Embracing the Digital Age: A Closer Look at the Telephonic and Electronic Amendments to the Condominium Act, 1998

The Ontario government has introduced Bill 91, also known as the “Less Red Tape, Stronger Economy Act, 2023,” proposing amendments to the Condominium Act, 1998. These amendments will enable condominium corporations to implement certain virtual and electronic processes, replacing the temporary legislative framework that was enacted in response to the COVID-19 pandemic and which is set to expire on September 30, 2023.

Five Major Key Points

• Owner Meetings

Virtual or hybrid owner meetings will be permitted so long as all attendees are able to “reasonably participate”. There does not appear to be a definition of what “reasonably participate” means currently.

• Communications to owners

Condo corporations will be permitted to communicate to owners electronically, including sending notices, unless a by-law is in place preventing it.

• Condo Owners Voting

Condo owners will be permitted to vote electronically, in person, or by proxy. A condominium corporation’s by-laws may specify how voting can take place.

• Board of Director Meetings

Virtual or hybrid director meetings will be permitted so long as all attendees are able to communicate with each other simultaneously and instantly. Boards would no longer require the consent of all directors for such meetings.

• Record-keeping and Notices to Owners

A corporation’s record of owners and mortgagees must include any prescribed information. Additionally, record-keeping requirements with respect to ballots and instruments appointing a proxy for meetings of owners will be amended.

The Lieutenant Governor in Council is authorized to make regulations governing the giving of a notice under clause 47 (4) (c) or (5) (c) of the Act, and the Minister is authorized to make regulations governing transitional matters.

Furthermore, it is worth mentioning that if your condominium corporation has already passed electronic by-laws under the temporary legislative provisions, they will remain in effect as long as it does not contradict the new amendments. However, if your corporation has not yet passed electronic voting/meetings by-laws, the amendments are very helpful and your corporation does not require an additional by-law to take full advantage of the changes.

The proposed amendments to the Condominium Act, 1998 would enable condominium corporations to implement certain virtual and electronic processes, replacing the temporary legislative framework that was enacted in response to the COVID-19 pandemic. The proposed changes would allow for virtual board and owner meetings, electronic voting, and digital communication to owners, subject to a corporation’s governing documents. Additionally, the record-keeping requirements will be amended and regulations governing notices and transitional matters will be authorized.

These amendments will come into force on October 1, 2023, and CityTowers Property Management Inc. will keep their clients updated on how the changes may affect their community as additional information becomes available.