Board of Directors in Toronto
Board of directors in Toronto
If you are thinking about joining a board of directors in your condo corporation in Toronto, you need to understand the role of the board, what its members do, and don’t do, and the board of directors’ obligations to the community.
Why do condos have a board of directors?
All condos need to have a board of directors in order to manage the property. This includes common areas like the lobby and hallways and shared spaces like the gym or pool. Just like you are responsible for maintenance and upkeep inside your condo, the board of directors is responsible for keeping the condo as a whole efficient, safe, and usable.
To serve on a condominium Board, a person must meet five requirements:
- Be at least 18 years of age.
- Be mentally competent.
- Cannot be bankrupt.
- Must complete the Condominium Director Training Program.
- Must comply with new disclosure obligations.
The role of a board of directors is to run the condo corporation as representatives of the owners. It is the board’s job to ensure that building management standards, including property maintenance and staff treatment, are protected and enforced. This is why many board committees will have a by-law stating that in order to be a member, you must live in the building. This keeps all board members honest and ensures that the best interests of the residents of the condo are put first.
Who is on the board of directors?
An effective condo board of directors will have, at its smallest, three to five members. It is important that every board has enough members to allow for a majority vote, with the minimum number of directors that need to be in attendance for every meeting being three. The total number of board members depends on the size of the condo.
Chief executive officer or President
The chief executive officer or president of the board of directors calls the meetings and acts as the executive officer. They establish a regular meeting schedule for the board of directors, such as when the annual meeting happens each year. The chief executive officer also decided when and why to schedule auxiliary meetings when they are needed.
Although the president is essentially the chief of the executive board of directors, they do not make any decisions without the full board of directors.
The vice president acts as the president when the president is unable to attend board meetings. They also act as an assistant to the president when needed, and can perform duties assigned to them by the board of directors. The vice president is also often the chief recruiter for the condo’s board of directors.
The secretary is the mouthpiece of the board of directors to the residents. Their duties include preparing the schedule for every board meeting, preparing the agenda for the meetings, taking the minutes, and reading the minutes from the last meeting.
The chief financial officer or treasurer
The treasurer is in charge of the condo’s bunds and oversees the bank account(s) of the condo corporation. The treasurer is one of the two people who sign all the condominium cheques and keeps detailed records and control over the board’s operating budget. Depending on the size of the condo and the board of directors, a finance committee led by a treasurer may be in charge of the finances instead of one person.
In order to gain board membership, you need to be at least 18 years of age, mentally competent, in good financial standing, and complete the condominium director training program. The training program takes roughly six hours to complete. Once training is complete, a certificate is issued. The director must provide a copy of the certificate to the rest of the board within 15 days of completion of the course. Training is valid for seven years. For senior executives, re-training is not necessary after seven years, but it is encouraged.
Board meetings often have active discussions about current, important issues, committee reports and achievements, a look at future plans, and a review of the budget. Board directors act in the best interest of the entire condo community. Both private company boards as well as corporate boards all, require regular communication and meetings.
Interested to know more about Board of Directors Toronto? Contact CondoVoter today.