Guelph519 837 2100 | 1 800 746 0685

Fergus519 843 1960 | 1 800 746 0685

Law Firm LLP

Contact Us:

Please contact our office directly to discuss your legal requirements or for more information on our services. If you wish to contact one of our lawyers directly please visit the Our Team page.

Guelph Office

105 Silvercreek Pkwy. N.
Suite 100 Guelph, ON N1H 6S4

Mailing Address

P.O. Box 1240
Guelph, ON N1H 6N6

Phone: 519 837 2100
Fax: 519 837 1617

Toll Free: 1 800 746 0685

Email: guelphinfo@smithvaleriote.com

Fergus Office

265 Bridge Street
Fergus, ON N1M 1T7

Mailing Address

P.O. Box 128
Fergus, ON N1M 2W7

Phone: 519 843 1960
Fax: 519 843 6888

Toll Free: 1 800 746 0685

Email: fergusinfo@smithvaleriote.com

Quick Contact

select

Sending an email to SmithValeriote LLP does not establish a solicitor-client relationship. Please do not send any confidential information to the firm unless a retainer has been confirmed. I Agree.

Submit     Cancel/Close

Nov 1, 2013 | Case

Condominium Legal Update: Gordon v. York Region Condominium Corporation No. 818

November 2013

Gordon v. York Region Condominium Corporation No. 818 [2013] (unreported)

In this case, the corporation removed a director from the Board pursuant to a by-law passed by the corporation. The by-law outlined various criteria upon which a director could be removed from the board prior to the expiration of his or her term, as well as the procedure to be followed. This included a director’s code of ethics and a procedure for an ethics review. Upon his removal, the former director applied to the court seeking an Order establishing that his removal was invalid, and that the by-law permitting such removal was in violation of section 33 of the Condominium Act, 1998. The major questions considered by the Court were the following: (1) could a director be removed without the support of a majority of unit owners; and, (2) what process is to be followed to remove a director?

Section 33 of the Condominium Act, 1998, states:

s. 33-“Subject to subsection 51 (8), a director, other than a director on the first board, may be removed before the expiration of the director’s term of office by a vote of the owners at a meeting duly called for the purpose where the owners of more than 50 per cent of all of the units in the corporation vote in favour of removal.”

Section 56(1)(a) of the Condominium Act, 1998, further establishes that a board may make a by-law that governs the removal process of a director. The Court found that removing a director may go beyond the onerous process of a majority of unit owners voting in favour. The Court held that a removal process may, via by-law, be expanded to include in this case a director’s alleged breach of a code of ethics. That said, the Board was found to have breached due process, and the matter was referred back to the Board for reconsideration.

Bottom Line: Section 33 of the Condominium Act, 1998, establishes that a director may be removed prior to the expiration of his or her term, if the owners vote in favour of such removal at a duly constituted meeting. This case confirms that condominium corporations are permitted to pass by-laws which expand the methods to remove a director. Provided a board follows the process laid out in the relevant by-law, the removal of a director may be expanded to include (a) chronic absenteeism; (b) a director who sues a condominium; (c) a director who is found to have breached a code of ethics; or (d) a director who is deemed by a board to have violated the Condominium Act, 1998. Condominiums would be well served to consider passing by-laws to expand the ability to remove a director, without having to achieve the support of a majority of unit owners.

Written by Erica Gerstheimer, edited by Robert Mullin.

To view the entire article please click the pdf link below.
Smith Valeriote Logo - Excellence in our Community

SmithValeriote Law Firm LLP has 30 lawyers servicing the province of Ontario including the communities of Waterloo, Kitchener, Fergus, Cambridge, Elora and Guelph.

Smith Valeriote - Map to Guelph Offices

Guelph Office

105 Silvercreek Pkwy. N.
Suite 100 Guelph, ON N1H 6S4

Phone: 519 837 2100
Fax: 519 837 1617

Toll Free: 1 800 746 0685

Email: guelphinfo@smithvaleriote.com

Smith Valeriote - Map to Fergus Offices

Fergus Office

265 Bridge Street
Fergus, ON N1M 1T7

Phone: 519 843 1960
Fax: 519 843 6888

Toll Free: 1 800 746 0685

Email: fergusinfo@smithvaleriote.com