To provide registrants and other stakeholders with an opportunity to learn more about upcoming by-law changes, RECO held a webinar on April 24, 2024.
The webinar presenters were able to respond to many questions during the Q&A period during the webinar.
Questions that were not related to by-law changes have been forwarded to the appropriate department for direct response.
Please find below additional questions and answers that we either did not have sufficient time to respond to during the webinar or were asked by multiple registrants.
What types of amendments to RECO’s by-laws need 66.66% ratification (at the upcoming AGM), and which only 50%+?
Most motions presented at the AGM require a simple majority (51%) of voting members in attendance.
On occasion, a Special Resolution is required because it may, for example, amend the Articles of RECO – as is the case with the amendments to the member classes. Under Ontario law, a Special Resolution must be approved by a 2/3 majority (or 66%) of voting members in order to be approved.
Full information on each motion and the voting threshold will be provided to RECO members as part of AGM materials.
In relation to new requirements for board and committee members, what does ‘proactive consumer orientation’ mean and how must this be demonstrated?
The Minister’s Orders state that changes are “… intended to ensure directors have the competency to effectively advance RECO’s consumer protection mandate.”
For RECO, this means that Board members will keep the consumer in mind when making decisions. This also means that the strategic focus of the organization remains on RECO’s consumer protection mandate.
What are the requirements for real estate sales representatives to be able to serve on the board?
RECO registrants are welcome and encouraged to put themselves forward for Director positions when they become available. RECO’s Nominations Committee will identify, with the Board, any specific competencies that would be required to ensure a strong oversight.
RECO recently completed this process for Non-sector Directors. Read the now-closed job description to get an idea of what specific skills were identified at that time.
It’s important to note that the Minister’s Orders require that no more than 34% (or three) of the nine Board Directors can be drawn from the real estate sector.
RECO members will be advised in advance of the next call for applications for Sector Directors, which will be in advance of the 2025 AGM.
For registrants who may be looking for other ways to get involved, RECO also has a new Industry Advisory Council that will provide input to the Board on behalf of registrants.
Can you please explain the difference Between Ministerial appointees and Non-Sector Directors?
Ministerial Appointees to the Board are entirely at the discretion of the Minister. RECO is not involved in this process. Non-Sector Directors are individuals who are not part of the real estate sector. One candidate for each Non-Sector Director vacancy will be nominated by the Board of Directors. This is a new category of Board member required under the Minister’s Orders.
Read the terms of reference for the Nominations Committee of the Board.
How will having only 1/3 of the members as Directors not be detrimental to the interests of registrants? Is there a concern that non-real estate professionals will be guiding RECO?
RECO is required to implement Minister’s Orders, including the changes to the composition of the Board.
The role of RECO’s Board is to provide oversight to the regulator (RECO) in its mandate to administer the laws of Ontario, specifically TRESA. RECO’s mandate is clear, and liaison with the government will continue regardless of the composition of the board. Of course, industry knowledge and understanding are an important part of a balanced board. We do not expect that the input of the Industry Directors will be diluted when the number becomes three as the Ministry has requested.
That said, the perspective of registrants is very valuable to RECO and there are important opportunities for registrants to have a say on different topics, including by voting at our AGM on May 30, 2024.
RECO also considers registrant perspectives on an ongoing basis, including through our regular registrant survey. RECO also has a new Industry Advisory Council that will provide input to the Board on behalf of registrants.
Are the Board of Directors paid? If so, how much?
Yes, Board members are provided compensation for their time. For transparency, RECO publishes the current Board Remuneration Policy on its website.
What is the criteria the Nominating Committee of the Board uses for choosing a nominee for a Director position?
A balanced, or skilled-based board, is built on a foundation of a diverse set of skills and experiences. Good board decisions are pragmatic and thorough. Through each election cycle, the Board will determine the attributes of potential Directors based on a gap analysis of current skills and overall required skills, and candidates will be interviewed on their suitability to fill those gaps. The only constant, as stipulated in the recent Minister’s Orders, is the consumer protection mindset. If requirements change, and new skill sets are required, criteria will be reviewed at each election cycle.
Are the Minister's Orders reviewed and approved solely by the Minister or is there a vetting process of the orders?
Minister’s Orders are directions from the government that must be implemented. Thus, they do not require member approval or voting in at an AGM. RECO was aware of similar Minster’s Orders issued to other similar organizations and had been advised by ministerial staff at a high level. RECO was also part of the Ministry’s consultation process.
What will the Industry Advisory Committee (IAC) actually do?
The Minister’s Orders require the establishment of an Industry Advisory Council (IAC). The council will represent the interests of registrants and offer guidance and advice to the Board of Directors on RECO’s consumer protection mandate and activities, as well as other industry-related issues including areas such as:
- Opportunities to enhance RECO’s overall brand perception and intersection with members of the real estate services sector (e.g. survey results, service levels, fees, etc.)
- Issues for consideration related to future legislation or regulation
- Opportunities to increase professionalism within the sector
- Areas for improvement for the sector with respect to consumer protection; and
- Input related to significant initiatives for the real estate service sector.
It's important to note that registrants can only be placed on the IAC, but not on the Consumer Advisory Council (CAC).
Can I recommend my name for consideration to the Industry Advisory Council (IAC)?
Yes. Interested registrants are encouraged to submit an application to be considered for one of the vacant positions. More information, as well as the terms of reference, can be found on the Industry Advisory Council web page.
Will the industry members be informed of the names of all members of the Industry Advisory Council (IAC) and the other committees?
Yes. This information will be posted on RECO’s website once the IAC is constituted, which is anticipated to be in June 2024. RECO has provided similar information about its previous Consumer & Industry Advisory Group.
