Draft Reg#2 – Part 2

feedback

 

The second draft regulation also describes the mandatory disclosure and training requirements for condominium directors. These changes came about because of perceived problems with widespread mismanagement, deceit, or fraud. Fortunately, these problems are less common than portrayed. Nonetheless, these changes should help protect condominium owners.

Mandatory Disclosures 

The disclosure requirements start even before a person becomes a director. Candidates must disclose certain information at the meeting where the election is taking place if they did not disclose it before in the candidates notice. 

Candidates must disclose if they: (or their spouse, child, parent or other family members) are a party to a legal proceeding involving the condominium; have been convicted of an offence under the Act or regulations within the past 10 years; have an interest in a contract or transaction involving the condominium; are in arrears for 60 days or more; and anything else the by-laws require.

The regulations also describe disclosure obligations for elected or appointed directors. The disclosure obligations are similar to those of candidates (set out above). If the director is elected or appointed to the first board after registration of the condominium, the director must only disclose if he has been convicted of an offence under the Act or regulations within the last ten years, unless the by-laws require other information to be disclosed.

According to the amendments to the Act, the failure to meet the disclosure requirements disqualifies a person from being a director.

This portion is planned to come into force on July 1, 2017.

Training for Directors

The regulations will require all directors to complete training within 6 months of being elected or appointed if they are elected or appointed after the provisions come into force.  For directors already in office when the provisions come into force, they will only be required to take training if they are re-elected or appointed after the provisions come into force. If a director is re-elected or appointed again in the future, he must retake the training if he has not completed it within the previous seven years. Directors on the first board are exempt from the training requirement.

Within 15 days of receiving evidence of completion of the training, the director must send the evidence to the condominium. Directors will have the right to be reimbursed by their condominiums for the costs of training.

This portion will also come into force on July 1, 2017.