Follow-up to Condo Crunch – Matters That Require Owner Involvement

Because the Board is responsible to fulfill the obligations of the condominium corporation, most decisions in a condominium are made by the Board. However, various matters – particularly changes – require owner involvement. Here’s a non-comprehensive list of some key matters that require owner involvement. [The section numbers of course refer to the Condominium Act, 1998.]

Some Matters that require owner involvement

• Election of Board (s. 28) [A change in the Board.]
• Removal of Board Members by majority vote (s.33)
  
  [Note that a “majority vote” means more than half.
  And this is not necessarily the same as 51%, and it is not necessarily the same as 50% + 1.
  
  FOR INSTANCE:
  In a 199-unit condominium:
  51% requires 102 yes votes
  50% + 1 requires 101 yes votes
  But a majority requires 100.]

• 80% or 90% written consents required for an amendment (a change) to the Declaration (s. 107)
• Majority vote required for passing a by-law (a by-law change) (s. 56)
• Ordinary vote may be required to pass a rule (a rule change) (s. 58)
  [There are in fact two ways to pass a Rule: 

1. An ordinary vote.  OR
2. 30-day notice to owners with an opportunity to requisition a meeting (with support of the owners of 15% of the units); and if the meeting is requisitioned, the decision (on whether or not to pass the rule) is made by an ordinary vote; and if no meeting is requisitioned, the rule becomes effective at the end of the 30-day period.]

• What is an ordinary vote?
  
  [Definition of “ordinary vote” – s. 53]  A majority of the votes cast (provided you have a quorum).
  
  SO:   Suppose you have a 100-unit condominium.
  You have quorum if you have 25 units represented in person or by proxy at the meeting.  
  Then, when you call the vote on a motion (for instance a motion to pass a Rule): Suppose the votes are:
  2 in favour
  1 opposed
  Everyone else abstains.
  The motion is carried by a majority of the votes cast.]

• 2/3 vote required to approve substantial changes to common elements, assets of the corporation or services provided by the corporation to the owners (s. 97)
• Ordinary vote may be required to approve non-substantial changes to common elements, assets of the corporation or services provided by the corporation to owners (s. 97)  [Essentially the same two options as for passing a Rule.]
• Appointment or removal of the Auditor (by ordinary vote) (ss. 60-64)

Some further notes:

• Owners have the right to examine (or receive copies of) records of the Corporation, subject to certain limits (s. 55)
• Owners may raise any matter relevant to the affairs of the corporation for discussion at an AGM (s. 45(3))
  
  [This is limited to matters that are relevant to the affairs of the corporation as a whole… which in my view generally does not include unique concerns of the particular owner.   For instance: If an owner asks: “When are you going to fix my Door?”, I think the AGM chair can say: “We’ll deal with that issue outside the meeting.”]

• Owners are also entitled to receive Information Certificates (s. 26.3)
• Owners are also entitled to receive various notices, including Notices (and Pre-Notices) of Meeting, Notices of most Court proceedings started by the condominium corporation, Notices of Planning applications received by the corporation, etc.

So again:  Owners have lots of involvement in the decisions of the corporation – but mostly in relation to changes.

Of course this doesn’t mean that you don’t keep owners informed about the Board’s decision-making. Robust communication is almost always a great idea (subject always to concerns for confidentiality and/or privacy where the circumstances require).

Stay tuned to Condo Law News to keep up to date on the latest developments on condominium law!