Boards of directors run condo corporations on behalf of owners. Meetings typically occur once a month, though they can happen more or less frequently. As an entity, they are responsible for making all major decisions regarding the maintenance of the buildings and grounds, hiring specialists to update the reserve fund study every three years, and upholding/enforcing the Condo Act, the declaration, by-laws, and rules. The directors have a duty to “act honestly and in good faith” and are to take care not to put their own interests ahead of the interests of the condominium corporation.
Boards of directors plan and oversee the fiscal health of the corporation and are responsible for hiring a management company to carry out the tasks associated with their duties and the day-to-day work. Boards are also responsible for the reliability of status certificates, holding an annual general meeting, communicating with residents and addressing residents’ complaints.
The Condo Act states that a Board must have at least 3 members, or a higher number as required in the corporation's by-laws, and each member must be over 17 years of age, may not be an undischarged bankrupt and must be mentally competent. Training is provided to board members through the Condominium Authority of Ontario and must be taken within 6 months of the board members appointment or election. Any further qualification requirements (i.e. the director must be a unit owner in the condominium) would be set out in the by-laws of each condominium corporation.
Board members are normally owners in the condominium who have volunteered their time. The motivation to seek a position on the Board may range from a simple desire to serve their community to a personal agenda.
So - are you familiar with the role of a condo board or did you learn something new today? If you have any further questions about condo boards or real estate in general please don’t hesitate to reach out - I would love to help! Additionally, you can visit the Condominium Authority Ontario website to get more information on condo Boards of directors.
Yours Truly,
The Condo Confidential