Condo Act Revisions
Hot on the heels of the terrific Association of Condominium Managers of Ontario/Canadian Condominium Institute (ACMO/CCI) conference that was held on Friday, May 30, 2014, the provincial election is less than a week away. The hot topic for the condominium industry at both events is the proposed revision of the Condominium Act, 1998 (the ‘Condo Act’).
As most of our readers are aware, while our Condo Act is only just over a decade old, due to the booming success of condominiums in Ontario, there are numerous suggested revisions to the legislation to keep up with this changing industry and community.
One issue that is being considered as part of the revision process is the required quorum for holding a meeting of owners. At present, the minimum required quorum for holding a meeting of owners is 25% of the owners of all units present in person or by proxy. [Each corporation can, if desired, increase the quorum by passing a by-law.]
There is some suggestion that the minimum quorum requirement may be dropped below the 25%, perhaps even as low as 15% of the owners of all units.
This possible revision is strongly supported by some regions in Ontario, and strongly contested in others. Where some regions have great difficulty getting sufficient attendance at AGM’s, other regions do not face the same difficulty, and feel that reducing the minimum requirement will result in more disputes about the decision making process.
Whether or not the minimum quorum will be reduced as part of the revision process, I anticipate that the option will remain to increase quorum requirements by way of a by-law.