In some ways, a condominium development is like a small town. The owners of each unit are members of the condo corporation and have the right to vote at meetings (one vote per unit).
Structure
An elected board of directors, like a town council, makes decisions on behalf of the owners, and often hires staff to carry out the work. Just as towns have a town manager; condos often have a property manager.
Condominium Corporation
The condo corporation is responsible for managing the condo property, finances, official records, reserve fund study, and all related matters. As an owner, you have a right to review these corporate records, as long as you make your request in writing and give reasonable notice.
Board of Directors
Owners elect a board of directors to manage the condo corporation’s affairs. The board typically meets once a month to conduct business. Among other things, it must:
- Ensure the building and property are properly maintained and that repairs are carried out as needed.
- Renew the reserve fund study every three years and ensure adequate funds are invested in the reserve fund to cover major repairs.
- Appoint an auditor and oversee financial accountability.
- Organize an annual meeting of the condominium unit owners, and any other owner meetings that may be required.
- Pass bylaws dealing with the responsibilities and powers of the board, how meetings will be run, and the collection of common expense fees.
- Pass rules to promote the safety, security and welfare of the owners.
Directors
The board must have at least three directors. Each director must:
- Act honestly, in good faith and exercise due diligence in conducting board business.
- Exercise reasonable care and skill in fulfilling his/her duties.
- Disclose conflicts of interest in writing.
- Be at least 18 years of age, of sound mind, and not in a state of bankruptcy.
Directors are elected for a term of up to three years and may run for re-election. It’s a good idea for boards to elect directors to terms that overlap so that there will always be a board member with operational history.
Property Manager
Boards of directors may hire a property manager (or a property management business) to oversee the day-to-day operations. A property manager may:
- Collect common expense (condo) fees.
- Keep operating records.
- Respond to owner inquiries and complaints.
- Maintain common property.
- Hire and monitor service companies.
The property manager is accountable to the board of directors.
Annual General Meetings
The board of directors holds annual general meetings (AGMs) where owners vote on major decisions. An AGM must be held within six months of the end of the corporation’s fiscal year so that owners can review the financial statements in a timely manner.
In advance of the AGM, the auditor must issue a report on the corporation’s financial statements. The financial statements and auditor’s report must be attached to the notice of the AGM.
Voting is based on the number of units, not the number of owners. Each unit is entitled to one vote whether it has a single owner, two owners, or more.
Voting by Proxy
If you are unable to attend an AGM meeting but still want to have a role in the decision making process, you may wish to submit a proxy form. This gives another person who plans to attend the meeting the power to vote on your behalf. Your condominium board or property manager should have proxy forms.
Board Meetings
Only directors have a right to attend board meetings. Directors may issue invitations on occasion for owners or others to attend and address a matter with the board.
Boards of directors must keep minutes of their meetings and these minutes must be available for review by any owner. The corporation may not make a charge for allowing an owner to examine its minutes, but it may make a reasonable charge for any copies which the owner requests.