The board of directors
“Especially in local elections, because hardly anybody pays attention to those—but it's really important who's mayor and who's on the city council, county commissioners, sheriffs, district attorney, and of course the school board.”
—Jello Biafra

Living in a condominium corporation is like adding a new level of government into your life. The corporation is very similar to a small municipal government. The board is like your local town council. The owners elect their board members (councillors) who appoint a president (mayor), a treasurer and a secretary. The board hires staff to run the property (town employees) and contractors to provide services.

Board of directors
Condo politics start with the board of directors. They are the corporation’s politicians and it is the politicians who make the decisions. The owners are the voters whose interests need to be satisfied if the board wishes to be re-elected. (Of course if you don’t vote, you don’t count.)

The board is the only entity that can legally claim to represent the corporation. Representing and making decisions on behalf of the corporation is its function and those roles cannot be claimed by a group of owners no matter how large or how righteous they claim to be.

The board can be held accountable to many interests including:

1.	The owners who elect them.
2.	The Human Rights Tribunal.
3.	The city building and standards code.
4.	The provincial fire code.
5.	Provincial legislation including the Condominium Act.
6	Ministry of Labour safety inspectors (if unsafe work practices are reported or a worker gets seriously injuried on the property).
7.	Future purchasers (starting with the Status Certificate).
8.	The property’s insurance company.
9.	A labour union (if you have unionized employees).

The board is also responsible for the wise expenditure of the $1-1.5 million that annually flows into the corporation’s coffers.

Finally, they are the ones who draft changes to the by-laws and create policies and rules that affect the living conditions for all the residents.

This is why it is important for the owners to elect the best-qualified, levelheaded and ethical candidates that show interest in the position.

President
“I'm the commander—see, I don't need to explain— I do not need to explain why I say things. That's the interesting thing about being president.”
—George W. Bush

Most condo boards have five members. At the first monthly board meeting after every AGM, the members should elect a president, a treasurer and a secretary.

In theory each board member has equal voice and say in the condo’s affairs, but unfortunately, in real life often the president and one other board member dominate the board. Sometimes the president and one or two other board members caucus prior to the board meetings and the decisions are made then.

In other condos, the president acts unilaterally and then uses the next regularly scheduled board meeting to ratify the decisions that have been already made. Sometimes the board ratifies decisions made by the manager.

It varies from one condo to another and can change after any election.

The board and democracy
There is a built-in dilemma with democracy. Politicians need sufficient distance and independence from the voters to make unpopular decisions. In Canadian politics, this is achieved by making it next to impossible to recall politicians during their term in office.

However in condo politics, the politicians—and that is what board members are—do not have that lengthy distance separating them from the voters. In certain situations, if provoked, furious owners can throw the board out of office at will. In some cases this reality prevents the board from raising revenues to sufficiently fund the corporation's needs. The outcome can be cheap and dirty politics in which the motive that most influences the board is getting re-elected.

Often the board is not made up of reluctant volunteers but by amateur politicians who love the power and perks that their position gives them. Running a $50 million property with a $1.8 million annual budget is heady stuff for a bored housewife or a lift truck driver who may be flattered by a smooth-talking property manager.

How the board is formed
Before the condo corporation is registered, the developer appoints three people to the board. For the first year of its life, the developer’s board gets the corporation on its feet.

At a turnover meeting, a new board is elected. It will consist of three, five or seven members that will be elected by the owners. It is important that the owners elect an independent board at this meeting. Otherwise, the developer will continue to control the board and his priorities are definitely not in line with the owners needs.

Elections
Once a board is elected, they serve for staggered three-year terms so that at least one member is up for election at every AGM. This guarantees that a complete board cannot be swept out of office at once.

The AGM needs a quorum of at least 25% of the owners either in person or by proxy. The candidate or candidates that receive the most votes wins the election. In most elections, only a small number of owners attend in person so often the winner is the candidate that has collected the most proxies.

The Act allows almost anyone to be a board member. As long as an adult is mentally fit, is not personally bankrupt and doesn't have a lien on their unit that is not discharged within 90 days, they can be a director. They do not have to own a unit, live on the property or even live in the same country. (If the by-laws allow it, a director can attend a board meeting by conference call.)

However some condos have a by-law stating that only unit owners may be directors.

The power of the board
Board meetings are usually held monthly and in private. Unless the board grants permission, an owner is not permitted to attend the meetings. However an owner can ask to examine the minutes of previous meetings.

With the exception of the auditor, the board has the power to hire and fire any and all contractors and professionals who provide services for the corporation.

The board approves all contracts with contractors to provide services and materials to the corporation.

The board can suggest amendments or additions to the corporation by-laws. The owners must ratify these changes. The board may also make additions or amendments to the corporation’s rules. Changes to these rules are mailed to the owners. Unless at least 15% of all the owners sign a requisition calling for a special meeting to discuss and vote on the changes to the rules, they are adopted.

The board is responsible to enforce the Condominium Act, the declaration, the by-laws and the rules. The board may take owners who violate the above to court to seek compliance and the corporation’s legal costs.

The owners are usually informed of common fee increases and special assessments by regular mail.

The board has a duty to collect the monthly common expenses from the owners. When an owner is in arrears for a three-month period, the board should request the corporation lawyer to put a lien on the owner’s unit.

In extreme cases, if there is a very unruly owner, the board may take that owner to court to obtain a peace bond or even to obtain court orders demanding that the owner vacate and sell their unit.

The board also sets the agenda for the Annual General Meetings. An owner can request that an issue be added to the agenda but the board is not required to comply.

The board has the power to raise the common element fees (taxes) without prior notice or consultation with the owners. Likewise, the board can pass a motion to raise a special assessment. A special assessment is a one-time tax levied on the owners to raise money to pay for certain expenditure.

As you can see, the board has tremendous power, including taxation and, in extreme cases, exile, over the residents and owners of the condominium community.

If a director resigns
If one or two directors resigns during their terms, the remaining board members can decide to leave the openings vacant until the next AGM or they can appoint people to fill the vacancies.

There is no requirement that the owners need to be informed of this change in the board. No election is required.

Sometimes the status certificates fail to show the empty positions by leaving the names of the old board members in place.


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