By David Lu
It has been roughly three months since the last Condo Corner column, and what a new world we are all now living in! Speaking for myself, this experience has made me appreciate many things that I have previously taken for granted. I miss going to food courts! This new reality is still something that I am getting accustomed to.
In the condominium world, some things have changed dramatically as well. The condominium community really had no other choice. As you know, in most situations condominiums involve many people living in close contact with each other. That, of course, does not fit well with current health guidelines.
In my view, one of the biggest adjustments is in relation to condominium meetings. With summer right around the corner, during normal times it is the height of AGM season. An AGM (Annual General Meeting) is a yearly meeting of all owners to review the condominium’s affairs for the past year (including finances), vote on any specific matters, conduct elections for the Board of Directors and discuss any other issues facing the community.
With physical distancing requirements, in-person AGMs are simply not possible. Fortunately, soon after the emergency was declared, the provincial government extended the timelines for condominium corporations to conduct their AGMs. (Condominiums are normally required to hold their AGMs within six months of the end of the fiscal year). However, without holding AGMs, certain affairs of the Corporation cannot be conducted, e.g. electing a new Board of Directors. This could be problematic if the situation lasts long term. Given these challenges, implementing procedures for conducting an AGM electronically is becoming increasingly necessary.
In normal times, a condominium cannot hold a virtual owner meeting, or allow for electronic voting, unless the condominium’s by-laws permit it. For many condominiums, particularly the older ones, such a by-law does not exist in their governing documents. The proverbial Catch -22 applies: you can’t hold a virtual meeting without having such a by-law but you can’t adopt the by-law without holding a meeting to approve it.
Fortunately, the provincial government made temporary amendments to the Condominium Act that dispensed with this requirement. Our firm has begun helping various condominiums conduct these virtual AGMs.
Having experienced these virtual meetings, I have to say that even when the world returns to normal (whatever that looks like), conducting virtual meetings will be a very attractive option for many condominiums moving forward. Virtual meetings are here to stay, at least in some capacity.
Another change I have seen in condominiums is the surge in community spirit. Many condominium residents have offered to volunteer their labour and time to help others. Whether that is doing extra cleaning around the hallways, picking up groceries for the most vulnerable or checking in on those who are self-isolating, the biggest benefit that I’ve seen from crisis is the increased sense of community. It is through this community spirit that we will overcome this challenge, together.
I want to wish you all well during these exceptional times.
David Lu is an Associate at Davidson Houle Allen LLP.