Forms for Ongoing Disclosure by Directors

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A lot has been written about the obligation of candidates to disclose information and make certain statements prior to their election or appointment to the board of directors. The Act requires candidates to satisfy the disclosure obligations prior to their election to be qualified as directors (see section 29(1)(f) of the Act). Whether the disclosure may be made orally at the meeting or in writing depends upon a number of factors, including when the person notified the condominium of their intention to be a candidate and the condominium’s by-laws. There is no prescribed form for making the required statements in writing, but many law firms and management companies have created forms for candidates to complete prior to the election. The requirements for candidate disclosures are described in section 11.6 of O.Reg. 48/01.  Continue reading

Directors may disqualify another director without a vote of the owners

You may recall a case from last summer where a board of directors disqualified one of the directors for violating the condominium’s by-law, which included a Code of Ethics. The lower Court found that the condominium’s by-law permitted the board to disqualify the director. Although the Judge found that the disqualified director had not been given proper notice of the review by the board prior to his disqualification, the Judge was not prepared to order the board to re-instate him since the vacancy created by his disqualification had been filled. Instead, the Judge ordered that the board was at liberty to conduct a fresh ethics review within 90 days, failing which the disqualified director could move for re-instatement to the board.

The board conducted a fresh review and concluded that the disqualified director had violated the Code of Ethics and was still disqualified. The disqualified director appealed to the Court of Appeal. He argued that the by-law permitting the board to determine if he had violated the Code of Ethics was inconsistent with the Condominium Act, 1998, and unreasonable. He also argued that the Judge erred by not re-instating him.

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