Board Responsibilities Vs. The Management Responsibilities

Board Responsibilities Vs. The Management Responsibilities

A back-to-basics approach can create stronger relationships.

Managing a condo corporation can be challenging, especially when communication becomes difficult. It may seem like everyone is on a different page, but this can be avoided with the right approach. In this regard, let’s look at how boards and condo managers can work together to create a peaceful and harmonious community.

The best boards are those who prioritize their condo and work towards making it an inclusive community for all residents. These boards understand the importance of time management, effective communication, seeking mentorship, patience, and being open to learning and listening. At New Concept Management Inc., we are fortunate to work with some of the best boards in the condominium community. It’s also important to remember that no condo board or management company is perfect, and conflicts can arise from time to time. How you handle the situation makes a world of difference. A board and manager can take a few essential steps to build a healthy business relationship.

The board vs. The condo Manager:

The board of directors and management both have distinct responsibilities in ensuring the success of a corporation. The board is responsible for the bigger picture, setting the overall direction and strategy of the corporation, which is known as Governance. In the case of a condominium, the board of directors must manage the corporation as a business and follow a set of Bylaws along with the Condominium Property Act of Alberta, to safeguard the assets and interests of all owners. They must perform various tasks, such as maintaining the common property, managing finances, and creating policies that promote harmony among the residents who live in a multi-family environment. Four primary roles must be fulfilled on a Board.

  1. President: they are responsible for overseeing the condominium corporation, communicating directly with the manager, setting the agenda, leading the board meetings, and presenting at the Annual General Meeting.
  2. Vice-President: is responsible for assuming the president’s duties in their absence and providing support when needed.
  3. Treasurer: The treasurer is responsible for overseeing the condo’s finances. This includes ensuring the accuracy of financial statements, creating a budget in a timely manner, and maintaining a sufficient reserve fund. Additionally, the Treasurer may be responsible for presenting a reserve fund investment plan to the board and presenting the year-end audit to the ownership.
  4. Secretary: is responsible for taking minutes at meetings. In practice, this roleis often partly carried out by a manager.

Many condominium boards hire licensed management companies to administer the Condominium Corporation, in compliance with the Alberta Condominium Act and Regulations. The management companies are bound by the Corporation budget, Board policies, and Corporation By-Laws, and their responsibility is to oversee the activities related to the maintenance of all common areas, prepare statutory documents, and serve as a mediator between the Board of Directors and individual Owners.

Effective communication is crucial to maintaining a successful working relationship between the condo board and the manager of your condo corporation. To make communication smoother, appointing a liaison who can convey the board’s needs to the manager is beneficial. This way, the manager won’t have to take direction from different board members, which can be confusing and complicated. It’s also important to note that the Board can delegate authority to the Management Company, but it cannot delegate any of its responsibilities under the Act. It’s crucial to have regular meetings with the manager to discuss condo corporation matters rather than going long periods without communication. Don’t hesitate to provide feedback to your condo manager, whether it’s positive or negative. If there is a problem, address it immediately, professionally, and impartially. And when things are going well around the condo community, give positive feedback to your condo manager.

This article provides a brief overview of board and management responsibilities. It should not be considered legal advice, but strictly my opinion.