WILLEMSTAD – The Court of First Instance of Curaçao has ruled that homeowners at Coral Estate have the right to convene an Extraordinary General Meeting (EGM) when the board of their association is unable to function, following a prolonged internal governance dispute.
The case stems from ongoing disagreements within the Coral Estate homeowners’ association over governance and transparency toward members. According to information presented in court, these tensions escalated over time, ultimately leading to a divided board that became increasingly ineffective.
The situation worsened after the board was reduced to four members, creating a structural deadlock. Multiple board meetings failed due to the lack of a quorum, leaving the association unable to take key decisions, including the approval of the 2026 budget, financial oversight, and long-term planning.
In response, a group of homeowners invoked provisions in the association’s statutes that allow members to request and organize their own Extraordinary General Meeting when the board is unable to operate. The legality of this move was challenged, bringing the matter before the court.
In its ruling, the court confirmed that homeowners do indeed have the right to convene such a meeting under these circumstances. The judge emphasized that this statutory mechanism exists precisely to prevent governance paralysis and to ensure that the association can continue to function when its board is effectively blocked.
The ruling is seen as a significant development for Coral Estate, where the governance impasse had raised concerns among residents about the management and future direction of the community.
Legal experts note that the decision could also have broader implications for other homeowners’ associations in Curaçao, particularly in situations where internal conflicts hinder normal decision-making processes.
By affirming the rights of members to act when a board is deadlocked, the court has reinforced the principle that accountability and continuity within associations must be preserved, even in times of internal division.