Effective November 1, 2017, directors of condominium corporations, as well as candidates for director positions, must make certain disclosures. Once a person is elected to a board, he or she is subject to ongoing disclosure requirements for the duration of the term. Failure to meet these requirements will immediately disqualify someone from being a director.
Disclosures can be made either orally or in writing to the condominium corporation’s board.
Candidates must make their disclosures at the meeting where the election is occurring if they didn’t do so in advance. Candidates who wish to be appointed to a vacant board position need to make their disclosures directly to the board before the appointment.
Directors appointed by a developer, or elected by owners to the first board (the pre-turnover board controlled by the developer), would need to disclose the following information:
- If the director has been convicted of an offence under the Condominium Act or regulations within the previous 10 years;
- All other information set out in a by-law of the corporation.
What candidates for director positions must disclose
- Being party to any active legal proceedings in which the corporation is also a party. That also applies if the candidate’s spouse, child or parent, or the child or parent of the candidate’s spouse, is a party to such proceedings. This applies to candidates and directors elected to a board that’s not the first board (a post-turnover owner-controlled board).
- Where an occupier of a unit that the candidate or his/her spouse owns, or that the candidate occupies with the occupier, is a party to any legal action to which the corporation is also a party. This applies to candidates and directors elected to a board that’s not the first board.
- Any convictions of an offence under the Condominium Act, 1998 (the Act) or the regulations within the past 10 years. This applies to candidates, directors elected to a board that’s not the first board under the Act, section 42 (the developer-controlled board before a turnover meeting that transfers control to the owners)
- Any interests in a contract or transaction that the corporation is a party to, or in which the developer or their affiliate is a party (expect for being a purchaser, mortgagee or owner/occupier of a unit). If this involves the purchase/sale of property by or to the corporation, which the seller acquired within five years of the contract or transaction, the candidate must provide a statement of the cost of the property. This applies to candidates and directors elected to a board that’s not the first board.
- Being a unit owner in the corporation and having common expense contributions in arrears for 60 days or more. This applies to condo director candidates.
- Not being an owner or an occupier of a unit in the corporation. This applies to condo director candidates.
- Anything else a condominium corporation’s by-laws require. This applies to condo director candidates, directors elected to a board that’s not the first board, and directors appointed or elected to the first board under section 42 of the Act.