Condominium Act, 1998
S.O. 1998, CHAPTER 19
Consolidation Period: From June 20, 2012 to the e-Laws currency date.
Last amendment: 2012, c. 8, Sched. 9.
CONTENTS
|
PART I |
|
|
Definitions and interpretation |
|
|
PART II |
|
|
Registration |
|
|
Place of registration |
|
|
Real property Acts |
|
|
Corporation |
|
|
Types of corporations |
|
|
Requirements for declaration |
|
|
Requirements for description |
|
|
Subdivision control |
|
|
PART III |
|
|
Type of property |
|
|
Ownership of property |
|
|
Easements |
|
|
Effect on encumbrances |
|
|
Discharge of encumbrances |
|
|
Assessment |
|
|
PART IV |
|
|
Seal |
|
|
Objects |
|
|
Dealing with title to real property |
|
|
Assets |
|
|
Right of entry |
|
|
Easements described in declaration or phase |
|
|
Easements and lease of common elements |
|
|
Telecommunications agreements |
|
|
Action by corporation |
|
|
Notices under the Expropriations Act |
|
|
Notices under the Planning Act |
|
|
Occupier’s liability |
|
|
Board of directors |
|
|
Election of directors |
|
|
Qualifications |
|
|
Consent |
|
|
Term |
|
|
Conduct of business |
|
|
Removal |
|
|
Vacancy |
|
|
Meetings of directors |
|
|
Officers |
|
|
Standard of care |
|
|
Indemnification |
|
|
Insurance |
|
|
Disclosure by director of interest |
|
|
Disclosure by officer of interest |
|
|
First board of directors |
|
|
Turn-over meeting |
|
|
Performance audit |
|
|
Meetings |
|
|
Requisition for meeting |
|
|
Notice to owners |
|
|
Mortgagee’s right to vote |
|
|
Loss of owner’s right to vote |
|
|
Quorum |
|
|
Voting |
|
|
Method of voting |
|
|
Majority voting |
|
|
Service on owner or mortgagee |
|
|
Records |
|
|
By-laws |
|
|
Occupancy standards by-law |
|
|
Rules |
|
|
Joint by-laws and rules |
|
|
Appointment of auditor |
|
|
Qualifications |
|
|
Remuneration |
|
|
Removal |
|
|
Resignation |
|
|
Vacancy |
|
|
Financial statements |
|
|
Audit |
|
|
Audit committee |
|
|
Delivery of statements |
|
|
Right to attend meeting |
|
|
Amendment of statements |
|
|
PART V |
|
|
Disclosure statement |
|
|
Rescission of agreement |
|
|
Material changes in disclosure statement |
|
|
Accountability for budget statement |
|
|
Status certificate |
|
|
Information on corporation |
|
|
Implied covenants |
|
|
Duty to register declaration and description |
|
|
Interim occupancy |
|
|
Money held in trust |
|
|
Interest |
|
|
Notification by owner |
|
|
PART VI |
|
|
Contribution of owners |
|
|
Lien upon default |
|
|
Priority of lien |
|
|
Default with respect to leased unit |
|
|
Mortgagee’s rights |
|
|
Repair after damage |
|
|
Maintenance |
|
|
Provisions of declaration |
|
|
Work done for owner |
|
|
Reserve fund |
|
|
Reserve fund study |
|
|
Use of reserve fund |
|
|
Warranties |
|
|
Changes made by corporation |
|
|
Changes made by owners |
|
|
Property insurance |
|
|
Proceeds |
|
|
Double coverage |
|
|
Other insurance |
|
|
Capacity to maintain insurance |
|
|
Disclosure by insurer |
|
|
Deductible |
|
|
Act prevails |
|
|
Amendments with owners’ consent |
|
|
Change of address for service |
|
|
Court order |
|
|
Order of Director of Titles |
|
|
Management agreements |
|
|
Other agreements |
|
|
Mutual use agreements |
|
|
Insurance trust agreements |
|
|
Corporation’s money |
|
|
Use of common elements by owners |
|
|
Dangerous activities |
|
|
Entry by canvassers |
|
|
Compliance with Act |
|
|
PART VII |
|
|
Amalgamation |
|
|
Effect of registration |
|
|
PART VIII |
|
|
Termination with consent |
|
|
Termination upon substantial damage |
|
|
Termination upon sale of property |
|
|
Right of dissenters |
|
|
Expropriation |
|
|
Effect of registration |
|
|
Termination by court |
|
|
Distribution of assets |
|
|
PART IX |
|
|
Inspector |
|
|
Administrator |
|
|
Mediation and arbitration |
|
|
False, misleading statements |
|
|
Compliance order |
|
|
Oppression remedy |
|
|
Other remedies |
|
|
Offences |
|
|
PART X |
|
|
Creation |
|
|
Owners’ land |
|
|
Contents of declaration |
|
|
Contents of description |
|
|
Subdivision control |
|
|
Disclosure statement |
|
|
Repair after damage and insurance |
|
|
PART XI |
|
|
Type of corporation |
|
|
Creation of phase |
|
|
Disclosure statement |
|
|
Status certificate |
|
|
Corporation’s remedy |
|
|
Remedy of purchasers |
|
|
Easements |
|
|
Turn-over obligations |
|
|
Corporation’s obligations for phase |
|
|
Termination of agreements |
|
|
PART XII |
|
|
Creation |
|
|
Contents of declaration |
|
|
Contents of description |
|
|
Buildings on common elements |
|
|
Status of buildings in corporation |
|
|
By-laws |
|
|
Disclosure statement |
|
|
Repair and maintenance |
|
|
Substantial damage |
|
|
PART XIII |
|
|
Creation |
|
|
Leasehold interest of owners |
|
|
Declaration |
|
|
Description |
|
|
Leasehold estate in property |
|
|
Disclosure statement |
|
|
Status certificate |
|
|
Rent for property |
|
|
Consent of lessor for termination |
|
|
Termination by lessor |
|
|
Expiration of leasehold interests |
|
|
Effect of termination or expiration |
|
|
PART XIV |
|
|
Act prevails |
|
|
Regulations |
|
|
Transition |
|
|
Transition, turnover |
|
|
Transition, disclosure |
|
|
Transition, insurance |
|
|
Transition, termination of agreements |
|
|
Transition, regulations |
|
PART I
DEFINITIONS AND INTERPRETATION
Definitions and interpretation
“annual general meeting” means a meeting of the owners of a corporation held in accordance with subsection 45 (2); (“assemblée générale annuelle”)
“approval authority” means the approval authority for the purposes of sections 51, 51.1 and 51.2 of the Planning Act; (“autorité approbatrice”)
“auditor” means a person licensed as a public accountant under the Public Accounting Act, 2004 who is appointed as an auditor of a corporation under section 60; (“vérificateur”)
“board” means the board of directors of a corporation; (“conseil”)
“building” means a building included in a property; (“bâtiment”)
“by-law” means a by-law of a corporation; (“règlement administratif”)
“claim” includes a right, title, interest, encumbrance or demand of any kind affecting land but does not include the interest of an owner in the owner’s unit or common interest; (“réclamation”)
“common elements” means all the property except the units; (“parties communes”)
“common elements condominium corporation” means a common elements condominium corporation described in subsection 138 (2); (“association condominiale de parties communes”)
“common expenses” means the expenses related to the performance of the objects and duties of a corporation and all expenses specified as common expenses in this Act or in a declaration; (“dépenses communes”)
“common interest” means the interest in the common elements appurtenant to,
(a) a unit, in the case of all corporations except a common elements condominium corporation, or
(b) an owner’s parcel of land to which the common interest is attached and which is described in the declaration, in the case of a common elements condominium corporation; (“intérêt commun”)
“common surplus” means the excess of all receipts of the corporation over the expenses of the corporation; (“excédent commun”)
“corporation” means a corporation created or continued under this Act; (“association”)
“declarant” means a person who owns the freehold or leasehold estate in the land described in the description and who registers a declaration and description under this Act, and includes a successor or assignee of that person but does not include a purchaser in good faith of a unit who pays fair market value or a successor or assignee of the purchaser; (“déclarant”)
“declaration” means a declaration registered under section 2 and all amendments to the declaration; (“déclaration”)
“deed” includes a transfer under the Land Titles Act; (“acte scellé”)
“description” means a description registered under section 2 and all amendments to the description; (“description”)
Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (1) is amended by adding the following definition:
“Director of Titles” means the Director of Titles appointed under section 9 of the Land Titles Act; (“directeur des droits immobiliers”)
See: 2012, c. 8, Sched. 9, ss. 1 (1), 6.
“encumbrance” means a claim that secures the payment of money or the performance of any other obligation and includes a charge under the Land Titles Act, a mortgage and a lien; (“sûreté réelle”)
“freehold condominium corporation” means a corporation in which all the units and their appurtenant common interests are held in fee simple by the owners; (“association condominiale de propriété franche”)
“leasehold condominium corporation” means a corporation in which all the units and their appurtenant common interests are subject to leasehold interests held by the owners; (“association condominiale de propriété à bail”)
“lessor”, in relation to a leasehold condominium corporation, means the person who owns the freehold estate in the land described in the description; (“bailleur”)
“Minister” means the minister responsible for the administration of this Act; (“ministre”)
Note: On a day to be named by proclamation of the Lieutenant Governor, the definition of “Minister” is repealed and the following substituted:
“Minister” means the Minister responsible for the administration of subsection 177 (2) of this Act; (“ministre”)
See: 2012, c. 8, Sched. 9, ss. 1 (2), 6.
“mortgage” includes a charge under the Land Titles Act, in which case “mortgagor” and “mortgagee” mean the chargor and the chargee under the charge; (“hypothèque”, “débiteur hypothécaire”, “créancier hypothécaire”)
“owner” means,
(a) in relation to a corporation other than a leasehold condominium corporation or a common elements condominium corporation, a person who owns a freehold interest in a unit and its appurtenant common interest and who is shown as the owner in the records of the land registry office in which the description of the corporation is registered, and includes a mortgagee in possession and a declarant with respect to any unit that the declarant has not transferred to another person,
(b) in relation to a leasehold condominium corporation, a person who owns a leasehold interest in a unit and its appurtenant common interest and who is shown as the owner in the records of the land registry office in which the description of the corporation is registered, and includes a mortgagee in possession and a declarant with respect to any unit in which the declarant has not transferred the leasehold interest to another person but does not include a tenant of the owner,
(c) in relation to a common elements condominium corporation, a person, including the declarant, who owns a common interest in the common elements and a freehold interest in the parcel of land to which the common interest is attached as described in the declaration and who is shown as the owner in the records of the land registry office in which the description of the corporation is registered; (“propriétaire”)
“phased condominium corporation” means a phased condominium corporation to which Part XI applies; (“association condominiale constituée par étape”)
“prescribed” means prescribed by the regulations made under this Act; (“prescrit”)
“property” means the land, including the buildings on it, and interests appurtenant to the land, as the land and interests are described in the description and includes all land and interests appurtenant to land that are added to the common elements; (“propriété”)
“proposed property” means the property described in the declaration and description that are required to be registered to designate a proposed unit as a unit under this Act; (“propriété projetée”)
“proposed unit” means land described in an agreement of purchase and sale that provides for delivery to the purchaser of a deed in registerable form after a declaration and description have been registered in respect of the land; (“partie privative projetée”)
“purchaser of a unit”, in relation to a leasehold condominium corporation, means the purchaser of an owner’s interest in a unit and the appurtenant common interest; (“acquéreur d’une partie privative”)
“registered” means registered under the Land Titles Act or the Registry Act and “register” and “registration” have corresponding meanings; (“enregistré”, “enregistrer”, “enregistrement”)
“reserve fund” means a reserve fund established under section 93; (“fonds de réserve”)
“reserve fund study” means a reserve fund study described in section 94; (“étude du fonds de réserve”)
“rule” means a rule of a corporation; (“règle”)
“status certificate” means a status certificate described in section 76; (“certificat d’information”)
“unit” means a part of the property designated as a unit by the description and includes the space enclosed by its boundaries and all of the land, structures and fixtures within this space in accordance with the declaration and description; (“partie privative”)
“vacant land condominium corporation” means a vacant land condominium corporation described in subsection 155 (2). (“association condominiale de terrain nu”) 1998, c. 19, s. 1 (1); 2002, c. 17, Sched. F, Table; 2004, c. 8, ss. 46, 47 (3).
Ownership of land
(2) For the purposes of this Act, the ownership of land or of a leasehold interest in land includes the ownership of space or of a leasehold interest in space respectively. 1998, c. 19, s. 1 (2).
Proposed declarant
(3) A reference to a declarant in this Act shall be deemed to include, where applicable, a person who proposes or intends to register a declaration and description. 1998, c. 19, s. 1 (3).
PART II
REGISTRATION AND CREATION
Registration
2. (1) Subject to the regulations made under this Act and subsection (2), a declaration and description may be registered by or on behalf of the person who owns the freehold or leasehold estate in the land described in the description. 1998, c. 19, s. 2 (1).
Restriction
(2) A declaration and description for a freehold condominium corporation shall not be registered by or on behalf of a person who does not own the freehold estate in the land described in the description. 1998, c. 19, s. 2 (2).
Effect of registration
(3) Upon registration of a declaration and description,
(a) this Act governs the land and the interests appurtenant to the land, as the land and the interests are described in the description;
(b) the land described in the description is divided into units and common elements in accordance with the description; and
(c) a condominium corporation is created. 1998, c. 19, s. 2 (3).
Place of registration
3. (1) The declaration and description shall be registered in,
(a) the land titles division of the land registry office within the boundaries of which division the land described in the description is situated, if the land registry office has a land titles division; or
(b) the registry division of the land registry office within the boundaries of which division the land described in the description is situated, if the land registry office does not have a land titles division. 1998, c. 19, s. 3 (1).
Index
(2) A land registrar in whose office a declaration and description are registered shall keep an index of the corporations created by the registrations. 1998, c. 19, s. 3 (2).
Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (2) is repealed and the following substituted:
Index
(2) An index of the corporations created by the registrations shall be kept. 2012, c. 8, Sched. 9, s. 2 (1).
See: 2012, c. 8, Sched. 9, ss. 2 (1), 6.
Same
(3) The index mentioned in subsection (2) shall be in the form approved by the Director of Titles appointed under section 9 of the Land Titles Act and shall be known in English as the Condominium Corporations Index and in French as Répertoire des associations condominiales. 1998, c. 19, s. 3 (3).
Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (3) is repealed and the following substituted:
Same
(3) The index mentioned in subsection (2) shall be in the form approved by the Director of Titles and shall be known in English as the Condominium Corporations Index and in French as Répertoire des associations condominiales. 2012, c. 8, Sched. 9, s. 2 (1).
See: 2012, c. 8, Sched. 9, ss. 2 (1), 6.
Condominium register
(4) A land registrar in whose office a declaration and description are registered shall keep a register in the form approved by the Director of Titles to be known in English as the Condominium Register and in French as Registre des condominiums. 1998, c. 19, s. 3 (4).
Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (4) is repealed and the following substituted:
Condominium register
(4) A register in the form approved by the Director of Titles to be known in English as the Condominium Register and in French as Registre des condominiums shall be kept. 2012, c. 8, Sched. 9, s. 2 (1).
See: 2012, c. 8, Sched. 9, ss. 2 (1), 6.
Contents of condominium register
(5) Declarations, descriptions, by-laws, notices of termination and other instruments respecting land governed by this Act shall be registered and recorded in the Condominium Register in accordance with the regulations made under this Act and the instructions of the Director of Titles. 1998, c. 19, s. 3 (5).
Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (5) is amended by striking out “and the instructions of the Director of Titles” and substituting “if any, or the instructions of the Director of Titles if there are no such regulations”. See: 2012, c. 8, Sched. 9, ss. 2 (2), 6.
Real property Acts
4. (1) The Land Titles Act or the Registry Act, as the case may be, applies in respect of property governed by this Act but, if the provisions of either of those Acts conflict with the provisions of this Act, the provisions of this Act prevail. 1998, c. 19, s. 4 (1).
Rights of tenants
(2) The registration of a declaration and description shall not terminate or otherwise affect the rights under the Residential Tenancies Act, 2006 of a person who, at the time of the registration, is a tenant of the property or of a part of the property. 1998, c. 19, s. 4 (4); 2006, c. 17, s. 248 (1).
No termination of tenancy
(3) The registration of a declaration and description does not constitute grounds for a landlord to give notice of termination under Part V of the Residential Tenancies Act, 2006 to a tenant described in subsection (2). 1998, c. 19, s. 4 (4); 2006, c. 17, s. 248 (2).
(4) Spent: 1998, c. 19, s. 4 (4).
Corporation
5. (1) A corporation created or continued under this Act is a corporation without share capital whose members are the owners. 1998, c. 19, s. 5 (1).
Name
(2) The land registrar shall assign a name to each corporation in accordance with the regulations made under this Act. 1998, c. 19, s. 5 (2).
Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (4) is repealed and the following substituted:
Name
(2) A name shall be assigned to each corporation in accordance with the regulations made under this Act, if any, or the instructions of the Director of Titles if there are no such regulations. 2012, c. 8, Sched. 9, s. 3.
See: 2012, c. 8, Sched. 9, ss. 3, 6.
Other Act
(3) The Corporations Act does not apply to the corporation. 1998, c. 19, s. 5 (3).
Same
(4) Subject to the regulations made under this Act, the Corporations Information Act applies to the corporation. 1998, c. 19, s. 5 (4).
Types of corporations
6. (1) Corporations under this Act consist of the following types:
1. Freehold condominium corporations.
2. Leasehold condominium corporations. 1998, c. 19, s. 6 (1).
Types of freehold corporations
(2) Freehold condominium corporations consist of the following types:
1. Common elements condominium corporations.
2. Phased condominium corporations.
3. Vacant land condominium corporations.
4. Standard condominium corporations that are not any of the corporations mentioned in paragraphs 1, 2 and 3. 1998, c. 19, s. 6 (2).
Restriction on registration
(3) A declaration and description shall not be registered unless the registration would create a freehold condominium corporation or a leasehold condominium corporation. 1998, c. 19, s. 6 (3).
Indication in declaration
(4) The declaration shall state,
(a) whether the corporation is a freehold condominium corporation or a leasehold condominium corporation; and
(b) if the corporation is a freehold condominium corporation, the type of freehold condominium corporation that it is. 1998, c. 19, s. 6 (4).
Requirements for declaration
7. (1) A declaration shall not be registered unless the declarant has executed it in the manner prescribed by the Act under which it is to be registered. 1998, c. 19, s. 7 (1).
Contents
(2) A declaration shall contain,
(a) a statement that this Act governs the land and interests appurtenant to the land, as the land and the interests are described in the description;
(b) the consent of every person having a registered mortgage against the land or interests appurtenant to the land, as the land and the interests are described in the description;
(c) a statement of the proportions, expressed in percentages, of the common interests appurtenant to the units;
(d) a statement of the proportions, expressed in percentages allocated to the units, in which the owners are to contribute to the common expenses;
(e) an address for service, a municipal address for the corporation, if available, and the mailing address of the corporation if it differs from its address for service or municipal address;
(f) a specification of all parts of the common elements that are to be used by the owners of one or more designated units and not by all the owners;
(g) a statement of all conditions that the approval authority, in approving or exempting the description under section 9, requires the declaration to mention; and
(h) all other material that the regulations made under this Act require. 1998, c. 19, s. 7 (2).
Consent
(3) A person shall not withhold the consent mentioned in clause (2) (b) by reason only of the failure of the declarant to enter into a specified number of agreements of purchase and sale for the sale of proposed units. 1998, c. 19, s. 7 (3).
Additional contents
(4) In addition to the material mentioned in subsection (2) and in any other section in this Act, a declaration may contain,
(a) a statement specifying the common expenses of the corporation;
(b) conditions or restrictions with respect to the occupation and use of the units or common elements;
(c) conditions or restrictions with respect to gifts, leases and sales of the units and common interests;
(d) a list of the responsibilities of the corporation consistent with its objects and duties; and
(e) a description of the allocation of obligations to maintain the units and common elements and to repair them after damage, which allocation has been done in accordance with this Act. 1998, c. 19, s. 7 (4).
Inconsistent provisions
(5) If any provision in a declaration is inconsistent with the provisions of this Act, the provisions of this Act prevail and the declaration shall be deemed to be amended accordingly. 1998, c. 19, s. 7 (5).
Requirements for description
8. (1) Subject to the regulations made under this Act, a description shall contain,
(a) a plan of survey showing the perimeter of the horizontal surface of the land and the perimeter of the buildings;
(b) architectural plans of the buildings and, if there are any, structural plans of the buildings;
(c) a specification of the boundaries of each unit by reference to the buildings or other monuments;
(d) diagrams showing the shape and dimensions of each unit and the approximate location of each unit in relation to the other units and the buildings;
(e) a certificate of an architect that all buildings have been constructed in accordance with the regulations and, if there are structural plans, a certificate of an engineer that all buildings have been constructed in accordance with the regulations;
(f) a certificate signed by an Ontario land surveyor licensed under the Surveyors Act stating that the diagrams of the units are substantially accurate;
(g) a description of all interests appurtenant to the land that are included in the property; and
(h) all other material that the regulations made under this Act require. 1998, c. 19, s. 8 (1).
Preparation of documents
(2) A survey, plan, specification, diagram, certificate or description mentioned in subsection (1) shall be prepared in accordance with the regulations made under this Act. 1998, c. 19, s. 8 (2).
Common elements, units in building
(3) A description shall not be registered unless,
(a) the property includes common elements; and
(b) each unit for residential purposes includes one or more buildings or is included in a building. 1998, c. 19, s. 8 (3).
Approval by examiner of surveys
(4) The examiner of surveys appointed under the Land Titles Act may require a description or an amendment to a description to be submitted to the examiner of surveys for approval before it is registered. 1998, c. 19, s. 8 (4).
Same
(5) The examiner of surveys shall approve the description or the amendment to the description if satisfied that the document submitted meets the requirements of this section. 1998, c. 19, s. 8 (5).
Subdivision control
9. (1) Section 50 of the Planning Act does not apply in respect of,
(a) dealings with whole units and common interests; or
(b) easements transferred by or reserved to the corporation. 1998, c. 19, s. 9 (1).
Approvals of descriptions
(2) Subject to this section, the provisions of sections 51, 51.1 and 51.2 of the Planning Act that apply to a plan of subdivision apply with necessary modifications to a description or an amendment to a description. 1998, c. 19, s. 9 (2).
Registration
(3) A description or an amendment to a description shall not be registered unless,
(a) the approval authority has approved it; or
(b) the approval authority has exempted it from those provisions of sections 51 and 51.1 of the Planning Act that would normally apply to it under subsection (2) and it is accompanied by a certificate of exemption issued by the approval authority. 1998, c. 19, s. 9 (3).
Conversion of rented residential premises
(4) If an applicant makes an application for approval in respect of a property that includes a building or related group of buildings containing one or more premises that is used as a rented residential premises or that has been used as a rented residential premises and is vacant, the approval authority may, after consulting with the council of the local municipality in which the property is located if the approval authority is not that municipality, require the applicant to have a person who holds a certificate of authorization within the meaning of the Professional Engineers Act or a certificate of practice within the meaning of the Architects Act or another qualified person inspect the property and report to the approval authority all matters that the approval authority considers may be of concern. 1998, c. 19, s. 9 (4).
Additional conditions
(5) In addition to the conditions that it may impose under subsection 51 (25) of the Planning Act, the approval authority that receives an application described in subsection (4) may impose the conditions that it considers are reasonable in light of the report mentioned in subsection (4). 1998, c. 19, s. 9 (5).
Application for exemption
(6) Before making an application under subsection 51 (16) of the Planning Act, the owner of a property or a person authorized in writing by the owner of the property may apply to the approval authority to have the description or any part of the description exempted from those provisions of sections 51 and 51.1 of the Planning Act that would normally apply to it under subsection (2). 1998, c. 19, s. 9 (6).
Individual exemption
(7) The approval authority may grant an exemption if it believes the exemption is appropriate in the circumstances. 1998, c. 19, s. 9 (7).
Exemption made by Minister
(8) If the Minister of Municipal Affairs and Housing is the approval authority, that Minister may by regulation provide that the provisions of sections 51 and 51.1 of the Planning Act that apply to a plan of subdivision do not apply to a class of description or an amendment to a class of description specified in the regulation. 1998, c. 19, s. 9 (8).
Effect of regulation
(9) The regulation may be restricted to specified geographic areas of Ontario. 1998, c. 19, s. 9 (9).
Exemption made by municipality
(10) If the Minister of Municipal Affairs and Housing is not the approval authority, the approval authority may by by-law provide that the provisions of sections 51 and 51.1 of the Planning Act that apply to a plan of subdivision do not apply to a class of description or an amendment to a class of description specified in the by-law. 1998, c. 19, s. 9 (10).
Effect of by-law
(11) The by-law may be restricted to specified geographic areas within the geographic area of the authority. 1998, c. 19, s. 9 (11).
s. 52 of Planning Act
(12) Section 52 of the Planning Act applies in respect of a description of a vacant land condominium corporation but does not apply in respect of a description of any other corporation. 1998, c. 19, s. 9 (12).
Type of property
10. Units and common elements are real property for all purposes. 1998, c. 19, s. 10.
Ownership of property
11. (1) Subject to this Act, the declaration and the by-laws, each owner is entitled to exclusive ownership and use of the owner’s unit. 1998, c. 19, s. 11 (1).
Same, common elements
(2) The owners are tenants in common of the common elements and an undivided interest in the common elements is appurtenant to each owner’s unit. 1998, c. 19, s. 11 (2).
Common interests
(3) The proportions of the common interests are those expressed in the declaration. 1998, c. 19, s. 11 (3).
No separation
(4) The ownership of a unit shall not be separated from the ownership of the common interest and an instrument that purports to separate the ownership of a unit from a common interest is void. 1998, c. 19, s. 11 (4).
No division
(5) Except as provided by this Act, the common elements shall not be partitioned or divided. 1998, c. 19, s. 11 (5).
Easements
12. (1) The following easements are appurtenant to each unit and shall be for the benefit of the owner of the unit and the corporation:
1. An easement for the provision of a service through the common elements or any other unit.
2. An easement for support by all buildings and structures necessary for providing support to the unit.
3. If a building or a part of a building moves after registration of the declaration and description or after having been damaged and repaired but has not been restored to the position occupied at the time of registration of the declaration and description, an easement for exclusive use and occupation over the space of the other units and common elements that would be space included in the unit if the boundaries of the unit were determined by the position of the buildings from time to time after registration of the description and not at the time of registration.
4. If a corporation is entitled to use a service or facility in common with another corporation, an easement for access to and for the installation and maintenance of the service or facility over the land of the other corporation, described in accordance with the regulations made under this Act. 1998, c. 19, s. 12 (1).
Same, common elements
(2) The following easements are appurtenant to the common elements:
1. An easement for the provision of a service through a unit or through a part of the common elements of which an owner has exclusive use.
2. An easement for support by all units necessary for providing support. 1998, c. 19, s. 12 (2).
Effect on encumbrances
13. Upon the registration of the declaration and description, an encumbrance against the common elements is no longer enforceable against the common elements but is enforceable against all the units and common interests. 1998, c. 19, s. 13.
Discharge of encumbrances
14. (1) If an encumbrance registered before the registration of the declaration and description is, by virtue of section 13, enforceable against all the units of a corporation and their common interests, an owner may discharge the portion of the encumbrance that is applicable to the owner’s unit and common interest by paying to the encumbrancer the portion of the amount owing on account of principal and interest under the encumbrance that is attributable to the owner’s common interest as specified in the declaration. 1998, c. 19, s. 14 (1).
Form
(2) Upon payment of the portion of the encumbrance sufficient to discharge a unit and common interest, and upon demand, the encumbrancer shall give to the owner a discharge of that unit and common interest in accordance with the requirements of the regulations made under this Act. 1998, c. 19, s. 14 (2).
Assessment
15. (1) Each unit, together with its appurtenant common interest, constitutes a parcel for the purpose of municipal assessment and taxation. 1998, c. 19, s. 15 (1).
Common elements
(2) Subject to subsection (3), the common elements of a corporation that is not a common elements condominium corporation do not constitute a parcel for the purpose of municipal assessment and taxation. 1998, c. 19, s. 15 (2).
Exception
(3) A part of the common elements of a corporation that is not a common elements condominium corporation constitutes a separate parcel for the purpose of municipal assessment and taxation if it is leased for business purposes under section 21, the lessee carries on an undertaking for gain on it and it is in the commercial property class prescribed under the Assessment Act. 1998, c. 19, s. 15 (3).
Common elements condominium corporation
(4) The common elements of a common elements condominium corporation constitute a parcel for the purpose of municipal assessment and taxation within each municipality in which the common elements or a part of them are located and the municipal taxes levied on the parcel or parcels shall form part of the common expenses of the corporation. 1998, c. 19, s. 15 (4).
Seal
16. (1) The corporation shall have a seal that the board shall adopt and may change. 1998, c. 19, s. 16 (1).
Name
(2) The name of the corporation shall appear in legible characters on the seal. 1998, c. 19, s. 16 (2).
Objects
17. (1) The objects of the corporation are to manage the property and the assets, if any, of the corporation on behalf of the owners. 1998, c. 19, s. 17 (1).
Duties
(2) The corporation has a duty to control, manage and administer the common elements and the assets of the corporation. 1998, c. 19, s. 17 (2).
Ensuring compliance
(3) The corporation has a duty to take all reasonable steps to ensure that the owners, the occupiers of units, the lessees of the common elements and the agents and employees of the corporation comply with this Act, the declaration, the by-laws and the rules. 1998, c. 19, s. 17 (3).
Dealing with title to real property
17.1 Nothing in this Act confers on the corporation the power to grant, transfer, lease, release, dispose of or otherwise deal with the title to any real property that the corporation does not own or any interest in real property where the corporation does not own the interest, unless this Act specifically confers the power on the corporation. 2000, c. 26, Sched. B, s. 7 (1).
Assets
18. (1) The corporation may own, acquire, encumber and dispose of real and personal property only for purposes that are consistent with the objects and duties of the corporation. 1998, c. 19, s. 18 (1).
Interests in real property
(1.1) The assets of the corporation do not include any real property that the corporation does not own or any interest in real property where the corporation does not own the interest. 2000, c. 26, Sched. B, s. 7 (2).
Interest in assets
(2) The owners share the assets of the corporation in the same proportions as the proportions of their common interests in accordance with this Act, the declaration and the by-laws. 1998, c. 19, s. 18 (2).
Validity of easement
(3) A grant or transfer of an easement to the corporation is valid even though the corporation does not own land capable of being benefited by the easement. 1998, c. 19, s. 18 (3).
Right of entry
19. On giving reasonable notice, the corporation or a person authorized by the corporation may enter a unit or a part of the common elements of which an owner has exclusive use at any reasonable time to perform the objects and duties of the corporation or to exercise the powers of the corporation. 1998, c. 19, s. 19.
Easements described in declaration or phase
20. (1) An easement described in subsection (2) is created,
(a) upon the registration of a declaration and description that creates a corporation, if the easement is described in the declaration and description; or
(b) upon the registration of an amendment to a declaration and description that creates a phase within the meaning of Part XI in a phased condominium corporation, if the easement is described in the amendment. 1998, c. 19, s. 20 (1).
Application
(2) Subsection (1) applies to an easement that,
(a) imposes a benefit or a burden on land owned by the declarant other than the property; or
(b) the approval authority requires as a condition of approving the declaration and description for the corporation. 1998, c. 19, s. 20 (2).
Creation of easement
(3) No deed or other document is required to be registered or delivered to the owner of the land benefited by an easement that is created under subsection (1) in order for the easement to be made effective. 1998, c. 19, s. 20 (3).
Validity of easement
(4) An easement that is created under subsection (1) is valid even though the declarant owns the land to be benefited or burdened by the easement in addition to owning the land relating to the easement that is described in the description. 1998, c. 19, s. 20 (4).
Easements and lease of common elements
21. (1) The corporation may by by-law,
(a) lease a part of the common elements, except a part that the declaration specifies is to be used only by the owners of one or more designated units and not by all the owners;
(b) grant or transfer an easement or licence through the common elements; or
(c) release an easement that is part of the common elements. 1998, c. 19, s. 21 (1); 2000, c. 26, Sched. B, s. 7 (3).
Binding on all owners
(2) A lease, grant, transfer or release mentioned in subsection (1), signed by the authorized officers of the corporation, affects the interest of every owner in the common elements as if the lease, grant, transfer or release had been executed by that owner. 1998, c. 19, s. 21 (2); 2000, c. 26, Sched. B, s. 7 (4).
Telecommunications agreements
“telecommunications” means the emission, transmission or reception of any combination of signs, signals, writing, images, sound, data, alphanumeric characters or intelligence of any nature by wire, cable, radio or an optical, electromagnetic or any similar technical system; (“télécommunications”)
“telecommunications agreement” means an agreement for the provision of services or facilities related to telecommunications to, from or within the property of a corporation and includes a grant or transfer of an easement, lease or licence through the property of a corporation for the purposes of telecommunications. (“convention concernant les télécommunications”) 1998, c. 19, s. 22 (1).
By-law not required
(2) Despite subsection 21 (1), a corporation may, by resolution of the board without a by-law,
(a) make an agreement for a network upgrade to a telecommunications system that services the units of the corporation;
(b) make an agreement for a telecommunications system that is not connected to a telecommunications system that services the units of the corporation; or
(c) amend an agreement for a telecommunications system that services the units of the corporation to permit the other party to the agreement to supply and invoice part or all of the services directly to the unit owners. 1998, c. 19, s. 22 (2).
Notice required
(3) Subsections 97 (3), (4), (5) and (6) apply to an agreement described in subsection (2) as if it were a change in a service that a corporation provides to the owners. 1998, c. 19, s. 22 (3).
Charge to unit owners
(4) The cost of the services that are invoiced directly to the unit owners under clause (2) (c) shall not form part of the common expenses, despite anything in the declaration. 1998, c. 19, s. 22 (4).
Telecommunications easement
(5) A corporation and a party, if any, that has entered into a telecommunications agreement with the corporation shall have a non-exclusive easement over the part of the property described in clause (b) for the purpose of installing and using a telecommunications system if,
(a) the corporation was created on or after the day this section comes into force and includes one or more units for residential purposes;
(b) part of the property is designed to control, facilitate or provide telecommunications to, from or within the property; and
(c) the corporation does not have an easement over the property described in the description or a right to use the property that is adequate for,
(i) the telecommunications agreement that it has entered into with respect to the property, if it has entered into such an agreement, or
(ii) the telecommunications system that the corporation intends to install and use on the property, if it has not entered into a telecommunications agreement with respect to the property. 1998, c. 19, s. 22 (5).
Duty to accommodate easement
(6) If a telecommunications system installed on the part of the property described in clause (5) (b) interferes with a telecommunications system that the corporation intends to have installed and to use on the property described in the description, the owner of the part of the property shall, upon 30 days written notice by the owner of the easement described in subsection (5), take all necessary steps that are reasonable to accommodate the intended telecommunications system. 1998, c. 19, s. 22 (6).
Validity of easement
(7) The easement is valid even though the corporation and the party, if any, that has entered into a telecommunications agreement with the corporation own no land to be benefited by the easement. 1998, c. 19, s. 22 (7).
Easements non-exclusive
(8) If the property of a corporation that includes one or more units for residential purposes is subject to an easement for the purposes of telecommunications and at least 10 years have passed since the later of the execution of the grant of the easement and the registration of the declaration and description, then, despite anything in the grant, the easement shall be deemed to be non-exclusive. 1998, c. 19, s. 22 (8).
Termination of agreements
(9) A corporation that includes one or more units for residential purposes may terminate a telecommunications agreement if,
(a) at least 10 years have passed since the later of the execution of the agreement and the registration of the declaration and description;
(b) the board has, by resolution, approved the termination of the agreement;
(c) the owners of more than 50 per cent of the units at the time the board passes the resolution consent in writing to the termination of the agreement; and
(d) the corporation has given the person 120 days written notice of the termination. 1998, c. 19, s. 22 (9).
Exception
(10) Subsection (9) does not apply to a telecommunications agreement if,
(a) the corporation entered into the agreement after a new board is elected at a turn-over meeting held under section 43;
(b) the agreement is non-exclusive; and
(c) the agreement makes allowance for the installation of alternate telecommunications systems. 1998, c. 19, s. 22 (10).
Personal property
(11) If, under subsection (9), a corporation terminates a telecommunications agreement, a party to the agreement may, on giving reasonable notice to the corporation, remove personal property that it owns and that is located on the property that was subject to the agreement within 30 days after the termination of the agreement. 1998, c. 19, s. 22 (11).
Duties on removal
(12) A party removing personal property under subsection (11) shall,
(a) carry out the removal in a manner that facilitates the installation of other similar personal property for the purposes of telecommunications; and
(b) reimburse the corporation for the damage, if any, that the removal causes to the property of the corporation. 1998, c. 19, s. 22 (12).
Abandonment
(13) A party to a telecommunications agreement that has the right to remove its personal property under subsection (11) shall be deemed to have abandoned the property if it does not remove the property within the time specified in that subsection. 1998, c. 19, s. 22 (13).
Action by corporation
23. (1) Subject to subsection (2), in addition to any other remedies that a corporation may have, a corporation may, on its own behalf and on behalf of an owner,
(a) commence, maintain or settle an action for damages and costs in respect of any damage to common elements, the assets of the corporation or individual units; and
(b) commence, maintain or settle an action with respect to a contract involving the common elements or a unit, even though the corporation was not a party to the contract in respect of which the action is brought. 1998, c. 19, s. 23 (1).
Notice to owners
(2) Before commencing an action mentioned in subsection (1), the corporation shall give written notice of the general nature of the action to all persons whose names are in the record of the corporation maintained under subsection 47 (2) except if,
(a) the action is to enforce a lien of the corporation under section 85 or to fulfil its duty under subsection 17 (3); or
(b) the action is commenced in the Small Claims Court. 1998, c. 19, s. 23 (2).
Costs
(3) Unless the board determines otherwise, the legal and court costs in an action that the corporation commences or maintains in whole or in part on behalf of any owners in respect of their units shall be borne by those owners in the proportion in which their interests are affected. 1998, c. 19, s. 23 (3).
Judgment as asset
(4) A judgment for payment in favour of the corporation in an action that the corporation commences or maintains on its own behalf is an asset of the corporation. 1998, c. 19, s. 23 (4).
Corporation may be sued
(5) The corporation may, as representative of the owners of the units, be sued in respect of any matter relating to the common elements or assets of the corporation. 1998, c. 19, s. 23 (5).
Judgment against corporation
(6) A judgment for the payment of money against the corporation is also a judgment against each owner at the time of judgment for a portion of the judgment determined by the proportions specified in the declaration for sharing the common interests. 1998, c. 19, s. 23 (6).
Notices under the Expropriations Act
24. (1) For the purposes of the Expropriations Act, if the land to be expropriated is part of the common elements of a corporation and does not include any units, any document that an expropriating authority is required or entitled to serve on the owner of the land, including a notice, an appraisal report and an offer of compensation, is sufficiently served on the owners of the land if the expropriating authority serves the document,
(a) on the corporation; and
(b) if the land to be expropriated is part of the common elements that the declaration specifies are for the exclusive use of the owners of one or more of the units of the corporation, but not all the owners, on the owners of those units. 1998, c. 19, s. 24 (1).
Notice to owners
(2) Within 15 days of being served with a document under subsection (1), the corporation shall notify all persons whose names are in the record of the corporation maintained under subsection 47 (2) that it has been served with a document for the purposes of the Expropriations Act and shall make a copy of the document available for examination by them. 1998, c. 19, s. 24 (2).
Corporation acting for owners
(3) For the purposes of the Expropriations Act, all the rights under that Act of the owners of the land to be expropriated in respect of which a document has been served on the corporation under subsection (1) shall be transferred to and exercised by the corporation, subject to section 126. 1998, c. 19, s. 24 (3).
Notices under the Planning Act
25. A corporation that is served with a notice under the Planning Act shall, within 15 days of being served, notify all persons whose names are in the record of the corporation maintained under subsection 47 (2) that it has been served with a notice under that Act and shall make a copy of the notice available for examination by them. 1998, c. 19, s. 25.
Occupier’s liability
26. For the purposes of determining liability resulting from breach of the duties of an occupier of land, the corporation shall be deemed to be the occupier of the common elements and the owners shall be deemed not to be occupiers of the common elements. 1998, c. 19, s. 26.
Board of directors
27. (1) A board of directors shall manage the affairs of the corporation. 1998, c. 19, s. 27 (1).
Number
(2) Subject to subsection 42 (4), the board shall consist of at least three persons or such greater number as the by-laws may provide. 1998, c. 19, s. 27 (2).
Change in number
(3) The corporation may by by-law increase or, subject to subsection (2), decrease the number of directors as set out in its by-laws. 1998, c. 19, s. 27 (3).
Election of directors
28. (1) Subject to subsection 42 (1), the owners shall elect the board of directors in accordance with this Act and the by-laws. 1998, c. 19, s. 28 (1).
Notice of candidates
(2) The notice of a meeting to elect one or more directors shall include the name and address of each individual who has notified the board in writing of the intention to be a candidate in the election as of the fourth day before the notice is sent. 1998, c. 19, s. 28 (2).
Notice of owner-occupant position
(3) If, under subsection 51 (6), one position on the board is reserved for voting by owners of owner-occupied units, the notice of meeting shall include,
(a) a statement that one position on the board is reserved for voting by owners of owner-occupied units; and
(b) a statement indicating which persons have notified the board in writing as of the day before the notice is sent that they intend to be candidates for the position on the board reserved for voting by owners of owner-occupied units. 1998, c. 19, s. 28 (3).
Qualifications
29. (1) No person shall be a director if,
(a) the person is under eighteen years of age;
(b) the person is an undischarged bankrupt; or
(c) the person is incapable of managing property within the meaning of the Substitute Decisions Act, 1992. 1998, c. 19, s. 29 (1); 2009, c. 33, Sched. 2, s. 17 (1).
Disqualification
(2) A person immediately ceases to be a director if,
(a) the person becomes an undischarged bankrupt or incapable of managing property within the meaning of the Substitute Decisions Act, 1992; or
(b) a certificate of lien has been registered under subsection 85 (2) against a unit owned by the person and the person does not obtain a discharge of the lien under subsection 85 (7) within 90 days of the registration of the lien. 1998, c. 19, s. 29 (2); 2009, c. 33, Sched. 2, s. 17 (2).
Consent
30. (1) A person shall not be elected or appointed as a director unless the person consents. 1998, c. 19, s. 30 (1).
Deemed consent
(2) A person shall be deemed to consent if the person is present at the meeting when elected or appointed and does not refuse to act as a director. 1998, c. 19, s. 30 (2).
Written consent
(3) A person who is not present at the meeting may be elected or appointed if the person consents in writing to act as director before the meeting or within 10 days after the meeting. 1998, c. 19, s. 30 (3).
Non-compliance
(4) The election or appointment of a person as director contrary to this section is ineffective. 1998, c. 19, s. 30 (4).
Term
31. (1) Except in the case of directors appointed to the first board of directors under subsection 42 (1), a director is elected for a term of three years or such lesser period as the by-laws may provide. 1998, c. 19, s. 31 (1).
Same
(2) Despite subsection (1), a director may continue to act until a successor is elected. 1998, c. 19, s. 31 (2).
Conduct of business
32. (1) Subject to subsection 42 (5), the board of a corporation shall not transact any business of the corporation except at a meeting of directors at which a quorum of the board is present. 1998, c. 19, s. 32 (1).
Quorum
(2) A quorum for the transaction of business is a majority of the members of the board. 1998, c. 19, s. 32 (2).
Removal
33. (1) Subject to subsection 51 (8), a director, other than a director on the first board, may be removed before the expiration of the director’s term of office by a vote of the owners at a meeting duly called for the purpose where the owners of more than 50 per cent of all of the units in the corporation vote in favour of removal. 1998, c. 19, s. 33 (1).
Replacement
(2) In accordance with the by-laws dealing with the election of directors, the owners may, at the meeting, elect any person qualified to be a member of the board for the remainder of the term of a director who has been removed. 1998, c. 19, s. 33 (2).
Vacancy
34. (1) If a vacancy arises in the board, the remaining directors may exercise all the powers of the board as long as a quorum of the board remains in office. 1998, c. 19, s. 34 (1).
Replacement made by board
(2) If a vacancy arises in the board and a quorum of the board remains in office, the majority of the remaining members of the board may appoint any person qualified to be a member of the board to fill the vacancy until the next annual general meeting. 1998, c. 19, s. 34 (2).
Replacement made by owners
(3) Subject to subsection 51 (6), at the annual general meeting mentioned in subsection (2) the owners shall elect a person to fill the vacancy that arose under that subsection who shall hold office for the remainder of the term of the director whose position became vacant. 1998, c. 19, s. 34 (3).
Election when no quorum
(4) If a vacancy arises in the board and there are not enough directors remaining in office to constitute a quorum, the remaining directors shall, within 30 days of losing the quorum, call and hold a meeting of owners to fill all vacancies in the board. 1998, c. 19, s. 34 (4).
Owner may call meeting
(5) If the directors do not call and hold the meeting or if there are no directors then in office, an owner may call the meeting. 1998, c. 19, s. 34 (5).
Reimbursement of cost
(6) Upon request, the corporation shall reimburse an owner who calls a meeting under subsection (5) for the reasonable costs incurred in calling the meeting. 1998, c. 19, s. 34 (6).
Increase
(7) Despite subsection (2), a vacancy resulting from an increase in the number of directors shall be filled only by election at a meeting of owners duly called for that purpose and the directors so elected shall not act until the by-law increasing the number of directors is registered under subsection 56 (9). 1998, c. 19, s. 34 (7).
Meetings of directors
35. (1) In addition to meetings of the directors required by the by-laws of the corporation, a quorum of the directors may, at any time, call a meeting for the transaction of any business. 1998, c. 19, s. 35 (1).
Notice
(2) The person calling a meeting of directors shall give a written notice of the meeting to every director of the corporation,
(a) at least 10 days before the day of the meeting, unless the by-laws specify otherwise; and
(b) by delivering it to the director personally or by sending it by prepaid mail, courier delivery or electronic communication addressed to the director at the latest address as shown on the records of the corporation, unless the by-laws specify otherwise. 1998, c. 19, s. 35 (2).
Content of notice
(3) The notice shall state the time and place of the meeting and the general nature of the business to be discussed at the meeting. 1998, c. 19, s. 35 (3).
Waiver of notice
(4) A director who attends a meeting shall be deemed to have waived the right to object to a failure to give the required notice unless the director expressly objects to the failure at the meeting. 1998, c. 19, s. 35 (4).
Teleconference
(5) A meeting of the directors may be held by teleconference or another form of communications system that allows the directors to participate concurrently if,
(a) the by-laws authorize those means for holding a meeting of the directors; and
(b) all directors of the corporation consent to the means used for holding the meeting. 1998, c. 19, s. 35 (5).
Officers
36. (1) A corporation shall have a president and a secretary and all other officers that are provided for by by-law or by resolution of the directors. 1998, c. 19, s. 36 (1).
Election and appointment
(2) Subject to the by-laws, the directors,
(a) shall elect the president from among themselves;
(b) shall appoint or elect the secretary; and
(c) may appoint or elect one or more vice-presidents or other officers. 1998, c. 19, s. 36 (2).
Holding several offices
(3) The same person may hold two or more offices of the corporation. 1998, c. 19, s. 36 (3).
Standard of care
37. (1) Every director and every officer of a corporation in exercising the powers and discharging the duties of office shall,
(a) act honestly and in good faith; and
(b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. 1998, c. 19, s. 37 (1).
Validity of acts
(2) The acts of a director or officer are valid despite any defect that may afterwards be discovered in the person’s election, appointment or qualifications. 1998, c. 19, s. 37 (2).
Liability of directors
(3) A director shall not be found liable for a breach of a duty mentioned in subsection (1) if the breach arises as a result of the director’s relying in good faith upon,
(a) financial statements of the corporation that the auditor in a written report, an officer of the corporation or a manager under an agreement for the management of the property represents to the director as presenting fairly the financial position of the corporation in accordance with generally accepted accounting principles; or
(b) a report or opinion of a lawyer, public accountant, engineer, appraiser or other person whose profession lends credibility to the report or opinion. 1998, c. 19, s. 37 (3); 2004, c. 8, s. 47 (1).
Indemnification
38. (1) Subject to subsection (2), the by-laws of a corporation may provide that every director and every officer of the corporation and the person’s heirs, executors, administrators, estate trustees and other legal personal representatives may from time to time be indemnified and saved harmless by the corporation from and against,
(a) any liability and all costs, charges and expenses that the director or officer sustains or incurs in respect of any action, suit or proceeding that is proposed or commenced against the person for or in respect of anything that the person has done, omitted to do or permitted in respect of the execution of the duties of office; and
(b) all other costs, charges and expenses that the person sustains or incurs in respect of the affairs of the corporation. 1998, c. 19, s. 38 (1).
Not for breach of duty
(2) No director or officer of a corporation shall be indemnified by the corporation in respect of any liability, costs, charges or expenses that the person sustains or incurs in or about an action, suit or other proceeding as a result of which the person is adjudged to be in breach of the duty to act honestly and in good faith. 1998, c. 19, s. 38 (2).
Insurance
39. If the insurance is reasonably available, a corporation shall purchase and maintain insurance for the benefit of a director or officer against the matters described in clauses 38 (1) (a) and (b) except insurance against a liability, cost, charge or expense of the director or officer incurred as a result of a breach of the duty to act honestly and in good faith. 1998, c. 19, s. 39.
Disclosure by director of interest
40. (1) A director of a corporation who has, directly or indirectly, an interest in a contract or transaction to which the corporation is a party or a proposed contract or transaction to which the corporation will be a party, shall disclose in writing to the corporation the nature and extent of the interest. 1998, c. 19, s. 40 (1).
Interest to be material
(2) Subsection (1) does not apply to a contract or transaction or a proposed contract or transaction unless both it and the director’s interest in it are material. 1998, c. 19, s. 40 (2).
Purchase of property
(3) If the contract or transaction or the proposed contract or transaction to which subsection (1) applies involves the purchase or sale of real or personal property by the corporation that the seller acquired within five years before the date of the contract or transaction or the proposed contract or transaction, the director shall disclose the cost of the property to the seller, to the extent to which that information is within the director’s knowledge or control. 1998, c. 19, s. 40 (3).
Time of disclosure
(4) The disclosure required by this section shall be made,
(a) at the meeting of the board at which the contract or transaction or the proposed contract or transaction is first considered;
(b) if the director is not as of the date of the meeting mentioned in clause (a) interested in the contract or transaction or the proposed contract or transaction, at the next meeting of the directors held after the director becomes so interested;
(c) if the director becomes interested in the contract or transaction after it is entered into, at the first meeting of the directors held after the director becomes so interested; or
(d) if the contract or transaction or the proposed contract or transaction is one that in the ordinary course of the corporation’s business would not require approval by the directors or owners, at the first meeting of the directors held after the director becomes aware of the contract or transaction or the proposed contract or transaction. 1998, c. 19, s. 40 (4).
Minutes
(5) The board shall enter the disclosure made by a director under this section in the minutes of the meeting of the board at which the disclosure was made. 1998, c. 19, s. 40 (5).
Right to vote
(6) The director shall not be present during the discussion at a meeting, vote or be counted in the quorum on a vote with respect to a contract or transaction or a proposed contract or transaction to which subsection (1) applies unless the director’s interest in it,
(a) is or would be limited solely to the insurance described in section 39 or remuneration as a director, officer or employee of the corporation; or
(b) arises or would arise solely because the director is a director, officer or employee of the declarant, if the director has been appointed to the first board by the declarant under subsection 42 (1). 1998, c. 19, s. 40 (6).
Effect of disclosure
(7) A director who has complied with the requirements of this section and who was acting honestly and in good faith at the time the contract or transaction was entered into, is not, by reason only of holding the office of director, accountable to the corporation or to its owners for any profit or gain realized from the contract or transaction, and the contract or transaction is not voidable by reason only of the director’s interest in it. 1998, c. 19, s. 40 (7).
Confirmation by owners
(8) Despite anything in this section, a director who has acted honestly and in good faith is not accountable to the corporation or to the owners for any profit or gain realized from the contract or transaction by reason only of holding the office of director, and the contract or transaction is not voidable by reason only of the director’s interest in it if,
(a) the contract or transaction is confirmed or approved by at least two-thirds of the votes cast at a meeting of owners duly called for that purpose; and
(b) the nature and extent of the director’s interest in the contract or transaction are declared and disclosed in reasonable detail in the notice calling the meeting. 1998, c. 19, s. 40 (8).
Disclosure by officer of interest
41. (1) An officer of a corporation who is not a director and who has, directly or indirectly, an interest in a contract or transaction to which the corporation is a party or a proposed contract or transaction to which the corporation will be a party, shall disclose in writing to the corporation the nature and extent of the interest. 1998, c. 19, s. 41 (1).
Time of disclosure
(2) An officer who is required to make a disclosure under subsection (1) shall make the disclosure at the first meeting of the board held after the officer becomes aware of the contract or transaction or the proposed contract or transaction. 1998, c. 19, s. 41 (2).
Application of s. 40
(3) Subsections 40 (2), (3), (5), (7) and (8) apply to an officer of a corporation who is not a director as if all references to a director in those subsections were references to an officer. 1998, c. 19, s. 41 (3).
Transfer of Control by Declarant
First board of directors
42. (1) Within 10 days after the registration of the declaration and description, the declarant shall appoint the first board of a corporation. 1998, c. 19, s. 42 (1).
Replacements
(2) The declarant may revoke the appointment of a director to the first board and appoint another director to the first board who shall hold office until a new board is elected at a turn-over meeting held under section 43. 1998, c. 19, s. 42 (2).
Term
(3) The first board shall hold office until a new board is elected at a turn-over meeting held under section 43. 1998, c. 19, s. 42 (3).
Number
(4) The first board shall consist of three persons or such greater number as the declaration provides. 1998, c. 19, s. 42 (4).
Conduct of business
(5) A written resolution that is adopted by the first board before the owners elect a director to the first board under subsection (8) and that is signed by all the directors entitled to vote on the resolution at a meeting of the first board, is valid even though no meeting is held to vote on the resolution. 1998, c. 19, s. 42 (5).
Owners’ meeting
(6) Subject to subsection (7), the first board shall call and hold a meeting of owners by the later of,
(a) the 30th day after the day by which the declarant has transferred 20 per cent of the units in the corporation; and
(b) the 90th day after the declarant transfers the first unit in the corporation. 1998, c. 19, s. 42 (6).
Exception
(7) The first board is not required to call or hold the meeting mentioned in subsection (6) if, by the day set for the meeting, the declarant no longer owns a majority of the units and advises the first board in writing of that fact. 1998, c. 19, s. 42 (7).
Election of directors
(8) At the meeting mentioned in subsection (6), the owners, other than the declarant, may elect two directors to the first board. 1998, c. 19, s. 42 (8).
Quorum
(9) Despite subsection 50 (1), at the meeting mentioned in subsection (6), the quorum for the election of directors under subsection (8) is those owners who own 25 per cent of the units in the corporation not owned by the declarant. 1998, c. 19, s. 42 (9).
Determination of quorum
(10) To count towards the quorum, an owner must have been entitled to receive notice of the meeting, must be entitled to vote at a meeting and shall be present at the meeting or represented by proxy. 1998, c. 19, s. 42 (10).
Increased number
(11) A director elected to the first board under subsection (8) shall hold office in addition to the directors appointed to the first board even if the addition of an elected director results in more directors on the board than the declaration allows. 1998, c. 19, s. 42 (11).
Transition
(12) The owners other than the declarant shall not be entitled to elect a director under subsection (8) if the corporation’s first board was appointed or elected on or before the day this section comes into force. 1998, c. 19, s. 42 (12).
Turn-over meeting
43. (1) The board elected or appointed at a time when the declarant owns a majority of the units shall, not more than 21 days after the declarant ceases to be the registered owner of the majority of the units, call a meeting of owners to elect a new board. 1998, c. 19, s. 43 (1).
Who may call meeting
(2) If the board does not call the meeting within the required time, an owner or a mortgagee having the right to vote under section 48 may call the meeting. 1998, c. 19, s. 43 (2).
Time of meeting
(3) The board shall hold the meeting within 21 days after it is called. 1998, c. 19, s. 43 (3).
Things to turn over
(4) At the meeting, the declarant shall deliver to the board elected at the meeting,
(a) the seal of the corporation;
(b) the minute book for the corporation including a copy of the registered declaration, registered by-laws, current rules and minutes of owners’ meetings and board meetings;
(c) copies of all agreements entered into by the corporation or the declarant or the declarant’s representatives on behalf of the corporation, including management contracts, deeds, leases, licences and easements;
(d) copies of all policies of insurance and the related certificates or memoranda of insurance and all insurance trust agreements;
(e) bills of sale or transfers for all items that are assets of the corporation but not part of the property;
(f) the records maintained under subsection 47 (2) and subsection 83 (3); and
(g) all records that it has related to the units or to employees of the corporation. 1998, c. 19, s. 43 (4).
Same, after meeting
(5) The declarant shall deliver to the board within 30 days after the meeting,
(a) the existing warranties and guarantees for all the equipment, fixtures and chattels included in the sale of either the units or common elements that are not protected by warranties and guarantees given directly to a unit purchaser;
(b) the as-built architectural, structural, engineering, mechanical, electrical and plumbing plans;
(c) the as-built specifications, indicating all substantive changes, if any, from the original specifications;
(d) all existing plans for underground site services, site grading, drainage and landscaping, and television, radio or other communications services;
(e) all other existing plans and information not mentioned in clause (b), (c) or (d) that are relevant to the repair or maintenance of the property;
(f) if the property of the corporation is subject to the Ontario New Home Warranties Plan Act,
(i) proof, in the form, if any, prescribed by the Minister, that the units and common elements have been enrolled in the Plan within the meaning of that Act in accordance with the regulations made under that Act, and
(ii) a copy of all final reports on inspections that the Corporation within the meaning of that Act requires be carried out on the common elements;
(g) a table setting out the responsibilities for repair after damage and maintenance and indicating whether the corporation or the owners are responsible;
(h) a schedule setting out what constitutes a standard unit for each class of unit that the declarant specifies for the purpose of determining the responsibility for repairing improvements after damage and insuring them;
(i) all financial records of the corporation and of the declarant relating to the operation of the corporation from the date of registration of the declaration and the description;
(j) if the meeting is held after nine months following the registration of the declaration and description, the reserve fund study that is required within the year following the registration of the declaration and description;
(k) all reserve fund studies that have been completed or are required to have been completed at the time the meeting is held, other than the reserve fund study that is required within the year following the registration of the declaration and description;
(l) a copy of the most current disclosure statement delivered to a purchaser of a unit in the corporation under section 72 before the meeting; and
(m) all other material that the regulations made under this Act require to be given to the board. 1998, c. 19, s. 43 (5).
Cost
(6) The items mentioned in subsections (4) and (5) shall be prepared at the declarant’s expense, except for the items mentioned in clauses (5) (j) and (k) which shall be prepared at the expense of the corporation. 1998, c. 19, s. 43 (6).
Audited financial statements
(7) The declarant shall deliver to the board within 60 days after the meeting audited financial statements of the corporation prepared by the auditor, on behalf of the owners and at the expense of the corporation, as of the last day of the month in which the meeting is held. 1998, c. 19, s. 43 (7).
Application
(8) The corporation may make an application to the Superior Court of Justice for an order under subsection (9). 1998, c. 19, s. 43 (8); 2000, c. 26, Sched. B, s. 7 (5).
Court order
(9) The court, if satisfied that the declarant has, without reasonable excuse, failed to comply with subsection (4), (5) or (7),
(a) shall order that the declarant pay damages to the corporation for the loss it incurred as a result of the declarant’s acts of non-compliance with subsection (4), (5) or (7), as the case may be;
(b) shall order that the declarant pay the corporation’s costs of the application;
(c) may order the declarant to pay to the corporation an additional amount not to exceed $10,000; and
(d) may order the declarant to comply with subsection (4), (5) or (7), as the case may be. 1998, c. 19, s. 43 (9).
Performance audit
44. (1) If the property of the corporation includes one or more units for residential purposes or if the corporation is a common elements condominium corporation, the board shall retain a person who holds a certificate of authorization within the meaning of the Professional Engineers Act or a certificate of practice within the meaning of the Architects Act to conduct a performance audit of the common elements described in the description on behalf of the corporation. 1998, c. 19, s. 44 (1).
Time for audit
(2) A performance audit shall be conducted no earlier than six months, and no later than 10 months, following the registration of the declaration and description. 1998, c. 19, s. 44 (2).
Cost
(3) The corporation shall pay the cost of the performance audit and it shall form part of the corporation’s budget for the year following the registration of the declaration and description. 1998, c. 19, s. 44 (3).
Purpose
(4) The person who conducts the performance audit shall determine whether there are any deficiencies in the performance of the common elements described in the description after construction has been completed on them that,
(a) may give rise to a claim for payment out of the guarantee fund under section 14 of the Ontario New Home Warranties Plan Act to the corporation; or
(b) subject to the regulations made under this Act, would give rise to a claim described in clause (a) if the property of the corporation were subject to that Act. 1998, c. 19, s. 44 (4).
Duties
(5) In making the determination, the person who conducts the performance audit shall,
(a) inspect the major components of the buildings on the property which, subject to the regulations made under this Act, include the foundation, parking garage, wall construction, air and vapour barriers, windows, doors, elevators, roofing, mechanical system, electrical system, fire protection system and all other components that are prescribed;
(b) subject to the regulations made under this Act, inspect the landscaped areas of the property;
(c) review all final reports on inspections that the Corporation within the meaning of the Ontario New Home Warranties Plan Act requires be carried out on the common elements; and
(d) conduct a survey of the owners of the corporation as to what evidence, if any, they have seen of,
(i) damage to the units that may have been caused by defects in the common elements, and
(ii) defects in the common elements that may cause damage to the units. 1998, c. 19, s. 44 (5).
Powers for audit
(6) The person who conducts a performance audit may, for the purpose of the audit,
(a) enter onto the property at any reasonable time either alone or accompanied with any expert that the person considers necessary for the audit;
(b) require any person to produce any drawings, specifications or information that may on reasonable grounds be relevant to the audit;
(c) make all examinations, tests or inquiries that may on reasonable grounds be relevant to the audit; and
(d) call upon any expert for the assistance that the person considers necessary in conducting the audit. 1998, c. 19, s. 44 (6).
No obstruction
(7) No person shall obstruct a person who is exercising powers under this section or provide false information or refuse to provide information to the person. 1998, c. 19, s. 44 (7).
Contents
(8) The person who conducts a performance audit shall prepare a written report that includes,
(a) a copy of the person’s certificate of authorization within the meaning of the Professional Engineers Act or certificate of practice within the meaning of the Architects Act, as the case may be;
(b) details of the inspection and findings made by the person in the course of conducting the audit;
(c) a statement that the person has reviewed all final reports described in clause (5) (c);
(d) a copy of the survey described in clause (5) (d) and a summary of the results of it;
(e) the determination that subsection (4) requires the person to make; and
(f) all other material that the regulations made under this Act require. 1998, c. 19, s. 44 (8).
Submission of report
(9) Before the end of the 11th month following the registration of the declaration and description, the person who conducts a performance audit shall,
(a) submit the report to the board; and
(b) file the report with the Corporation within the meaning of the Ontario New Home Warranties Plan Act if the property is subject to that Act. 1998, c. 19, s. 44 (9).
Claim under other Act
(10) The filing of the report with the Corporation within the meaning of the Ontario New Home Warranties Plan Act shall be deemed to constitute a notice of claim that the corporation gives to the Corporation within the meaning of that Act under the regulations made under that Act for the deficiencies disclosed in the report. 1998, c. 19, s. 44 (10).
Meetings
45. (1) Subject to the other requirements of this Act, anything that this Act requires to be approved by a vote of any of the owners shall be approved only at a meeting of owners duly called for that purpose. 1998, c. 19, s. 45 (1).
Annual general meeting
(2) The board shall hold a general meeting of owners not more than three months after the registration of the declaration and description and subsequently within six months of the end of each fiscal year of the corporation. 1998, c. 19, s. 45 (2).
Matters for annual general meeting
(3) At an annual general meeting, an owner may raise for discussion any matter relevant to the affairs and business of the corporation. 1998, c. 19, s. 45 (3).
Other meetings
(4) The board may at any time call a meeting of owners for the transaction of any business, and the notice of the meeting shall specify the nature of the business. 1998, c. 19, s. 45 (4).
Requisition for meeting
46. (1) A requisition for a meeting of owners may be made by those owners who at the time the board receives the requisition, own at least 15 per cent of the units, are listed in the record maintained by the corporation under subsection 47 (2) and are entitled to vote. 1998, c. 19, s. 46 (1).
Form of requisition
(2) The requisition shall,
(a) be in writing and be signed by the requisitionists;
(b) state the nature of the business to be presented at the meeting; and
(c) be delivered personally or by registered mail to the president or secretary of the board or deposited at the address for service of the corporation. 1998, c. 19, s. 46 (2).
Same, removal of directors
(3) If the nature of the business to be presented at the meeting includes the removal of one or more of the directors, the requisition shall state, for each director who is proposed to be removed, the name of the director, the reasons for the removal and whether the director occupies a position on the board that under subsection 51 (6) is reserved for voting by owners of owner-occupied units. 1998, c. 19, s. 46 (3).
Duty of board
(4) Upon receiving a requisition mentioned in subsection (1), the board shall,
(a) if the requisitionists so request in the requisition or consent in writing, add the business to be presented at the meeting to the agenda of items for the next annual general meeting; or
(b) otherwise call and hold a meeting of owners within 35 days. 1998, c. 19, s. 46 (4).
Non-compliance
(5) If the board does not comply with subsection (4), a requisitionist may call a meeting of owners which shall be held within 45 days of the day on which the meeting is called. 1998, c. 19, s. 46 (5).
Reimbursement of cost
(6) Upon request, the corporation shall reimburse a requisitionist who calls a meeting under subsection (5) for the reasonable costs incurred in calling the meeting. 1998, c. 19, s. 46 (6).
Notice to owners
47. (1) A notice that is required to be given to owners shall,
(a) be in writing;
(b) be given at least 15 days before the day of the meeting if the notice is a notice of meeting of owners; and
(c) be given to,
(i) each owner who has notified the corporation in writing of the owner’s name and address for service, and
(ii) each mortgagee of a unit who,
(A) under the terms of the mortgage, has the right to vote at a meeting of owners in the place of the unit owner or to consent in writing in the place of the unit owner, and
(B) has notified the corporation in writing of the right and the mortgagee’s name and address for service. 1998, c. 19, s. 47 (1).
Record of owners and mortgagees
(2) A corporation shall maintain a record of the names and addresses for service that it receives under subsection (1). 1998, c. 19, s. 47 (2).
Use of record
(3) A corporation shall use the record for the purposes of this Act, and no other purpose. 1998, c. 19, s. 47 (3).
Change in address
(4) A person whose name is in the record shall notify the corporation in writing of all changes in the address for service. 1998, c. 19, s. 47 (4).
Record date
(5) In the case of a notice of meeting of owners, the persons whose names appeared in the record 20 days before the day of the meeting shall be deemed to be the persons to whom the notice is required to be given under subsection (1). 1998, c. 19, s. 47 (5).
Same, other notice
(6) In the case of a notice to owners that is not a notice of meeting of owners, the persons whose names appeared in the record 5 days before the day the notice is given shall be deemed to be the persons to whom the notice is required to be given under subsection (1). 1998, c. 19, s. 47 (6).
Service on owner
(7) A notice that is required to be given to an owner shall be,
(a) delivered to the owner personally;
(b) sent by prepaid mail addressed to the owner at the address for service that appears in the record;
(c) sent by facsimile transmission, electronic mail or any other method of electronic communication if the owner agrees in writing that the party giving the notice may give the notice in this manner; or
(d) delivered at the owner’s unit or at the mail box for the unit unless,
(i) the party giving the notice has received a written request from the owner that the notice not be given in this manner, or
(ii) the address for service that appears in the record is not the address of the unit of the owner. 1998, c. 19, s. 47 (7).
Service on mortgagee
(8) A notice that is required to be given to a mortgagee shall be,
(a) delivered to the mortgagee personally;
(b) sent by prepaid mail addressed to the mortgagee at the address for service that appears in the record; or
(c) sent by facsimile transmission, electronic mail or any other method of electronic communication if the mortgagee agrees in writing that the party giving the notice may give the notice in this manner. 1998, c. 19, s. 47 (8).
Content of notice of meeting
(9) A notice of meeting of owners shall,
(a) specify the place, the date and the hour of the meeting, as well as the nature of the business to be presented at the meeting; and
(b) be accompanied by,
(i) a copy of all proposed changes to the declaration, by-laws, rules or agreements that are to be discussed at the meeting, and
(ii) a copy of the requisition, if an owner has made a requisition under section 46. 1998, c. 19, s. 47 (9).
Matters at meeting
(10) No vote shall be taken at a meeting of owners on any matter other than routine procedure unless that matter was clearly disclosed in the notice of the meeting. 1998, c. 19, s. 47 (10).
Waiver of notice
(11) An owner or mortgagee who attends a meeting or who is represented by proxy at a meeting shall be deemed to have waived the right to object to a failure to give the required notice, unless the person expressly objects to the failure at the meeting. 1998, c. 19, s. 47 (11).
Mortgagee’s right to vote
48. (1) A mortgagee of a unit who is entitled to receive notice of a meeting of owners has the right to vote at the meeting in the place of the unit owner or to exercise the right, if any, of the unit owner to consent in writing if the mortgagee gives notice to the corporation and to the owner at least four days before the date of the meeting of the mortgagee’s intention to exercise the right. 1998, c. 19, s. 48 (1).
More than one mortgagee
(2) If a unit is subject to more than one mortgage for which the mortgagee has the right to vote at a meeting of owners in the place of the owner or to consent in writing in the place of the owner, the mortgagee who has priority may exercise the right and in that case no other mortgagee may exercise the right. 1998, c. 19, s. 48 (2).
Same
(3) If a mortgagee who has priority fails to exercise the right, the mortgagee who is next in priority may exercise the right and in that case no other mortgagee may exercise the right. 1998, c. 19, s. 48 (3).
Voting by owner
(4) If none of the mortgagees who have the right exercises the right, the owner has the right to vote at a meeting of owners subject to subsection 51 (1) or to consent in writing. 1998, c. 19, s. 48 (4).
Loss of owner’s right to vote
49. (1) An owner is not entitled to vote at a meeting if any contributions payable in respect of the owner’s unit have been in arrears for 30 days or more at the time of the meeting. 1998, c. 19, s. 49 (1).
Payment of arrears
(2) An owner who is not entitled to vote under subsection (1) may vote if the corporation receives payment of the arrears with respect to the owner’s unit before the meeting is held. 1998, c. 19, s. 49 (2).
Parking or storage unit
(3) No owner shall vote in respect of a unit that is intended for parking or storage purposes or for the purpose of housing services or facilities or mechanical installations unless all the units in the corporation are used for one or more of those purposes. 1998, c. 19, s. 49 (3).
Quorum
50. (1) A quorum for the transaction of business at a meeting of owners is those owners who own 25 per cent of the units of the corporation, unless a by-law registered in accordance with subsection 56 (9) after this subsection comes into force provides that the quorum is those owners who own 331/3 per cent of the units of the corporation. 1998, c. 19, s. 50 (1).
Determination of quorum
(2) To count towards the quorum, an owner must have been entitled to receive notice of the meeting, must be entitled to vote at a meeting and shall be present at the meeting or represented by proxy. 1998, c. 19, s. 50 (2).
Where only one owner
(3) If a corporation has only one owner, the owner present in person or by proxy constitutes a meeting. 1998, c. 19, s. 50 (3).
Voting
51. (1) To vote at a meeting of owners, an owner must have been entitled to receive notice of the meeting and must be entitled to vote at the meeting. 1998, c. 19, s. 51 (1).
One vote per unit
(2) All voting by owners shall be on the basis of one vote per unit. 1998, c. 19, s. 51 (2).
Joint owners
(3) The majority of the owners of a unit may exercise the right to vote in respect of the unit but the vote shall not be counted if there are two or more owners of the unit and they are evenly divided on how to exercise the vote. 1998, c. 19, s. 51 (3).
Voting for directors
(4) Subject to this section, on a vote to elect or to remove a member of the board all owners entitled to vote may vote for each member of the board. 1998, c. 19, s. 51 (4).
Definition
(5) In subsections (6), (7) and (8),
“owner-occupied unit” means a unit of an owner who is entitled to vote in respect of the unit at a meeting to elect or to remove a director where the unit is used for residential purposes and the owner has not leased the unit within the 60 days before notice is given for the meeting, as shown by the record that the corporation is required to maintain under subsection 83 (3). 1998, c. 19, s. 51 (5).
Reserved position
(6) If at least 15 per cent of the units of the corporation are owner-occupied units on or after the time at which the board is required to call a turn-over meeting under section 43, no persons other than the owners of owner-occupied units may elect a person to or remove a person from one of the positions on the board. 1998, c. 19, s. 51 (6).
Other positions
(7) Nothing in subsection (6) affects the right of the owner of an owner-occupied unit to vote to elect or to remove any members of the board other than the member who occupies the position mentioned in that subsection. 1998, c. 19, s. 51 (7).
Removal
(8) A director elected under subsection (6) may be removed before the expiration of the director’s term of office by a vote of the owners at a meeting duly called for the purpose where the owners of more than 50 per cent of all of the owner-occupied units in the corporation vote in favour of removal. 1998, c. 19, s. 51 (8).
Method of voting
52. (1) On a show of hands or on a recorded vote, votes may be cast either personally or by proxy. 1998, c. 19, s. 52 (1).
Request for recorded vote
(2) At a meeting of owners, a person entitled to vote at the meeting may request that a recorded vote be held on any item scheduled for a vote either before or promptly after the vote. 1998, c. 19, s. 52 (2).
Proxy
(3) A proxy need not be an owner. 1998, c. 19, s. 52 (3).
Appointment of proxy
(4) Subject to the regulations made under this Act and subsection (5), an instrument appointing a proxy shall be in writing under the hand of the appointer or the appointer’s attorney and shall be for a particular meeting of owners. 1998, c. 19, s. 52 (4).
Proxy for voting for directors
(5) An instrument appointing a proxy for the election or removal of a director at a meeting of owners shall state the name of the directors for and against whom the proxy is to vote. 1998, c. 19, s. 52 (5).
Prescribed form
(6) An instrument appointing a proxy may be in the prescribed form. 1998, c. 19, s. 52 (6).
Record of corporation
(7) The corporation shall retain all instruments appointing a proxy for a meeting of owners as a record of the corporation for 90 days following the date of the meeting. 1998, c. 19, s. 52 (7).
Majority voting
53. Unless otherwise provided in this Act, all questions proposed for the consideration of the owners at a meeting of owners shall be determined by a majority of the votes cast by owners present at the meeting in person or by proxy if there is a quorum at the meeting. 1998, c. 19, s. 53.
Service on owner or mortgagee
54. Unless this Act indicates otherwise, anything required to be given to an owner or a mortgagee under this Act is sufficiently served if it is given in accordance with subsection 47 (7) or (8), as the case may be. 1998, c. 19, s. 54.
Records
55. (1) The corporation shall keep adequate records, including the following records:
1. The financial records of the corporation.
2. A minute book containing the minutes of owners’ meetings and the minutes of board meetings.
3. A copy of the declaration, by-laws and rules.
4. All lists, items, records and other documents mentioned in subsections 43 (4) and (5).
5. The report described in subsection 44 (8) that the corporation receives from the person who conducts a performance audit.
6. The records required under subsection 47 (2) and 83 (3).
7. A record of all reserve fund studies and all plans to increase the reserve fund under subsection 94 (8).
8. A copy of all agreements entered into by or on behalf of the corporation.
9. The report that the corporation receives from an inspector in accordance with subsection 130 (5).
10. All other records as may be prescribed or specified in the by-laws of the corporation. 1998, c. 19, s. 55 (1).
Financial records
(2) The corporation shall keep all financial records for at least six years from the end of the last fiscal period to which they relate, in addition to satisfying the requirements of any taxing authority of Ontario, the government of Canada or any other jurisdiction to which the corporation is subject. 1998, c. 19, s. 55 (2).
Examination of records
(3) Upon receiving a written request and reasonable notice, the corporation shall permit an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing, to examine the records of the corporation, except those records described in subsection (4), at a reasonable time for all purposes reasonably related to the purposes of this Act. 1998, c. 19, s. 55 (3).
Exception
(4) The right to examine records under subsection (3) does not apply to,
(a) records relating to employees of the corporation, except for contracts of employment between any of the employees and the corporation;
(b) records relating to actual or pending litigation or insurance investigations involving the corporation; or
(c) subject to subsection (5), records relating to specific units or owners. 1998, c. 19, s. 55 (4).
Same
(5) Clause (4) (c) does not prevent,
(a) an owner, a purchaser or a mortgagee of a unit or an agent of one of them from examining records under subsection (3) that relate to the unit of the owner, the unit being purchased or the unit that is subject to the mortgage, as the case may be; or
(b) an owner of a unit or an agent of the owner from examining records under subsection (3) that relate to the owner. 1998, c. 19, s. 55 (5).
Copies of records
(6) The corporation shall, within a reasonable time, provide copies of the records to a person examining them, if the person so requests and pays a reasonable fee to compensate the corporation for the labour and copying charges. 1998, c. 19, s. 55 (6).
Admissible evidence
(7) A copy that a corporation has certified under its seal to be a true copy of a record is admissible in evidence and, in the absence of evidence to the contrary, is proof of the facts stated in it. 1998, c. 19, s. 55 (7).
Penalty for non-compliance
(8) A corporation that without reasonable excuse does not permit an owner or an agent of an owner to examine records or to copy them under this section shall pay the sum of $500 to the owner on receiving a written request for payment from the owner. 1998, c. 19, s. 55 (8).
Recovery of sum
(9) The owner may recover the sum from the corporation by an action in the Small Claims Court. 1998, c. 19, s. 55 (9).
Order for production of records
(10) If a corporation without reasonable excuse does not permit an owner or an agent of an owner to examine records or to copy them under this section, the Small Claims Court may order the corporation to produce the records for examination. 1998, c. 19, s. 55 (10).
By-laws
56. (1) The board may, by resolution, make, amend or repeal by-laws, not contrary to this Act or to the declaration,
(a) to govern the number, qualification, nomination, election, resignation, removal, term of office and remuneration of the directors, subject to subsection (2);
(b) to regulate board meetings, the form of board meetings and the quorum and functions of the board;
(c) to provide that the quorum for the transaction of business at a meeting of owners is those owners who own 331/3 per cent of the units of the corporation, subject to subsection 50 (2);
(d) to govern the appointment, remuneration, functions, duties, resignation and removal of agents, officers and employees of the corporation and the security, if any, to be given by them to it;
(e) subject to subsection (3), to authorize the borrowing of money to carry out the objects and duties of the corporation;
(f) to authorize the corporation to object to assessments under the Assessment Act on behalf of owners if it gives notice of the objections to the owners, and to authorize the defraying of costs of objections out of the common expenses;
(g) to govern the assessment and collection of contributions to the common expenses;
(h) to establish what constitutes a standard unit for each class of unit specified in the by-law for the purpose of determining the responsibility for repairing improvements after damage and insuring them;
(i) to extend the circumstances described in subsection 105 (2) under which an amount shall be added to the common expenses payable for an owner’s unit for the purposes of subsection 105 (3);
(j) to govern the maintenance of the units and common elements;
(k) to restrict the use and enjoyment that persons other than occupants of the units may make of the common elements and assets of the corporation, subject to any agreement made by the corporation with respect to the use and enjoyment of its common elements and assets that it shares with another person;
(l) to govern the management of the property;
(m) to govern the use and management of the assets of the corporation;
(n) to specify duties of the corporation in addition to the duties set out in this Act and the declaration;
(o) to establish the procedure with respect to the mediation of disputes or disagreements between the corporation and the owners for the purpose of section 125 or 132; or
(p) to govern the conduct generally of the affairs of the corporation. 1998, c. 19, s. 56 (1).
Remuneration of directors
(2) A by-law relating to the remuneration of directors shall fix the remuneration and the period not exceeding three years for which it is to be paid. 1998, c. 19, s. 56 (2).
Borrowing by-law
(3) A corporation shall not borrow money for expenditures not listed in the budget for the current fiscal year unless it has passed a by-law under clause (1) (e) specifically to authorize the borrowing. 1998, c. 19, s. 56 (3).
Assessment appeal
(4) If the board has made a by-law under clause (1) (f), the corporation shall have the capacity and authority to appeal under section 40 of the Assessment Act on behalf of owners but shall not be liable for an alteration in the assessment of a unit or for any other matter relating to the appeal, except for the costs of the appeal. 2008, c. 7, Sched. A, s. 18.
Same
(5) Despite a by-law made under clause (1) (f), on written notice to the board and to the Assessment Review Board given before the hearing of an appeal under section 40 of the Assessment Act, an owner may withdraw an appeal that the corporation has made on the owner’s behalf. 2008, c. 7, Sched. A, s. 18.
By-laws to be reasonable
(6) The by-laws shall be reasonable and consistent with this Act and the declaration. 1998, c. 19, s. 56 (6).
Same, proposed by-laws
(7) By-laws proposed by the declarant before the registration of a declaration and description shall be reasonable and consistent with this Act and the proposed declaration. 1998, c. 19, s. 56 (7).
Inconsistent provisions
(8) If any provision in a by-law or a proposed by-law is inconsistent with the provisions of this Act, the provisions of this Act shall prevail and the by-law or proposed by-law, as the case may be, shall be deemed to be amended accordingly. 1998, c. 19, s. 56 (8).
Registration
(9) For each by-law of a corporation, an officer of the corporation shall certify a copy of the by-law as a true copy and the corporation shall register the copy in,
(a) the land titles division of the land registry office within the boundaries of which division the land described in the description is situated, if the land registry office has a land titles division; or
(b) the registry division of the land registry office within the boundaries of which division the land described in the description is situated, if the land registry office does not have a land titles division. 1998, c. 19, s. 56 (9).
When by-law effective
(10) A by-law is not effective until,
(a) the owners of a majority of the units of the corporation vote in favour of confirming it, with or without amendment; and
(b) a copy of it is registered in accordance with subsection (9). 1998, c. 19, s. 56 (10).
Same, proposed by-law
(11) Despite subsection (10), a by-law proposed by the declarant before the registration of the declaration and description shall be effective until it is replaced or confirmed by a by-law of the corporation that takes effect in accordance with subsection (10). 1998, c. 19, s. 56 (11).
Occupancy standards by-law
57. (1) Subject to section 56, the board may, by resolution, make, amend or repeal by-laws not contrary to this Act or the declaration that establish standards for the occupancy of units of the corporation for residential purposes. 1998, c. 19, s. 57 (1).
Standards
(2) The standards shall be,
(a) the occupancy standards contained in a by-law passed by the council of a municipality in which the land of the corporation is situated; or
(b) subject to the regulations made under this Act, standards that are not more restrictive than standards that are in accordance with the maximum occupancy for each unit based on the maximum occupancy for which the building in which the units are located is designed. 1998, c. 19, s. 57 (2).
Prohibition
(3) A by-law passed under subsection (1) may prohibit persons from occupying units of the corporation that do not comply with the standards set out in the by-law. 1998, c. 19, s. 57 (3).
Assessments
(4) If the board has passed a by-law under subsection (1) and a person contravenes the standards for the occupancy of a unit set out in the by-law, the board may, by resolution, levy against the unit,
(a) an assessment for the amount that reasonably reflects the amount by which the contravention increases the cost of maintaining the common elements and repairing them after damage; and
(b) an assessment for the amount that reasonably reflects the amount by which the contravention increases the cost of using the utilities that form part of the common expenses. 1998, c. 19, s. 57 (4).
Part of common expenses
(5) The assessments mentioned in subsection (4) shall form part of the contribution to the common expenses payable for the unit. 1998, c. 19, s. 57 (5).
Rules
58. (1) The board may make, amend or repeal rules respecting the use of common elements and units to,
(a) promote the safety, security or welfare of the owners and of the property and assets of the corporation; or
(b) prevent unreasonable interference with the use and enjoyment of the common elements, the units or the assets of the corporation. 1998, c. 19, s. 58 (1).
Rules to be reasonable
(2) The rules shall be reasonable and consistent with this Act, the declaration and the by-laws. 1998, c. 19, s. 58 (2).
Same, proposed rules
(3) Rules proposed by the declarant before the registration of a declaration and description shall be reasonable and consistent with this Act, the proposed declaration and the proposed by-laws. 1998, c. 19, s. 58 (3).
Inconsistent provisions
(4) If any provision in a rule or a proposed rule is inconsistent with the provisions of this Act, the provisions of this Act shall prevail and the rule or proposed rule, as the case may be, shall be deemed to be amended accordingly. 1998, c. 19, s. 58 (4).
Amendment by owners
(5) The owners may amend or repeal a rule at a meeting of owners duly called for that purpose. 1998, c. 19, s. 58 (5).
Notice of rule
(6) Upon making, amending or repealing a rule, the board shall give a notice of it to the owners that includes,
(a) a copy of the rule as made, amended or repealed, as the case may be;
(b) a statement of the date that the board proposes that the rule will become effective; and
(c) a statement that the owners have the right to requisition a meeting under section 46 and the rule becomes effective at the time determined by subsections (7) and (8). 1998, c. 19, s. 58 (6).
When rule effective
(7) Subject to subsection (8), a rule is not effective until,
(a) the owners approve it at a meeting of owners, if the board receives a requisition for the meeting under section 46 within 30 days after the board has given notice of the rule to the owners; or
(b) 30 days after the board has given notice of the rule to the owners, if the board does not receive a requisition for the meeting under section 46 within those 30 days. 1998, c. 19, s. 58 (7).
Same
(8) A rule or an amendment to a rule that has substantially the same purpose or effect as a rule that the owners have previously amended or repealed within the preceding two years is not effective until the owners approve it, with or without amendment, at a meeting duly called for that purpose. 1998, c. 19, s. 58 (8).
Same, proposed rule
(9) Despite subsection (7), a rule proposed by the declarant before the registration of the declaration and description shall be effective until it is replaced or confirmed by a rule of the corporation that takes effect in accordance with subsection (7). 1998, c. 19, s. 58 (9).
Compliance
(10) All persons bound by the rules shall comply with them and the rules may be enforced in the same manner as the by-laws. 1998, c. 19, s. 58 (10).
Joint by-laws and rules
59. (1) The boards of two or more corporations may make, amend or repeal joint by-laws or rules governing the use and maintenance of shared facilities and services. 1998, c. 19, s. 59 (1).
Application to corporations
(2) A joint by-law or rule is a by-law or rule, as the case may be, of each corporation. 1998, c. 19, s. 59 (2).
When joint by-law effective
(3) A joint by-law is not effective until,
(a) the majority of the owners of the units of each corporation vote in favour of confirming it, with or without amendment; and
(b) each corporation registers a copy of it in accordance with subsection 56 (9). 1998, c. 19, s. 59 (3).
Joint meeting
(4) The vote of the owners under clause (3) (a) may be at a joint meeting of the corporations duly called for that purpose. 1998, c. 19, s. 59 (4).
Repeal of joint by-law
(5) Once a joint by-law is effective, it is effective until the owners of a majority of the units of each corporation vote in favour of repealing it and a copy of the repealing by-law is registered in accordance with subsection 56 (9). 1998, c. 19, s. 59 (5).
Amendment of joint rule
(6) The owners of each corporation may amend or repeal a joint rule at a joint meeting of owners of the corporations or at a meeting of owners of each corporation if the meeting has been duly called for that purpose. 1998, c. 19, s. 59 (6).
Notice of joint rule
(7) Upon making, amending or repealing a joint rule, the board of each corporation shall give a notice of the joint rule to its owners that includes,
(a) a copy of the rule as made, amended or repealed, as the case may be;
(b) a statement of the date that the boards propose that the rule will become effective; and
(c) a statement that the owners have the right to requisition a meeting under section 46 and the rule becomes effective at the time determined by subsections (8), (9) and (10). 1998, c. 19, s. 59 (7).
When joint rule effective
(8) Subject to subsection (10), if the board of any of the corporations receives a requisition for a meeting under section 46 within 30 days after it gives notice of the joint rule to its owners, the joint rule is not effective until the owners approve it at a joint meeting of owners of the corporations or at a meeting of owners of each corporation. 1998, c. 19, s. 59 (8).
Same, no requisition
(9) Subject to subsection (10), if the board of none of the corporations receives a requisition for a meeting under section 46 within 30 days after it gives notice of the joint rule to its owners, the joint rule is not effective until 30 days after the board of each corporation has given notice of the joint rule to its owners. 1998, c. 19, s. 59 (9).
Same, previous rule
(10) A joint rule or an amendment to a joint rule that has substantially the same purpose or effect as a joint rule that the owners have previously amended or repealed within the preceding two years is not effective until the owners of each corporation approve it, with or without amendment, at a joint meeting of owners of the corporations or at a meeting of owners of each corporation duly called for that purpose. 1998, c. 19, s. 59 (10).
Auditors and Financial Statements
Appointment of auditor
60. (1) At their first meeting, the owners shall appoint one or more persons qualified to be auditors to hold office as auditors until the close of the next annual general meeting and, if the owners do not do so, the board shall make the necessary appointments as expeditiously as possible. 1998, c. 19, s. 60 (1).
Same, subsequent years
(2) At each annual general meeting, the owners shall appoint one or more persons qualified to be auditors to hold office as auditors until the close of the next annual general meeting and, if the owners do not do so, the auditor in office continues in office until a successor is appointed. 1998, c. 19, s. 60 (2).
Appointment by court
(3) If for any reason no auditor is appointed as required by this section, the Superior Court of Justice may, on the application of an owner,
(a) appoint one or more persons qualified to be auditors to hold office as auditors until the close of the next annual general meeting;
(b) fix the remuneration that the corporation shall pay for the services of the auditor who is appointed; and
(c) fix the amount that the corporation shall pay to the owner for the cost of the application. 1998, c. 19, s. 60 (3); 2000, c. 26, Sched. B, s. 7 (5).
Notice of appointment
(4) The corporation shall give notice in writing to an auditor of the appointment immediately after the appointment is made. 1998, c. 19, s. 60 (4).
Exception
(5) The owners of a corporation shall not appoint auditors under subsection (2) at an annual general meeting if,
(a) a turn-over meeting has been held under section 43;
(b) the corporation consists of fewer than 25 units; and
(c) as of the date of the meeting, all the owners consent in writing to dispense with the audit mentioned in subsection 67 (1) until the next annual general meeting. 1998, c. 19, s. 60 (5).
Qualifications
61. No person shall act as auditor of a corporation if the person,
(a) is a director, officer or employee of the corporation;
(b) is a manager under an agreement for the management of the property of the corporation;
(c) has an interest in a contract to which the corporation is a party; or
(d) is a partner, employer or employee of a person mentioned in clause (a) or (b). 1998, c. 19, s. 61.
Remuneration
62. The remuneration of an auditor shall be fixed,
(a) by the owners if the auditor is appointed by the owners; or
(b) by the board if authorized by the owners to do so or if the auditor is appointed by the board. 1998, c. 19, s. 62.
Removal
63. (1) The owners may remove an auditor before the expiration of the auditor’s term of office at a meeting duly called for that purpose. 1998, c. 19, s. 63 (1).
Replacement
(2) If the owners remove an auditor under subsection (1), they shall, at the same meeting, appoint a person qualified to be an auditor to act as auditor for the remainder of the term of the auditor who was removed. 1998, c. 19, s. 63 (2).
Approval
(3) The removal of an auditor and the appointment of an auditor under subsection (2) requires the approval of the majority of votes cast by the owners who are present at the meeting in person or by proxy. 1998, c. 19, s. 63 (3).
Notice to auditors
(4) At least 30 days before giving the owners notice of a meeting for the purpose of removing an auditor, the person calling the meeting shall give to the auditor,
(a) written notice of the intention to call the meeting, specifying the date on which the notice of the meeting is proposed to be mailed;
(b) a statement of the name of the auditor who is proposed to be removed and the reasons for the removal; and
(c) a copy of all material proposed to be sent to the owners in connection with the meeting. 1998, c. 19, s. 63 (4).
Right to make representations
(5) An auditor may make written representations to the corporation concerning the proposed removal of the auditor or the appointment of another person to fill the office of auditor. 1998, c. 19, s. 63 (5).
Method
(6) In order to make representations under subsection (5), an auditor shall send them to the person calling the meeting at least three days before the mailing of the notice of the meeting. 1998, c. 19, s. 63 (6).
Notice of meeting
(7) The person calling the meeting shall, at the expense of the corporation, include in the notice of the meeting,
(a) a statement of the name of the auditor who is proposed to be removed and the reasons for the removal; and
(b) a copy of all representations received. 1998, c. 19, s. 63 (7).
Resignation
64. (1) A resignation of an auditor becomes effective at the time a written resignation is delivered to the corporation or at the time specified in the resignation, whichever is later. 1998, c. 19, s. 64 (1).
Representations
(2) In a resignation, the auditor may make written representations to the corporation concerning the resignation and in that case the corporation shall attach a copy of the representations to the notice of the next meeting of owners. 1998, c. 19, s. 64 (2).
Vacancy
65. (1) If a vacancy arises in the office of auditor, the directors may appoint any person qualified to be an auditor to hold office as auditor to fill the vacancy. 1998, c. 19, s. 65 (1).
Term of replacement
(2) An auditor appointed under subsection (1) shall hold office until the close of the next annual general meeting or until a successor is appointed, whichever is later. 1998, c. 19, s. 65 (2).
Financial statements
66. (1) A corporation shall have its financial statements prepared in the prescribed manner and in accordance with generally accepted accounting principles as are prescribed. 1998, c. 19, s. 66 (1).
Contents
(2) The financial statements shall include,
(a) a balance sheet;
(b) a statement of general operations;
(c) a statement of changes in financial position;
(d) a statement of reserve fund operations;
(e) prescribed information relating to the reserve fund study and the operation of the reserve fund;
(f) an indication of the aggregate remuneration paid to the directors in that capacity and the aggregate remuneration paid to the officers in that capacity; and
(g) the additional statements or information that the regulations made under this Act require. 1998, c. 19, s. 66 (2).
Approval
(3) The board shall approve the financial statements before placing them before an annual general meeting. 1998, c. 19, s. 66 (3).
Form of approval
(4) The approval shall be evidenced by the signature at the bottom of the balance sheet by two of the directors duly authorized to sign. 1998, c. 19, s. 66 (4).
Audit
67. (1) The auditor shall, every year, make the examination that is necessary in order to make an annual report on the financial statements to the corporation on behalf of the owners. 1998, c. 19, s. 67 (1).
Right of access
(2) The auditor has right of access at all times to all records, documents, accounts and vouchers of the corporation and is entitled to require from the directors, officers and employees of the corporation or from persons under contract to the corporation to manage the property or its assets the information and explanations that, in the auditor’s opinion, are necessary in order to make the report. 1998, c. 19, s. 67 (2).
Standards
(3) The auditor’s report shall be prepared in the prescribed manner and in accordance with generally accepted auditing standards as are prescribed. 1998, c. 19, s. 67 (3).
Contents of report
(4) The auditor shall include in the report the statements that the auditor considers necessary if the corporation’s financial statements are not in accordance with the requirements of this Act and the regulations made under it. 1998, c. 19, s. 67 (4).
Same, reserve fund study
(5) The auditor shall state in the report whether the statement of reserve fund operations and any other prescribed information relating to the operation of the reserve fund and contained in the financial statements do not fairly present the information contained in the reserve fund studies that the auditor has received. 1998, c. 19, s. 67 (5).
Presentation of report
(6) The auditor shall present the auditor’s report to the audit committee described in subsection 68 (1) or to the board if there is no audit committee. 1998, c. 19, s. 67 (6).
Immunity
(7) Except with respect to the contents of the report, no action or other proceeding for damages shall be instituted against an auditor or a former auditor for any oral or written statement made in good faith in the execution or intended execution of the duty as auditor under this Act. 1998, c. 19, s. 67 (7).
Audit committee
68. (1) If the number of directors of the corporation is more than six, the directors may elect annually from among their number a committee to be known as the audit committee to hold office until the next annual general meeting. 1998, c. 19, s. 68 (1).
Members
(2) The audit committee shall be composed of at least three directors and the majority of committee members shall not consist of officers or employees of the corporation. 1998, c. 19, s. 68 (2).
Review of statements
(3) On receiving the financial statements, the auditor’s report and an amended auditor’s report, if any, the audit committee shall review them and submit them to the board. 1998, c. 19, s. 68 (3).
Auditor to appear
(4) The auditor has the right to appear before and be heard at any meeting of the audit committee and shall appear before the committee when the committee so requires. 1998, c. 19, s. 68 (4).
Meeting at auditor’s request
(5) At the request of the auditor, the audit committee shall convene a meeting of the committee to consider all matters the auditor believes should be brought to the attention of the board or the committee members. 1998, c. 19, s. 68 (5).
Delivery of statements
69. (1) The board shall place before each annual general meeting,
(a) the financial statements as approved by the board;
(b) the auditor’s report; and
(c) all further information respecting the financial position of the corporation that the by-laws of the corporation require. 1998, c. 19, s. 69 (1).
Copy with notice of meeting
(2) The corporation shall attach to the notice of the annual general meeting a copy of the financial statements and the auditor’s report. 1998, c. 19, s. 69 (2).
Right to attend meeting