Understanding and Addressing Dysfunctional Condominium Boards

A well functioning condominium board is crucial to the successful governance of a condominium corporation. Unfortunately, dysfunction can and does occur, leading to a host of issues that affect not only board members but also the entire condominium community. This article explores why dysfunction happens, how to move past these challenges, and what steps to take when dysfunction becomes insurmountable. 

Why Does Dysfunction Happen?

There are various reasons why a condominium board may become dysfunctional, and they often intertwine and exacerbate each other. Any group of people in a decision-making setting is prone to conflict and disagreement, which can arise from several sources. Differences in knowledge, reliance on inherent biases, different value systems, self-interest agenda or an unwillingness to accept facts can all contribute to discord. Not to mention that people’s experiences shape their values and belief systems, influencing what they consider important enough to prioritize in terms of time, resources, and money.

Let’s take our imaginary friends Peter and Samantha for an example. Peter, who has a utilitarian outlook in life, may always ask, “What is the utility of this?” Meanwhile, Samantha, who values aesthetics, may prioritize how things are perceived by the community, even if they lack immediate practical benefits. Additionally, personality clashes, grudges, or unresolved personal issues can spill over into board operations, making collaboration difficult. While the diversity of experiences and perspectives can enrich the board’s functioning, it can also lead to dysfunction when not managed effectively.

Dysfunction can also arise from operational issues such as having a lack of clear roles and responsibilities. When board members are unclear about their roles or the scope of their authority, confusion and potential power struggles can emerge. Poor communication is another breeding ground for dysfunction. Ineffective communication—whether due to misaligned expectations, lack of transparency, or personal conflicts—can erode trust and cooperation, further destabilizing the board’s operations.

What does a Dysfunctional Board/Individual look like?

A dysfunctional board is characterized by its inability to effectively govern and manage the condominium corporation. This can be due to chronic inaction or gridlock because the board is unable to make decisions or implement policies, often leading to delays and stagnation in key projects. Meetings may be dominated by personal agendas, poor communication including personal attacks, or a general lack of respect, harassment and bullying which result in overshadowing productive discussions. There may be a lack of transparency when decisions are made behind closed doors, without input from all board members or the wider community when applicable, leading to mistrust. Alternatively, the Board may neglect its legal statutory duties and obligations, such as conducting due diligence,  holding regular meetings, maintaining proper records, or adhering to the Condominium Act.

Dysfunction can also manifest itself in an individual board member in a variety of ways. Micromanagers/ Control Freaks, who refuse to delegate or undermine the work of others, such as the property manager, can stifle productivity and collaboration. Absentee members/ Non-Doers, who rarely attend meetings or fail to participate meaningfully, contribute to dysfunction by neglecting their responsibilities. Dominant personalities, who monopolize discussions and refuse to listen to others, create an imbalanced and unproductive environment for Board communication. Additionally, dysfunction may arise from board members who are ignorant, disrespectful, or uncivilized, refusing to accept facts or credibility while spreading misinformation. Such individuals may bully or harass others, making decisions personal rather than focusing on what is best for the condominium corporation, thereby undermining the board’s functionality.

How to Move Past Dysfunction

Addressing dysfunction requires a concerted effort and willingness to engage in difficult conversations. The first step is acknowledging the presence of conflict and demonstrating a commitment to resolving issues and de-escalating tensions. From there, the following steps can help restore functionality:

• Clarify Roles and Responsibilities: Ensure all board members understand their duties, the scope of their authority, and the collective goals of the board. Consider creating a code of conduct or revisiting existing governance documents.
• Foster Open Communication: Encourage open, respectful dialogue. Regular, well-organized meetings with clear agendas can help keep discussions focused and productive.
• Practice Active Listening: Show that you value others’ input by restating what you’ve heard in your own words, such as, “So if I’m hearing you correctly…”. Continuously improving listening skills can enhance understanding and collaboration.  
• Ask Open-ended Questions: Use open-ended questions to explore the underlying reasons for disagreements. Questions like, “What do you think the outcome would be? What are the consequences of each path? Why is this important to you?” can help uncover values and beliefs.
• Engage in Training and Education: Provide opportunities for board members to attend workshops or courses on condominium governance, legal obligations, and conflict resolution.
• Seek Mediation: If personal conflicts or differing agendas are causing dysfunction, consider engaging in a neutral third party, such as a mediator, to help facilitate discussions and find common ground.
• Involve the Community: Enhance transparency by involving the condominium community in decision-making processes. This can help build trust and ensure that the board’s actions reflect the interests of the wider community.

• Critical Thinking: Promote critical thinking by analyzing risks, remaining open-minded, and being willing to reconsider positions when new information or perspectives emerge.

What to Do When You Can’t Move Past Dysfunction

It is important to remember that section 37 of the Condominium Act, 1998 (“The Act”) outlines the standards of care and liability for directors and officers of condominium corporations in Ontario. Establishing the expectations for how directors and officers should perform their duties and provides guidelines on their legal responsibilities and protections. “Ensuring they act in the best interests of the corporation and its members.”

But in some cases, despite best efforts, dysfunction may be too deeply entrenched to resolve internally. In these situations, it may be necessary to take more decisive action. Under section 46 (1) of The Act, unit owners have the right to call a requisition meeting to discuss concerns about the board’s performance. This can lead to a vote on removing and replacing dysfunctional board members.

Requisition for meeting

46 (1) Subject to subsection (2), a requisition for a meeting of owners can only be made by those owners who, at the time the board receives the requisition,

(a)  own at least 15 per cent of the units;

(b)  appear in the record of the corporation required by section 46.1 or are required by that section to appear in that record; and

(c)  have no contributions to the common expenses payable for their units that have been in arrears for 30 days or more. 2015, c. 28, Sched. 1, s. 40.

Purpose of meeting

(4) A requisition for a meeting of owners may be called for any of the following purposes:

1.  An information meeting of owners being a meeting at which no vote shall be taken on any matter other than routine procedure.

2.  The removal or the election of one or more of the directors.

3.  Any other purpose for which this Act or the regulations permit the owners to requisition a meeting of owners. 2015, c. 28, Sched. 1, s. 40.

If the board is violating its legal obligations, it may be necessary to seek legal counsel to explore options such as court intervention or applying to the Condominium Authority Tribunal (“CAT”). Additionally, the Condominium Authority of Ontario (“CAO”) provides resources and dispute resolution services that can help address governance issues and mediate conflicts. Lastly if dysfunction still persists, at this point it is important to move the conflict outside of yourselves and let a third party decide on the issue.

Conclusion

Dysfunctional condominium boards can significantly impact the quality of life for residents and undermine the value of unit owner investments. Understanding the root causes of dysfunction, recognizing the sings of a dysfunctional board or individual, and implementing effective strategies can help to address and overcome these challenges. While it may require patience and persistence, the goal is to create a board that operates collaboratively, transparently, and in the best interests of the condominium community.  If internal efforts prove unsuccessful, seeking external assistance or utilizing legal remedies may be necessary to restore the board’s functionality and ensure the well-being of the condominium corporation.