- Mandate : Mandatary
Definition : Mandate - Mandatary
Person who receives the mandate, from a mandator to represent him in the performance of a legal act or other with a third party. In divided co-ownership, we find this mandator-mandatary relationship both legally and contractually. The law stipulates that a director is deemed to be the mandatary of the syndicate of co-owners. In addition, a co-owner may grant to a mandatary the power to represent him at a general meeting of co-owners. This power and, if need be, the writing that records it, is called a proxy.
WARNING! The mandator-mandatary relationship should not be confused with the relationship between two contracting parties who are bound by a contract for services. Thus, when it is governed by such a contract, a condo manager is not, in principle, the mandatary of a syndicate of co-owners. Note, however, that the contract for services of a manager may include a representation component. The latter may therefore act as a mandatary of the syndicate for the purpose of entering into certain transactions.
April 17, 2021 Any co-owner may delegate his right to vote to an mandatary. Thus, with the notice calling the meeting containing agenda, financial statements and budget, there is usually a blank proxy form. However, since there is no requirement for the board to include one, it may be necessary for a co-owner to prepare one himself.
A formidable tool at assemblies and an object of covetousness for many when a decisive vote is planned in the co-ownership. However, proxies and their validity are often the subject of unfortunate questions and attempts to counter them. What about it?
The director plays a leading role in a co-ownership. As a mandatary of the syndicate of co-owners, he ensures the smooth running of the immovable’s day to day business, which implies a working knowledge of the tasks related to this key function. As such, directors must act with prudence, diligence, honesty and loyalty, and never lose sight of the co-owners community interests.
The civil liability of the directors with regard to the tasks incumbent upon them is largely ignored. Thousands of Quebeckers who sit annually on a board of directors, maybe including yourself, are unaware of this state of affairs.
The Self-Insurance Fund will become mandatory on April 15, 2022 following the adoption of the Bill 141, in 2018, which notably created section 1071.1 of the Civil Code of Québec. It had become necessary due to a substantial increase in insurance deductibles. Most of the time, the amount of these deductibles was formerly negligible, whereas today, it can reach tens, even hundreds of thousands of dollars.
Several syndicates of co-owners did not wait, or will not wait until April 15, 2022, in order to constitute a Self-Insurance Fund, according to their management based on logic and pragmatism.
Every co-owner should participate to all meetings to ensure the meeting of co-owners can reach a quorum and therefore deliberate and take decisions. When a co-owner cannot go there, he can ask the person of his choice to represent him. The mandatary the one who receives the proxy is not necessarily another co-owner. It may be a person outside the co-ownership. The latter will thus be able to represent him in this meeting and vote in his place on all the questions on the agenda.
A written instrument is compulsory
Tacit mandate being excluded, you must give a written instrument to the mandatary of your choice if you wish to be represented at the Meeting. The latter, who will represent you and vote on your behalf during the general meeting, can be one of the directors of the co-ownership (in his personal capacity), another co-owner, a friend or a person totally foreign to the co-ownership.