By Brian Horlick B.Comm., B.C.L., LL.B., ACCI, FCCI Horlick Levitt Di Lella LLP
condominium
owners
Timely ideas, insight, inspiration and information of particular interest to condominium owners
By Luis A. Hernandez B.A., J.D. Horlick Levitt Di Lella LLP
Condo Living
Why Should You Attend Your Annual General Meeting? Because You Should Be the Change you Wish to See in Your Condo
The purpose is of this article is to explain AGM basics, and attempt to convince you that attending the AGM is of the utmost importance and that every smart condo owner should attend this once-a-year event. What is an AGM? An AGM is a yearly meeting of the owners of a condominium corporation where owners are given an opportunity to discuss the affairs of the corporation and vote on several items. Subsections 45(2) and (3) of the Condominium Act, 1998
(the “Act”) set out that an AGM should be held not more than three months after the registration of the corporation and, subsequently, within six months of the end of each fiscal year of the corporation. The purpose of the AGM is, in part, for owners to: • approve and/or amend the minutes of the previous AGM; • elect directors; • approve and/or reject proposed amendments to the declaration, bylaws, rules, and/or agreements; • review the audited financial statements • appoint the auditor for the following fiscal year; and • discuss the affairs and business of the corporation Why should you attend your AGM? Reason # 1 – To meet quorum and allow the corporation to transact business Undr section 50 of the Act, a certain minimum number of owners who are entitled
to vote must be represented at a meeting of owners, whether in person or by proxy. This minimum number of owners represented is what is referred to as a quorum. The Act currently states that the quorum for business to be transacted at a meeting of owners, including an AGM, is at least 25% of the owners in a condominium corporation. Regrettably, owner-apathy is quite pervasive in condos and even a low percentage such as 25% of owners can prove difficult to obtain. Keep in mind that it is not required that 25% of owners physically attend the AGM, but that they be represented. Meaning that an owner can simply fill out a proxy and deliver it to property management to count towards the quorum, but even this simple step which aids the corporation to properly function is often ignored. In light of prevalent voter apathy, with the amendments to the Act set out in the Protecting Condominium Owners Act, 2015 (“PCOA”) and Regulation 48/01, CONDOVOICE WINTER 2017
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ILLUSTRATION BY JAMIEE BENNET
Being a condo owner means that every year you will receive a package, likely in the mail, notifying you of your condominium corporation’s upcoming annual general meeting (AGM). This package will emphasize the importance of AGM attendance, but will also tell you that if you cannot attend in person, then you can submit a proxy so that your unit is represented. Unfortunately, many condo owners do not attend their AGMs, and many will not even submit a proxy.