Composition of the board of directors

 

The Board of Directors (the Board) is made up of members called directors. Their appointment is subject to certain formalities. In this regard, article 1084 of the Civil Code of Québec provides that the composition of the Board of the syndicate, the method of appointment, replacement or remuneration of the directors, as well as the other terms and conditions of their office, are fixed by the by-laws of an immovable.

Number

The number of directors on the Board varies according to the needs of the co-ownership. It is up to the author of the declaration of co-ownership, namely the declarant, or to the general meeting of co-owners, to determine their number. It often varies according to the size of a co-ownership. The larger it is, more directors are appointed.

It is preferable to have an odd number of directors. Although there is no obligation in the Law in this regard, this approach limits the risk of deadlock during the decision-making process. That being said, is not full proof since it does not resolve the occurrences where a director is absent or abstains from voting.

Provisional director

In a newly built immovable, the administration is provided for a certain period by a provisional director. Appointed by the developer to act as the first director of the syndicate, he exercises the functions of the Board of directors from the publication of the declaration of co-ownership. His mandate ends with the election of a new Board of Directors, to be held at the Special Transitional General Meeting.

Sole director

In co-ownerships comprising three apartments or less, the most common formula used is that of a sole director. This approach is very often criticized, because it comes down to entrust the destiny of the co-ownership to a single person, who most of the time is a co-owner. The potential for conflict related to the decision-making process and to the internal management of the co-ownership is enormous. In order to counter this concentration of power in the hands of a single individual, some co-ownerships prefer that one director per dwelling unit be appointed.

Co-ownership by phases

In co-ownerships built in phases, it is common for the initial declaration of co-ownership, which governs all the co-owners, to provide that the Board (of the initial co-ownership) be made up of a director appointed by each of the syndicates of co-owners resulting from a concomitant declaration of co-ownership. Thus, each co-ownership can be represented by a person chosen, generally, among the directors of each of the concomitant co-ownerships.

Mixed use co-ownership

The composition of the Board in mixed-use co-ownerships is often governed by a special clause: the co-owners of commercial units have the prerogative of designating at least one or more directors to the Board. This ensures them a minimum level of representation on the Board.

 

http://fr.condolegal.com/images/stories/boutons/bon-a-savoir.png WHAT YOU SHOULD KNOW! Directors play a key role in the sound management of the co-ownership. They must therefore be chosen carefully. The general meeting of co-owners usually has the task of appointing them.

http://www.condolegal.com/images/Boutons_encadres/A_retenir.png WHAT TO KEEP IN MIND: To limit the risk of the Board being dead locked, because of a division of votes favoring its almost systematic stalemate, the by-laws of the immovable should provide for an odd number of directors.

http://fr.condolegal.com/images/stories/boutons/plot-attention.jpg WARNING! The Board can only be composed of natural persons, whether they are co-owners or not in the immovable.

 CONSULT THE PUBLICATION: Guide de procédure et de fonctionnement des assemblées des co-propriétaires (Procedure and Operation of Co-owners Meetings Guide).

 

Back to the mega-factsheet Board of Directors