Role of a Strata Council by Nizam Dossa

Individual owners who volunteer to be strata council members have always done so to ensure that their complex is properly run for the benefit of all of the owners and to also protect their own investment. Being a council member means meeting on a regular basis to discuss anything that has to do with the well being of the development (legally called a "strata corporation"). Among other things, this means addressing correspondence from owners, dealing with maintenance matters, and interpreting and enforcing the bylaws of the corporation. However, in accomplishing all of these matters, consideration of duty of care, accountability, and potential conflicts must playa role in order to demonstrate to not only the ownership, but also to potential owners, that everything is done above board and cleanly.

Section 31 of The Strata Property Act states that council members exercising their powers and performing their duties must (a) "act honestly and in good faith with a view to the best interest of the strata corporation", and (b) "exercise the care, diligence and skill of a reasonably prudent person in comparable circumstances". What does this really mean? It means that as a council member—keep it clean. No favouritism when dealing with two similar hardship rental applications and only allowing one, but not the other. No allowing an ex-council member who has served dutifully but now has a pet in contravention of the pet bylaw. And it certainly means no giving a contract for landscaping to a council member or someone associated with him or her without getting competitive bids.

This brings us directly to Section 32 which specifically and clearly states that a council member must (a) disclose to the other council members any direct or indirect interest in a contract or transaction with the strata corporation, (b) not vote on the contract, and (c) leave the council meeting while the matter is being discussed unless asked for input by the other members. While the old Condominium Act of British Columbia wasn't this specific, the new Act leaves no doubt. A strata management agent (property manager) knowing that a council member has an interest or perceived interest must also speak up as his or her responsibilities and duty of care is to the strata corporation. A manager takes direction from the strata council. He or she cannot bow down to them because accountability is to the ownership as a whole. Section 33 goes into the potential consequences that could befall a council member who doesn't uphold just principles of equity.

The last section on council members under Division 1 is Section 35. I dread the potential application of the provisions contained in it. This section allows for council member payment as long as it is a line item in the budget, in the by laws, or passed by a ¾ vote at an annual or special general meeting. While the thought is great, the practice is subject to abuse, as owners should not need the incentive of payment to be on council. On the flip side, council members don't need the aggravation of being told at a general meeting that they are, in essence, employees, of the strata corporation and be threatened with being "fired". Imagine owners talking down to other owners just because they are on council. If anyone doesn't like one or more council members, don't vote for them at the next Annual General Meeting and run for a position yourself. Payments to council members could also change the whole face and dynamics on the workings of a strata corporation as time limits on discussion on various matters is imposed because only "x" dollars are being paid for their time.

Council membership can be quite rewarding. It allows owners to participate in the management and administration of their development for the benefit of all of the owners. Any owner who has the time and desire to serve on council should run for office. He or she will then find out the difficult, and sometimes unpopular; decisions that have to be made. However, keep in mind the statutory responsibilities that the Strata Property Act puts on each member. The last thing any council member needs or wants, is to knowingly breach the Act and suffer the consequences that can follow. Remember, if you keep it clean and open, and act in a reasonable manner, you'll be fine.

Nizam Dossa is the author of Condo Minimums: A Buyer's Guide to Purchasing a Condominium in British Columbia. He also lectures at the college level on condominium buying and management.