How Boards Work

Condo Governance

Condominium governance is the process by which the condo board directs and oversees the affairs of the condo corporation. Condo boards are legally responsible for directing the condo corporation, ensuring its legal obligations are met and that the condo corporation acts in the best interests of the owners.

Summary

Good governance practices keep the corporation running smoothly

On this page

The CAO’s four foundations of good governance
Developing a skills matrix

Four Foundations of Good Governance

Here are the four foundations that boards must adopt to ensure good governance:

Developing key competencies

Understand the Condo Act and governing documents
Develop good governance practices
Be responsive to your condo community’s needs

Meeting the standard of care

Financial due diligence
Proper risk management
Condo manager oversight
Disclosed conflicts of interest

Establishing proper condo board composition

The right size, structure, term limits
Defined roles for the President, Secretary, Officers
Use a skills matrix to fill vacancies

Maintaining good owner relations

Keeping owners informed
Soliciting feedback

Read our governance guide for more info

Developing a Skills Matrix

Boards that understand the mix of skills they need to carry out their duties can map these out in a skills matrix and use it table to identify the kind of profile of director they need to round out what skills current directors are missing.

For example, a board that has directors with experience in the finance world may identify that they need to find a new director with legal, project management or asset management experience through a matrix.

See page 20 of our Governance Guide for a sample matrix

Governance Guide