Summary of Draft Regulations under the Condominium Act, 1998 -Required Disclosure by Directors and Candidates
As we noted in a previous blog, the province has published the Proposed Regulations and a Summary of the first phase of the proposed new Regulations under the Condominium Act, 1998, as amended (“The Amended Act”). This is the third in a series of blogs that we will be preparing in relation to the proposed changes.
In this Blog No. 3, I explore what the Summary has to say about Required Disclosure by Condominium Directors and Candidates.
Section 29 of the Amended Act says that a person cannot be a condominium director if he or she has not complied with “prescribed disclosure obligations”. The Summary provides a list of information that (according to the draft Regulations) must be disclosed.
What must be disclosed? Here’s the LIST:
- The disclosure obligations do not apply to director candidates before turnover.
- The disclosure obligations that apply to all other director candidates are noted with a (1).
- The disclosure obligations that apply to directors after turnover are noted with a (2).
- The disclosure obligations that apply to directors before turnover are noted with a (3).
Legal Proceedings Involving the Corporation
(1) If the candidate is a party to any active legal proceeding to which the condominium corporation is a party, this must be disclosed along with a general description of the proceeding.
(1)(2) If the candidate’s / director’s spouse, child or parent, or spouse’s child or parent is a party to any active legal proceeding to which the condominium corporation is a party, this must be disclosed along with a general description of the proceeding.
Convictions under Condominium Act or Regulations
(1)(2)(3) If the candidate / director has been convicted of an offence under the Condominium Act or Regulations in the past 10 years, this must be disclosed.
Interests in Contracts or Transactions
(1) (2) If the candidate / director has an interest in a contract or transaction (other than as a purchaser, mortgagee or owner/occupier of a unit) to which the condominium corporation is also a party, or to which the developer (or a developer affiliate) is also a party, this must be disclosed along with certain details of the contract or transaction.
Arrears over 60 days
(1) If the candidate is a unit owner and his or her common expenses are in arrears for sixty days or more, this must be disclosed.
Additional disclosure obligations can be set out in the corporation’s by-laws.
In summary, directors and candidates will have new disclosure obligations; but in most cases, there will be nothing to disclose. As long as the director / candidate (a) is not 60 days in arrears, (b) has not been convicted of an offence under the Act or Regulations, (c) is not involved in any legal proceedings with the corporation and (d) is not (and his or her family is not) involved in any special contracts or transactions with the corporation or the developer, there will be nothing to disclose.
These new disclosure requirements are expected to come into force on July 1, 2017. Directors would have to make any required disclosure on that date.
In terms of candidates, the disclosure requirements would apply to any election held at least 40 days after the amended Section 29 of the Condominium Act comes into force (and provided the meeting notice is also delivered after Section 29 comes into force).
Finally, the Summary describes different disclosure methods and timing for candidates, depending upon the election or appointment procedure that is being followed in the particular case.
Stay tuned for our next blog in this series which will review what the Summary has to say about Changes to Meetings and Voting.