The Assembly of Co-owners

The legislator has provided in detail for the terms of the assembly of co-owners, its objective and the conditions attached to it in articles 1087 to 1099 of the Civil Code of Québec, as follows:

“1087. The notice calling the annual general meeting of the co-owners shall be accompanied, in addition to the balance sheet, by the income statement for the preceding financial period, the statement of debts and claims, the budget forecast, any draft amendment to the declaration of co-ownership and a note on the essential terms and conditions of any proposed contract or planned work.”

“1088. Within five days of receiving notice of a general meeting of the co-owners, any co-owner may cause a question to be placed on the agenda.

Before the meeting is held, the board of directors gives written notice to the co-owners of the questions newly placed on the agenda.

« 1089.Co-owners holding a majority of the votes constitute a quorum at general meetings.

If a quorum is not reached, the meeting is adjourned to a later date, notice of which is given to all the co-owners; three-quarters of the members present or represented at the new meeting constitute a quorum. However, decisions on the matters listed in article 1097 may be made at the new meeting only if those members hold at least the majority of the votes of all the co-owners.

A meeting at which there is no longer a quorum shall be adjourned if a co-owner requests it.”

“1090. Each co-owner is entitled to a number of votes at a general meeting proportionate to the relative value of his fraction. Co-owners of a fraction held in indivision vote in proportion to their undivided shares.

The co-owner of a fraction held in indivision who is absent from a general meeting is presumed to have mandated the other co-owners of that fraction to represent him, unless the absentee has, in writing, mandated a third person for that purpose or has indicated his refusal to be represented. The absentee’s voting rights are partitioned proportionately to the rights of the other co-owners in the indivision.

“1091. Where, in a co-ownership comprising fewer than five fractions, a co-owner is entitled to more than one-half of all the votes available to the co-owners, the number of votes to which he is entitled at a meeting is reduced to the total number of votes to which the other co-owners present or represented at the meeting are entitled.

“1092. At the end of the second and third years after the date of registration of the declaration of co-ownership, a developer of a co-ownership comprising five or more fractions is not entitled to more than 60% of all the votes of the co-owners, in addition to the votes attached to the fraction he occupies.

The limit is thereafter reduced to 25%.”

“1093. Any person who, at the time of registration of a declaration of co-ownership, owns at least one-half of all the fractions, or his successors, other than a person who in good faith acquires a fraction for a price equal to its market value with the intention of occupying it, is considered to be a developer.”

“1094. Any co-owner who has not paid his share of the common expenses for more than three months is deprived of his right to vote. He may once again exercise that right as soon as he has paid all the common expenses he owes.”

“1095. Only assignments of the voting rights of a co-owner which have been declared to the syndicate may be set up against it.”

“1096. Decisions of the syndicate, including a decision to amend the by-laws of the immovable or to correct a clerical error in the declaration of co-ownership, are taken by a majority vote of the co-owners present or represented at the meeting.”

“1097. Decisions concerning the following matters are made by co-owners representing three-quarters of the votes of the co-owners present or represented:

(1) acts of acquisition or alienation of immovables by the syndicate;
(2) work for the alteration, enlargement or improvement of the common portions, the apportionment of the cost of the work and the granting of a movable hypothec to finance it;
(3) the construction of buildings to create new fractions;
(4) the amendment of the act constituting the co-ownership or of the description of the fractions;
(5) the amendment of the description of the private portions referred to in section 1070.”

“1098. Decisions on the following matters require a majority of three-quarters of the co-owners representing 90% of the votes of all the co-owners:

(1) to change the destination of the immovable;
(2) to authorize the alienation of common portions the retention of which is necessary to maintain the destination of the immovable;
(3) to amend the declaration of co-ownership in order to permit the holding of a fraction by several persons having a periodic and successive right of enjoyment.”

“1099. Where the number of votes to which a co-owner or a developer is entitled is reduced, or where a co-owner or a developer is deprived of his right to vote, the total number of votes available to all the co-owners is reduced by the same number.”

Finally, it should be noted that any provision in the Declaration of Co-ownership that would have the effect of modifying the percentages provided for by the law would be inoperative and without effect.

For more information, do not hesitate to consult us.

Vanessa Low-Ken
Legal technician
Charland Avocat Inc.
Centropolis Laval
500-3055, boul. Saint-Martin Ouest
Laval (Québec) H7T 0J3
Phone: (450) 934-8700
Fax: (450) 934-8748
vanessa@charlandavocat.com