Condo Board Disclosure

The Condominium Act (the "Act") now mandates that candidates disclose certain material information to the owners prior to the election. If disclosure is not provided within the prescribed time line, that candidate will be disqualified. The Act also provides minimum qualifications for board members, but many condo corporations have added further board qualifications in their bylaws. Candidates must disclose: are they an occupier or owner of a unit, are they in arrears of common expenses for 60 days or more, have any direct or indirect interest in a proposed or existing contract or transaction, have any convictions under the Act or regulations within the preceding 10 years, are they a party to any legal action to which the corporation is a party, and are their spouse, child or parent a party to any legal action to which the corporation is a party. False and inaccurate Candidate Disclosure Information Recently, two issues have come up relating to the discovery of false disclosure by candidates and situations in which the disclosure was accurate at the time it was made, but later, prior to the election, the information changes.

The Act and regulations refer to the disclosure information being "current as of the time the person provides them". Our position is that false information is not "current" information, and proxies obtained based on false information should not be counted. The Act only allows candidate information to be included with the notice of meeting package if they provide disclosure. If the disclosure was accurate at the time it was made but changes before the meeting, the candidate can make a further oral or written disclosure prior to the election. The question then becomes whether only the votes cast at the meeting should be counted.