When Condo Boards get it right! Good Governance and practices essential for strong successful condo corporations –

#condo #condoliving #condoboards #condolife

It’s the usual story, day after day we hear about bad boards and bad practices and abuses of power but what about those condo boards who get it right and work hard to ensure that they are serving their owners and corporation. Yes, they exist, they may be the unicorns, but all boards can take inspiration from good boards. I have heard of good boards! There are many boards that are working exactly the way they were intended to work so what are they doing differently?

Condo owners are very lenient; most don’t mind if boards are not perfect – many boards make mistakes all the time – the difference is boards that are willing to learn from those mistakes and the boards that try to hide the mistakes. Being a good board members means starting with the basics by understanding your role and obligations. We can talk fiduciary duty and ethics but most owners’ eyes start to glaze over when you start talking about the law and duty so lets talk basic practices a

nd how good boards can start off ensuring they are governing in accordance with the law and fulfilling their obligations to the corporation and its owners.

Where do you start as a board member once you have been elected to the board? How do you get started? It’s important for board members to receive some type of information package that outlines their duties and obligations, the board governance package should explain the duties and obligations laying out not only their fiduciary duties but the practical duties and expectations. This should be a discussion and conversation at a meeting without the property manager. The package should also outline the duties of the Treasurer and Corporate Secretary etc. I would suggest that even before the board meets to elect their President, VP and the other members they meet without the property manager to discuss the type of board that they envision. Every board member should put forth their reasons as to why they joined the board, what they hope to accomplish and what skills they bring to the table so the other members are aware of their areas of expertise and can capitalize on their skills. If this wasn’t done in the election process or at the AGM, its imperative that all board members know who each other are, share their bios, so they can govern together understanding what everyone brings to the table and how they can improve and assist the corporation.

Once all members have introduced themselves then the board members should start familiarizing themselves with the corporation, request copies of certain documents, so they are aware of the processes in the building. While reviewing engineer reports etc. board members should then be given a tour of the building, they should know where to locate the fire box, the electrical room etc. their information package it should include names and contact information for certain vendors. What is the name of the vendor that supplies the matts, the elevator company, garbage company, recycler all day-to-day duties of the building, board members should be aware of signing authorities, how vendors are paid etc. The property manager and other board members should be providing and encouraging new members to review copies of the bylaws, rules or policies, maintenance schedules, the reserve study, the reserve plan and learn how the building operates. New board members should review the documents to make sure the building is acting in accordance with those documents and schedules, any rules and policies and their condo Act. Are they following the privacy act or other required provincial laws? Any defects and issues should be sent to the other board members, and these issues should be addressed before you start any new projects so you can assign these tasks or create committees to respond to any deficiencies or development of new projects.

Organization and leadership are the key to a good board, don’t rely on the property manager that’s not their role. It’s the board obligation to create an annual schedule that includes the reserve plan and the maintenance schedule to follow throughout the year. This way you can ensure that you are following the plans and have a checklist of what needs attention throughout the year. Boards need to follow up and make sure the property manager is aware of their obligations and the expectations of the new board. Once the documents have been reviewed and a plan in place then the board can meet with the property manager and explain the plan and the property manager’s role. One important issue all boards need to be aware of is how are complaints handled? What does the board receive from the property manager to check on owner complaints and issues and how does the property manager communicate to the board that the issues have been resolved etc. portals are great tools but there are always owners who do not use them, and they still need assistance, and their issues need to be addressed to the board.

As a new board members, you want to make sure the board is following best practices, they should always make sure that the minutes accurately reflect the meeting. Emails and conversations and discussion are a must before meetings which works to keep the minutes short and efficient but resolutions, discussions of how projects should be funded, special assessments, and most business should be voted on at the board meeting and noted in the minutes because these are the only records of the corporation. If you don’t have open board meetings then minutes are the only way owners can find out what is going on in the corporation and the only way for new owners to review and learn about the property before they buy. If all decisions are made by emails and not recorded in the minutes, then this is not an accurate reflection of the business of the corporation and may deceive owners and new buyers. Emails are not provided to new buyers or owners and not an accurate reflection of the decisions made by the board.  

Lets remember a condo board of directors represents and serves its owners, if you have board members who don’t know any owners, have just moved in and have no history or knowledge of the building then this could negatively impact the corporation, new owners are not usually very effective board members because they have no idea that there have been 5 leaks in the back hall for years and no one is fixing it. These types of issues continue because no one is aware this is a chronic problem. I’m not saying to turn any board members way no we don’t want to ever turn them away but if you have more than 1 new board member that is new to the building you need to make sure you get those board members out to meet owners, its important to stress to new members to start talking to owners, knocking on doors and find out what is important to them. Boards can’t govern if they are unaware of the issues; are owners concerned about the reserve fund, their neighbors, safety or security whatever those issues are they need to be aware of them and then bring them to the board to discuss solutions. Board members need to be open and transparent, there are very few secrets in a condo community, pretty much everything should be always provided to owners. Boards should work hard to ensure they are not oppressive, follow the law, provide owners all documents as requested, send updates, have town halls and meetings with owners and when there are certain events or projects inform owner, communicate with your owners so they know that the board is working for them and the corporation! Engage with your owners, you’re all in this together!