Board governance

Condo boards are an owner-elected or appointed group of directors responsible for overseeing the affairs of the corporation. Directors are legally bound to act in good faith and in the best interests of the corporation. They play a critical role in nurturing strong and vibrant condo communities by ensuring the condo corporation’s legal obligations are met. CAO’s Best Practices Guide: Governance has more information on board structure, composition, responsibilities and culture, as well as best practices for by-laws, risk management, maintaining a positive relationship with owners.

Condo board directors must clearly disclose conflicts of interest that would prevent them from voting impartially during board meetings. This ensures that owners have full transparency and the condo community can avoid conflicts of interest. Directors have a responsibility to make continuous disclosures in writing during their term, according to the Condo Act’s disclosure requirements for directors.

All condo owners, board directors, residents and guests must comply with their condo corporation’s governing documents and the Condo Act. These documents stipulate what condo residents and corporations are allowed to do. The Act and the documents can’t contradict each other but if they do, the Condo Act is supreme, followed by the condo corporation’s declaration, by-laws and rules in that order.

Boards can resolve common condo living issues by notifying residents of non-compliance, engaging legal counsel, filing an application with the Condominium Authority Tribunal or sending the issue to mediation, arbitration or the Ontario Superior Court of Justice as appropriate.

All members of condo communities must comply with the Condo Act and governing documents.

Boards can follow these steps to resolve any issues:

1. Notify residents who are not complying to make them aware of the issue and follow up as required, including by sending them a letter.
2. If necessary, send a letter from legal counsel
3. File the issue to the Condo Authority Tribunal if it is within the CAT’s jurisdiction.
4. File the issue to mediation, arbitration or the Superior Court if it not within the CAT’s jurisdiction.

For more information on the most common types of condo disputes, read about Solving Common Issues.

Condo boards are generally elected by owners to manage their collective interests. Boards must have at least three directors but may have more depending on the governing documents and specific needs of the corporation. The board’s size can be set in the corporation’s by-laws but should be set at an odd number to avoid voting stalemates. Boards must elect a president and appoint or elect a secretary and other officer positions.  Condo boards can also appoint a director to the board if there is a vacant position and there is a quorum. CAO’s Best Practices Guide: Governance provides more information about board composition.

Boards must establish a quorum for a board meeting to proceed. Quorum is achieved by more than 50 per cent of directors being present. No meeting or votes can take place without a quorum.  Learn more about board meetings.

The Condo Act sets out specific criteria for board directors’ qualifications. A condo corporation’s governing documents can also add additional criteria. Some condo by-laws may require directors to be owners in the building. Directors must be 18 years old, not be bankrupt, not have been subject to prior litigation finding them incapable of serving and must comply with required disclosures.

Owners can vote to remove a board director before their term of office expires at an owner-requisitioned meeting called for that specific purpose. They can also elect a qualified person to replace the removed director. Section 33 of the Condo Act requires more than 50 per cent all owner units in the condo corporation to vote in favour of the removal.