Board Member Removal & Meeting Governance

Automatic Removal of a Condominium Board Member

Under the CPA and a condominium corporation’s bylaws, a board member may be removed for:

• In Arrears: If a board member is more than 60 days in arrears of condo fees or other amounts owed to the condominium, they cease to be a member of the board.

• Bankruptcy or Insolvency: A board member automatically ceases to hold office if they become bankrupt or insolvent. This ensures that individuals responsible for condominium finances maintain financial integrity.

• Criminal Conviction: If a board member is convicted of an indictable offense for which the member

• is liable to imprisonment for 2 or more years.

• Loss of Unit Ownership (if required by the bylaws): Some condominium bylaws require board members to be unit owners. If a board member sells their unit, they may no longer be eligible to serve and must vacate their position.

• Court-Ordered Removal: If a board member fails to fulfill their duties, a court application may result in their removal.

• The CPA allows courts to intervene if a board member is acting improperly or in bad faith.

• Failure to Attend Meetings: Some bylaws state that if a board member misses a certain number of consecutive board meetings, they are automatically removed.

• 
  

Automatic removal does not require a vote, but the board must follow proper documentation and reporting procedures.

Common Scenarios for Board Member Removal

1. Financial Mismanagement:

   • The board member fails to disclose financial records to unit owners.

   • Unauthorized spending of reserve funds without board approval.

2. Failure to Comply with Bylaws:

   • Ignoring unit owner complaints or refusing to enforce condominium rules.

   • Not holding required meetings or failing to follow proper procedures.

3. Conflict of Interest:

   • The board member owns a business that provides services to the condominium without disclosure.

   • Favors certain unit owners or contractors in decision-making.

Procedural Steps for Removal by Owners

1. Call a Special General Meeting (SGM):

   • The CPA and bylaws outline who can call an SGM to remove a board member.

   • Typically, unit owners representing 15% of unit factors may request an SGM.

2. Notice of the Meeting:

   • The CPA requires that notice of an SGM be sent to all unit owners.

   • The notice must include the reason for the meeting and the proposed resolution for removal.

3. Voting on Removal:

   • A simple majority vote is usually required for removal unless the corporation’s bylaws state otherwise.

4. Appointment of a Replacement Board Member:

   • Once removed, a vacancy must be filled according to the CPA and bylaws.

   • The condominium corporation may hold an election or allow the remaining board members to appoint a replacement.

Case Studies of Board Member Removal

📌 Case Study 1: The Board Member Who Ignored Financial Audits

• A condominium board treasurer refused to provide financial statements for unit owner review.

• Unit owners petitioned for a special general meeting to remove the treasurer.

• The vote passed with over 50% of unit factors, and the board appointed a new treasurer.

📌 Case Study 2: The Conflict of Interest Scandal

• A board president awarded maintenance contracts to a family member’s company.

• Unit owners discovered overpriced invoices and demanded an investigation.

• The board member was removed, and new rules were adopted for contract approval.

Evaluating Removal Procedures for CPA Compliance

Ensuring Removal Follows CPA Compliance

To ensure compliance with the CPA and the Condominium Property Regulation, condominium corporations must:

✅ Provide proper notice before an SGM.

✅ Follow voting requirements outlined in the bylaws.

✅ Document the removal process to prevent legal challenges.

Comparing Different Removal Methods

Best Practices for a Fair Removal Process

✅ Communicate transparently with unit owners about why removal is necessary.

✅ Hold a properly conducted vote that follows CPA regulations.

✅ Ensure bylaws are up to date to prevent legal challenges.