Condominium Act, 1998 Section 84 Financial Disclosure — The Annual Owner Package Explained

ByBader A. Chowdry, CPA, CA, LPA

Reviewed by Bader A. Chowdry, CPA, CA, LPA on

Condominium Act 1998 Section 84 financial disclosure in one line: every Ontario condominium corporation must deliver audited financial statements and the auditor’s report to owners before the annual general meeting.

Quick answer

Section 84 of the Condominium Act, 1998 requires every Ontario condominium corporation to circulate its annual audited financial statements and the auditor’s report to owners before the AGM. Combined with Section 45’s 15-day notice rule, owners must generally receive the disclosure package at least 15 days before the meeting. Missing this deadline exposes directors under Section 37 and gives owners tribunal, requisition, and court remedies. Insight Accounting CPA, led by Bader A. Chowdry, CPA, CA, LPA, produces the AGM-ready disclosure package as part of every condo audit engagement.

Author: Bader A. Chowdry, CPA, CA, LPA, Insight Accounting CPA Professional Corporation, Mississauga, Ontario.

What the Section 84 disclosure package must contain

Under Section 84 read together with Sections 66 and 67 of the Condominium Act, 1998, the annual disclosure package includes:

  1. The audited financial statements for the fiscal year just ended, prepared under the CPA Canada Handbook Part III (ASNPO) and comprising statement of financial position, statement of operations, statement of changes in fund balances, statement of cash flows, and notes.
  2. The auditor’s report signed by a Licensed Public Accountant (LPA), issued under Canadian Auditing Standards (CAS 700).
  3. Notes to the financial statements, including disclosures about the reserve fund study, the board-approved funding plan under Section 94(8), material commitments, related-party transactions with the property manager, and any subsequent events.
  4. The notice of meeting under Section 45, listing the business of the AGM.

Where the corporation has fewer than 25 units and all owners have waived the audit under Section 60(2), the “audited” statements are replaced by the unaudited statements the board has approved. In our experience most such boards still commission a review engagement from an LPA — owners generally want an independent opinion even when a full audit is not legally required.

The 15-day rule and how it interacts with Section 84

Section 45 of the Condominium Act, 1998 requires notice of a meeting of owners to be sent at least 15 days before the meeting. The notice must be accompanied by the material to be considered — for the AGM, that means the Section 84 financial disclosure package. If the audited statements are not ready 15 days before the intended AGM date, the board must:

  • Reschedule the AGM to a date the board can meet the 15-day rule (most common); or
  • Hold the AGM without financial-statement business and reconvene later; or
  • Rely on owner-signed short-notice waivers under Section 45(6), which are practical only for very small corporations.

The pattern we see repeatedly is a board that engages the auditor in the last month before the intended AGM, then races the clock. Engage the auditor within 60 days after fiscal year-end and the 15-day rule becomes routine.

Director duty of care and the cost of missing the disclosure

Section 37 of the Condominium Act, 1998 sets a director’s standard of care: directors must act honestly, in good faith with a view to the best interests of the corporation, and with the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances. A late or incomplete Section 84 disclosure is direct evidence that the standard was not met.

Owner remedies include:

  • Owner-requisitioned meetings under Section 46 — 15% of owners can require a meeting.
  • Condominium Authority Tribunal (CAT) applications for records and disclosure disputes.
  • Court applications under Section 134 for compliance orders.
  • Personal-cost awards against directors in serious cases.

Directors can obtain directors’ and officers’ (D&O) insurance and the corporation typically indemnifies them under Section 38, but neither protects a director who ignored a statutory duty.

How Insight Accounting CPA produces the Section 84 package

For every condo audit engagement, Insight Accounting CPA delivers:

  1. Signed auditor’s report on the LPA’s letterhead (Bader A. Chowdry, LPA).
  2. Audited financial statements in PDF, formatted for owner distribution.
  3. Plain-English management letter to the board — findings, recommendations, no jargon.
  4. One-page cover summary the property manager can distribute as a cover memo.
  5. Attendance at the closing meeting — Bader personally attends the AGM’s audit segment, in person or by video, to answer owner questions.

This is the difference between a shrink-wrapped set of statements and a package the board can actually defend at the AGM.

FAQ

Q: If our AGM is delayed, what happens to the Section 84 timing?
A: The 15-day rule attaches to the AGM date, so if the meeting is delayed, the disclosure deadline moves with it. The corporation must still hold an AGM under Section 45(2) — generally within six months after fiscal year-end.

Q: Can the auditor’s report be delivered later than the statements?
A: No — the two must be delivered together as part of the same package. The auditor’s report signs off on the financial statements; owners need both to make sense of the numbers.

Q: Can we distribute the package electronically?
A: Yes, if the corporation has passed the required Section 47 by-law and the owner has provided consent to electronic communication. Most Ontario condos passed the electronic-communication by-law by 2020.

Q: Do we need to file the audited statements with the government?
A: No. Unlike CBCA or OBCA business corporations, Ontario condo corporations do not file annual financial statements with the government. The statements go to owners under Section 84. The corporation must, however, file a CAO return under the Condominium Act, 1998 Section 9.2.

Sources

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Important — informational only, not advice. Do not use this article to make any decision.

This article is published by Insight Accounting CPA Professional Corporation for general educational purposes only. It is not tax, legal, accounting, financial, or investment advice, and nothing in this article should be relied upon — by anyone, for any purpose — to make a business, tax, financial, accounting, legal, or investment decision.

Tax law, CRA administrative positions, court interpretations, and Ontario provincial rules change frequently, sometimes retroactively, and the content of this article may be incomplete, simplified, out of date, or wrong by the time you read it. The right answer for your specific situation depends on facts this article does not know — your structure, history, jurisdiction, filings, contracts, and goals.

Before acting, engage your own Chartered Professional Accountant or qualified advisor who has reviewed your specific circumstances in writing. Insight Accounting CPA Professional Corporation, the author, and any contributors expressly disclaim all liability — direct, indirect, or consequential — for any action taken or not taken on the basis of this content.

Insight Accounting CPA Professional Corporation is led by Bader A. Chowdry, CPA, CA, LPA — licensed by CPA Ontario under the Public Accounting Act, 2004. To engage us for situation-specific advice, book a free 30-minute discovery call.

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