All units in a condo have owners. Some owners live in their units; some rent out their units.
Let’s face it, renters are less likely to take good care of the rental units or the common elements. I am not saying that they won't, but they are just less likely. Hence, the more rental units a condo has, the more likely that the faster the common elements become run-down.
In order to protect the interests of the owners who actually live in their units, the Condominium Act 1998 tries to protect the interest of these owners who occupy their units by creating a “reserved position” on the Board of Directors of the condominium corporation.
The Act stipulates that if 15% or more of the units in a condo are occupied by owners (“owner-occupied units”), a position on the Board of Directors is reserved (the “reserved position”) to be voted only by owners of owner-occupied units. [1]
What a mouthful! “Owners of owner-occupied units” in plain English means “owners who live in their units.” In other words, the director who takes up this “owner-occupied position” can only be elected or removed by owners of owner-occupied units.
Some condo by-laws (such as those in the Grandview Way residential complex) refer to this “owner-occupied position” as “owner-occupied director.”
A common misunderstanding (even among some property managers) is that this owner-occupied position can only be filled by owners of owner-occupied units. This is incorrect. The Act does not stipulate that. Unless the by-laws of the condominium corporations restrict that (but rarely the case), the qualifications for the person who take this “owner-occupied position” is no different from any other persons taking up any non-owner-occupied positions.
Click here to read about the qualifications for being a director.
[Note 1] Condominium Act 1998 Section 51, subsection (6):
If at least 15 per cent of the units of the corporation are owner-occupied units on or after the time at which the board is required to call a turn-over meeting under section 43, no persons other than the owners of owner-occupied units may elect a person to or remove a person from one of the positions on the board.
Got comments?
Write your comments below,
or send your comments to Condominium.Owner@gmail.com
No comments:
Post a Comment