Spring is typically Annual General Meeting (AGM) season for
condominium corporations and with the COVID-19 virus having been
declared a pandemic last week, condo boards should consider whether
or not to proceed with scheduled AGMs. For many condo corporations,
an AGM will be a “mass gathering” that corrals hundreds
of unit owners together in one room, sitting in close proximity,
often for several hours.
While Alberta’s Condominium Property Act requires
condominium corporations to convene the next AGM no later than
fifteen (15) months after the immediately preceding AGM, this is a
unique situation in which common sense must be applied. It is
highly unlikely that a condominium corporation will be penalized
for a failure to strictly follow the legislated timeline in these
circumstances.
If your condominium corporation has not already provided notice
to unit owners of an upcoming AGM, it may be advisable to delay
doing so until the COVID-19 pandemic is better controlled, and the
infection spread curve has been “flattened”. If notices
have already been sent out, those condominium boards should ask the
following questions to help them determine whether to proceed:
- Have any owners/tenants or other
residents in the corporation tested positive for COVID-19? What
about property managers or other service providers? - Have any owners/residents recently
travelled outside of the country? - What is the average age of residents
in the condominium corporation? Could they be at a greater risk if
they contract COVID-19 (e.g. older individuals)? - How many units are in the
corporation, and how many of those are generally represented at the
AGM from year to year (i.e. how many individuals are actually
expected to attend the AGM)? - Where is the AGM being held, on-site
or somewhere else, like a community centre, hotel or church? - How large is the room/space for the
meeting? Can individuals be sufficiently spread out so as to ensure
the recommended social distancing of 2 metres?
If your condominium corporation contains more than 40-50 units,
prevailing wisdom would strongly caution against proceeding with an
AGM at this time. For condominium corporations that choose to
proceed with an already-scheduled AGM, here are some precautions
that can and should be taken:
- Owners should be encouraged to submit
proxies rather than attending the AGM in person. Anyone who is
feeling sick or displaying symptoms should be advised to stay home,
and to assign their proxy to a board member or a neighbour who can
represent them at the meeting. - Limit attendees by requesting that
only one (1) owner attend per unit, for units with multiple
owners. - Unit owners that will not be in
attendance but wish to raise issues at the meeting, or nominate
individuals for board elections, should be permitted to submit
these items to the board and/or property manager electronically in
advance. - Consider conducting any ordinary or
special resolution votes in writing, or electronically if your
bylaws so allow. - Some condominium corporations lack
sufficient space on their properties to host AGMs, and often rent
space at community centres, churches, hotels and even public
schools. Many of these locations may already have been affected,
such that they are now closed to the public, closed to large
gatherings, or have reduced hours. Contact the location to confirm
any bookings that have already been made and find out what pandemic
plans are in place. You should anticipate any arrangements having
to change, or even being cancelled with little to no advance
notice. - Stagger registration times to
minimize line-ups when owners check-in for the AGM, and try to have
access to hand sanitizer. - Advise attendees to bring their own
copies of materials that were provided along with notice to the
AGM, and to bring their own pens/pencils for signing in and casting
any votes.
Most condo bylaws likely do not contain provisions for
cancelling an AGM once notice has been sent out to unit owners. In
these circumstances, the Board should call an emergency meeting for
the purpose of deciding whether a meeting will proceed as
scheduled, or in a modified format, or if it should be adjourned
indefinitely. Once a decision has been made, this can be
communicated to unit owners to provide them with as much notice as
possible.
In my view, due to the unprecedented nature of the current
public health emergency, the board of directors has the right to
cancel an already-convened AGM, or to allow unit owners to attend
the AGM electronically (even in the absence of a bylaw authorizing
this measure). In light of the advice being given by public health
officials to limit social contact as much as possible, my
recommendation would be to cancel and/or suspend all owner meetings
indefinitely.
As the situation evolves, new information about the COVID-19
virus is being constantly updated. Condominium corporations should
consult government and public health websites to stay informed on
the latest facts, advice and requirements.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
