The Role of a Condominium Board in Governance
Definition of a Condominium Board
A condominium board is a group of elected unit owners responsible for managing the affairs of the condominium corporation. The board acts as the governing body that makes decisions affecting common property, financial management, and compliance with the CPA and Condominium Property Regulation.
Key Responsibilities of a Condominium Board:
A condominium board is legally required to:
Oversee the administration of the condominium corporation in compliance with the Condominium Property Act (CPA).
Ensure financial transparency by managing budgets, collecting contributions, and overseeing reserve funds.
Hold meetings, including annual general meetings (AGMs), to update owners and conduct voting.
Enforce condominium bylaws and rules on behalf of all unit owners.
Maintain and repair common property, ensuring that the corporation meets maintenance obligations.
Keep accurate records, including meeting minutes, financial documents, and condominium plans.
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.
Governance Duties
Board Responsibilities as per the CPA
Under the CPA, a condominium board must:
Manage and administer common property in the best interest of unit owners.
Develop and enforce rules and bylaws to govern unit owner behavior and condominium operations.
Oversee financial operations, including preparing budgets, collecting contributions, and properly using reserve funds.
Ensure legal and regulatory compliance, ensuring that all meetings, contracts, and financial reporting meet CPA standards.
Board Decision-Making & Authority
The board makes decisions on behalf of the corporation but must do so in compliance with bylaws and the CPA.
It must call meetings and follow proper voting procedures for decision-making.
Any significant changes, such as major repairs or special assessments, must follow statutory requirements.
Difference Between Strategic & Operational Governance
Strategic Governance: Long-term decision-making related to financial planning, legal compliance, and corporate strategy.
Operational Governance: Day-to-day administration, maintenance, and bylaw enforcement.
Applying CPA Requirements to Condominium Board Governance
Assessing Board Compliance
Condominium managers must ensure that the board is meeting its obligations under the CPA by checking:
Financial Records – Reviewing budgets, reserve fund studies, and financial statements.
Meeting Minutes & Notices – Ensuring that board meetings are properly scheduled and documented.
Bylaw & Rule Enforcement – Confirming that owners and tenants comply with condominium regulations.
Annual General Meeting (AGM) Compliance – Verifying that the board calls the AGM within CPA-prescribed timeframes.
Common Governance Issues & Risks
🚩 Failure to call meetings – If the board does not schedule AGMs or special meetings, it is not fulfilling its duties.
🚩 Lack of financial transparency – Not providing audited financials or mismanaging reserve funds can lead to legal action.
🚩 Non-compliance with bylaws – If a board selectively enforces rules, it may face challenges from unit owners.
Corrective Actions for Non-Compliant Boards
If a condominium board fails to meet its governance obligations, managers should:
Provide written recommendations citing CPA provisions.
Encourage board training on governance best practices.
Facilitate board elections if governance failure is severe.
Escalate concerns to legal counsel or regulatory authorities if required.
