| What it is |
The court appoints an administrator (for example, a CPA) to run the corporation for a while. 9 |
One owner calls a meeting to elect directors to the empty board seats. 10 |
Owners force a meeting to remove the board and elect a new one. 11 |
| When you can use it |
~Mixed or unsure: When the court finds it just or convenient and in owners’ best interests. Courts treat it as a last resort. 12 A board without quorum and a suspended manager are the kind of facts the court looks for. |
~Mixed or unsure: Only if the board has lost quorum (or has no directors), and the remaining directors haven’t called a meeting within 15 days. Needs proof, for example director resignations on the CAO public registry or other official records. 13 |
✓Easier: Any time owners of 15% of units sign. 14 |
| Cost |
~Mixed or unsure: About $35,000 per corporation in legal fees, plus HST and disbursements (court filing fee about $293). The fee includes a legal opinion for each building. Shared by participating owners: more owners taking part means less each. Counsel will try to recover costs from the management company and its principals first, then the corporation. |
~Mixed or unsure: The corporation repays the owner’s reasonable costs of calling the meeting, on request. 15 |
~Mixed or unsure: The corporation repays the requisitionists’ reasonable costs, on request. 16 |
| Vote needed? |
✓Easier: No owner vote. The court decides. |
~Mixed or unsure: An election, not a removal vote, so no majority of all units is needed. But owners of 25% of units must attend or send proxies for quorum. 17 |
✗Harder: Yes: a majority of all units must vote to remove the board. For example, in a 131-unit corporation: 66 units.18 |
| How fast |
✓Easier: Urgent application. Hearing estimated within 1–2 weeks. This is an estimate: the court sets the actual date. |
~Mixed or unsure: Meeting must be held within 30 days of an owner calling it. 19 The meeting is only the first step. Then more time for the board to act. |
✗Harder: About 2.5–3 months just to hold the meeting. Then more time for the new board to act. |
| Unpaid bills and liens while you wait |
✓Easier: An administrator could be in place in an estimated 1–2 weeks, so the fewest months of liens are lost. Its powers are set by the court order.20 |
~Mixed or unsure: Meeting within 30 days of calling it, but only after quorum is lost and proven. Then the new board must hire help before it can register liens. 21 |
✗Harder: About 2.5–3 months to the meeting: one more month of liens lost for each month of delay. Utility debt keeps growing. 21 |
| What you need |
✓Easier: Owners who want to take part, and one court application per corporation. No full owner list needed. |
✗Harder: The record of owners, which owners do not have. Proof the board lost quorum, one owner to call it on the government’s mandatory form, and candidates willing to serve. Notice can be handed to owners or left at each unit or its mailbox. 22 But only owners on the record of owners can vote, so the record still matters. 4 |
✗Harder: Signatures from owners of at least 15% of units, plus the official record of owners to notify every owner. We do not have complete owner data.23 |
| What happens after |
✓Easier: The administrator is like a paid, dedicated board that gets things back on track. Then manages the transition and is expected to train a “shadow board” of owners to take over. As part of this s. 131 application, the court is likely to order a forensic accounting: an investigation that traces the money and records, as part of the administrator’s work. Handles lawful management, insurance, utilities, repairs and trust funds, then hands the corporation back to owners (expected: a few months). The administrator calls the owners’ election before handing over. The court order sets the administrator’s exact powers and term.2 |
✗Harder: New directors join any who remain and inherit a broken system, the same as C. They will need to hire professionals. See “After the vote” |
✗Harder: The new board inherits a broken system: rent, repairs, utilities, insurance, records, trust money and a new manager. It will need to hire professionals. See “After the vote” |
| Getting records, money and assets back |
✓Easier: The administrator acts under a court order and reports to the court. The order sets what the administrator can do.2 |
✗Harder: The new board will still need to hire lawyers to demand the records, money and assets from the old manager, and go to court if they aren’t handed over. A property management company can help run the building, but it won’t go to court for you. |
✗Harder: The new board will still need to hire lawyers to demand the records, money and assets from the old manager, and go to court if they aren’t handed over. A property management company can help run the building, but it won’t go to court for you. |
| Court oversight |
✓Easier: Yes. Reports to the court and must account for all money spent. Owners can review the accounts and give feedback on key decisions. |
✗Harder: No court supervision. The board answers to owners. |
✗Harder: No court supervision. The new board answers to owners. |
| Watch out for |
Each corporation needs its own application. The retainer does not cover separate damages claims against the manager. The court may grant a shorter or narrower appointment than requested. |
~Mixed or unsure: Needs proof the board lost quorum. Without it, this option isn’t available. Directors still in office stay on. Owners must turn out for quorum, and candidates must step forward. Only owners on the record of owners can vote. 4 If linked companies hold many units, they can attend and elect directors. No minimum notice period found: the usual notice rules don’t apply24. A lawyer should confirm the notice steps before anyone relies on this. |
The current board could act first (for example, sign a new manager) before the meeting. Notice or process could be challenged, especially without full owner data. |