If at least 15% of the units of the corporation are
owner-occupied units, no persons other
than the owners of owner-occupied units may elect a person to or remove
a person from one of the positions on the board of directors.
An “owner-occupied unit” means a unit where the owner lives in his or
her unit and has has not leased the unit
within the 60 days before notice is given for the meeting, as shown by
the corporation's records.
So the owner-residents are guaranteed to have a minimum of one director
on the board that will represent their interests. This can be important
in a condo that has 500 units with over 300 rented units.
Notice of intent
In the meeting's information package, there has to be a statement of
which persons have notified the board, in writing, as of the day before
notice is sent that they intend to be candidates for the position on
the board reserved for voting by owners of owner-occupied units.
At the owners' meeting if there is an election for two or more
directors, one of which is the reserved owner-occupant position, there
has to be two elections. The first election is for the owner-occupied
The losing candidates can then stand for nomination for the remaining
Unless the by-laws say differently, no persons other than the owners of owner-occupied units may remove a
director that holds the owner-occupied position.
The managers and the boards, relying on the owners not knowing their
rights, may ignore the requirement for the owner-occupied position on
board and only hold one election at an owners' meeting instead of
the required two that the Act calls for.
This is something that the owner-residents need to watch out for.
The wording in the amended Condominium Act (2015) has changed the term
"owner-occupied" to "non-leased". We will have to wait until the
regulations are proclaimed, and possibly the new wording challenged in
the courts, before we will know exactly what that means.