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Home COFSAB Forum Legislation, Bylaws and Rules Questions About Default Bylaws Reply To: Questions About Default Bylaws

  • Karen

    Administrator
    April 10, 2022 at 4:44 pm

    jonfklein@gmail.com

    Posted by: MarkH

    Posted by: @jonfkleingmail-com

    I have a couple of questions about adopting the default bylaws found at the end of the Alberta Condominium Property Act Regulations.

    1) The default bylaws do not include insurance requirements. So how does a corporation that adopts the default bylaws handle their insurance requirements?

    MarkH: Section 47 of the Condominium Property Act (CPA) applies and requires the Corporation to undertake certain insurances.

    Ok, understood.

    But how does a condominium corporation that doesn’t have any bylaws, such as a new condominium, go about obtaining the required insurance? Would they simply contact an insurance broker and ask for an insurance package meeting the requirements of the CPA&R?

    2) At the start of the default bylaws in the Regulations is stated:

    Note: Section 33 of the Act provides that the bylaws in

    this Schedule apply only until they are repealed or

    replaced by special resolution and registered at the land

    titles office.

    My building has been using an old set of bylaws that were adopted decades ago. Is it allowed to repeal these old bylaws and revert back to the default bylaws, or are the default bylaws only allowed for new condominiums after registration of a condominium plan?

    MarkH: Sections 34 and 34.1 of the CPA tell you the answer to your question. If you were using the old default bylaws (as I believe you indicate above), they are now by virtue of the CPA and with no action required by your corporation, replaced by the default bylaws set out in the CP Regulation.

    No, not this situation.

    MarkH: If your old bylaws were not the old default bylaws, but developed and adopted by your corporation, they will endure until replaced by new bylaws which you would adopt by Special Resolution. However, in the interim, your old bylaws (if in conflict with the current CPA and Regulation [CPA&R]) would be over-ruled by the new legislation.

    Yes, this situation – our bylaws were developed and adopted by our corporation.

    So, once a set of bylaws have been adopted they can only be replaced by a new set. They  cannot simply be repealed leaving the corporation with no bylaws filed with land titles. Correct?

    MarkH: Sections 34.1(2) and (3) introduce complications regarding adoption. If a part of your current bylaws is in conflict with the revised CPA&R, you can amend that part by Ordinary Resolution.

    In our situation the bylaws are so out of date they need to be totally replaced. They were adopted shortly after registration of the condominium plan 40 years ago. There has been only one amendment since then.

    But that’s an interesting point. If I understand 34.1(2) correctly it allows a corporation a window of one year to amend a conflict with the CPA&R by ordinary resolution every time the CPA&R are revised.

    MarkH: I believe that if you want to use the new default bylaws, you should repeal your old bylaws and adopt the new bylaws by Special Resolution. Please only do this if the new default bylaws truly meet the needs of your development and corporation, including the insurance requirements you first asked about.

    The problem is the default bylaws do not deal with insurance requirements. So I am wondering how to deal with this. Should we add a section to the bylaws that specifies our insurance requirements? I suppose this section should be written by a lawyer then. Or can we leave the insurance requirements out of the bylaws entirely and instead specify our insurance requirements simply through communication with our insurance broker?

    Please spread the word!
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