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Making Decisions as CONDO Board Members

  • wecare994
  • Nov 1, 2024
  • 4 min read




Just when you think it couldn't get any worse in your Condo you wake up to some random decision that some board member thought would be a good idea. Those random decisions are made because boards are frustrated with owners and don't know what to do, they are not skilled at leadership, and fail to understand how to govern a condo building. These board decisions hurt all owners and drag down property values and if you are lucky that's the only consequence you face. Each condo board needs to develop their own way of making decisions that provides for thoughtful analysis that includes:


1.       discussion of the pros and cons;

2.       discussion of the consequences and how the decision could impact and effect owners

3.       is the decision made in accordance with the ACT

4.       the best possible way to fund the decision’

5.       Finally, have we honored our fiduciary duty.


Sounds like a lot well it is a lot, its a lot because as board members you are responsible for human lives, a building and owners’ money.


When boards plan to make changes or implement new technology or repair the roof, it takes planning and consultation. For example, if a board is planning on adding a new intercom system – this is common these days, the old intercom systems from 20 years ago should be updated, they can be tampered with and are not very effective. When you are updating a new intercom system its recommended that you change the locks at the same time. Lock changes should occur periodically to make sure that there are not any keys floating around out in the world that could show up. In this instance the board has two situations that need to be carefully thought out. The intercom system updates should generally be approved at AGMs, the new systems are expensive, and owners should be provided an opportunity to approve these types of significant improvements and given the opportunity to review the options. Don’t just make the decision for the owners share in the governance and share with them the options the board has narrowed down. Explain the options and how the board intends to pay for the new intercom system. Once you’ve decided on the intercom system and the installation date the board needs to weigh the decision as to notification. Years ago before everything was electronic boards sat in lobbies for a couple days in the afternoon and at night to make sure they could catch as many owners as possible to make the key switch. There are so many ways to notify owners of the change and so many options to ensure a smooth transition. The one thing a board needs to ensure is that they do not lock anyone out and do any harm. Boards need to understand that owners could be away on vacation, in hospital, working and not able to attend the swap. Boards can’t just say oh well, too bad you didn’t make it so you’re locked out. That would be doing harm and it's a pretty awful thing to do Imagine coming home from a vacation you’ve planned for years on a long weekend and be locked out of your own home? Or, you’ve been working for weeks out of the country or up north, this is Alberta for goodness sake only to be locked out of your building? It’s horrifying and completely unnecessary. Condo communities don’t need to be singing Kumbaya with their owners every weekend but they need to make sure they aren’t being cruel and locking an owner out of their home because they couldn’t fit in with the board’s schedule. So how do you make sure your owners feel respected and do a good job? Well, depending on the building, several types of notification should be planned. A board should at the very least:

1.      Put signs on all entrances as well as emails with clear instructions and information;

2.      Boards should at least spend two days in the building at different times (the first day could be the morning and the next day after works hours) to catch owners and get them switched over to the new system and locks. After the two days in the lobby, the board should be provided with a list of owners who were able to make the changes.  

Boards should never just change the locks the next day after the intercom system has been installed, it has to be a process depending on the building. There are so many ways to complete the task and protect owners at the same time. You could stagger the lock changes by putting signs on each door saying this lock will be changed on…please contact the board to make sure you have access. So they aren't locked out because there are other doors they can use but it reminds them to get their business done. These new systems could provide QR codes that could be placed on signs in the building so could set up independently and then have new keys put under the doors in the building. There are so many options to ensure that the changes are made without any issues and negative consequences for owners.


Being a board member is a big responsibility, it takes effort and skill, the best board members are empathetic and caring individuals who have organizational skills and listen to their owners. Board members need education to understand their obligations and responsibilities and the scope of their power and authority to ensure the corporation is operating at its best and to ensure they don’t just make random decisions that could harm the owners in your building. Have a good weekend everyone!   

  

 
 
 

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Meetings and Events

Condo Buildings have many different types of meetings -AGMs, Special Meetings and  Extraordinary Meetings, Owners Meetings -    See below on tips for making your meeting inclusive and productive 

​Annual General Meetings are crucial to democracy, a condominium corporation in Alberta is required to have annual general meetings every year and at the latest 15 months from the last AGM. These are formal meetings where owners vote on all types of business such as new bylaws, bylaw changes, financial considerations, improvements, upgrades and elect a new board of directors. There are certain procedural rules boards must follow when organizing an AGM; notice must be provided 60 days prior to the AGM, this gives owners the ability to submit agenda items to the board. After the 60 days, formal notice with the agenda items must be sent to owners within 30-14 days prior to the meeting date. Make sure you are voting at your AGMs, you need to make sure the votes are counted - make sure your board is either holding elections through ballots or a counted hand vote. 

There are several types of other meetings a condo corporation holds - Special Meetings, Owners Meetings or Town Halls. It all depends on who is doing the organizing and the topics being put forward. Condo Owners should ensure that their meetings have at least the basic requirements for example: With the exception of Owners Meetings which are called by the owners and not formal, all meetings should include, if possible: scrutineers, agenda- ability of owners to add to agenda, accurate and properly recorded minutes, elections, voting - owners should be voting on issues at AGMs to name a few. There are many requirements to hold a duly organized meeting. For example, public companies and other corporations hire several entities when they hold AGMs. Most corporations start by hiring a law firm. a company to scrutineer and often depending on the type of meeting a solicitation agent. Unfortunately, and of course because it's impractical for the majority of Condo Corporations to assume the expense of all or even a few of those entities most Condo Corporations rely on the knowledge of the property manager and an inexperienced board to deal with meetings which affects the quality of the meetings.

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​The quality of condo meetings depend on the quality of the property manager and the knowledge of your board of directors. Most condo meetings are pretty poor which leads to very little advancement and improvements in the corporation. If your condo corporation holds proper meetings then thank goodness and let us know! We want to hear about condos that are working well together creating successful condo communities. If not then well we all know when buildings incur this type of combination of a poor manager and a poor board for too long the building starts to deteriorate very quickly. Most building come equipped with basic bylaws created by the developer included in the owners manual, some specs and basic information and little else so if you were unlucky to buy into a property with owners who knew very little about condo boards you are probably facing some difficulties after a number of years.  Call us anytime and we will audit your meetings, elections or if you assist in coordinating any type of meeting. See our simple suggestions for make your meetings even more successful. 

condo meeting

Everyone is happier with a cookie in their hand

condo meeting - AGM

                                 Make people feel welcome!         

                           

Meetings are stressful even if there are no hot topics so anything you can do to lighten the mood is helpful. You could also have a giveaway or a play a little game before you get started. Don't forget name tags for large gatherings, bring a card or provide contact information and don't forget a pen, notepad or your phone to take notes and exchange information.  

If you organized the meeting: don't forget to shake as many peoples hands and introduce yourself to as many people as you can!

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Hint: If you are organizing the meeting you should be the last to leave! This helps make sure you talk to everyone who came to talk to you!

                                             Its ALL in the Details

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We believe details are important! Set up a station with coffee, juice or water to keep people hydrated and bring along some home baked or store bought treats. Owners will feel welcome and it helps to set the tone of a meeting. Who can argue with a piece of cake in their hand or mouth! Meetings should be informative and engaging and setting the tone will make your meetings more successful.

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Hint: You'll often be able to tell the people who support you or at least like you if they take a cookie or drink some coffee. More combative individuals won't take the cookie because they feel like they would owe you something back and sometimes that's just being nice and respectful.

CONTACT US Before you buy a condo 

Working as a Trustee in the corporate debt space for over a decade has helped me build a foundation in Corporate and Securities Law. As a a Manager of Corporate Trust acting as debt Trustee, collateral agent or escrow agent, I was involved in many types of large international transaction and the biggest bought deal in Canadian history. As a trustee we were involved in, attended and scrutineered all types of meetings, extraordinary resolutions and consent solicitations. As Corporate Secretary for a large public company, I have over a decade of experience in many aspects of Corporate Law.  I worked for  several years in compliance for a capital raising investment company and worked in the prosecution department at IIROC. My degree in political science gives me a heightened sense of justice and expertise in all levels of government, democratic institutions and democratic practices.  I started this company to help other condo owners who were having similar experiences with condo boards. My corporate law and securities experience provides a great backdrop to be able to help create inclusive communities one building at a time, fighting one board at a time to bring back democracy and inclusion to Condo boards. People don't need to be fighting boards -it ruins their piece of mind and stunts community growth. Boards of Directors need to be held accountable for bad decisions and bad operating procedures and educated in best practices. 

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CONTACT
LOCATION

Email: wecare@momentumcondo.com
Phone: 403.651.7403
 

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Calgary, Alberta T2R 1R8

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