a court decision on liquidation.

When a partnership is voluntarily closed, minutes of the general meeting of homeowners in apartment buildings are required. The text of the protocol must contain the following data:

• protocol number;
• address of the meeting;
• date of the meeting;
• list of meeting participants;
• passport details of the chairman;
• agenda;
• quantitative distribution of votes;
• the decision made;
• composition of the special commission;
• terms of liquidation, etc.

Deadlines

The timing of liquidation depends on the specific case. For example, just making a decision to close a partnership in the event of a lawsuit can drag on for several months.

Once the decision has been made and formalized, a special liquidation commission must be appointed within three days. Members of the commission notify all interested parties in the media and indicate that creditors can apply for repayment of the debt within two months.

After this time, a liquidation balance sheet is formed, which must be signed by all owners. Only after this can you submit closure documents. Registration of liquidation is carried out within 5-7 working days.

Thus, we can conclude that the minimum period for completing the procedure is 4 months. If any difficulties arise, it can take up to a year or more.

Liquidation of an HOA with debts

Closing an HOA in the presence of debts occurs in exactly the same way, with the exception that after the announcement of liquidation is published in the media, the organizations to which the partnership owes must present a demand for timely payment.

Transfers of funds will not occur until the liquidation balance sheet is compiled. When transferring payments, the order specified by law will apply.

If the HOA does not have the required amount of money to cover its debts, it is necessary to initiate bankruptcy proceedings. For this purpose, government agencies and a special commission are involved.

Thus, an HOA with debts has only two options - pay off its obligations or declare bankruptcy. The second option is available for partnerships whose debt amount is more than 100 thousand rubles.

Termination of activities by court decision

In order to liquidate an HOA in court, it is necessary to provide facts of violations in the course of the organization’s activities, as well as prove that the inconsistencies committed cannot be corrected.

Quite often, the court issues a ruling to force the HOA to resolve issues with the initiators of the proceedings. If after this the organization does not resolve the problems, the court may issue a ruling to terminate the activities of the HOA.

Forced liquidation is possible in the following cases:

• violation of legal norms during registration;
• making a significant error in the process of conducting business;
• systematic violation of current legislation.

However, in practice, the most common reason for liquidation is the exit of more than half of the total number of owners of an apartment building from the organization. In this case, the initiators can file a collective application with the court and wait for a decision.

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Now you know how the liquidation of an HOA occurs in 2018. The step-by-step instructions provided may vary depending on the situation.

The closure of a partnership is carried out in accordance with the law (Civil Code), it reflects the procedure itself and the existing grounds for liquidation. The decision on this is made by the court or through a meeting of owners of the house in which there is an HOA.

Liquidation can be carried out voluntarily or compulsorily (by a court, government agency under whose jurisdiction the HOA is located.). The court itself appoints a special commission that will deal with liquidation issues and make a decision.

Grounds for liquidation:

• if the process of creating a partnership was carried out in violation of the law;
• if the members of the partnership do not receive 50% of the votes of the total number of votes of the members;
• the court did not recognize the reorganization of the partnership as valid;
• voluntary expression of the will of meeting participants;
• a judgment was made.

To liquidate an HOA, you will need to adhere to the following procedure, the essence of which is:

• creating at the initial stage an active group of apartment owners who are united by solving this issue;
• selection of the most proactive representatives (it is better if they represent each entrance);
• creating a register of members of the partnership, for which you will need to write a corresponding application addressed to;
• after studying the register and identifying those citizens who are also dissatisfied with the functioning of the HOA, writing an application in triplicate to leave the partnership;
• writing an application for liquidation of the HOA.

The procedure itself is described in the video:

Liquidation of an HOA through the court can occur in the event of poor performance or non-fulfillment of the obligations of the partnership by its members. This:

1. The common property is in poor sanitary and technical condition.
2. The house is poorly maintained or not maintained at all.
3. Not carried out on time by members of the partnership.
4. There is an infringement of the rights of residents who are not members of the HOA.

The housing supervision body of state importance or the municipal housing control body must apply to the court and prove the following:

1. In the process of creating the HOA, violations of the law were identified.
2. The law is violated during the work of the partnership; violations are irreparable.
3. The HOA charter does not comply with the law. At the same time, the pre-trial settlement procedure must be observed, i.e. The bodies that control the work of the partnership send an order to the chairman with identified violations, which he must eliminate within six months. If the order is not fulfilled, the body has the right to demand liquidation through the court.

The liquidation procedure through a judicial body is the same as through the owners, the only difference is the appointment of the liquidation commission. The court itself appoints it; it can be a special body or the participants of the partnership themselves (its founders).

If it is impossible to entrust the process to the persons described above, then the court may appoint an individual as a liquidator, but only with his consent at the proposal of the body that filed an application to the arbitration court with a request to liquidate the partnership. The court also sets a deadline within which the liquidation balance sheet must be submitted to the arbitration court; this deadline can be extended.

If there are grounds to liquidate the partnership, then the process takes place in the following stages:

1. A meeting of the partnership participants is convened, where issues of liquidation and the appointment of a commission are decided.
2. The final decision is approved by the protocol. It specifies the composition and terms of work of the commission.
3. The registration authority and the tax service are notified of the decision within 3 days from the date of adoption.
4. The commission issues an announcement in the journal that the HOA will be liquidated. It specifies the time frame when creditors can present their claims (no more than 60 days from the date of printing).
5. The commission seeks out creditors and informs them of the liquidation process in writing.

After 2 months a balance is drawn up, which contains information about common property, what claims are made by creditors and the results of their consideration. It must be signed at the meeting, then all settlements with creditors are made, and the final balance is drawn up and signed at the meeting.

The documentation is submitted to the tax service.

Sample protocol

The protocol is numbered, its name is written - the protocol of the general meeting of homeowners in the building on the liquidation of the HOA. The city, district, region where the HOA is located, the address of the place where the meeting is held, and its time are indicated.

The number of HOA members who were at the meeting is also indicated. The full name and surname of the chairman of the partnership and the secretary of the meeting are entered into the minutes.

What is an audit commission?

The audit commission is of great importance in the work of the partnership. She controls the financial activities of the HOA. The accountant regularly provides information so that the commission works properly.

The commission is elected by the meeting of owners, its period of activity is no more than 2 years. Members of the commission do not have the right to be members of the management of the partnership. Its competence is stated in the legislation and charter, and its work procedure is in the document approved by the meeting.

Checks can be carried out:

1. Based on the results for the whole year.
2. At any time, if the members of the partnership require it at a meeting, or the board of the partnership decides to conduct an inspection.
3. She may also request a special meeting to discuss the results of the work done.

Functions

1. Checking HOA documents on finances and property inventory data.
2. Comparison with primary accounting documents.
3. Checking contracts and settlements with counterparties for legality.
4. Accounting analysis.
5. Checking compliance with the rules and regulations of the financial activities of the HOA.
6. Analysis of the financial situation, ability to make payments, liquidity of the HOA assets.
7. Verification of payments to the state budget on time.
8. Checking reports for the tax authority.
9. Verification of the competence of decisions made by HOA officials, compliance with the Charter and decisions of the partnership meeting.
10. Development of recommendations for the management of the partnership.

The commission reflects the results of the work carried out in its report. It contains sections such as:

1. General provisions - the composition of the commission, the timing of the inspection and all the persons involved in its work.
2. Information about the condition of the property.
3. Checking documents of cash and advance reports.
4. Checking bank documents.
5. Accrual and payment of salary.
6. Admission
7. finance in the form of income.
8. Organization of HOA tariff plan policy.
9. HOA debt.
10. Table with discrepancies between cost and income estimates.
11. Pivot tables.
12. Evaluation of the work of the management bodies of the partnership.
13. Your conclusions and recommendations.

1. Conducting scheduled audits of the HOA’s work throughout the year.
2. Preparation of a conclusion on the draft estimate, amounts of payments and contributions for the year.
3. Consideration of complaints and letters from members of the partnership.
4. Informing about the results of all inspections carried out by the management bodies of the partnership within 10 days after them.
5. Report on your work before the meeting.

The regulations on the commission are developed in accordance with the Housing Legislation and the HOA Charter. It states:

• general provisions governing the activities of the HOA commission;
• goals and objectives of the commission;
• the procedure for electing the chairman and members working in the commission;
• rights with responsibilities;
• the procedure for holding meetings and audits;
• storage of documents;
• notifying the members of the partnership of your decision;
• financial support for the work of the commission.

A sample report can be downloaded.

Thus, the liquidation of the partnership can be done voluntarily by the owners or by a judicial authority. The liquidation procedures in both cases are the same, the only differences are in the appointment of the liquidation commission by members of the HOA or by the court.

The decision to liquidate is made if the creation of the HOA was in violation of the law, the HOA members do not receive 50% of the votes, the HOA does not perform its work as expected, if the majority of the HOA members decided so.

The partnership creates a special audit commission that will check the financial activities of the partnership; it has its own rights and obligations, which it must strictly observe.

Withdrawal from membership of the partnership will not be considered its liquidation; for this you need to have a majority vote of the owners. The entire liquidation process is controlled by a commission, which carries out its work on the basis of the law.

Sometimes residents no longer need to use the HOA, or there are other reasons for this, for example, the lack of the required number of votes to make decisions. It is then that the functioning of the organization is simply impossible. To liquidate an HOA, you need not only their decision, but also step-by-step instructions, a protocol, and a commission. That is why we will learn below about the procedure for liquidating an HOA.

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General concepts of liquidation

In order to liquidate the HOA, owners need to know that there are two ways to do this:

• Decision of a government agency;
• General meeting of owners.

If the liquidation of the HOA takes place by court decision, then it will be necessary to create a special commission that will have step-by-step instructions regarding this issue.

But the main reasons include the following:

• If the organization of the partnership was carried out in violation of the law;
• The restructuring of the partnership was not recognized by the court;
• If the number of votes in the HOA is less than half of the total number of owners according to the protocol;
• The apartment owners themselves made a similar decision to liquidate the HOA;
• The court made a corresponding decision.

How should I proceed?

There is a special minutes of the meeting in which you can find instructions for liquidating the organization.

It includes the following rules:

• A group of owners is created who will represent the rights of others;
• A protocol of all members of the cooperative is prepared, a statement is signed by the chairman;
• Detection of citizens who are not satisfied with the activities of the HOA, and drawing up the corresponding protocol in several copies;
• Signing a liquidation application.

As for the court decision on the need to liquidate the organization, this often happens if it does not fulfill its tasks.

Prerequisites for this may be:

• A detrimental condition;
• Absence or poor maintenance of houses and apartments;
• Failure to make payments on time;
• There is an infringement of the rights of citizens who are not members of the HOA.

When going to court with the question of liquidating an organization, the governing body or commission must prove that the partnership was created in gross violations of the law, the work of the HOA itself was carried out with errors, and the charter of the cooperative was created contrary to the code of the Russian Federation.

But there is an option in which the commission first records violations, sends the protocol to the chairman and gives six months to correct the charter and make changes to it in accordance with the law. If this does not happen, then the case is sent to the court, which gives an order to liquidate the organization. Then the procedure will follow the same scenario as during the liquidation of a partnership by decision of the owners and the general minutes of the meeting. The difference is that for this it is necessary to create a special commission, which will include the organizers of the partnership.

The citizen himself can be the liquidator, but this issue will be decided by the relevant body. Within the deadline set by the court, the general balance sheet of the cooperative must also be drawn up, but in case of failure to comply, these dates may be extended.

If debts exist, liquidation cannot be carried out before the collection has been paid. If there is not enough property or funds, then only the court can declare the HOA bankrupt, and then all the company’s accounts will be closed, and the procedure itself will continue.

Liquidation by decision of the owners

There is an option in which the partnership will be closed by a general meeting of all owners according to the protocol. But for this you need to collect more than half of all votes. Although this will not be possible if the HOA has debts to the state or utility and repair services. Then you must first pay off the debt or liquidate the cooperative with the help of the court.

Then the process will go like this:

• At the general meeting, the issue of closure is decided, the members of the commission are determined;
• A protocol is drawn up indicating the deadlines and members of the commission;
• After at least three days, services such as the tax and registration chamber must be notified of the decision;
• The commission makes an announcement in the magazine that creditors can declare their rights, but this period is no more than three months;
• Drafting a letter for creditors and sending it out.

Over the next two months, a document is drawn up that describes all the enterprise’s real estate, debts, the cooperative’s balance sheet, and the distribution of debts among all creditors. Next, all documentation is transferred to the tax office.

How the protocol is drawn up

An equally important document can be considered a protocol, which is drawn up without fail and has a number of features. It is necessary to indicate not only its number, but also the address of the meeting, the HOA itself and the time of the meeting. The following describes the composition of the owners and members of the community, the name of the chairman. Then you need to indicate on what issue the entire HOA met, the decision to liquidate the organization, the timing, and the composition of the commission. It is important to accurately indicate all those who voted for and against such a decision.

What does the commission look like?

In the process itself, the audit commission, which controls all financial issues, will be of great importance. She is elected from among the members of the partnership and is responsible for controlling finances. It does not take part in the management of the HOA, but is an independent body.

Her work is regulated by special norms of the housing code, therefore, during liquidation, her report on the work performed will be required.

In addition, the commission is obliged to draw up the following documents:

• Annual inspection report;
• Annual payment plans;
• Drawing up a report on complaints from apartment owners;
• Report to all participants on the work done.

Liquidation if there are debts

If the partnership is liquidated with debts, then such a commission must place an advertisement in the journal for creditors and send them letters of notification. After this, the amount of the debt must be included in the liquidation balance sheet, as well as the amount of all assets, so that the timing of repayment of debts can be calculated.

The documents are sent to the tax service, which registers them. As for payments to creditors, they will take place only after the sale of the property.

It is important that after the process is completed, you are issued with the appropriate closure certificate. You also need to keep all documentation about the partnership and its dissolution for at least four years to avoid problems in the future.

This process can be completed quickly and smoothly if you follow clear rules and regulations of the law, otherwise you may end up not only with debts, but also with legal proceedings. If necessary, use the advice of professionals and lawyers who can resolve the problems that arise with minimal damage to you.

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