Boards of Directors

All condos have a board of directors or an equivalent group by any other name, such as a council, depending on the province and territory. 

What Are Boards' Duties?

Boards of directors run condo corporations on behalf of owners: They represent owners. As an entity, they are responsible for making all major decisions regarding the maintenance of buildings and grounds, condos’ finances, and must uphold and enforce the Condo Act, the declaration, by-laws, and rules. 

Failure to enforce rules fairly and consistently (and follow them) generally leads to problems down the road. These can result in a lowering of the standards of comportment in the building, degradation of civility and property, maltreatment of staff, abuse of power on the part of one or more board members, as well as financial problems—all potentially lowering the value of owners’ units on the real estate market.

(When boards fail to enforce rules and the Condo Act, owners may be able to seek a court order forcing them to comply--under Section 134 of the Ontario Condo Act.)

Boards of directors plan and oversee the fiscal health of the corporation and are responsible for hiring a management company to carry out the tasks associated with their duties and day-to-day work.

Boards have to ensure that the staff is humanely treated and is qualified; that the management company collects all fees from owners in a timely fashion; that invoices are paid, proper records are kept, the budget is duly prepared, contracts are awarded after a tendering process, and adequate insurance is maintained.  Reserve funds have to be sufficient, and annual general meetings carried out. Boards are also responsible for the reliability of status certificates. 

Boards have to address residents’ legitimate complaints, make sure that their needs and rights are respected, and that they can enjoy their units peacefully, as per the Act.  Boards are also responsible for communicating with residents, and particularly owners, so that owners are informed and feel empowered.    

Boards should not turn into exclusive social clubs protecting members or managers who fail in their duties. Rather, board members owe their allegiance to their condo, the Act, the rules and by-laws. Boards do not represent themselves nor the management: They represent owners and should be accountable to them.

It is the duty of boards to maintain dignity, respect for others and property, and general civility in a condo building or townhouse complex.

Since this website has been posted, countless letters of complaint have been received from owners and many board members regarding abuses on the part of various boards and particularly presidents. To read these letters, please go into the Readers Respond section, or click here for Issues with Boards of Directors and then "Harassment" and "Defamation" Redefined.

As well, numerous complaints have been received about managers who refuse to help owners get in touch with their board. It is imperative that there be a special email address or mail box that allows owners to contact their board in each condo. Boards cannot refuse to be contacted. Furthermore, boards should allow owners to make reasonable complaints without threatening them with legal action.

How  Are Directors Elected and How Many? 

The number of directors generally ranges from three in smaller condos to whatever a condo’s declaration specifies. A common and functional number is five and a quorum would consist of three directors present at a board meeting.

When a vacancy occurs on a board because a director resigns, the remaining directors may appoint a temporary director to serve on the board until the next annual general meeting or AGM. At that point, the director has to become a candidate to the elections if he or she is interested in remaining on the board. (Click here for Owners’ Meetings and Voting)

Directors are always eventually elected by a condo’s owners at the annual general meeting (AGM) or at a requisitioned meeting. A board cannot "eject" or get rid of one of its members and neither can the corporation lawyer, unless a specific by-law exists on this issue. Only owners can "vote out" directors or an entire board at a special requisitioned meeting.

In Ontario, condos have one director who can be elected for three years by resident owners only (although the candidate does not need to be a resident owner). This is called “the owner-occupied position.” It should be more clearly named "position voted on by resident owners only."