Conflicts of Interest are Legal

December 2019

Condo communities are governed by business or corporate law with condo directors being given powers comparable to those of government.  Allowing private citizens to have these powers require checks if abuse of this power is to be controlled.

While many condo directors have altruistic motives, a number have motives that are less clear.  Condo owners, the shareholders of a condo community, must expect conflicts of interest unless prepared to spend time and money in court to defend against them.

Conflicts of interest are generally not illegal if properly disclosed.  Even when not properly disclosed, conflicts of interest can be difficult to prove.  Obtaining proof can be difficult when access to documents goes through an individual hiding their deeds.

Replacing a bad condo director can be difficult.  Condo boards generally choose not to have an independent third party oversee the election process thus creating opportunity to manipulate votes.  Another factor to consider is that many owners vote for neighbours and friends regardless of qualifications to serve as a director.