The recent McLaughlin v. Brant Standard Condominium Corporation No. 75 case is in the news for requesting various records, including Board Minutes for three years (Sep 2018 to Sep 2021) and the 2020 AGM Minutes. However, the corporation failed to provide the required documents as, according to the company, it did not hold any board meetings during this period. Moreover, the respondent failed to provide minutes of the 2020 AGM as the event was not conducted in 2020 due to the pandemic.
According to the corporation, “Business was conducted informally in various forms but mainly in person or via written communication which if needed was then delivered to the previous Manager”.
What Did the CAT Say?
The CAT held the condominium corporation liable as it had failed to provide the required documents. It ordered the corporation to pay a total of $2700, including a $200 filing fee, as a penalty.
Here’s the official statement:
“The Act is clear that the corporation’s business must be conducted through board meetings, and that the corporation must keep adequate minutes of meetings. Although a condominium corporation cannot be compelled to produce records that do not exist, it also cannot justify its inability to produce such records by citing its own deliberate non-compliance with the Act.”
It further added that the corporation was required to hold an annual meeting by October 22, 2020, if it could not hold one in 2020 due to the pandemic.
The statement also read:
“My conclusions on the Annual General Meeting minutes are similar to the conclusions related to board meeting minutes. Although a condominium corporation cannot be compelled to produce records that do not exist, it also cannot justify its inability to produce such records by citing its own deliberate non-compliance with the Act.”
What Does This Decision Mean?
This decision indicates that corporations must hold AGMs according to the Condominium Act and prepare minutes accordingly. Furthermore, all board decisions (including decisions made over emails) must be ratified at Board Meetings, and the organization must record these in the Minutes for the meetings.