Entitlement to attend and vote at Shareholders’ Meetings
This to serve as a general reminder for all Shareholders.
As it continues to consider useful information for inclusion in the Residents’ Manual and our newly created KAL website, the Board will in due course be incorporating the following clarification of the conditions under which each shareholder is entitled to attend and vote at any Shareholders’ Meeting.
By-Law #1 states that
shareholders are required to make their monthly Common Element Fee (CEF) payments by the first day of each month for which the CEF is due[1];
to be entitled to attend and vote at any Shareholders’ Meeting (such as the SAGM and the AGM) the shareholder must not be in arrears with their monthly CEF contributions[2];
if a default in CEF payments extends beyond 10 days, such default constitutes a default on the Occupancy Agreement entered into between KAL and the shareholder, and the Board is empowered to take appropriate remedial action, including, but not limited to, assessing an additional charge on the shareholder for late payment[3].
Provision 1) above is satisfied automatically for those shareholders opting to pay by means of our pre-authorized payment plan or by providing the management office a batch of post-dated cheques. Shareholders who opt to pay by cheque on a month by month basis must ensure each month’s cheque is placed in the management office mailbox by the end of the first day of the corresponding month. This mailbox is checked every business day.
Provision 2) above is determined by the balance of the shareholder’s CEF account on the day prior to the day the Notice of Meeting is issued, as recorded in the corporation’s ledger on that day, in compliance with the Ontario Business Corporations Act[4].
Before taking any remedial action under provision 3) above, the Board will make every effort to develop, with the participation of the defaulting shareholder, a payment plan to tackle the arrears situation.
To convene a meeting of shareholders, the Board shall issue a Notice of Meeting to all shareholders, regardless of their CEF account standing. A shareholder’s receipt of this notice, per se, does not imply entitlement to attend and vote at the meeting. The Board will make every reasonable effort to advise potentially defaulting shareholders in advance to permit the shareholder an opportunity to set their account in order, but regulations do not oblige the Board to do so. The absence of the Board communicating such advice to a defaulting shareholder does not confer on that shareholder the entitlement to attend and vote at the meeting.
The Board
Comments