The Owners, Strata Plan KAS 3549 v. 0738039 B.C. Ltd. (B.C. Supreme Court)

04/12/15 – Jurisdiction British Columbia
Part 53 published on 01/02/16
When developer failed to call first AGM as required by Strata Property Act, developer only liable for penalty if AGM called by an owner

The developer had failed to call and hold the strata corporation’s first AGM within the time period required by section 16 of the Strata Property Act.  In those circumstances, Section 17 allows any owner to call the first AGM.  Section 17 goes on to say that the developer must pay a prescribed penalty.  In this case, the first AGM had not been called by an owner, but the strata corporation claimed that the developer was still obligated to pay the prescribed penalty.  The Court disagreed.  The Court said:

In this case an owner was not put to the trouble of calling the first AGM.  For that reason s. 17(a) does not apply and because it does not apply, neither does 

s. 17(b).  The (developer) is therefore not liable to pay the s. 17(b) penalty.