Condominium Board of Directors

Under the Condominium Property Act, the powers and duties of the condo corporation must be carried out by a board of directors (i.e., condo board), elected by the unit owners of the condominium.

In Alberta, at least 60% of the members on a condo board must be unit owners or mortgage lenders of the condo corporation. Under the Condominium Property Act, members of the board, in exercising their duties as members of the board, must:

  • act honestly and in good faith, with the best interests of the corporation in mind
  • exercise care, diligence, and skill comparable to that of a reasonably prudent person in similar circumstances
  • declare any material interest in an arrangement before the board, and abstain from voting, or being counted towards quorum in a vote, on that arrangement

Once a condo board has been established, regular elections for the board usually take place at the Annual General Meetings (AGM) of the condo corporation. Board matters, such as who can run for and sit on the condo board, the length of the terms of service, the nominations process etc., can be different for each condo corporation. Matters specific to the condo corporation are set out in the condo’s registered bylaws.

Please see Interim Condo Board and Electing the First Condo Board sections for more information on the process for establishing a condo board.

Condo boards can choose to fulfill these duties themselves—self-manage—or they can hire a licensed condominium manager to manage the property on their behalf. Condominium management companies must be licensed under the Real Estate Act as a condominium manager brokerage and must be operated by a licensed condominium manager broker.

Regardless of whether a condo manager is hired to assist the condo board with their duties, the condo board must understand the role that the condo manager plays, the relationship between the condo board and condo manager, as well as the extent and significance of the contract with the condo manager.

Disputes may arise between members on a condo board, or between the condo board and other parties involved in the business of the condo corporation, such as:

  • unit owners
  • tenants
  • the developer
  • a condo manager
  • services providers

While it’s not uncommon for disputes to arise, it is important for them to be resolved quickly and effectively. It is always recommended that condo board seek legal advice when faced with a dispute.

Within a month of registering the development as a condominium corporation, the developer must appoint an interim board of directors to run the corporation during the construction and sale phase. This interim board must follow the same standards of conduct as an elected board for running a condominium corporation.

Under the Condominium Property Act, the developer must convene a meeting to elect the first board of directors within 90 days of the certificates of title being issued in the name of the purchasing owners for units representing 50% of unit factors.

If the developer does not convene a meeting within the 90-day period, a unit owner may convene a meeting to elect the first board of directors of the corporation.

At this meeting, the developer, or interim board, must provide originals or copies of the following documents (if applicable), at no charge to the corporation:

  • warrantees and guarantees on all properties of the corporation
  • as built drawings, structural, electrical, mechanical, and architectural working drawings and specifications for property of the corporation
  • plans showing the location of underground utility services, sewer pipes, and cable television lines located on a parcel
  • agreements involving the corporation
  • certificates, approvals, and permits issued that relate to the property of the corporation
  • any building assessment report required under the New Home Buyer Protection Act or, in the case of a conversion
  • reserve fund report
  • all resolutions, minutes, and other records or documents of the interim board

Additional documents

In addition, the developer, or interim board, must provide the elected board with copies of:

  • a list of the interim board members
  • all building plans, documents, and amendments required under the Safety Codes Act
  • all outstanding orders related to the property made pursuant to the Safety Codes Act, Municipal Government Act, and the New Home Buyer Protection Act
  • the condominium plan and any plan of redivision
  • all documentation related to the construction, installation, operation, maintenance, repair, and servicing of the corporation’s property
  • the name and unit number of each owner, as they appear on the condominium plan
  • areas of exclusive possession assigned to each owner, if applicable
  • any lease, licence, or instrument granting an owner the right to exclusive possession of an area
  • the following information for each unit:
    • municipal address of the unit
    • owner’s address as it appears on the certificate of title
    • any additional address for service for the unit’s owner, as provided by the owner the corporation
    • unit factors for the unit
  • a list of the names and addresses for all mortgage lenders who have given written notice to the corporation
  • a list of all known occupying tenants of rented units, including tenant names, rented unit numbers, and any deposits paid to the corporation
  • any rules written by the interim board
  • unsatisfied judgements of a court or other decision-maker in proceedings involving the corporation
  • any legal advice or decisions paid for by the corporation
  • any proposed budget, annual budget, and financial statements for the current and previous fiscal years, as applicable
  • all records for the corporation’s accounts with financial institutions (reserve funds, operating funds, etc.)
  • all tax records of the corporation
  • any restrictive covenant registered against the parcel of land
  • all current insurance policies, and the certificate respecting each policy, obtained by or on behalf of the corporation
  • all caveats registered against units that are owned by, or intended to be transferred to, the corporation
  • any standard insurable unit description

Additionally, in the case of a conversion, the developer must provide the elected board with the converted property study or building assessment report.

See the Condominium Property Act s.16.1(1) and the Condominium Property Regulation s.20.2(1) for more information on documentation and information that must be provided to the first elected board by the developer or interim board.

More Info: