Why you should postulate for the Board of Directors of your condominium - page 1

The Board of Directors of a condominium: what's that ?

The Board of Directors is a body that participates in the operational and regulatory framework of a real estate condominium.

It is a group of voluntary co-owners who choose to represent all other co-owners. They monitor the condominium, monitor actions from the management company, inform other owners and can validate certain transactions with the managers.

The Board of Directors is not always compulsory but it is generally recommended to have one. It's important that this group of people have at least one motivated and active member, and ideally, that it have several motivated and active members that work together.

The Board of Directors: not to be confused with Managers or with the Corporation

The Board of Directors must not be confused with the « Corporation » which is the name given to all the co-owners, or with the « Manager » - or management company - who is a service provider acting on behalf of the condominium. The Corporation is the set of all co-owners. The Board of Directors is a subpart of the Corporation. The Manager works on behalf of the Corporation and is responsible for the day-to-day management of the condominium. The Manager may be replaced by another professional if necessary.

The Board of Directors : mandatory or not?

It is possible to decide not to form a Board of Directors in your condominium. For example in very small condos, where it will not necessarily be useful to have one. If the Corporation decides to do without it, a Board of Directors can always be formed later. But if the condominium is formed as a co-operative syndicate of co-owners, with a voluntary manager, in this case the Board of Directors is mandatory. It will also be mandatory if the condominium is a serviced residence (residency intended for students, residency intended for the elderly).

The Board of Directors : what for ?

Having an active Board of Directors is important for your condominium. The adjective « active » is here for a good reason: because in some cases a Board of Directors can be totally passive and non-operational, thus canceling its value for the condominium.

The Board of Directors' missions are monitoring, alerting, following projects, communicating, decidind, and controlling providers (including the management company). The Board is the spearhead of the Corporation. It has a decision-making power on behalf of the condominium and should be systematically consulted by the manager for any major decision. An efficient Board of Directors is a guarantee that the affairs of your condominium are properly followed.