NOTE: All references to Section numbers refer to sections in The Condominium Act (SM 2011, c. 30, Sch. A).
What is the mandate of the condominium corporation?
It has the authority to manage the property and common assets on behalf of the unit owners (in keeping with The Condominium Act).
What is the duty (responsibility) of the condominium corporation?
Its duty is to control, manage and oversee the corporation’s common elements and common assets.
Can the condominium corporation enter into agreements?
Yes. It can enter into any agreement in order to carry out its mandate or fulfil a duty. Examples of agreements include:
Section 85(3), 87
The condominium corporation has the power to buy, sell, mortgage or otherwise deal with real property (ex: land, buildings) and with personal property (ex: vehicles, tools, supplies). However, it can do so only to carry out the corporation’s mandate or to fulfil a duty. Certain dealings with real property can be done only with the written consent of unit owners.
Section 88(1), 88(2)
What controls are there on the way the condominium corporation is governed (run)?
The board must govern the condominium corporation as required by The Condominium Act and regulations, and the condominium corporation’s declaration and by-laws.
What is the board of directors?
It is a group of elected unit owners responsible for exercising the powers, and carrying out the duties, of the condominium corporation. Duties include setting and collecting contributions from unit owners for common expenses, hiring contractors, paying the corporation’s bills and managing the reserve fund.
Who serves on the board of directors?
Unit owners are elected to serve on the board. The first board of directors is elected at the turn-over meeting held after the declarant (see Declarant and Declarant’s Board for more information) has sold a majority of the units.
For more information on general meetings, see below.
Section 94(1), 95
Who can be elected as a director?
Unless the condominium corporation’s by-laws say otherwise:
Section 96 and 97
What are the duties of the board’s directors and officers when handling corporation business?
Each director and officer (ex. chairperson, secretary, treasurer) must:
NOTE: Directors and officers must notify the board, in writing, about any conflicts of interest they may have.
Section 94(2), 105(1), 106 to 107
What is a quorum?
A quorum is the minimum number of people who must be at a meeting to conduct business. A quorum of the board of directors is a majority of the directors. When deciding if there is a quorum, vacant director positions are included in the total number of directors.
Section 100, 102(1)
How are vacant positions on the board filled?
If there is a vacancy, the remaining board members (as long as they make up a quorum) may appoint any qualified person to be a director. This person will fill that position until the next general meeting, when the unit owners must elect a director to fill the vacancy.
The board may also vote to reduce the number of directors. However, the number of directors can’t be fewer than what is required by the declaration or by-laws.
Section 102(2), 102(3)
If a vacancy on the board means there can no longer be a quorum, the remaining board members must call a general meeting of unit owners to fill all vacant positions. This general meeting must be called within 30 days after the quorum is lost.
Need more information?
For more information on condominium corporations and boards of directors, see:
When does the board of the condominium corporation need to hold an annual general meeting (AGM)?
The board must hold an annual general meeting within six months after the end of each fiscal (financial) year. The meeting may be cancelled only if all unit owners who can vote:
What happens at an annual general meeting?
The unit owners elect new directors to the board. Unit owners may vote only if they are at the meeting, or have chosen a proxy (a person to represent them at the meeting). Directors are elected to the board for one-year terms (unless the by-laws say otherwise).
The unit owners must also appoint an auditor at each AGM, including the first one. The auditor must be:
The auditor will report to the unit owners on the corporation’s annual financial statements.
Note: If a condominium corporation has fewer than 10 units, it does not have to appoint an auditor – as long as all unit owners agree, in writing, to do without an audit until the next AGM.
Section 73, 156, Condominium Regulation Section 33(1)The following people may not be appointed as the auditor:
Section 156(2), 158
Condominium Regulation Section 33(2)
At the annual general meeting (AGM), unit owners have the right to raise any matter for discussion, if the matter is relevant to the business of the condominium corporation. However, only routine matters may be voted on, unless the matter was included in the notice for the meeting.
Section 112, 124(1)
The board of the condominium corporation must review whether the corporation has enough insurance coverage and then report on the coverage at each AGM.
At least once a year at a general meeting of unit owners, such as the AGM, the board must report to the unit owners on the amount in the reserve fund and review the most recent reserve fund study or update.
Can special general meetings be called?
Yes. The board may call a special general meeting at any time to deal with any business, such as passing a resolution.
A unit owner may request a special general meeting by giving the board a written request that has been signed by unit owners who own at least 25 per cent of the units. The written request must include:
Section 113(1), 114(1), 114(3)
When a board receives a written request for a special general meeting, it must either:
If the board receives a written request, but does not call a special general meeting, the unit owner who signed the request for the meeting may call one. In this case, the special general meeting is to be held within 45 days after the day the unit owner called it.
The unit owner who called the special general meeting may ask the condominium corporation to pay for any reasonable meeting costs.
What kind of notice must be given for a general meeting?
Unit owners must receive notice of each general meeting. The notice must:
How much notice must unit owners receive for a general meeting?
If the written consent of the unit owners will be required, notice must be given at least 30 days before the meeting date. If written consent is not required, the condominium corporation’s by-laws may allow for a shorter notice period.
Section 116(2), 116(3)
What types of matters require written consent of unit owners at a general meeting?
Examples include proposals to:
Notice of the meeting must be given, within the required time, to:
Can the condominium corporation decide not to hold a general meeting?
Yes. If all unit owners agree, in writing, before the date an annual general meeting is required, the meeting does not have to be held. However, the unit owners must agree in writing to any resolutions that:
If all unit owners entitled to vote waive the requirement to hold a special general meeting, and give their written consent to any resolution proposed, the meeting may be cancelled.
Does a unit owner need to attend a general meeting in person?
Not necessarily. A unit owner may attend a general meeting by teleconference or video-conference, if allowed by the condominium corporation’s by-laws. In this case, the unit owner is considered to be present at the general meeting.
Section 119(1), 119(2)
Or, a unit owner may appoint a proxy to act on his or her behalf. A proxy can do anything at a meeting that the unit owner can do (ex: vote, propose and second motions, participate in discussions), unless the proxy document says otherwise.
The condominium corporation’s by-laws may require the appointment of a proxy to be in writing. The appointment may be specific (for a meeting or resolution), or general (for all meetings and votes) and may be cancelled by the unit owner at any time.
Section 128(1) to (4)
A unit owner may also appoint a person to provide written consent on their behalf, but only for a specific matter. The appointment must be in writing and the condominium corporation’s by-laws may require that the person sign the appointment. The unit owner may cancel the appointment at any time.
Section 129(1) to (3)
However, a unit owner – unless the owner is the declarant or owner-developer - may not appoint one of the following as a proxy, or to provide consent on the unit owner’s behalf:
Note: Any action taken or consent given, by such a person is void.
Section 128(5), 129(4)
What is a quorum for a general meeting?
When dealing with business at a general meeting of unit owners, a certain percentage of unit owners must be present. This is called a quorum.
The act requires unit owners who hold at least 33 per cent of the voting rights to be present – either in person or by proxy – at the meeting. The condominium corporation’s declaration may require a higher percentage.
However, if the condominium corporation has fewer than four units or four unit owners, the quorum requirement is that unit owners who hold at least 66 per cent of the voting rights (or higher, if required by the declaration) must be present at the meeting, either in person or by proxy.
If a quorum is not present within 30 minutes after the meeting’s scheduled start time, the board may reschedule the meeting. The condominium corporation must try to notify the unit owners entitled to vote, mortgagees entitled to vote, and proxies present at the meeting, of the date, time and place of the rescheduled meeting.
If a quorum is not present at the rescheduled meeting within 30 minutes after the meeting’s scheduled start time, the unit owners (or their proxies), who are entitled to vote and who are present, make up a quorum.
To be valid, a vote must take place at a general meeting of unit owners that has been properly called and where a quorum is present.
Except for routine matters or procedure, only matters that have been clearly outlined in the meeting notice may be voted on at a general meeting. (This does not apply if all unit owners, or unit mortgagees who are entitled to vote, are present in person or by proxy and agree to take a vote on another matter.)
Section 123 and 124(1)
What voting rights do unit mortgagees have?
Some mortgages include terms that give the unit mortgagee (the institution or person holding the mortgage) the right to vote, or give or withhold consent, as if they were the unit owner. This right may be exercised only if the unit mortgagee has given the condominium corporation written notice of the mortgage and the address for giving notices and other documents to the unit mortgagee. Otherwise, the unit owner may exercise this right instead, if he or she is entitled to do so.
What voting rights do unit owners have?
The declaration of the condominium corporation outlines the voting rights of unit owners. The declaration may grant more voting rights to some unit owners than others.
A unit owner entitled to vote may vote in person or by proxy at a general meeting. A unit owner may also authorize a person to give consent on the unit owner’s behalf.
The condominium corporation’s by-laws may prevent unit owners from exercising their voting rights, or from providing consent, if their contributions for common expenses, or to the reserve fund, are at least 30 days behind.
If this is the case, a unit owner is not counted among those required to vote or consent. The unit owner’s right to vote or consent is reinstated if the outstanding amounts, and any associated costs, are paid before the meeting begins, or the period for providing consents has expired.
Sections 120, 125, 127, 129(1), and 167(1)(y)
Need more information?
For more information on the condominium corporation in general, see: