Governance

January 25, 2024 Published by Grand River Chapter - By Henry Jansen

Passing Advice to New Condo Directors

You have purchased a condo. For many, whether it is your first home or your downsized home, condo living is a unique lifestyle. You find yourself living in a community within a community. Your new community will have a board of directors, rules, by-laws, an operating budget, a reserve fund budget, maintenance contracts, etc. Then you get notice of an Annual General Meeting (the “AGM”)...

You have purchased a condo. For many, whether it is your first home or your downsized home, condo living is a unique lifestyle. You find yourself living in a community within a community. Your new community will have a board of directors, rules, by-laws, an operating budget, a reserve fund budget, maintenance contracts, etc. Then you get notice of an Annual General Meeting (the “AGM”). The AGM will have an agenda. The agenda usually includes “nominations for the board of directors”. What does this mean? Are you interested in joining your board?

The Condominium Act, 1998, section 27(1) states that a board of directors shall manage the affairs of the condominium corporation. Section 27(2) states the board shall consist of at least three persons or such greater number as the by-laws may provide.

One of the most important sections for directors to be aware of is section 37(1), which states:

Standard of Care

37 (1) Every director and every officer of a corporation in exercising the powers and discharging the duties of office shall,

(a)  act honestly and in good faith; and

(b)  exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances. 1998, c. 19, s. 37 (1).

Does this standard of care sound a little daunting? There are many resources to help you navigate governing your condominium corporation. The first step is to examine your motivation to be on the board of directors. Many directors who volunteer for the betterment of their community usually find great rewards in setting a good direction for the condominium corporation and developing good relationships with the other board members. You all have a common goal: a well-managed and maintained community. This directly correlates to the betterment of your real estate assets. It is the money in your pocket.

The Condominium Authority of Ontario (CAO) has a mandatory course for new directors. This provides basic information to help you get started. There are 21 modules, and the training includes:

• Foundational Education – Fundamentals and the legal framework of condo corporations
• Board of Directors – Roles, responsibilities, leadership, meetings, and corporate records
• Financial Management – Fundamentals, reserve funds, annual statements, liens, and insurance
• Physical Integrity of the Condo – Common elements, maintenance, and procurement
• Different Types of Certificates – Information and status certificates
• CAO, CAT, and CMRAO – Roles of the Condo Authority, Condo Tribunal, and Condo Management Regulatory Authority

Once you have these basics, I would recommend getting involved with the CCI Grand River Chapter. The Grand River Chapter offers many opportunities to meet other board of directors, has educational opportunities, and just some fun events. Expanding your knowledge and getting involved will make your condominium living more enjoyable. If you are a new director – do not despair, Grand River is here to help you!

Henry Jansen, P.Eng., ACCI, Director of Operations – GTA & Southern Ontario
Keller Engineering