The appointment of meeting officers is necessary to hold a meeting of co-owners. The titles that can be occupied by the meeting officers are as follows: president, vice-president, secretary and scrutineer; although the functions of each of these roles are distinct, their purpose is to ensure that the debates are properly conducted and that they are transcribed in the minutes in order to record the decisions that were taken. The by-laws of the immovable (second part of the declaration of co-ownership) provide the rules to be followed regarding meeting officers.
Multiple risks
The role of a meeting officer comes with a civil liability that could be engaged by any co-owner who believes to have suffered a prejudice of an irregularity in the way the meeting was done. In the event it fails to observe its duty of prudence and diligence in carrying out its mandate, an officer may be the object of legal proceedings in the case of a serious breach to its duties and so, whether he is paid or not.
Purpose of the coverage
Civil liability insurance of the meeting officers limits the impact of the financial consequences that the latter would suffer on their assets; it protects them by assuming their defence, that is to say by paying the costs associated to professional fees related to lawyers as well as other court fees. Furthermore, if the officers are held liable, the insurance will pay in principle the damages and other costs that the insured is required to pay following a loss-claim.
Obligation to be insured
Civil liability insurance of the meeting officers became mandatory on April 15, 2021 and so, as a result of section 1073 of the Civil Code of Québec.
Exclusions
The insurance policies regarding civil liability insurance of the meeting officers do not cover all situations; they usually include several exclusions. For instance, damages caused by intentional fault and gross negligence as well as fraudulent acts are generally not covered by the insurance contract.
WHAT YOU SHOULD KNOW! A meeting officer is exposed to certain risks that may engage its personal liability; it is therefore in its best interest to require from the board of directors to take out civil liability insurance so that damages caused to third party members are covered by the insurance policy.
WHAT TO KEEP IN MIND: The syndicate of co-owners has the legal obligation to take out civil liability insurance for the meeting officers.
WARNING! Even though the multi-risk insurances underwritten by the syndicate generally contain coverage regarding the civil liability of directors, the latter does not necessarily cover the actions of the meeting officers; to avoid any doubt, the board of directors must ensure that the civil liability insurance of the directors is extended to the meeting officers.
