Service of Notices

Review and amend corporate procedures regarding the service of notices by the Corporation. The notices required under the New Act include:

DIRECTORS MEETINGS

  • Notice of meeting of directors, to be served by person calling the meeting, in accordance with sections 35(2) and (3);

OWNER’S MEETINGS AND NOTICES

  • Notice to owners, mortgagees, and auditors, of meeting of owners, in accordance with sections 47, 69 and 70(2);
  • Notice to owners of turn-over meeting, in accordance with sections 43(1) and (3);
  • Notice to owners of the registration of a certificate of lien, in accordance with sections 85(4) and (5);
  • Notice to owners of meeting to approve a by law, in accordance with section 47;
  • Notice to owners of making, amending or repealing of a rule, in accordance with section 58(6);
  • Notice to owners of the making, amending or repealing a joint rule, in accordance with section 59(7);
  • Notice to owners before commencing any legal action for damage to common elements or assets of the Corporation, or for breach of contract, other than a claim in Small Claims Court, in accordance with section 23(2);
  • Notice to owners of proposed addition, alteration, improvement or change to the common elements or change in the assets of the Corporation or change in service provided by the Corporation, in accordance with section 97(3);
  • Notice to owners of owner’s meeting to vote on a substantial addition, alteration, improvement or change to the common elements or a substantial change in the assets of the Corporation in the assets of the Corporation or a substantial change in a service provided by the Corporation, in accordance with section 97(5);
  • Notice to owners and auditor of reserve fund plan, in accordance with section 94(9);
  • Notice to owners of owner’s meeting for purpose of voting on a proposed amalgamation of the Corporation with another Corporation, in accordance with section 120(3);
  • Notice to owners of the determination of the Board of Directors that there has been substantial damage to the building, in accordance with section 24(2);
  • Notice to owners of any document served on the Corporation from an expropriating authority, in accordance with section 24(2);
  • Notice to owners with respect to any agreement entered into by the Corporation for a network upgrade to a telecommunications system, or new system, or to permit direct billing of owners by the telecommunications provider, if required pursuant to sections 22(3) and 97(3), (4), (5), and (6);
  • Notice to owners of owner’s meeting for the purpose of considering an amendment to the declaration and description, in accordance with sections 107(3) and (4);
  • Notice to owners and mortgagees of any court application brought by the Corporation to amend the declaration or description, in accordance with section 109(2);
  • Notice to owners of intention to remove the auditor before the expiration of term, in accordance with section 63(7);

CORPORATE RECORDS

Section 55 of New Act is significantly more detailed as to what records are to be kept, and who may review them. It also specifically excludes the right to examine some records. Ensure that all required records under the New Act are being kept. These records are listed in section 55(1). Carefully note the exceptions listen in section 55(4). An owner, purchaser, or mortgagee, or their agent may not view records that relate to:

  • employees of the Corporation (except the actual contract of employment);
  • actual or pending litigation or insurance investigation;
  • specific units or owners;

FINANCIAL STATEMENTS

Ensure that financial statements include:

  • A balance sheet.
  • A statement of general operations.
  • A statement of changes in financial position.
  • A statement of reserve fund operations.
  • Information relating to the reserve fund study and the operation of the reserve fund, as prescribed by regulations.
  • An indication of the aggregate remuneration paid to the Directors in that capacity and the aggregate remuneration paid to the officers in the capacity.
  • A comparison between:
    1. the amount of contributions to the reserve fund that the Corporation has collected, and
    2. the amount that, according to the board’s plan for funding of the reserve fund under subsection 94(8), the Corporation was required to collect as contributions to the reserve fund.
  • A comparison between:
    1. the amount of expenditures from the reserve fund that the Corporation has made; and
    2. the amount of proposed expenditures that, according to the board’s plan for funding of the reserve fund under subsection 94(8), the Corporation was to have made from the reserve fund.

If a director or officer makes a disclosure of an interest in a contract or transaction, and the Corporation has entered into the contract or transaction, the financial statements should include a brief description of the nature of the contract or transaction, the amount of money involved, and the director’s or officer’s interest in it.

Note the Corporation’s obligations to amend the financial statements where facts come to the attention of the directors after the A.G.M. and the facts require a material adjustment to the financial statements that were presented at the A.G.M. The auditor must be notified and must amend his report [section 71]. The Corporation must mail the amended report to the unit owners and if the Corporation fails to do so, the auditor has a duty to mail the amended auditor’s report to the unit owners [section 71(5)].