ARTICLE
25 August 2025

Principles Of Condo Governance: Doing The Right Thing

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Miller Thomson LLP

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Miller Thomson LLP (“Miller Thomson”) is a national business law firm with approximately 500 lawyers across 5 provinces in Canada. The firm offers a full range of services in litigation and disputes, and provides business law expertise in mergers and acquisitions, corporate finance and securities, financial services, tax, restructuring and insolvency, trade, real estate, labour and employment as well as a host of other specialty areas. Clients rely on Miller Thomson lawyers to provide practical advice and exceptional value. Miller Thomson offices are located in Vancouver, Calgary, Edmonton, Regina, Saskatoon, London, Waterloo Region, Toronto, Vaughan and Montréal. For more information, visit millerthomson.com. Follow us on X and LinkedIn to read our insights on the latest legal and business developments.
A condominium is not a monarchy, but a democracy. Almost every director of a condominium corporation first obtained their positions by election, but even if they were first appointed to the role...
Canada Real Estate and Construction

"The important thing is not what they think of me, but what I think of them" ~ Queen Victoria

Condo boards are democracies, not monarchies

A condominium is not a monarchy, but a democracy. Almost every director of a condominium corporation first obtained their positions by election, but even if they were first appointed to the role, they will need to be elected if they want to continue in the job. Despite this, the quotation above rings true for any director who wants to be truly effective in his or her role.

Why electability shouldn't trump responsibility

A significant problem with democracies (all of them) is the risk that, instead of ensuring the most committed and capable are chosen by their peers to be their leaders, elections can become little more than popularity contests, where slick sophistry defeats real intelligence, and charismatic charm outshines conscientious concern. As individuals wanting to be members of the board of your condominium community, you need to avoid being those kinds of candidate. You need, in effect, to not care about being elected.

The hidden cost of leading by popularity

When leaders are more concerned about electability than responsibility, the organizations they lead will suffer. They can be too easily manipulated by whoever complains the loudest, and may be too intimidated by popular opinion to make decisions that really matter.

Making the right decisions – Even when they're unpopular

Being a good condominium director often means deciding or doing things that some owners and occupants won't like, especially if your focus is – as it should be – on deciding and doing what is right and good for the community as a whole, but not necessarily for every individual in it. The right thing to do is not always what is demanded by those who complain the loudest, or even by those who constitute a majority. It is, rather, always about what actually serves their best interests, even if it is not the most popular or preferred choice.

Legal standards: What the Courts expect from condo boards

In this regard, the Court in Wu v Peel Condominium Corporation No. 245 stated that that "the Board is charged with the responsibility of balancing the private and communal interests of the unit owners, and [the Board's] behaviour must be measured against ...[its duty] to the ownership at large." The Court concluded, "[i]n carrying out its duty, the corporation must act in the best interests of all the owners and endeavour to achieve the greatest good for the greatest number."

Fulfilling the duty of care in condo governance

Additionally, the courts further affirm that doing the right thing is not just characterized by this balancing of individual and collective interests, but by doing this in a way that complies with the board's legal standard of care. Referencing the standard set out in Ontario's Condominium Act, 1998, the Ontario Court of Appeal in 3716724 Canada Inc. v. Carleton Condominium Corporation No. 375stated that "the first question for a court reviewing a condominium board's decision is whether the directors acted honestly and in good faith and exercised the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances." When the board does this, the Court affirms that "the board's balancing of the interests" will almost always have been fair and reasonable, and will attract the court's support.

Serving with integrity: The hallmark of an effective board

So, as the great queen suggests, what should matter to you most is not what your unit owners are thinking of you, but what – and how – you are thinking of them.

Doing the right thing just because it is the right thing might not always be popular or result in getting re-elected, but it will always be a consistent characteristic of a condominium corporation's best board.

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