The Duties & Responsibilities of The Condo Board
- May 30, 2019
- Posted by: @dmin
- Category: Uncategorized
Managing a condominium unit isn’t a straightforward affair.
Depending on the size of the building, you could have over a thousand individual residents in the premises. This means you must provide adequate arrangements for waste removal, recycling, parking, hall lighting, guest facilitation, and more.
Condominiums usually have other amenities too. These could include a gym, swimming pool, playground, party room, and a multi-purpose hall. To satisfy your residents, you must properly maintain and, in some cases, improve these spaces.
That’s why you need a condo board of directors.
The condo board duties are that it must represent the interests of the building owners and residents first and foremost.
Condo Board of Directors Duties
Sure, the condo board is expected to keep owners’ interests in mind first. But what does that entail exactly?
Well, the first thing is that the condo board is responsible for all major decisions about the maintenance of the condominium building and long-term projects that add value to its residents.
It must act prudently and in line with available finances as well as communicate transparently with condominium owners about future plans and projects.
This means there should be adequate due diligence before entering into contracts with third-party vendors as well as proactive oversight of the work to maintain adherence with the scope of work.
One of the condo board’s most important duties is to ensure adherence to the Condo Act, which requires the directors to act honestly, in good faith, and in the best interests of the condominium corporation as well as the declaration and rules.
The main principle of the Condo Act is to ensure that the building doesn’t fall into disrepair and that the condominium board of directors doesn’t wield an outsized influence on the building’s affairs.
The value of the condo units should hold steady and in line with market forces — a drop in value should not be a result of a lack of maintenance, for example.
Boards should allow owners to make reasonable complaints without threatening them with legal action.
Read More About Condominium Management
- Tenants Rights and Responsibilities in Ontario
- 5 Key Responsibilities of Landlords in Ontario
- Checklist For New Condo Owners
How Are People Elected To The Board of Directors?
The number of directors isn’t fixed and depends on the condo’s by-laws. A general range is between three (in smaller buildings) to five (for larger units). However, a quorum — the minimum number of people required to get the meeting underway — consists of three directors.
Condo directors are elected by the condos’ owners at the annual general meeting (AGM) unless a board member resigns before their term is up.
To be able to apply for a board member seat, candidates must fulfil the following requirements:
- They should be at least 18 years of age
- Must be financially solvent
- Be mentally competent
- Must comply with disclosure obligations
- Complete the online Condominium Director Training Program (in Ontario)
Typically, a board member has a term of three years. However, this requirement may vary according to a specific condo and its by-laws.
Condo Board Member Duties
Here’s a list of condo board member duties sorted according to their function.
- Responsible for the financial health of the condominium corporation, including management of all bank accounts and accounts receivable/payable
- Takes ownership of the annual budget, investments, and reserve fund
- Is usually one of two signatures on the condominium cheques
- Is also responsible for forecasting future financial needs of the condominium corporation
- Prepares schedules and agendas for all the meetings
- Takes minutes of the meeting and distributes them among the attendees
- Maintains an archive of the minutes of all prior meetings
- Publishes the periodical newsletter highlighting updates and achievements of the board
- Is the primary liaison between condominium owners and board members
- Maintains records of all the condominium corporation’s activities
- Acts as an assistant to the president and fulfils all duties assigned by them
- Functions as the de facto president in their absence
- Signs all correspondence along with the board secretary
- Is responsible for the execution of all resolutions adopted by the board of directors
- Acts as the head of the board of directors – in effect, the CEO or general manager
- Is the lead member of all committees
- Evaluates and signs all contracts for third-party vendors
- Ensures that all resolutions adopted by the board are met
- Defines and delegates tasks to other board members
What Happens If A Condominium Board Acts Poorly?
Under Ontario’s Condo Act, condominium owners can seek a court order to force the condominium board of directors to adhere to their duties and responsibilities.
The exact circumstances to trigger this are unclear, but there’s a general understanding that boards must proactively enforce and follow all of the rules.
ICC Property Management is one of the leading property management companies in the Toronto area. Our wealth of experience means we’re able to help condo owners maximize their property value while ensuring high standards of living quality. Contact us for a free proposal on how we can elevate your condominium building to new heights.