Naughty naughty EC. The gall of some people is gobsmacking.
A couple of things you might want to consider:
– if you overturn the EC’s decision (which I believe would be the right thing to do) then the management company may have the right under the contract to be paid out a sum of money, this will vary depending on the contract, but that is how those contracts usually work. The amount can be quite substantial.
– however, if the management company was aware that the OC had determined not to appoint it, and it may well have been, then its case is weaker. That is, if it entered into the contract knowing that the OC didn’t want to appoint it, then at one level it was party to the misfeasance of the EC and would find it difficult to argue it was entitled to anything.
– similarly, if the OC did have to pay the management company out in the event of termination/rescission of the contract, it is possible that the OC could hold the EC members liable for that payment, because they overrode the wishes of the OC determined at the GM. In such a case I am not so sure they would be covered by insurance, because from the facts they acted in bad faith. That would certainly give the EC members something to mull over. Query also whether you could seek recompense from the strata manager if he was a party to it.
None of the above is legal advice.
I agree with Whale, tweaking the tender is not going to cut it if the substance of the decision is the same, i.e. appointing the building manager.
I would go further and limit the EC’s decisions over a range of matters, including the amount of money they can spend, if you can’t trust them.