Directors and Managers
The first will be an emphasis on training, for both directors and managers. New candidates standing for election or re-election will be required to provide a statement of disclosure, so that the disclosure may be included with the notice of meeting, or at the meeting itself. If the director does not provide the required disclosure within the required time, s/he will immediately cease to be director. What do directors have to disclose? Primarily, a director must disclose:
- If they are not an owner or occupier of an unit
- If they or a family member are party to any legal action involving the condominium
- If they have been convicted of an offence under the Condominium Act within the past decade
- If they have a vested interest in a contract or transaction involving the condominium
- If they are in arrears for 60 days or more
Directors must also receive training within six months of being elected or appointed, after the applicable Regulations come into force. The modules will be offered online. Property Managers will now be licensed under the new Management Services Act, 2015 in order to provide condominium management services.
There will also be more communication between corporations and unit owners. Condominium Corporations are required to send out three different types of certificates. The first, a Periodic Information Certificate [PIC] similar to a Status Certificate, is to be provided twice per fiscal year, within 30 days of the end of the first and third fiscal quarters. The second, an Information Certificate Update [ICU], will be required any time there is a change perscribed in the regulations, including a change of address or change of directors. The third, the New Owner Information Certificate [NOIC] including the most recent PIC and ICU, will be sent within 15 days of a new owner giving notice in writing of becoming an owner.
The importance of such paperwork translates to record-keeping as well. There is now a seven year minimum for financial records and other operating records of the corporation. Fundamental corporation documents must be retained for an unlimited amount of time. A process for access to these records has been set out, under the new regulations. Using a standardized form, a requester may identify the records requested and the preference as to access.
There are new requirements in terms of meeting notices and the information contained in these notices. First, there must be a standardized preliminary notice of meeting, sent before the notice of meeting. The preliminary notice must include a request that candidates notify the board in writing of their intention to be a candidate if the meeting includes election of directors and that owners wishing to propose a candidate for auditor do so in writing prior to a deadline where the removal or appointment of the auditor is included on the meeting agenda.
Owners may also include any material with the notice of meeting, provided it is made on behalf of at least 15% of owners and does not add anything to be presented at the meeting that is contrary to the Act or Regulations. Quorums will be at least 25% of owners on the first and second attempts and 15% on subsequent attempts. Proxies will be standardized and voting will be permitted through telephonic or electronic means (dependent upon By-laws).
Needless to say, many changes are coming to the Condominium Act. The question is:
Are You Ready?