Governance

July 14, 2022 Published by Grand River Chapter - By Maggie Matian

Board of Directors – From Interest to Election

Purchasing a unit inside a condominium means investing in a community. Part of that community investment involves regular communication with the condominium’s Board of Directors.

Purchasing a unit inside a condominium means investing in a community. Part of that community investment involves regular communication with the condominium’s Board of Directors. 

A condominium’s Board of Directors is elected by the owners. The Board of Directors is responsible for handling a condominium corporation’s affairs. Because of this, it’s important for you to stay informed about the events surrounding your condo, vote, or become a director yourself. 

However, the above may be difficult if one does not understand the role of the director, so we have outlined that for you! 

Roles and responsibilities.

What are the affairs that your condominium board tackles on a daily basis? Well, that can depend. However, to run in compliance with the Condominium Act, 1998 (the Condo Act), as part of their responsibilities, directors meet regularly to discuss the following: 

• Tracking your condominium’s financial performance;
• Ensuring all required maintenance and repairs are carried out;
• Hiring specialists (like engineers) to update the reserve fund study every three years;
• Making or amending condominium by-laws;
• Enacting rules to promote the safety, security, and welfare of all owners; and
• Providing regular communication with the other owners.

It is only during the scheduled directors’ meetings that any business can be conducted. There must also be a quorum at the meeting. This means that there must be a majority at the directors’ meeting. 

These meetings are typically once a month, but can be more or less frequent depending on the board. For those of us with tight schedules, luckily, director meetings don’t need to be face-to-face. Many boards choose to have teleconferences to ensure most can attend. 

Qualifications of a director.

In order to be elected as a director, you must meet the following qualifications:

• Be at least 18 years of age;
• Not be bankrupt;
• Not have been found incapable of managing property within the meaning of the Substitute Decisions Act or the Mental Health Act;
• Be an individual;
• Not been found to be incapable by any court in Canada or elsewhere, subject to the Condo Act’s regulations; and
• Have complied with the required disclosure obligations.

Take note that a condominium corporation’s by-laws may impose additional qualifications for candidates seeking election. An example of this would be that you must be an owner of a unit in the condominium corporation where you are running for election as an director. 

Electing people to the Board of Directors. 

If a director’s term is expiring, a replacement director will be elected at the next owners’ meeting. This means residents can run for a seat on the condominium corporation’s board. 
Each condominium has its own by-laws and rules, so the process for electing directors will vary. 

If you know ahead of time that you are interested in running for a position on the board, you should notify your board before your AGM. Doing this will mean that your name is included in the AGM package that is sent to all residents before the meeting. However, you can still stand for election the day of the meeting.

This gives you a chance to introduce yourself at the AGM where residents will be voting.

When residents are voting for a new director, there will be a variety of considerations including: 

• The information you have about the candidates (that introduction may come in handy!);
• Speaking with the candidates directly; and,
• Discussing candidates with your neighbours.

Serving on the Board of Directors is no easy feat, and can be time-consuming. It’s important to understand the role of your directors when communicating so that you have a realistic expectation of what can be done. 

And if you’re interested in helping be a part of the positive change in your condominium community; keep in touch with your area’s CCI chapter for information, resources, and support. 

Mandatory disclosure from the CAO: 

Effective November 1, 2017, directors of condominium corporations, as well as candidates for director positions, must make certain disclosures. Once a person is elected to a board, he or she is subject to ongoing disclosure requirements for the duration of the term. Failure to meet these requirements will immediately disqualify someone from being a director.

---

Maggie Matian
Marketing Manager for CCI Grand River