January 2018
Tired of having no say in what happens in your home? Frustrated with how common areas are maintained, the condo rules or future plans for your condo corporation?
You could be an ideal candidate for your condo board.
Before taking the leap, make sure you know what you are getting into. Serving as a condo director requires more than your attendance at a monthly board meeting.
Serving on the board of a condo corporation is a volunteer position. A condo director is an essential role necessary to ensure that your condo corporation is properly managed and that condo fees are utilized in the best way possible.
Condo boards require experienced individuals willing to volunteer their time for the betterment of the community.
What is a condo corporation
A condo corporation is a legal entity. Shareholders are comprised of property owners in your building. Management of the building is governed by documents that include a declaration, by-laws, condo rules and the Condo Act.
The board of directors is typically comprised of individuals voted in by owners to oversee the maintenance and operation of the building. Among its responsibilities is development of an annual budget, collection of condo fees, and maintenance and operation of common areas. A condominium manager has likely been employed to handle many of these tasks.
Director Responsibilities
Condo directors have a fiduciary (legal) responsibility to condo owners in their corporation. They are legally required to act in the best interest of these property owners.
A central responsibility is enforcement of condo by-laws and condo rules, and compliance with the Condo Act.
A Board of Directors is required to make decisions and enter into legal agreements and contracts on behalf of the condo corporation. Directors are expected to read and understand these legal documents and contracts before affixing their signatures to them.
The condo board selects the management company and condominium manager for their corporation. Directors remain accountable for actions taken by their condominium manager who is responsible for maintaining common areas, collecting condo fees and addressing resident concerns.
A Board of Directors is expected to rely on paid experts, or consultants, prior to making decisions where they lack sufficient expertise. These experts include lawyers, accountants and specialists in a wide range of areas relating to condo management and operations.
The President stands out among directors. That individual holds the most authority and signs more documents than other directors. The President is expected to be aware of all matters in the condo corporation and to provide direction to the condo board.
Legal Liability of Directors
When directors act in their official capacity, according to the Condo Act and in the best interests of their community they are not personally or legally liable for their actions. That is, condo directors are protected by the law when they act in good faith even when their decisions are ultimately determined to be incorrect.
Where directors are found to have been in breach of their fiduciary duty, they can be held liable for criminal conduct.
