September 2016
This “fiduciary” thingy really complicates
pillaging a condo corporation
Condo board members are entrusted to manage the affairs of their condo corporations. This is a fiduciary, or ethical, duty to act in the best interests of the corporation when managing its affairs and finances.
One way for condo directors to meet this duty is to always ask what a prudent person would do in the same situation.
This is not always simple to do when enforcing compliance with condo documents for all owners.
A breach of fiduciary duty can occur when corporation funds are misused. It also occurs when enforcement of corporation rules is not consistently applied or by a process different than what is set out in its documents or law.
Some examples
- Failure to conduct annual meetings
- Failure to maintain common areas
- Failure to monitor noise level requirements
- Failure to perform building activities such as trash removal, snow removal or yard maintenance that are provided for in the condominium budget and paid for by unit owners
