“In quite a few housing companies, operations continue year after year based on rules written decades ago. As long as daily life runs smoothly and the atmosphere remains harmonious, these old practices suffice.
Problems arise when there is a turnover of shareholders or a major renovation is required. Verbal agreements are forgotten, and ambiguous articles of association become a burden for the board. Lacking a solid foundation to rely on, the board begins to postpone decisions.
Updating the articles of association to reflect current standards is a simple way to ensure smooth decision-making and prevent disagreements among shareholders.”