Raising the Bar for Condo Directors

May 2019

Condo directors have a tremendous responsibility that includes managing millions of dollars, ensuring compliance with condo governing documents and managing the property.  This is a lot to expect from a volunteer position.

The Condo Act sets the standards for condo directors quite low, perhaps because this is a voluntary position in most condo corporations.  A director must be at least 18 years of age and not an undischarged bankrupt.  Higher standards can make it harder to find individuals willing to serve in this capacity.

This low standard can divide condo communities and create financial problems.

Condo corporations can raise the bar.  They can pass by-laws that specify director disqualification provisions without requiring an owner vote.  For example, prohibiting directors from financially benefiting from their role as a director may prevent owner-landlords from voting on short-term rental or condo fee matters that impact on profitability of suites they own but do not reside in.

Condo corporations can enact by-laws setting out additional qualifications for condo directors.   This may include requiring a certain number, or all, directors to be owners or residents.  Such actions, while controlling the composition of a condo board, can also prevent the corporation from obtaining the best qualified individuals as directors.