Role of a Condo Management Company and the Condo Board
The role of a condo management company is to administer the condominium corporation. This is in accordance with the Alberta Condominium Act and Amendments. Their mandate is under the restrictions of the Corporation budget, Board policies and Corporation By-Laws, to direct the activities related to the following:
- The maintenance of all common areas
- Prepare statutory documents
- And act as a point of contact between the Board of Directors and the individual owners
More importantly, the management company also works as a liaison with the Board to ensure all problems and recommended solutions are openly and confidentially discussed within meetings.
If owners have any issues with the condos themselves, concerns, suggestions, inquiries or questions, the management company is there as a point of contact. The management company will speak to the condo Board and relay the Board’s decision to the owners.
What Role Does The Board Of Directors Serve?
The board of Directors sets the policy of the corporation with regards to:
- Enforcing its by-laws
- Control, management, and administration of the real, personal and common property
- Direct activities of the management company which reports directly to the elected Board of Directors
- Members will exercise statutory duties under the Condominium Property Act and delegate those powers however they like.
There is also an unwritten duty that Board members should “act fairly in the best interest of all owners.” This duty in legal terms is called a “Fiduciary Responsibility”. In general, they are to act honestly in all matters. If a condo owner is on the Board of Directors, they must act honestly, even on decisions that would affect them or their living situation, if what is being discussed would be for the betterment of the rest of the condo owners.
It’s important to note that Board decisions are all group decisions. Whenever there is a decision to be moved, it must be seconded and voted upon by the Board and results of the vote must be stated clearly in the minutes. It’s for this reason that all suggestions must be submitted to the Board in writing.
Board Of Directors And Officer Positions
Once elected, the Board of Directors must nominate and elect members to the various officer positions. Those positions are:
- President. This is the chairperson at Board meetings and annual general meetings. This individual works with all committees and gives them a general idea to all work in progress with committees and contractors. They also handle meetings, work from an agenda, and hold all meetings in a business-like fashion, following parliamentary procedure. Wasted time in meetings results in members being less enthusiastic about attending future meetings.
- Vice-President. This member stands in for the president should the position be vacant for any reason. In most situations, the vice-president would move to the president’s position if elected in the following year and if the position was still vacant.
- Secretary. This individual maintains the corporation’s records. The secretary doesn’t necessarily need to be the one taking the minutes of meetings though, but he/she will organize and store the meeting minutes.
- Treasurer. This member looks after the financial transactions of the corporation. This person might not be doing all the banking, but he/she is authorized to sign off on financial transactions. This member also provides financial reports — so it’s important for funds to be managed properly.
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