As you probably know, the declared emergency in Ontario came to an end on July 24, 2020, with the enactment of Bill 195. I’ve received several emails and calls today from clients looking for advice on what Bill 195 means for condominiums. The most significant concern seems to be the requirement for holding AGMs and the temporary extensions for holding AGMs that were provided for in Bill 190. Today I’ll answer a few of the most common questions. Continue reading
I am hearing reports that many condominiums are postponing their annual general meetings (“AGMs”) due to COVID-19 instead of using virtual means to hold them. Some condominiums are also avoiding decisions that could result in a requisition by owners, such as making changes to the common elements, assets, or services under Section 97 of the Condominium Act, 1998 (the “Act”), or creating, amending or repealing rules under Section 58. Many appear reluctant to use virtual meetings and electronic voting for a variety of reasons, but the primary concerns appear to be about the security of virtual meetings, the inability of owners to use the technology, and the associated costs.
Last week I participated in my first virtual requisition meeting to remove two directors from the board of directors of a condominium. I have participated in other types of virtual owners’ meetings, but this was the first requisition meeting so I was not sure if it would work as well. Today I thought I would discuss my experience. Continue reading
One of the busiest times of year for annual general meetings (“AGMs”) normally begins in mid-April and lasts until the end of June. This period of time is normally when condominiums with December 31 year-ends hold their AGMs. Unfortunately, many condominiums have been unable to hold their AGMs due to COVID-19. Often the directors felt like they were being forced to decide which way they wanted to contravene the Act: hold the AGM using virtual meetings even though the condominium did not have a by-law permitting virtual meetings, or postpone the AGM and contravene the requirement to hold the meeting within six months of the fiscal year end. Not an ideal situation.
Fortunately, on Friday April 24, 2020, the Ontario government issued an Order to provide some temporary relief to condominiums struggling to make these tough decisions. The Order makes various amendments to the Condominium Act, 1998, with respect to meetings of the owners and of the board to make it easier to hold virtual meetings. A copy of the order can be found here: https://files.ontario.ca/solgen-oic-meetings-for-corporations.pdf Continue reading
At most condo meetings voting for procedural matters, such as to approve the minutes or adjourn the meeting, is typically done by show of hands. Other matters, such as voting on by-laws or rule changes, substantial changes to the common elements, or the election or removal of directors, are done by ballot and proxy. Does it always have to be this way? Can a show of hands be used for an election? What about a vote on a new by-law? Continue reading