How are the directors of a condominium association elected?
The directors had been elected to the association’s board thanks to the votes of a group of investors who had acquired approximately half of the condominium units through a bulk sale transaction. The association claimed that the directors breached their fiduciary duty to the membership.
What are the duties of a condo board of directors?
It takes a village to run a condo association, in the sense that a board of directors serves in much the same capacity as the governing body of a small town. Once elected, members of the board of directors of a condominium association have specific and critical duties.
Can a condominium board member be a liability?
Still, there is no denying that a board member takes on a certain measure of liability by agreeing to serve. Nevertheless, by acting in good faith and observing a few common sense practices, any condominium director should be able to avoid the pitfalls of liability that the Shores of Panama directors fell into.
Can a director of a condominium be sued?
Let reason and common sense be your guide, not fear of being sued for making a bad decision. Condominiums cannot exist without good people willing to undertake the role of board member. The liability that accompanies board service can never be entirely eliminated, but a director can substantially mitigate that risk.
Who can serve on the condominium board of directors?
Thus, if Mr. Jones buys a unit as a single man and later marries, his wife is not an “owner of record” or “unit owner” and she is not eligible to serve on the board unless her name is added to the title or the community allows non-owners to serve on the Board. What about a person whose property is held in a Trust?
What to do if Board of directors fails to follow condo Act?
(When boards fail to enforce or follow rules and the Condo Act, owners may be able to seek a court order forcing them to comply–under Section 134 of the Ontario Condo Act.
Why are there vacancies on the Board of directors?
A: Vacancies on the board of directors caused by the resignation of a director is an area that frequently creates confusion. The election of the board members by the owners in condominium, cooperative, and homeowners associations is one of the basic rights of the owners, perhaps the most fundamental right.
Can a board of directors have business dealings?
Officers and directors can have business dealings with the association, but such transactions must be subject to considerable scrutiny. In such event, officers and directors must fully disclose any personal interests to the board of directors, and the terms of any transaction must be fair to the association.