Frequently Asked Questions (FAQ)

Q. Audits: several owners are concerned about how their Council is handling its money. They would like the books to be audited and Council is not co-operating.

A. There is nothing in the Strata Property Act that requires auditing of the books. Council does not have to carry out an audit unless directed to by ¾ of the owners, assuming that they must also approve the cost of the audit.

We recommend that concerned owners follow the procedures laid out for calling a special general meeting (Section 43).

§ Prepare a letter to Council requesting a special general meeting to consider a resolution authorizing the necessary funds to commission an audit.

§ Find the necessary 25% of the owners to sign the letter and forward it to Council.

§ This will force a meeting within four weeks of the receipt of the demand by the strata corporation.

§ If Council does not comply, Section 43(6) allows the owners to hold their own meeting. From the Act:

43(6) If a special general meeting is not held within the time period set out in subsection (3), the persons making the demand may themselves hold a special general meeting by complying with the provisions of this Act, the regulations and the bylaws respecting the calling and holding of special general meetings.

If an annual general meeting is in the offing, the concerned owners could use Section 46(2) to put the resolution on the agenda. From the Act:

46 (2) Persons holding at least 25% of the strata corporation’s votes may, by written demand, propose a resolution or raise a matter specified in the demand.

Again, at least 25% of the owners are needed to sign the written demand.

At the meeting it requires ¾ of the owners to approve the resolution.