Annual General Meetings

AGMs should be held annually, within six months after the beginning of a new fiscal year. AGMs constitute the only opportunity that owners have to gather, meet with each other, get acquainted with the board of directors in its entirety, and hear out the issues and even be able to ask questions.

Condos generally post a notice several weeks before the AGM to seek candidates for the board when there is a vacancy or a director’s term expires. (When a director intends to continue, he or she has to be a candidate again.)

There is no limit as to the number of consecutive terms that a director can serve--at least, in Ontario.

The deadline for the receipt of candidacies is stated on the notice. Also stated may be a sentence to the effect that candidates should present a brief and relevant resume as well as a statement of intent explaining their goals.

Notice of Meeting

Then, a written notification of the annual general meeting has to be sent to owners’ address of residence at least 15 days before the meeting. However, only owners listed on the 20th day before a meeting are sent a notice.

The notice of meeting, also called the AGM Package, contains the agenda, the minutes of the previous year’s AGM, the auditor’s report and audited financial statement, the certificate of insurance, statements from candidates for election to the board, and a proxy form.  A reserve fund study and related plan may also be attached where relevant.

The Meeting Begins

The official meeting can begin only when there is assurance of a quorum. Let's say that there is a quorum but it is only by one person (or unit). If, during the course of the meeting, this person leaves, then the quorum is lost and the meeting has to end at that point.

Only owners, their proxies, or their mortgage company can attend these meetings along with the management company and the auditor, as invited by the board. Owners in arrears for more than 30 days can attend but are not permitted to vote. Attendance by any other person is with permission of the chair. The chair has control over the assembly and unruly or rude persons can be evicted accordingly.

It is better for the dignity of a condo, as well as for its property value, if everyone is polite even when controversies exist. Discussion should be encouraged but a discussion can be civil and so can disagreements. 

Owners should not be prevented from asking questions and raising issues.

Many owners have writen to complain about the way AGMs are conducted in their condos. Some of these letters are posted in Issues with Lawyers.

The president of the board generally chairs the meeting, although the condo lawyer or manager can do so with the permission of the assembly. Except in complicated legal situations, which should rarely happen, it does not inspire confidence when a president doesn’t chair the meeting.

Minutes are often taken by a paid recorder. At least two scrutineers from the assembly are elected after the chair asks for volunteers. Scrutineers are the persons who count proxies for quorum and then count votes. The manager cannot do this alone: The process needs transparency.

The chair, upon being told that a quorum exists, can proceed with the meeting. The AGM includes the approval of the minutes of the previous year, the president’s report, the auditor’s report, the election of the auditor by owners, the candidates’ statements, and the election of directors. On special occasions, by-laws may be presented and voted upon. There should be a question period.

Before minutes are approved, the chair must ask if there are corrections. Corrections should have been made before the AGM package was printed. The person responsible for these minutes is the person who chaired the previous meeting, generally the president.

If the president has resigned between the two meetings, he is still responsible for these minutes, especially for the president’s report. In such a situation, the board should have made the minutes accessible to the former president for corrections.

A vote for the approval of the minutes should not take place until the minutes are corrected or an agreement to correct them (when corrections are too numerous) is reached and accepted by owners.

President's Report

The President’s report should be accurate and as informative as possible. It should explain what has been accomplished in the past year and what is intended for the forthcoming year. An effective president uses this report to frankly discuss the positive aspects of the current situation as well as the negative ones that need to be corrected.

He or she should use this opportunity to motivate owners to cooperate on some issues, whether it is energy savings, cleanliness, civility, treatment of staff, or noise problems.

The president's report should be recorded and printed in the following year's AGM package as it was given--not embellished to reflect ideas that the president subsequently had...

Election of Directors

The chair will first ask if there are nominations from the floor. A person so nominated can become a candidate. Then, candidates give their statement, one after the other. This is the only opportunity that owners have to hear candidates. Unfortunately, candidates are rarely asked questions that could be more revealing than their prepared speech.

It is suggested here that about 3 questions be asked from the assembly or from the board, and each candidate should answer each question. A rotation should take place so that the same candidate is not always the last to answer. If these questions pertain to key issues in the condo, the answers should be revealing.

However, such a session should be carried out with dignity and personal questions avoided. Otherwise, no one will want to go on the board so as not to be subjected to personal indignities.

Each owner in attendance has received a ballot during registration. The manager or a board member passes a closed ballot box. The votes are counted by the scrutineers and the results brought to the chair who announces the names of elected directors.

Auditor's Report and Election

The auditor generally explains in person the report he or she has given the board and which is included in the AGM package. Owners can ask questions, time permitting. It is helpful to send complex questions ahead of time so that the auditor can bring the necessary documents to answer them credibly.

Auditors are elected by owners at the AGM. (Click here for Condo Auditors and Lawyers)