By Melinda Andrews
New changes to the Condominium Act that will impact boards and owners are coming on October 1, 2023.
The most notable amendments relate to virtual meetings, electronic voting and delivery of meeting materials. Prior to the pandemic, most condominiums were largely limited to in-person meetings (often with very low turnout even for AGMs), and communication was limited to written notices. The new amendments are designed to make executing these types of tasks easier and more streamlined than before.
Changes to owners’ meetings
With respect to owners’ meetings, the amendments will allow meetings to be held in virtual or hybrid format (with a mix of people attending both in-person and virtually). In-person meetings will also still be available. But it will be up to each board to decide what the most appropriate format is for its community. There has been a significant increase in owner participation with virtual meetings, making it easier to achieve quorum and conduct the condominium’s business.
Previously a bylaw authorizing these virtual or hybrid-meeting formats was required, but the new amendments will do away with that requirement making it easier to hold virtual owners` meetings.
Changes to voting, allowing for electronic voting
The amendments will also allow owners to vote either electronically, in-person or by proxy at owners’ meetings. Electronic voting can be completed via telephone, fax or electronic balloting software (including via polls on the Zoom platform). One of the biggest changes the amendments will bring is that owners will be counted as having “attended” the meeting if they have voted electronically in advance of the meeting, which should help with achieving quorum at the meetings.
Once the amendments come into force, boards should be aware that the condominium’s records will have to include a record of any votes cast at meetings, regardless of how the vote was cast (i.e., electronically, in-person or by proxy).
Changes to board meetings
Board meetings will also be permitted to be held virtually or by hybrid means. These meeting formats will be permitted so long as directors can “communicate with each other simultaneously and instantaneously,” which should not be a problem given the meeting platforms available.
Notably, the amendments also remove the requirement for “unanimous consent” to initiate virtual/hybrid board meetings. This means that so long as a condominium’s governing documents do not have a by-law requiring unanimous consent, virtual board meetings can proceed without obtaining the consent of all directors now.
Notifying owners electronically
Arguably the most helpful amendment is that condominiums will be permitted to deliver meeting notices and other materials to owners electronically rather than in writing. This has been the requirement for years now unless an owner has specifically agreed to receive electronic communications. Under the amendments, the presumption will be that all owners have consented to receive electronic communications unless the owner specifies otherwise. This will be particularly helpful when urgent information must be sent out.
Professionals in the condominium industry are pleased to see these amendments incorporated permanently in Ontario. They will make life easier for boards (who are often unpaid volunteers), and managers (who often have more work than can be done in a day). They will also benefit owners, who will receive information in a much timelier manner. Overall, these are positive amendments that will permanently allow all condominiums greater flexibility in transacting their affairs.
Melinda Andrews is a lawyer at Davidson Houle Allen LLP Condominium Law.