A condominium board is responsible for the physical and financial well-being of the condominium corporation. They manage the day-to-day responsibilities, maintenance and repair of assets, and fiscal responsibilities of the corporation.
How are Board Members Selected?
The condominium owners elect the board of directors at their Annual General Meeting. Owners can either volunteer themselves, or another owner to join the condo board. Often, there’s a minimum number of three and a maximum of seven members, depending on the by-laws of the corporation.
Common Condo Board Committees
A committee could be created for any reason, and may support ongoing or cyclical work, or short-term issues through two broad categories. Standing committees are permanent, or otherwise operate on a continual basis, and should have their roles defined by the bylaws. Ad hoc advisory committees are temporary, created to deal with individual short-term matters.
These committees will typically be responsible for detailed work that will be brought back to the board for approval and allow board members with specialised knowledge to apply their skills to the board’s work in smaller, dedicated groups —though directors do not necessarily need specific expertise to serve on committees nor the board itself.
Responsibility of Board Members
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.
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.
- 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.
- 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.
- 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.
- 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.
Looking to hire a licensed property management company?
Often, a condo board will hire a property management company to handle the daily operations of the corporation. This can lighten the load for busy board members, but the board of directors retains decision-making power and responsibility.
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.
Thank you for reading our blog. Are there any roles or responsibilities for a condominium board of directors that we missed? Please leave your comments or questions below.