Under the Condominium Act, 1998 (the “Act“) individuals running for election to a condominium’s board of directors or being appointed to one, must disclose specific information before their election or appointment.
What Must Candidates Disclose?
Candidates must disclose the following:
- Whether they are a unit owner.
- If they are a unit owner, whether they are in arrears of common expenses for their unit for 60 days or more.
- Whether they occupy a unit in the corporation (i.e., are a resident-owner).
- Whether they are involved in any legal action in which the corporation is also a party. If so, they must provide a general description of the action.
- Whether their spouse, child, parent, or their spouse, child or parent is involved in any legal action in which the corporation is also a party. If so, they must provide the name of the individual involved and a general description of the action.
- Whether a resident of their unit (or, if the unit is owned by their spouse, someone they share the unit with) is involved in any legal action in which the corporation is also a party. If so, they must provide the name of the resident and a general description of the action.
- Whether they have been convicted of an offence under the Act or its regulations within the past 10 years. If so, they must provide a general description of the offence.
- Whether they have a direct or indirect interest in any contract or transaction involving the corporation (excluding their interests as a purchaser, owner, occupier, or mortgagee). If so, they must disclose the nature and extent of that interest.
- Whether they have a direct or indirect interest in a contract or transaction involving the condominium developer or an affiliate of the developer (excluding the same interests noted in item 8).
- Any additional disclosure requirements specified in the corporation’s bylaws.
When Should Candidates Disclose?
Condominium corporations should include blank disclosure statements in their preliminary notices if the meeting calls for an election of directors. Interested candidates should then complete the disclosure statements and submit them to the Corporation by the deadline specified in the preliminary notice. Any candidacy information and statements received by the deadline should then be included in the notice of meeting package.
Candidates who miss the deadline and their information and disclosure statements are not included in the notice of meeting package must provide their candidate disclosure statement at the meeting, either verbally or in writing prior to the election. This also applies to candidates who step forward from the floor at the meeting.
In some circumstances, when the meeting is held virtually, the virtual service provider can update the advanced ballots or proxies to include any candidate who missed the deadline in the preliminary notice. These candidates would still be required to provide disclosure at the meeting prior to the election.
Directors appointed to the board and not elected at an owners’ meeting, must provide the same disclosure before their appointment to the board.
Why Is Timely Disclosure Important?
Candidates who are included in the notice package often have a better chance of being elected than those who miss the deadline or step forward at the meeting. This is because many owners will vote in advance of the meeting either by proxy or advanced voting, and may not attend the meeting. In some circumstances, they will not be aware of any additional candidates who have stepped forward and whose information was not included in the notice package.
If you are considering running for your board, we strongly encourage you to submit your disclosure statements on time!
If you need a candidate disclosure form, you download a copy here.
