CONDO ARCHIVES

Fiduciary Duty of Condo Directors

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