New rules for electronic strata meetings

QUESTION: Our strata council has informed the owners that they have decided to defer our annual meeting to the fall.

Our fiscal year end is April 30, and we have a significant budget overrun and our insurance is due for renewal and likely a significant increase in July.

The council informed us they have no way of holding a meeting and are hoping by fall they will be able to permit a meeting where owners can attend in person or by proxy.

While we appreciate the council trying to accommodate everyone, we are also aware of the serious financial issues facing our community.

With a deficit of over $100,000 in a 94-unit strata, the owners do not want to delay this meeting as we are concerned our reserve funds will be depleted and we will be left massive increases.

Owners are asking for an meeting.

If a strata corporation cannot meet in person, are they required to have an electronic meeting to convene general meetings?

electronic

ANSWER: In the past week the provincial government adopted two new regulations to assist strata corporations during this period of restrictions.

The first enables a strata corporation to expend their contingency reserve funds for the purpose of renewing insurance polices, and the second regulation provides an extension of an additional 60-day period if there is a declaration of a state of emergency or a declaration of a state of local emergency in effect for the region your strata is located.

If your fiscal year end is April 30, your strata corporation is required to hold its annual meeting no later than the end of June.

With the extension adding 60 days, that now becomes the end of August, essentially extending the period to 120 days.

While there are no specific penalties in the Strata Property Act for not holding the meeting in the 60-day period, the result is often a burden on strata owners as the ability to collect increases in strata fees in the remaining year is compounded by the delays.

If your strata corporation has a 10% increase overall in the year but the meeting is 120 days later, the increase to collect the balance of the approved budget will be closer to 17% for the remaining months.

This delay also applies to a petitioned meeting by the owners. If the owners by 20% petition for a special general meeting to consider a resolution or other demand such as the removal and election of a new of council, the strata must hold the meeting within four weeks after the demand is given.

Under the regulation and emergency orders, that would be extended to 12 weeks.

If your strata council is not prepared to convene an electronic meeting, the owners may petition for an electronic AGM to approve the budget, receive the report on insurance and elect a new council.

Once your petition is submitted, and the emergency orders are in effect, the council would have 12 weeks to hold the meeting.

Because gatherings of more than 10 people within a properly distanced space are restricted, and gatherings of 50 or more are prohibited, it is unlikely your strata corporation will be able to hold an assembled meeting. The only option they have is an electronic meeting.

The notice is still issued the same, and the address of the meeting is the electronic site that was established in the notice.

Meetings using Zoom and other platforms work well provided you can identify each eligible voter whether in person or by proxy.

If an owner cannot attend an electronic meeting, they have the option of submitting a proxy.

This is no different than being unable to attend an assembled meeting where they submit a proxy.

The benefit of electronic meetings has been the significant increase in participants. The down side is reduced conversation, debate, and social community functions.

An electronic information meeting the week before the AGM is a perfect platform for discussion and debate and permits owners the opportunity to consider their decisions before they attend the electronic meeting or submit a restricted or general proxy.

CHOA is hosting public webinars on Tuesdays at noon covering a wide range of strata topics during the COVID-19 restrictions. To register or view archived webinars and resources go to: choa.bc.ca. Registration opens Wednesday noon for the following week.

Tony Gioventu is executive director of the Condominium Home Owners Association. To submit a question, email: tony@choa.bc.ca