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June 02, 2009

Speaking of - March 2007 Issue 77

Your chance to have a say in running your condo corporation

Andrea Cox

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A condominium corporation's board of directors is an elected governing body that is chosen at an annual general meeting. The board has the responsibility of ensuring that the condominium complex runs smoothly and according to the mandates set out in the bylaws. If a complex is self-managed then the board is also responsible for implementing any decisions, collecting dues, arranging for insurance and delegating maintenance issues.

As an entity, the board wields considerable decision making power.

According to Phyllis Fyckes, president of Condo Diagnostics, a condominium document review company, they have the authority to change policies or create new policies that would act as a clarification of the bylaws. They also can expand upon the day-to-day rules of the complex and they can do both of these things without obtaining approval from the condominium owners. “For example, they could expand on a pet bylaw and stipulate that certain breeds of dogs are not allowed or they could ban boa constrictors—that sort of thing,” says Fyckes.

The board, however, cannot change the current bylaws without approval of 75 per cent of the owners. “They can propose changes that they think are appropriate, but they would then have to have a special resolution of all of the owners,” explains Fyckes.

So how does one become a board member? In the case of a new development, the developer will create bylaws that are then registered at land titles against the condominium plan. The developer will then call a “turn over meeting” to which all of the owners are invited. At this meeting the new board of directors is elected. Usually the bylaws dictate the number of board members. “Sometimes the positions are not exactly spelled out, but one normally assumes that the typical positions like president, vice-president, secretary and treasurer exist. If it is a smaller board, then it is possible that some of these positions will be combined,” says Fyckes.
Usually, board members hold the position for one year and can stand for re-election at the Annual General Meeting (AGM). Although Fyckes says that some bylaws stipulate that a certain percentage of the Board must serve a two-year term.

“To nominate yourself for election you generally just show up at the AGM and volunteer for the position. You will then be given some time to talk about yourself and your skills before a vote is taken,” says Fyckes, noting that some complexes do send out a letter in advance of the Annual General Meeting asking that all potential candidates submit their intention in writing along with a brief blurb on why they would be great for the job.
Fyckes does caution that if you are considering a board position that you keep your motivations relatively altruistic. “You need to ensure that you are not volunteering for a position on the condo board to satisfy your own vested interests. You have to remember that you are there on behalf of all of the owners.”

If there is a situation where a board member or a group of board members are not doing their job, then it may be possible to turn them out of office. “Everything is regulated by the Condominium Property Act which was revised in 2000,” says Fyckes. This piece of legislation governs how condominiums in Alberta operate, so if there is a conflict, this act can be used as a defense. Fyckes cautions that as there is no regulatory body in place to enforce the act, the court system would have to be utilized, which can be very costly. “It might be easier to just wait until the next AGM and try to get someone else elected,” says Fyckes.

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