What are a Condo Corporation’s Roles and Duties?

Posted by Braden Equities Inc. on Sep 19, 2016 11:38:55 AM

What are a Condo Corporation’s Roles and Duties?

Condominium owners elect a board of directors at their annual meeting. This is where they settle on on the number of committee members, and establish if there are any eligibility requirements outlined in provincial legislation or condominium by-laws.

In most situations, there must be a minimum of three members who have to be of legal age in their respective province or territory. Other necessary qualifications often include that the person is mentally stable and cannot have declared bankruptcy.

Although the board members – also known as officers or directors – do not necessarily have to possess special skills or knowledge, in many cases they will. Provincial acts or condominium by-laws will also state whether a member of the board must be the owner of a unit. Often, there will be a set ratio that must be owners, such as 75 percent.

Yet perhaps the most critical standard is that the directors of a condominium corporation are diligent, prudent and honest. Board members have an obligation to act truthfully and in good faith. They must also take special care not to put their interests ahead of those of the condominium corporation. In fact, the law requires the board’s officers to act in the best interests of the condo corporation.

In summary, condo board members are directly responsible for the physical and financial well-being of the condominium corporation. This includes the managing of day-to-day responsibilities, maintaining and repairing of assets, and handling the fiscal responsibilities of the corporation.

Related: What Are the Different Types of Insurance in a Condo Environment? and Condominium Bylaws: Questions to Ask When Joining a Condo Board

Below we have compiled a list of the most common board member positions and detailed what their duties usually include. Please note: responsibilities may vary from corporation to corporation, so it is best to check with your board of directors if you have any uncertainty about specific roles.

Treasurer

  • Oversees the bank accounts of the condominium corporation.
  • Is one of the two signatures on the condominium cheques.
  • Monitors the accounts receivables, accounts payables, investments and reserve fund.
  • Keeps stringent control over the operating budget of the corporation.
  • Enlists the assistance of the property manager, the accounting staff, and various professionals to forecast the financial needs of the corporation.
  • Participates in the financial arrangements necessary to maintain the financial well-being of the corporation.

Secretary

  • Corresponds with the owners and service providers on behalf of the board.
  • Prepares the schedule and the agenda for the meetings.
  • Distributes the agenda and a copy of the previous meeting's minutes.
  • Takes the minutes of all meetings and distributes them to the attendees.
  • Read the minutes of the previous meetings, makes changes and gets the minutes accepted, passed and signed by each of the members of the board.
  • Maintains an archive of copies of the minutes of each meeting.
  • Maintains the records of the condominium corporation activities.
  • Executes the proxies for the owners of the condominium units.
  • Maintains a calendar of follow-up dates for any business.
  • Prepares all correspondence agreed upon and directed by the board.
  • Maintains the registry of insurance for the common elements as well as the insurance coverage of each condominium unit owner.
  • Publishes the periodical newsletter issued by the board of directors containing the information prepared and submitted to the board.

Vice President

  • Performs the duties of the president in the event of his or her absence.
  • Acts as an assistant to the president and acts under his or her direction.
  • Performs such duties as are assigned by the board of directors.
  • Signs correspondence and other materials with the secretary of the board.
  • Executes all of the resolutions adopted by the board of directors.
  • Is the chief recruiter of the board of directors of the condominium.

President

  • Calls the meeting of the board of directors.
  • Acts as an executive officer and general manager.
  • Acts as the lead member of all committees of the condominium corporation.
  • Establishes a regular meeting schedule for the board of directors.
  • Establishes a schedule of additional meetings when necessary.
  • Signs reports, contracts and statements of the business of the corporation.
  • Prescribes duties of board members not otherwise defined.
  • Employs and discharges subcontractors and employees.
  • Sees that all orders and resolutions are carried into effect.
  • Reports fully to the condominium board on all matters.

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Braden Equities Inc. has been successfully managing condominium buildings in Edmonton since the 1970s. A lot has changed since then, but our commitment to the residents living in each building we operate has not. Contact us today.

 

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With nearly 40 years in business, Braden Equities Inc. is one of the premier property management companies in Edmonton and the surrounding area. Our management style is tailored to the unique needs of each one of our clients, and we work as a team to ensure that every project is treated with the care and attention it deserves. We pride ourselves on having the best staff in the industry, backed by strong, proven management systems that deliver results. We firmly believe that paying attention to the details can make all the difference.
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