Approving the condominium financial report at the meeting

Once the condominium manager has drafted the financial report in the three parts required by Article 1130-bis, it produces no effect until the owners' meeting approves it. Approval is the resolution by which the owners adopt the year's accounts, allocate the expenses according to the thousandths (millesimi) and release the manager from that year's management. It normally takes place at the annual ordinary meeting and requires the quorums set by Article 1136 of the Italian Civil Code. Here is how the procedure works.

Who drafts and who approves

It is the condominium manager who drafts the report and calls the meeting to approve it. The notice must reach all those entitled within the legal deadlines and set out the agenda, including approval of the year's report. The report must be presented within a reasonable time of the closing of the management: the law entrusts the manager with drafting it annually, and an unjustified delay in submitting it to the meeting can amount to an irregularity in the management.

Documents to make available before the meeting

For approval to be valid, the owners must be able to examine the documentation before the meeting. The complete report, the accounting register, the explanatory note and the supporting documents must be made available. Denying or restricting access to these documents in the phase preceding the meeting affects the validity of the resolution, because it deprives the owner of the control opportunity the law grants.

• Accounting register with the year's movements.
• Financial summary or statement of financial position.
• Explanatory note on the management.
• Invoices, receipts and bank statements supporting the entries.
• Statement allocating the expenses among the owners.

The Article 1136 quorums

Approval of the report follows the ordinary majorities of Article 1136 of the Italian Civil Code. At the first call the resolution is valid if approved by a majority of those attending representing at least half of the building's value. At the second call the meeting is validly constituted with the attendance of owners representing at least one third of the building's value and one third of the participants, and the resolution is valid if approved by a majority of those attending with a number of votes representing at least one third of the building's value.

The double criterion: heads and thousandths

Condominium majorities always combine two elements: the number of people present, that is the heads, and the ownership thousandths (millesimi). Approving the report therefore requires reaching both a majority of those attending and a minimum threshold of thousandth value. This double criterion prevents a few owners holding large shares from imposing the decision against the numerical majority, and at the same time prevents many small owners from deciding without regard to ownership weight.

What happens if the report is not approved

It may happen that the meeting does not reach the quorum or rejects the report. In that case the accounts remain pending: the manager must revise the document, clarify the contested entries and resubmit it at a new meeting. Non-approval does not, however, halt ordinary management, which continues to ensure essential services. If the deadlock persists due to irregularities attributable to the manager, the owners may consider the remedies provided by law, up to revoking the appointment.

Challenging the approval resolution

An absent, dissenting or abstaining owner who believes the resolution is contrary to law or to the condominium regulation may challenge it before the judicial authority within thirty days, as provided by Article 1137 of the Italian Civil Code. The term runs from the date of the resolution for those present and from the communication of the minutes for those absent. The challenge does not automatically suspend execution of the resolution, unless suspension is ordered by the judge.

Managing approval with software

Bringing an orderly, documented report to the meeting reduces disputes and speeds up the vote. Management software prepares the complete report, calculates the thousandth allocation, records the quorums reached in the minutes and makes the documentation available to owners in the reserved area before the meeting, so everyone arrives informed at the vote.

AmministraPro generates the report, calculates the thousandth allocation and shares the documents with owners in advance, supporting a transparent and challenge-proof approval. You can see how it works on the features page or compare the plans in the pricing section.