Following months of back-and-forth accusations, as well as many meetings and negotiations, the Embassy Students Association (ESA) conflict with the Federation of Students has finally concluded with the ESA’s official dissolution as a Federation of Students club.
The ESA was officially dissolved as a Feds club as of April 6, 2005, after rejecting an Internal Administration Committee (IAC) proposal and debt repayment plan. The Federation of Students and the University of Waterloo claim that the ESA owe the University $6,000 in facility rental fees. The ESA maintains the debt to be illegitimate and has stated that they will take legal action against the University of Waterloo to have the debt nullified.
According to Council Procedure 3 Subsection G, Part 7:
Federation of Students’ clubs will not be permitted to operate in debt. Any club having a deficit in its account will be dissolved unless it proves to the Internal Administration Committee that it has a viable plan to return to financial solvency in a reasonable time frame. The onus falls on the club to demonstrate this ability to the Internal Administration Committee.
The motion dissolving the ESA also contained a clause stating that:
Should the Embassy Students Association receive a binding legal judgment which nullifies their debt to the University of Waterloo, and the University formally decides not to pursue other legal avenues, the IAC will reinstate the club status of the Embassy Students Association. The club will be re-established with the same standing and with the same IAC limitations that were in effect on March 24, 2005.
http://old.uwstudent.org/article.php?story=20050419165302767