By David Lu
With the summer ending, condominiums have had additional time to adjust to the new COVID-19 reality. One aspect of this new reality is virtual owners’ meetings, such as Annual General Meetings (AGMs). At our firm, we have arranged and conducted many virtual AGMs. I predict that virtual meetings are here to stay, even after the COVID-19 crisis passes.
Regulations and limitations for condominium owners’ meetings have changed over the past few months. First of all, with Stage 3, gathering limits have increased, and indoor meetings with 50 persons are now permitted. However, proper physical distancing and mask wearing are still required. This makes traditional in-person meetings impractical for some condominiums.
- Second, the province had previously suspended the need for condominiums to hold AGMs within a certain time each year. However, this suspension has now ended. Condominiums must now arrange to hold their AGMs within a certain period, depending on their circumstances. For example, if the AGM was previously required to be held between March 17 and July 24, 2020, it must now occur by no later than October 22, 2020.
- Finally, electronic meetings are currently possible, even without a condominium by-law to authorize such. However, meetings scheduled after November 21, 2020 cannot be held electronically unless a by-law is passed for this type of meeting, or if the government extends the November 21st deadline.
These developments mean that:
- Condominiums should be scheduling their AGMs (if they haven’t yet done so) ASAP.
- If a virtual AGM is required, it must occur on or before November 21, 2020 (unless the condominium has passed a by-law allowing this type of meeting).
Holding a virtual AGM may seem daunting. In our experience, however, these meetings have gone very smoothly. We have hosted/chaired many virtual meetings by video conference, but also allowing attendance by phone, and can make arrangements allowing owners without smart phones or computers to participate.
There are now several companies that provide virtual meeting services for condominiums. If your condominium is considering holding a virtual meeting, here are some elements to consider when choosing a vendor:
- Does the vendor or host provide a method for owners to participate if who may not be able to attend via a video conference because they don’t have a smart phone or computer? Does the vendor or host have a system to check and verify owners’ registration and (if applicable) any proxies a participant may have? What type of system does the vendor or host have for counting votes? Some vendors allow condominium owners to vote on matters prior to the meeting. Our view is that there is an argument that the Condominium Act only permits voting during the meeting (with owners or their proxies attending the meeting in person or electronically). Therefore, we generally prefer to allow voting only by owners or their proxies who actually attend the meeting.
Does the vendor or host have an appropriate system in place to ensure the proper allocation of votes? For example, the vendor or host will need a system to ensure that there is only one vote per unit, even if two or more of the owners of a unit attend. Also, owners having more than one unit (or their proxies) need to be able to exercise all votes for their units. I understand that due to high demand it is becoming increasingly difficult to obtain availability for these services. If your condominium needs a virtual meeting but has not arranged one, it would be best to move quickly.
David Lu is an Associate at Davidson Houle Allen LLP.