Showing posts with label Annual General Meeting (AGM). Show all posts
Showing posts with label Annual General Meeting (AGM). Show all posts

Sunday, January 31, 2010

Election of Condo Directors

Condo directors are elected at a meeting of owners, usually the Annual General Meeting (AGM). (Under certain circumstances, directors may be appointed instead of elected, which we will explore more on this in a future article.)


Anyone who meets the qualifications of being a director and is interested in running for a position on the Board of Director is a candidate.


The Condominium Act [Note 1] says that when someone notifies the Board (yes, the Board, but may be via the Management Office) in writing of his/her such intention, his/her name and address (yes, address, too) should be included in the AGM package. Since it takes time to prepare the AGM package, the deadline for the notification should be at least four days before the AGM package is sent.


The Act does not stipulate that this the only way for people to announce their candidacy. As long as the by-laws do not restrict, interested people can still send in their intention after the deadline, only that their intentions are not made known via the AGM package. Also, at the AGM (or meeting of owners), people can also nominate themselves or other people to be candidates.


At the AGM (or meeting of owners), owners – and only owners – may cast votes for any directors. For example, if there are two vacancies in the Board, each owner may vote for two candidates; they may also vote for just one candidate.


An owner may cast his/her vote by ballots in person at the meeting, or by signed proxy.


Like any federal, provincial, or municipal elections in Canada, the candidate who gets the most number of votes wins – this number does not have to be majority, i.e., more than 50%.


In a Canadian election candidates always win by plurality, not by majority. That is, it only matters who has the most number of votes, it does not matter whether this number is more than 50% of the votes. This also applies to election of condominium corporation directors.


Again, like any federal, provincial, or municipal elections in Canada, an owner can either vote for a certain candidate, or not vote for this candidate. An owner cannot vote against a particular candidate if he/she does not like this candidate – there is no negative vote.


When there is only one candidate for a vacant position, the candidate will be elected by acclamation.


Let's look at the following scenario:
Assuming that there is only one candidate for a certain vacant position, but every voter hates this person and does not want him/her to be elected, and so no one has voted for this candidate. Since no one can vote against him/her, this candidate only needs to cast his/her vote for himself/herself. He/She then receives the most number of votes (i.e., one vote), and he/she will then be duly elected.


This is the rationale behind "elected by acclamation". There are some subtle gotcha in this "elected by acclamation", which we shall return in a future article.



[Note 1] Condominium Act 1998, Section 28, Subsection 2:
The notice of a meeting to elect one or more directors shall include the name and address of each individual who has notified the board in writing of the intention to be a candidate in the election as of the fourth day before the notice is sent.




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Monday, December 21, 2009

What the Condominium Act Allows or Disallows

As mentioned in a previous article, the Condominium Act 1998 and its Regulations govern all condominium corporations in Ontario.


And the Declaration and Description of each condominium govern each individual condominium. Below that, the By-laws and Rules of each condominium also govern each individual condominium.


The hierarchy of authority is: the Condominium Act and its Regulations over-rules the Declaration and Description; the Declaration and Description over-rules the By-Laws, and the By-laws over-rules the Rules.


Must Do:
The Act sometimes dictates what a condominium corporation (its directors and/or officers) must do.


Example: a condominium corporation, after conducting a reserve fund study, is required to send a notice to the owners as stated in the Act [Note 1].


But what kind of information should the notice contain? In what format should the notice be?


The pertinent Regulation further clarifies and stipulates that the notice that the board is required to send shall be in Form 15 [Note 2]. The regulation also provides a sample copy of Form 15 [Note 3].


Legalese speaks: When the law says "shall", you may take it to mean "has to", so "shall be" is equivalent to "has to be", "shall have" means "has to have".


Optional:
The Act sometimes provides something optional that a condominium corporation (its directors and/or officers) may choose to do or not to do.


Example: the proxy used to vote at a meeting of owners may be in the prescribed form [Note 4].


The legalese speaks: "may be" simply means "optional", even though the regulation also provides a sample copy of a proxy as Form 8 and Form 9 [Note 5].


Must Do with Flexibilities:
The Act sometimes dictates what a condominium corporation (its directors and/or officers) must do, but a condominium corporation may do it in other manner if certain conditions are met. This gives some flexibilities for its board of directors and its officers some flexibilities how things are run.


Example: The Act says that when a meeting of directors is called, all directors have to be given a written notice at least 10 days before the day of the meeting, unless there is a by-law that specifies otherwise [Note 6].


This means that if there is a by-law stating that the notice can be given with at least 24-hour notice, then that’s fine. Otherwise, if someone (such as the property manager) sends out a notice to all members of the board about a meeting to be held three days later, this will violate the Act.


The By-law No. 1 of TSCC 1446 (880 Grandview Way) paragraph 5.10 allows a meeting of Board of Directors to be called by giving at least 48-hour written notice, excluding Saturdays, Sundays and statutory holidays.



[Note 1] The Condominium Act 1998, Section 94, Subsection (9)(a): "Within 15 days of proposing a plan, the board shall send to the owners a notice containing a summary of the study, a summary of the proposed plan and a statement indicating the areas, if any, in which the proposed plan differs from the study."


[Note 2] Ontario Regulation 48/01 section 33, Subsection (3): The notice that the board is required to send under subsection 94 (9) of the Act shall be in Form 15.


[Note 3] A sample copy of Form 15 is provided in the regulations. Click here to see it.


[Note 4] The Condominium Act 1998, section 52, Subsection (6): An instrument appointing a proxy may be in the prescribed form.


[Note 5] Form 8 is a sample copy of a proxy for general matters (click here to see it), and Form 9 is a sample copy of a proxy for general matters and for the election of directors (click here to see it). Many condominiums use Form 9 at their AGM (Annual General Meeting) as it is usually when directors are being elected.


[Note 6] The Condominium Act 1998, section 35, Subsection (2): The person calling a meeting of directors shall give a written notice of the meeting to every director of the corporation at least 10 days before the day of the meeting, unless the by-laws specify otherwise.





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