Fall is often a good time for condominium corporations to hold their annual general meeting (“AGM“) of owners. Owners are back home after the summer holidays and snowbirds have yet to migrate to warmer weather for the winter. My condominium should hold its first AGM in the next few months. People who are new to condo living may not fully understand what an AGM is about. The purpose of this post is to give an overview of the “5 Ws” of a condo AGM.
A condominium corporation has a statutory obligation to hold a general meeting with the ownership on a yearly basis to discuss and vote on several items.
The AGM is required to provide information to the owners, to ensure the good management and governance of the corporation and to elect directors. The AGM is more than a mundane event; it represent the owners’ chance to take the “financial pulse” of the corporation and to get involved. The owners get to see the corporation’s audited financial statements and, as stated above, get to elect the directors who will manage the affairs of the corporation for the duration of their term.
The conduct of a condo AGM is usually as follows: call to order, presentation of the head table and guests, confirmation that the meeting has been properly called, confirmation of the quorum, approval of the minutes of the last AGM, presentation of the auditor’s report, appointment of the auditor for the next fiscal year, presentation of the budget for the next fiscal year and presentation of reports from the board. If there is going to be an election, scrutineers are appointed, nominations are made and directors are elected. There can also be a discussion on any special item or petition on the agenda and, finally, a general discussion pertaining to the corporation and its common elements . At an AGM, an owner may raise for discussion any matter relevant to the affairs and business of the corporation, however there shall be no vote at the AGM on any matter other than routine procedure unless that matter was clearly disclosed in the notice of meeting.
The AGM must be held within six (6) months of the end of each fiscal year of the corporation.
It is the responsibility of the corporation’s board of directors to call and hold a general meeting of owners. The AGM is normally limited to owners and their proxy holders. Tenants are usually excluded (unless they hold a proxy). All owners are entitled to attend the AGM, but owners who are in arrears for 30 days or more at the time of the meeting are not entitled to vote.
Subject to the Corporation’s governing documents, the AGM is held at the time and place chosen by the board. A notice of meeting must be given in writing at least 15 days before the day of the AGM and such notice must specify the place, the date and the hour of the meeting, as well as the nature of the business to be presented at the meeting. In addition to the notice of meeting, the “AGM package” generally includes the following documents: the agenda, the minutes of the prior AGM, the audited financial statements for the year, the budget for the current fiscal year, information about the election of directors and candidates as well as a copy of all proposed changes to the declaration, by-laws, rules or agreements if any are to be discussed at the meeting. For more information about the delivery of the AGM package, have a look at our blog post Can Condominiums Serve Their AGM Package by Email?
Voilà! These are the “5 Ws” of a condo AGM. Now that you are more familiar with condo AGMs under the current Condominium Act, 1998, please note that there are changes on the horizon. Indeed, the “New Condo Act”, once in force, will affect the calling and holding of AGMs. For more information on this, click here.