The Goals of Group Decision-Making in Condominium Governance
Why Decision-Making Matters
A well-structured decision-making process ensures that condominium boards:
Act in the best interests of the corporation rather than individual preferences.
Balance diverse viewpoints while remaining aligned with legislative requirements.
Ensure transparency and accountability in governance.
Prevent legal disputes and internal conflicts stemming from unclear decision-making processes.
Boards must make decisions that uphold their fiduciary duty under the Condominium Property Act (CPA) and ensure financial and operational stability.
Decision-Making Models in Board Governance
Majority Rule Decision-Making
Most common decision-making method used in board meetings.
Decisions require a simple majority (more than 50%) or a special resolution (more than 75% approval from all registered owners representing more than 75% of all unit factors) depending on the decision type.
Ensures efficiency but may alienate minority viewpoints.
Consensus-Based Decision-Making
Focuses on ensuring that all board members support or can live with the decision.
Encourages collaboration and compromise.
Can lead to longer decision-making processes, making it difficult to resolve urgent matters quickly.
Unanimous Decision-Making
Used in critical decisions where full board agreement is required (e.g., bylaw amendments).
Reduces conflict but may be impractical in larger boards.
Evaluating Decision-Making Approaches
Strengths and Weaknesses of Each Approach
Decision-Making Model | Strengths |
Majority Rule | Efficient, ensures decisions are made quickly |
Consensus-Based | Encourages collaboration, reduces conflict |
Unanimous Decision-Making | Ensures complete agreement and compliance |
Decision-Making Model | Weaknesses |
Majority Rule | Can disregard minority opinions |
Consensus-Based | Can be slow and ineffective for urgent decisions |
Unanimous Decision-Making | Can delay decisions and cause stagnation |
Legal Considerations in Board Decisions
The Condominium Property Act specifies voting requirements for annual general meetings (AGMs), bylaw amendments, and financial decisions.
Boards must document all votes and decisions in meeting minutes for transparency and legal compliance.
A failure to follow proper voting procedures can result in the decision being challenged or invalidated.
The Condominium Manager’s Role in Decision-Making
Condominium managers play a key advisory role in board decision-making by:
Ensuring Compliance: Educating boards on legal decision-making requirements.
Facilitating Fair Discussions: Encouraging all board members to contribute to discussions.
Mediating Conflicts: Resolving disputes that arise during board deliberations.
Providing Data and Analysis: Supplying relevant financial and operational information to guide decisions.
Managers should remain neutral and ensure the board adheres to CPA provisions when making decisions.
Developing a Decision-Making Policy for a Condominium Board
Key Components of a Decision-Making Policy
A strong decision-making policy should:
Outline Decision-Making Methods: Specify when majority rule, consensus, or unanimous voting applies.
Define Voting Structures: Clarify how votes are counted and recorded.
Address Conflict Resolution: Establish procedures for resolving disagreements.
Ensure Transparency: Require documentation of decisions in meeting minutes.
Align with CPA and Bylaws: Verify that all decisions comply with legislative requirements.
Board Decision-Making Review
Scenario:
A condominium board recently approved a significant budget increase without consulting owners, leading to conflict and complaints.
Task:
Analyze the decision-making process and determine:
Was the decision made using best governance practices?
Did it comply with voting and procedural requirements under the CPA?
What improvements could be made to the board’s decision-making policy?
