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Condominium Corporations Are Required to Keep Minutes of Meetings
Question: What happens if a condominium corporation doesn't keep minutes of meetings?
Answer: Failure to maintain meeting minutes can lead to fines and penalties for a condominium corporation. The Condominium Authority Tribunal's decision in McLaughlin v. Brant Standard Condominium Corporation No. 75, 2022 ONCAT 16 underscores the importance of adhering to statutory obligations, including the need to conduct business through formal meetings and record them properly. Keep your corporation compliant and avoid costly consequences by ensuring proper record-keeping, and consider our services for knowledgeable guidance.
What Could Happen If a Condominium Corporation Fails to Keep Minutes of Meetings?
A Condominium Corporation That Fails to Keep Minutes of Meetings May Be Subjected to Fines and Other Penalties.
Condominium Authority Tribunal Reminds Condominium Corporations of the Obligation to Hold Meetings and to Keep Minutes of Such Meetings
The McLaughlin v. Brant Standard Condominium Corporation No. 75, 2022 ONCAT 16, case is in the news following requests for various records, including Board Minutes for three years (from September 2018 to September 2021) as well as the Minutes from the 2020 Annual General Meeting; however, the condominium corporation failed to provide the required documents as, according to the condominium corporation, it refrained from holding board meetings as well as an annual general meeting in 2020 due to the pandemic. According to the condominium corporation, “Business was conducted informally in various forms but mainly in person or via written communication which if needed was then delivered to the previous Manager”.
The Case Law
Condominium Authority Tribunal Decision
The Condominium Authority Tribunal held the condominium corporation liable for failing to provide the required documents and ordered the condominium corporation to pay a total of $2,700, including a $200 filing fee, as a penalty. Specifically, the Condominium Authority Tribunal stated:
[27] The Act is clear that the corporation’s business must be conducted through board meetings, and that the corporation must keep adequate minutes of meetings. Section 32(1) of the Act states that the board of a corporation shall not transact any business of the corporation except at a meeting of directors at which a quorum of the board is present. Section 55(1) of the Act states that the corporation shall keep adequate records, and specifically lists a minute book containing the minutes of board meetings as a required record.
The Condominium Authority Tribunal further added that the condominium corporation was required to hold an annual meeting by October 22, 2020, if it could not hold one in 2020 due to the pandemic. The Condominium Authority Tribunal specifically said:
[34] An annual general meeting was required to be held by October 22, 2020. I find that the Respondent is not in compliance with the Act, and the COVID-19 Response and Reforms to Modernize Ontario Act, 2020.
[35] My conclusions on the Annual General Meeting minutes are similar to the conclusion related to board meeting minutes. Although a condominium corporation cannot be compelled to produce records that do not exist, it also cannot justify its inability to produce such records by citing its own deliberate non-compliance with the Act.
[36] While it may have been acceptable to delay the Annual General Meeting due to the COVID-19 pandemic, it is not reasonable that a condominium board with the aid of Megna (a licensed condominium manager) did not hold an Annual General Meeting.
[37] This is not a mere failure to provide the records, but is tantamount to a refusal to do so, and one that cannot be seen as having any reasonable excuse.
Summary Comment
This decision indicates that corporations must hold AGMs according to the Condominium Act and prepare minutes accordingly. Furthermore, all board decisions (including decisions made over emails) must be ratified at Board Meetings, and the organization must record these in the Minutes for the meetings.
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