Responsibilities of Condominium Boards Under the CPA
Role of the Condominium Board
A condominium board is responsible for managing the condominium corporation and ensuring compliance with the Condominium Property Act (CPA). The board acts on behalf of all unit owners and must make decisions in the best interests of the condominium corporation.
Key Responsibilities of a Condominium Board
Under the CPA, the board has the authority to:
Manage and maintain common property – Oversee repairs, maintenance, and insurance.
Enforce bylaws and rules – Ensure unit owners comply with the corporation’s governing documents.
Establish and manage the corporation’s financials – Collect condominium fees, prepare budgets, and maintain reserve funds.
Hold meetings and maintain records – Conduct annual general meetings (AGMs), special meetings, and keep accurate records.
File annual returns and required documents – Maintain compliance with the Alberta Corporate Registry.
Legal Obligation of the Board
According to Condominium Property Act, A board shall govern the conduct of the affairs of the corporation and may, subject to any restriction imposed by the corporation, exercise the powers of the corporation. This means that the board has the ultimate authority over condominium matters but must act within the limits of the law and the corporation’s bylaws.
Applying Procedural Rules in Condominium Decision-Making
Key Procedural Rules for Decision-Making
Condominium boards must follow procedural rules set out in the CPA and their corporation’s bylaws. The most critical rules include:
Meeting Requirements
Boards must hold regular meetings, including AGMs and special general meetings (SGMs).
Proper notice must be given to unit owners before meetings.
Meetings must be documented with minutes that accurately reflect discussions and decisions.
Voting and Quorum
A quorum (minimum number of members present) must be met for board decisions to be valid.
Voting procedures must follow the condominium’s bylaws, often requiring a simple majority or special resolutions for significant decisions.
Financial Decision-Making
Boards must prepare an annual budget and determine monthly condominium fees.
Reserve fund planning must be conducted to ensure long-term financial stability.
Bylaw Enforcement
Boards have the authority to enforce bylaws, issue fines, and take legal action against non-compliant owners if necessary.
Enforcement must be consistent and follow fair processes.
Role of the Condominium Manager in Decision-Making
Condominium managers assist the board by:
Advising on proper procedures and legal compliance.
Preparing meeting agendas and minutes.
Ensuring that board decisions align with the CPA and regulations.
Evaluating the Effectiveness of Condominium Board Governance
What Makes Good Condominium Board Governance?
Effective governance ensures that condominium boards operate transparently, fairly, and in compliance with legislation. Key indicators of strong governance include:
Compliance With the CPA and Regulations
The board adheres to all legal and financial reporting requirements.
Board members are knowledgeable about their legal duties and responsibilities.
Transparency and Communication
Regular communication with unit owners through newsletters, emails, and open meetings.
Providing access to financial statements and meeting minutes to owners.
Financial Accountability
Proper management of operating and reserve funds.
Ensuring budgets align with future repair and maintenance needs.
Fair and Consistent Decision-Making
Bylaws are enforced consistently among all unit owners.
Board decisions are made without bias or conflicts of interest.
Evaluating Board Effectiveness: Self-Assessment Questions
Are board meetings conducted in compliance with the CPA and the corporation’s bylaws?
Are financial reports and reserve fund studies kept up to date?
Does the board handle disputes and bylaw enforcement fairly and transparently?
If the board fails in any of these areas, condominium managers should work with them to improve compliance and governance.
Knowledge Check Questions
What are two key responsibilities of a condominium board under the CPA?
Why is quorum important in condominium board decision-making?
How can a condominium manager support the board in ensuring compliance with the CPA?
