Understanding Board Decision-Making and Manager Responsibilities
Role of the Condominium Manager in Board Decision-Making
Condominium managers act as advisors to the board but do not have voting power. Their role includes:
Implementing board decisions that comply with the Condominium Property Act.
Providing professional advice on financial management, legal obligations, and operational best practices.
Refusing to carry out actions that violate the CPA, Real Estate Act Rules, or other legal requirements.
When Can a Manager Follow a Board’s Decision Despite Disagreement?
A manager must carry out a board’s decision if:
The decision falls within the board’s legal authority under the CPA.
The decision does not violate any provincial legislation or condominium bylaws.
The decision is a matter of opinion or preference rather than legal compliance.
Examples of decisions a manager must follow, even if they disagree:
Vendor Selection: A manager recommends one contractor, but the board selects another vendor that meets all CPA requirements.
Fee Increases: A manager believes a higher increase is needed for financial stability, but the board opts for a smaller increase within legal limits.
Operational Procedures: The board decides to change office hours for the management office, which does not violate the bylaws or regulations.
When Must a Manager Challenge a Board ’s Decision?
A manager must refuse to carry out a decision if:
The decision violates the Condominium Property Act or Real Estate Act Rules.
The decision breaches the corporation’s bylaws or regulatory obligations.
The decision results in financial mismanagement or unlawful actions.
Examples of unlawful board decisions a manager must not follow:
Failing to Maintain the Reserve Fund: If a board decides to underfund or divert reserve fund contributions, this violates the Condominium Property Act, which requires that condominium corporations maintain a properly funded reserve.
Denying Access to Records: The CPA states that owners have the right to access specific condominium documents upon request. A manager cannot refuse access if a valid request is made under the Act.
Bylaw Enforcement Discrimination: If a board enforces bylaws selectively (e.g., penalizing some owners but not others for the same violation), the manager must refuse to implement discriminatory enforcement.
Unauthorized Special Assessments: If a board attempts to levy a special assessment without proper notice or approval, the manager must advise that this violates CPA financial procedures.
Legislative Reference: The Real Estate Act Rules state that a licensee must refuse to act if a client instructs them to engage in conduct that violates legislation.
Evaluating a Board’s Decision for Compliance
Key questions a manager should ask to determine if a board decision is lawful:
Does the decision align with the Condominium Property Act and bylaws?
Does the decision ensure financial transparency and legal compliance?
Is the decision enforceable and fair to all owners?
Would following the decision put the corporation at legal or financial risk?
Decision Evaluation Framework
Scenario: Reserve Fund Use
Board Decision: The board wants to use reserve funds for daily operational expenses.
Legal or Illegal? ❌ Illegal (CPA requires reserve funds for major repairs)
Action Required: Manager must advise against it and document the refusal.
Scenario: Vendor Selection
Board Decision: The board chooses a higher-priced vendor over the manager’s recommendation.
Legal or Illegal? ✅ Legal (if properly approved)
Action Required: Manager must follow the board’s decision.
Scenario: Document Access
Board Decision: The board refuses to provide financial records to an owner.
Legal or Illegal? ❌ Illegal (CPA requires transparency)
Action Required: Manager must advise the board that records must be provided upon request.
Scenario: Special Assessments
Board Decision: The board approves a special assessment without owner notification.
Legal or Illegal? ❌ Illegal (CPA requires notice)
Action Required: Manager must advise the board to follow proper procedures.
Legislative Reference: The Condominium Property Act states that corporations must follow specific procedures for financial management, reserve funds, and owner rights.
Board Decision Analysis
Scenario:
A condominium board decides to waive late payment penalties for one owner while enforcing them for others. The manager disagrees but is unsure whether they must follow the decision.
Your Task:
Determine whether the board’s decision is lawful or unlawful.
Identify which legislation applies to this scenario.
Propose an appropriate response the manager should take.
Correct Answer:
The decision is unlawful because it applies penalties inconsistently, violating fair bylaw enforcement.
The manager must advise the board that all owners must be treated equally under the Condominium Property Act.
If the board insists, the manager should document the advice given and escalate the issue if necessary.
