The structure, function, and composition of a condominium corporation as outlined in the Condominium Property Act (CPA).
A condominium corporation is a legal entity created upon the registration of a condominium plan with the Land Titles Office under the CPA.
WHAT YOU'LL LEARN
The Structure, Function, and Composition of a Condominium Corporation
The Purpose of the First Board Election
Initial Obligations of the First Board
The structure, function, and composition of a condominium corporation as outlined in the Condominium Property Act (CPA):
Definition of a Condominium Corporation: A condominium corporation is a legal entity created upon the registration of a condominium plan with the Land Titles Office under the CPA. The corporation is responsible for managing the property and common areas and consists of all unit owners in the condominium.
Function of a Condominium Corporation: The corporation's primary functions include:
Controlling, managing, and administering the common property.
Enforcing bylaws and rules.
Ensuring proper maintenance, repair, and insurance of the property.
Composition of a Condominium Corporation:
Members: All unit owners are members of the condominium corporation.
Board of Directors: Elected unit owners (or other eligible individuals) manage the affairs of the corporation on behalf of all owners.
Activity
Question: Under the CPA, who are the members of a condominium corporation, and what is the role of the board of directors in managing the corporation?
Explain the purpose of the first board election and describe the board's initial obligations.
Interim Board Role (Developer’s Responsibility)
Before 50% of the unit factors are sold, the developer controls the interim board. The interim board’s primary duties include:
Registering the Condominium Corporation and Bylaws:
The developer, through the interim board, registers the condominium corporation with the Land Titles Office, including the bylaws from the Condominium Property Regulation.
Managing the Corporation:
The interim board is responsible for the corporation's initial management until unit owners can elect the first board.
Once 50% of the unit factors are sold, the developer must convene a meeting within 90 days to elect the first board. The first board is elected by unit owners to assume full control of the condominium corporation, ensuring that it operates in compliance with the Condominium Property Act (CPA) and registered bylaws.
Initial Obligations of the First Board
The first board has distinct duties once elected, including:
Ensuring Compliance with Registration Requirements:
While the interim board initially registers the corporation and bylaws, the first board ensures that the corporation remains compliant by maintaining records and filing updates if required.
Enforcing Registered Bylaws:
The first board enforces the initial bylaws filed by the interim board as outlined in the CPA.
It also begins identifying areas where bylaw amendments may be needed.
Establishing Financial Systems:
The first board opens and maintains financial accounts to manage common expenses and collect condominium fees.
It ensures the proper accounting and reporting of the corporation’s financial health.
Transitioning from Interim Management:
Review and take over management records from the developer or interim board. This includes financial records, contracts, and documentation related to common property maintenance.
How to conduct a first board election, ensuring compliance with the voting processes outlined in the CPA
Steps to Conduct a First Board Election:
Developer’s Responsibility: The developer must call a meeting to elect the first board within the required timeframe.
Notice of the Meeting: Provide notice of the meeting to all unit owners, including details about the time, place, and purpose of the meeting. This must comply with the CPA.
Election Procedures:
Voting must align with the CPA, which outlines that unit owners vote based on their unit factors unless bylaws specify otherwise.
Proxy voting is allowed, provided that proxies are submitted in compliance with the bylaws and CPA.
Important Considerations for Compliance:
Ensure that the election is conducted transparently and fairly to establish trust among unit owners.
Document the election results and decisions in meeting minutes.
Activity
Scenario: A developer has sold 60% of the units in a new condominium development. The interim board has been overseeing the corporation and has registered the bylaws and corporation with the Land Titles Office. Within 90 days of reaching 50% of the unit factors sold, the first board must be elected by the owners.
Task: Summarize the responsibilities of the first board, as outlined in the CPA, including:
How the first board transitions from the interim board.
What obligations the first board must fulfill regarding bylaws, financial systems, and compliance with the CPA.
