Why Volunteer as a Strata Council Member?

Elaine McCormack

Serving as a council member in your strata corporation is an important way of protecting your real estate investment and may provide a learning opportunity that can lead to future employment.

Council members exercise the powers and duties of the strata corporation, subject to those matters that must be decided by the owners at a general meeting. That means council members are like the Directors of a company and they gain valuable experience running a corporation.

To comply with the Strata Property Act, each strata corporation must have a council comprised of at least the minimum number of council members required by the strata’s bylaws. Usually, the minimum number of council members is three.

If a strata corporation does not have a properly functioning council, an owner of a strata lot may apply to the Supreme Court of British Columbia to appoint an administrator who then may take on the powers and duties of a council. Having an administrator do the work of council can result in the strata corporation, comprised of the owners, paying thousands or tens of thousands of dollars a year to the administrator for his or her fees and expenses.

Most individuals elected to council are owners of a strata lot in the complex.

Most individuals elected to council are owners of a strata lot in the complex. An individual representing a corporate owner and tenants who have been assigned a landlord’s right under the Strata Property Act to stand for council can also be elected by the owners to council. If you are wondering if you qualify as an “owner,” you may review the definition of “owner” in the Strata Property Act of BC, the main governing legislation for strata corporations in British Columbia.

In addition, a strata corporation can file unique bylaws in the Land Title Office that allow one or more other classes of persons to be elected to council. Commonly, bylaws allow the spouse of an owner or the children of an owner to serve on council. Before running for council, it is reasonable to ensure that the strata corporation has Directors’ and officers’ liability insurance.

©iStockphoto.com/Tomas_Handfield

Pursuant to the Strata Property Act, council members may receive remuneration for the exercise of council powers or performance of council duties. Remuneration for council members is allowed only if the strata corporation’s owners approve it, either as part of the annual budget, in the bylaws, or by a ¾ vote of the owners at a general meeting. Approval of remuneration for council members is rare; most council members perform their duties strictly as volunteers.

A council makes decisions by majority vote of the council members at council meetings. By participating in council, its members may learn basic concepts of organizational governance, including a. accounting concepts, including developing and implementing a long-term financial plan; b. decision-making procedure, including for council meetings and general meetings; c. proposing, passing, and enforcing bylaws; d. contract negotiation, particularly for services such as strata management, waste management, maintenance contracts, repairs, and loans; and e. creating and implementing a privacy policy.