Board of Directors

The Board of Directors in a condominium corporation is a group of individuals elected by the unit owners (during annual general meetings) to manage and oversee the day-to-day operations and long-term planning of the condo. The board typically consists of unit owners who volunteer their time to ensure that the condominium is well-maintained, financially stable, and compliant with relevant laws and regulations. The fiduciary relationship between the board and the condo requires the board members to act in the best interests of the condominium corporation and its unit owners, rather than their personal interests.

In Ontario, Canada, the Condominium Authority of Ontario (CAO) outlines specific responsibilities for the Board of Directors of a condominium corporation. These responsibilities are designed to ensure that the condominium is managed effectively, transparently, and in compliance with the law. Here’s a summary of the key responsibilities of the board according to the CAO:

1. Governance and Management

• Bylaws and Rules: The board is responsible for creating, amending, and enforcing the condominium's bylaws and rules. These rules govern the use of units, common elements, and the behavior of residents.

• Meetings: The board must hold regular meetings to conduct the business of the condo corporation. This includes Annual General Meetings (AGMs) and special meetings when necessary.

• Decision-Making: The board makes decisions on behalf of the condominium corporation, which should always be in the best interest of the condo and its unit owners.

2. Financial Management

• Budgeting: The board must prepare an annual budget that reflects the anticipated expenses for the upcoming year. This budget forms the basis for setting the maintenance fees that unit owners must pay.

• Reserve Fund: The board is required to ensure that the condominium’s reserve fund is adequately funded. This fund is used for major repairs and replacements of common elements and assets.

• Financial Reporting: The board must provide unit owners with regular financial reports, including the audited financial statements at the AGM. This ensures transparency in how the condo’s funds are managed.

3. Maintenance and Repair

• Common Elements: The board is responsible for the maintenance and repair of the common elements of the condominium, such as hallways, lobbies, elevators, and exterior grounds. This includes hiring and overseeing contractors or service providers for these tasks.

• Regular Inspections: The board must ensure that regular inspections of the property are conducted to identify and address any maintenance or safety issues promptly.

4. Compliance with Laws

• Condominium Act, 1998: The board must ensure that the condominium corporation complies with all requirements under the Condominium Act, 1998, and any other relevant legislation.

• Human Rights: The board must ensure that the condominium operates in compliance with human rights legislation, ensuring that all residents are treated fairly and without discrimination.

5. Record Keeping

• Maintenance of Records: The board is responsible for maintaining the condominium’s records, including minutes of meetings, financial statements, reserve fund studies, and records of bylaw and rule amendments.

• Access to Records: Unit owners have the right to access certain records of the condominium corporation. The board must ensure that these records are available upon request, in accordance with the Condominium Act.

6. Communication

• Notices and Updates: The board must provide unit owners with notices about important issues, such as meetings, changes to rules, and significant projects or repairs.

• Engagement with Owners: The board should engage with unit owners to keep them informed and involved in the decision-making process, fostering a sense of community and transparency.

7. Insurance

• Condominium Insurance: The board is responsible for ensuring that the condominium corporation has adequate insurance coverage. This typically includes property insurance for the building and liability insurance for the corporation.

• Reviewing Policies: The board should regularly review insurance policies to ensure they are adequate and meet the needs of the condominium corporation.

8. Dispute Resolution

• Mediation and Arbitration: The board must manage disputes between unit owners or between owners and the corporation. This may involve mediation, arbitration, or other forms of dispute resolution as outlined in the Condominium Act or the condominium's governing documents.

9. Director Training

• Mandatory Training: Newly elected or appointed directors are required to complete mandatory training provided by the CAO. This training ensures that board members understand their roles, responsibilities, and the legal framework governing condominium corporations.

10. Conflict of Interest Management

• Disclosure: Board members must disclose any conflicts of interest in decisions they are making on behalf of the condominium. They must act in the best interest of the corporation and avoid situations where personal interests might conflict with their fiduciary duties.