Corporate ownership is increasingly common in Ontario condominiums, particularly in commercial and mixed-use developments. While individual owners can easily receive notices and vote at meetings, corporations require special attention because they are legal entities and cannot act in person.
Why a Corporate Representative is Needed
Ontario law requires that votes and official notices be cast and received by an authorized individual. For a corporate owner, this means the corporation must provide a written designation, usually signed by an officer or director, naming someone to act on its behalf at meetings. Without a written designation, a person cannot validly vote or submit a proxy on the corporation’s behalf.
Steps Condo Managers Should Take
To ensure corporate owners are properly represented, managers should:
- Identify corporate owners early.
Regularly review the owner register to determine which units are owned by corporations. - Request a written designation.
Ask the corporate owner to provide a written designation specifying:- The name of the corporate owner;
- The name and contact information of the designated representative;
- The signature of an authorized officer or director of the corporation.
- Maintain up-to-date records.
Keep all designations on file and update them whenever the corporate owner changes its representative. - Confirm delivery preferences.
Send notices and voting materials to the contact details provided by the corporate owner or its representative to ensure compliance and avoid claims of non-receipt.
Common Pitfalls
- Assuming a tenant or property manager can vote: only the appointed representative (or an authorized signing officer) has authority.
- Using outdated designations: corporate representatives can change frequently.
- Failing to update mailing or email addresses resulting in undelivered notices may create disputes.
Bottom Line
Condo managers play a crucial role in ensuring that all owners, including corporate owners, can participate fully in condominium governance. By requesting and maintaining proper written designations and confirming contact details, managers help prevent disputes and keep meetings running smoothly.