In most condominiums, board members act honestly and in good faith. But for a select few (or maybe a few more than a select few) individuals join the board for the wrong reasons and become entrenched in the job. Either to profit from their own condominium, or for reasons of ego, there are plenty of bad condo board members out there, and they can do a lot of damage to your investment.
Unfortunately, in Ontario there are very few ways to legally remove a board member from their position. This can be a challenging and often contentious process, but understanding the options available can help guide condo owners through this complex situation.
The most common method of removing a board member mid-term is through a requisition of owners. In this scenario, the owners of at least 15% of the condo units must sign a prescribed form calling for a meeting. Once this threshold is met, a meeting is scheduled where the removal of the board member will be voted on. To successfully remove the board member, over 50% of the unit owners must vote in favor of the removal. This method, while legal and effective, is challenging and usually very damaging to the health of the condo community. It can create divisions among residents and lead to a tense and uncomfortable living environment.
Another lesser-known method is through the use of the corporation’s bylaws. In some condominiums, there are bylaws that require directors to act in specific ways to remain on the board. These requirements could include adhering to a code of ethics, not missing too many meetings, or other conduct-related stipulations. If a board member violates these bylaws, it could be grounds for their removal. However, most condominiums do not have these bylaws in place. For those that do, enforcing them may still require taking the matter to court, as there will likely be disagreements about whether or not a violation occurred. This process can be lengthy and costly, but may still be better than a full-blown requisition meeting. Unfortunately, the worst boards operate, shall we say, less than transparently, so this method usually only works when fellow directors are on board (no pun intended) and know exactly what is going on behind the scenes.
In situations where no such bylaw exists, it is advisable to pass one that sets very clear parameters for board member conduct. This can help prevent future issues and provide a clear framework for removing a board member if necessary. However, if you are reading this article because you are currently dealing with an unfit board member, passing a new bylaw might not be a practical solution.
The last method for removing a board member is the standard vote at an Annual General Meeting (AGM). This, however, requires waiting until the board member’s term is up for election and then mobilizing enough unit owners to vote them out. While this method is straightforward and avoids the potential community discord of a requisition meeting, it does require patience and a concerted effort to ensure that a suitable replacement is elected. For the most part, condo-dictators or “condo-commandos” as they are usually known are usually ready for elections and can fall back on a core of supporters to keep them in power. We are still not clear on why many of them want the headache for a volunteer role, but this is a subject for another article.
In summary, removing a condo board member in Ontario is a difficult and often contentious process. The most common method is through a requisition of owners, which can be challenging and damaging to the community. Utilizing the corporation’s bylaws can be effective but is often complicated by the need for information, and possibly court intervention. Passing new bylaws can help prevent future issues but may not be a realistic solution for current problems. Finally, waiting for the AGM and voting out the board member requires patience and strategic planning.
Before attempting to remove a board member, it is crucial to consider all other possible courses of action. Mediation, dialogue, and seeking advice from professionals can sometimes resolve issues without resorting to the more extreme measures of board member removal. However, if removal is the only viable option, understanding these methods can help guide condo owners through the process.
TLDR
- Removing a condo board member is very difficult in Ontario
- There are only a few ways of doing so. Voting them out at the annual general meeting when their term is up, requisitioning a meeting to have them removed, or using condominium bylaws to disqualify them.
- Remove a director during their term should only be done if absolutely necessary, as it can be damaging to the community as a whole.