Condos will Have to File Yearly Information Returns
Ontario is seeking your input on another set of proposed regulations. This one deals with proposed annual Information Returns, which corporations would have to file with the Condo Authority. Most of the information in these returns would be added to a publicly accessible database.
Latest Draft Regulation
In the context of its overhaul of the Condominium Act, the province is developing and circulating draft regulations. This past Friday, Ontario released its latest regulation instalment for your review and comments (not sure why they tend to do this on Fridays….). This latest draft regulation proposes to implement mandatory filing of Information Returns with the Condo Authority. The information found in these returns would (for the most part) be added to a publicly available database.
Four Different Returns
Four different returns are being proposed under the latest regulation:
- The Initial Return: This return will be required upon the creation of new condo corporations. It will need to be filed within 90 days of the registration of the declaration and description;
- The Turn-over Return: This return will be required to be filed within 90 days of the turn-over meeting (at which owners take over the corporation from the developer and elect a new board);
- The Transitional Return: A one-time return will be required to be filed by all corporations in existence when this regulation comes into force. Corporations will all have 90 days to file this return;
- The Annual Return: Finally, all corporations will have to file an annual Return between January 1st and March 31st of each year.
In addition to the returns listed above, corporations will have to file a Notice of Change every time certain information related to the corporation changes (for example, when there is a change on the board of directors). Such notices will be required to be filed within 30 days of the change. What’s interesting about this Notice of change is that corporation will almost always have to file one in addition to the Annual Return depending on when they hold their AGM. It may have made more sense to time the filing of the Annual Return with the AGM rather than with the calendar year.
Corporations will be able to (and expected to) file these returns electronically. Corporations who omit to file or miss the deadline to do so will face late filing fees.
Content of the Returns
Amongst other information included in the Returns, corporations will have to report on the following:
- The name of the declarant, the date of registration and the date of the turn-over meeting of the corporation;
- The corporation’s name, address for service, municipal address and email address (if any);
- The number of units, the maximum number of votes that can be counted at an owners’ meeting, the name of the directors, the start/end date of the fiscal year and the date of the last AGM;
- The name and address for service of the condo manager and management firm (if any); and,
- Any information about court-appointed administrator or inspector (if any).
The province has provided an easy-to-use chart summarizing what goes in each return.
Information will be Publicly Available
The Registrar will publish and maintain a database with the information disclosed in these returns (except any email address supplied by corporations). The Registrar will also be required to publish information about any compliance order made against the corporation or a director/officer under section 134.1 of the Condominium Act.
This regulation is expected to come into force in early 2018.
Ontario is Seeking your Input
The Province is seeking your input on this newly proposed regulation. You have until August 22, 2017 to provide your comments. You can relay your comments electronically.
You can read the plain language summary of the regulation or review the actual proposed regulation (this one is only 10 pages).