Requisitions - Not all bad!
Section 46 of the Condominium Act, 1998 (the "Act") permits the owners to demand a meeting of the owners (often called a "requisition meeting"). To prevent a single owner from causing unnecessary cost and disruption, the Act requires the demand (called a "requisition") to be made by the owners of at least 15 percent (15%) of the units. It is noteworthy that it is the owners listed in the condominium's records, not the registered owners that may requisition the meeting. Because of this distinction, it is important for the owners to notify the condominium when they purchase their units and for the condominium to update its records when such notices are received from the owners. Upon receipt of a requisition from the owners, the board should review it to ensure it satisfies the requirements of section 46. However, a recent case suggests that the board should not take an overly restrictive or narrow approach when reviewing the requisition.
- Is it in writing (as opposed to a verbal requisition)?
- Is it signed by the persons requisitioning the meeting? (Note: a signature is not required; an owner may print his/her name).
- Are the owners of at least 15% of the units (as listed in the condominium's records) requisitioning the meeting?
- Does it state the nature of the business to be presented at the meeting (i.e. vote on proposed change in services, removal of director)?
- Was it delivered personally or by registered mail to the president or secretary or was it deposited at the condominium's address for service? (Note: actual notice of the requisition may be sufficient even if not properly delivered).
- If it is for the removal of one or more directors, does it state the name of the director, the reasons removal is sought, and indicate if the director holds the owner-occupied position (if any)?