October 2023
As a homeowner, I tried to put forth a motion in Other Business at an AGM and was told it wasn’t allowed. Is this true?
The motion was;
Be it resolved that the Board of Directors have town hall meetings with members if a potential expense exceeds $50k.
Your expertise is appreciated.
Response from Toronto Condo News
As a condominium owner, you have certain rights. When it comes to the Annual General Meeting, you have the right to propose items to be addressed or discussed at the meeting. The Board makes final decisions about what is to be addressed at the meeting and distributes an Agenda.
At the meeting, owners do not have the right to change an agenda by putting forth a motion for the Condo Board to consider, discuss and vote on. These are matters solely determined by the Condo Board.
The motion you propose is problematic. Owners have the right to vote for and elect directors that serve on the Condo Board. Their role is to make decisions on behalf of the community. The Condo Board does not have the right to pass along their obligation to vote on motions relating to the management of the community. Condo owners do not have the right to restrict the Condo Board’s authority in ways that are inconsistent with the Condo Act.
The motion you propose, to require the Condo Board to hold town hall meetings and to discuss expenses exceeding $50,000 with owners, is inconsistent with the Condo Act and thus inappropriate based on our general understanding. While there are times where a town hall meeting or other form of communication is appropriate for the Condo Board to discuss matters with the community, these decisions are at their discretion.
From a practical perspective, what you propose is dangerous and can lead to gridlock. The building collapse in Surfside Florida where nearly 100 people lost their lives was a situation where owners were unwilling to approve necessary expenditures for building repairs. The Condo Act in Ontario prevents such a situation from occurring. Your proposed motion, if allowed, would create such a situation.
If there is lack of trust in the Condo Board to make such a decision, the best course of action is to elect directors that you do trust.
