HOW A STRATA CORPORATION IS GOVERNED

As an artificial legal person, the strata corporation can only carry out activities through its members, the strata lot owners.

The Council

an executive body elected by the strata lot owners to carry out the duties of the strata corporation and oversee its affairs. Generally speaking, only strata lot owners are eligible to sit on the council

-After the developer creates the strata corporation by depositing the strata plan, the developer serves as the first council.

-After the developer sells a sufficient number of strata lots, or enough time passes, the developer must hand over the responsibilities of the strata council to elected owners. This occurs at a meeting called the first annual general meeting.

-Section 16 of the Strata Property Act requires the developer to call the first annual general meeting within six weeks of whichever occurs first: the conveyance of 50% plus one of the strata lots or the passage of nine months from the date of the first conveyance of a strata lot to a purchaser.

Eligibility for Council

-In each case, the strata corporation’s bylaws determine the number of seats on council.

-If two or more persons are registered on title as owners of a strata lot, only one of them at a time may sit on council unless all the owners are on council.

-If a corporation owns a strata lot, the corporation may choose an individual to represent the corporate owner on council

-The Strata Property Act also extends eligibility to tenants in some circumstances

The Members

-The owners of the strata lots are the members of the strata corporation

-The act requires the strata corporation to give at least 20 days written notice in advance of every general meeting

-Every year the strata corporation must hold an annual general meeting of its members. The meeting must be held no later than two months after the strata corporation’s fiscal year end.

-the members at the annual general meeting must elect a new council and approve the budget.

-All other general meetings of the members are called special general meetings.

Voting

-All matters at general meetings are decided by majority vote, unless the bylaws or legislation require a ¾ vote or a unanimous vote.

-In limited circumstances, a lender with a mortgage over a strata lot may vote in place of the owner. The mortgage document must give the lender the right to vote.

Management Contract

-the Strata Property Act permits the strata corporation to hire a strata property manager to carry out these functions.

-Every person who, for remuneration, provides strata management services to a strata corporation, or to a section, must be licensed under the Real Estate Services Act, unless otherwise exempted.

-the manager represents the strata corporation, not individual owners

-the manager also has fiduciary responsibilities to the strata corporation