The developer creates and controls the first board of directors. As soon as a majority of the units are sold by the developer, owners must elect a new board. This is done at a “turn-over meeting”.
Before the meeting, you can review the disclosure statement you received when you bought your unit. It will help you understand the business to be discussed at the meeting.
The disclosure statement includes:
The agenda for a turn-over meeting must cover certain items:
Effective November 1, 2017, the following changes to voting method apply:
Votes may be cast by:
(a) a show of hands, personally or by proxy
(b) a recorded vote that is:
(i) marked on a ballot cast personally or by a proxy
(ii) marked on an instrument appointing a proxy
(iii) indicated by telephonic or electronic means, if the by-laws so permit
Also, condo owners now have the right to keep the content of their votes secret. Under certain conditions, a condo corporation can pass a by-law to amend or repeal this right. For further details, please see section 14.1 of O. Reg. 48/01 under the Condominium Act, 1998.
The developer maintains the corporation’s documents until the turn-over meeting. At the turn-over meeting, the developer gives the new board all the corporation’s documents. The Condominium Act specifies what documents the developer must turn over. These include:
The declarant must turn over other important information within 30 days of this turn-over meeting, such as:
Within 60 days, the developer must turn over audited financial statements.
The first “owner” board assumes responsibility and can make changes to condominium operations.
The new board:
Sometimes the developer doesn’t turn over all required documents. If that happens, the condominium can take the developer to court. The court can order the developer to provide the documents. In addition, the developer could be subject to a fine and may have to pay the condominium’s court costs.
Quorum is the minimum number of owners that are required by law to be present for the meeting, either in person or by proxy. If there is no quorum, there can still be a discussion on a matter, but no vote can take place at the meeting.
Effective November 1, 2017, the standard quorum for a turn-over meeting is 25% of the owners. If the quorum is not reached on the first two attempts to hold the meeting, the quorum is reduced to 15% on the third and on any subsequent attempts.