condominium
owners through the building with the property manager to get a good look at all the physical assets. They should review the monthly financial statements and the prior year’s audited financial statements for any qualifications or other issues raised from the audit. Directors have the legal obligation, set
out in the Condominium Act, to act honestly, in good faith and to exercise the care, diligence and skill that a reasonably prudent person would exercise in similar circumstances. In short, they should think through their decisions using common sense and without personal bias.
The Condominium Act states that as long as directors rely on the advice of qualified professionals, they will not be held personally liable for the results of decisions made. Experts include engineers, lawyers, public accountants, and appraisers and auditors. Directors should only hire professionals that are experts in their field and conversant with the requirements of the Condominium Act. Membership in CCI or ACMO (Association of Condominium Managers of Ontario) may indicate that these professionals have experience in condominiums. The Board should select three or four firms, check their references and when appropriate, interview them before making their selection. Communication between owners and the directors is vital. Directors should: find out from owners what issues they might have with the operations of the corporation; keep them informed of what’s happening through newsletters, emails or a website; and hold town hall and budget meetings. The Board can provide some time at each meeting when owners can bring their concerns to the board. Minutes should be kept of all meetings and made available to owners (except for matters governed by privacy legislation). Minutes are not only part of the corporate records but also a powerful tool to demonstrate that decisions of the Board are properly made. It is most important for directors to remember that they are dealing with their neighbours who also have a vested interest in the community and that mutual respect is required for their community to operate harmoniously. In short, directors should educate themselves on condominium matters, make decisions with care and proper due diligence, budget sufficient funds to ensure that the quality of life within the condominium is maintained, communicate with owners early and often and ensure all owners are treated fairly and with respect. Doing so will go a long way to making their condominium a great place to live. C V
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CONDOVOICE WINTER 2016