Area of Law: Real Estate Law
Answer # 419
Responsibilities of the condominium board of directorsRegion: Ontario Answer # 419
Who can be a director?
The Condominium Act specifies that the condominium corporation must be governed by a Board consisting of at least three directors. The Board is elected by the condominium owners at the annual general meeting and, as such, represent the condo owners.
To serve on a condominium Board, a person must meet five requirements:
1. Be at least 18 years of age
2. Be mentally competent
3. Cannot be bankrupt
4. Must complete the Condominium Director Training Program
Training is provided by the Condominium Authority of Ontario (CAO), and must be taken within 6 months of the director’s appointment or election. If the director does not complete training within the 6-month timeframe, the individual will immediately cease to be a director.
The training program consists of six parts and takes about three to six hours to complete. Once training is completed a certificate will be issued. The director must provide a copy of the certificate to the rest of the Board within 15 days of completion. Training certification is valid for seven years, after which, although not mandatory, it is encouraged training is repeated.
5. Must comply with new disclosure obligations
Candidates wishing to be elected to a Board must disclose certain information. Failure to do so will immediately disqualify them. Disclosures can be made at, or in advance of the election. They can be made in writing or verbally to the Board members. In addition, once a person is elected to a Board, he or she is subject to ongoing disclosure requirements for the duration of their term as a director.
Candidates must disclose:
- If they are an unit owner and, if so, are they more than 60 days in arrears of common expense payments
- If they are not an owner
- If they occupy their unit
- If they or a “related person” is a party to any legal action to which the corporation is also a party? If so, the candidate must provide a brief general description of the action (related person includes a spouse, child, parent, or child or parent of the candidate’s spouse)
- If they been convicted of an offence under the Condominium Act or it’s regulations within the preceding 10 years. If they have, they must provide a general description of the offence
- Anything else a condominium corporation’s by-laws require
There is no requirement in the Act that a member of the Board be a unit owner, although such a requirement is often contained in the by-laws of the condominium corporation.
The condominium corporation by-laws may also specify other requirements pertaining to the Board of directors, including items dealing with the election process, as well as the removal of a person from the Board. For example, many by-laws state that if a lien is placed on a director’s unit for non-payment of common expenses, and the lien is not discharged within 90 days of its registration, then the person is no longer considered a director.
Responsibilities of the condominium board
The board of directors is responsible for the governance of the condominium corporation. The directors have a duty to “act honestly and in good faith”. Directors should take care not to put their own interests ahead of the interests of the condominium corporation. In fact, the law requires directors to act “in the best interests of the corporation”.
Directors are responsible for the running of the condominium corporation and for its physical and financial well-being.
Responsibilities of the Board include:
- management of the corporation,
- making decisions on major repairs and maintenance of buildings and grounds
- communicating regularly with the condominium owners
- maintaining and repairing the assets of the corporation,
- hiring specialists, like engineers, to update the reserve fund study every three years
- fiscal responsibility for the corporation, and
- upholding and enforcing legislation such as the Condominium Act, the declaration, and all condo by-laws and rules
For more information on condo Boards of directors and how changes to the Condominium Act affect condo governance, visit the Condominium Authority Ontario website. To review your provincial legislation and for more information about condominiums, visit our Links section.
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