Condominium Boards: Reviewing Your By-Laws is Vital to Running Your Condominium Effectively

Condominiums have registered by-law(s) setting out important corporate governance matters, including:

  1. Directors and officers: elections and appointment, qualifications, length of terms of office, the number of directors and officers, etc.
  2. Board meetings: quorum, voting, etc.
  3. Borrowing money for the corporation
  4. Assessing and collecting common expenses
  5. Standard unit definitions and insurance deductible responsibilities
  6. Maintenance and management of the property and corporation’s assets

and the list goes on.

But does the Board of Directors truly need to read these by-laws? YES!

By-laws are not documents of legal jargon that can be filed away – by-laws contain important information with an ongoing impact on the condominium. The by-laws must be followed in order to run the condominium effectively.

For example, how many directors are you required to have on your Board at any given time? If your by-law requires at least 5 directors, but you only have2, then your Board has not met its quorum requirements and cannot properly carry out Board business.

Understanding your by-laws is also important when sending information to owners, such as a Notice of Meeting. If you are electing directors at your next Annual General Meeting, you should always review your by-laws before stating in the Notice of Meeting the number of director positions up for election and the length of the terms of each director position. The by-laws may also prohibit nominations from the floor, which the owners should be told of in advance of the meeting.

During the COVID-19 pandemic, many condominiums have started holding electronic meetings, which may include electronic voting. As condominiums have been forced to adopt electronic methods, they are realizing these new methods can be highly effective and would like to continue in this manner after the pandemic ends.

Before passing a new by-law to permit electronic meetings and voting, we recommend reviewing your current by-law(s) to see if electronic meetings and voting are already permitted, and to ensure compliance with the by-law’s terms. If your current by-law(s) do not meet your condominium’s needs, they can be amended.

If reviewing your by-laws seems like a daunting task, we would be happy to assist you to ensure your condominium is operating as effectively, efficiently, and happily as possible.

WARNING! At Capacity for 2020

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This post will be a short one. I wanted to let people know that many of the companies offering virtual condominium hosting services are almost booked for the remainder of 2020 for hosted events (i.e. with moderators). Some of the providers have other options available (i.e. online proxies, electronic voting only, no moderator), but you’ll want to reach out to your providers ASAP if you are looking for a full package. There may be capacity issues for some of the alternatives as well, so it is best to get your AGM scheduled ASAP if you haven’t done so yet. Continue reading

End of the Declared Emergency: Your Most Common Condo AGM Questions Answered

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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

Virtual Requisition Meetings

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Photo by Andrea Piacquadio on Pexels.com

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

Latest Order Allows Virtual Condo Meetings

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Photo by cottonbro on Pexels.com

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

Voting by show of hands

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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