Governance Policies Every Condo Board Should Have

Governance policies rarely make anyone’s “favourite reading” list, yet they quietly shape almost every decision a condo board makes. When policies are clear and well-thought-out, boards operate with confidence and consistency. When they are missing—or impossible to find—boards struggle, decisions become inconsistent, and risk increases.

Strong governance policies help condo boards make consistent decisions, protect directors, reduce risk, and ensure continuity as boards change over time. Without them, boards rely on memory, habit, and personality—none of which scale well.

In this post, you’ll learn:
– What governance means in a condo board context
– Which governance policies every condo board should have
– Why records management and privacy are often overlooked
– How clear policies support better decision-making and reduce risk

What Policies Do Condos Need?

Every condominium corporation relies on a small set of core policies to guide directors in governing, managing finances, communicating, and protecting records. Surprisingly, many boards focus on creating policies without considering where they are stored, how they are accessed, or how future directors will know which version applies.

Good governance is not just about having policies; it is about ensuring they are usable, up to date, and understood by the people who rely on them.

Every board should have policies for governance, financial management, communications and records management.

The last one—records management—is often overlooked. Many boards do not think about where their policies live, how they are accessed, or how directors know which version is current. Yet records management is just as important as the policy itself.  A policy no one can find—or trusts—is not much use.

In an earlier post on effective condo board communication, I outlined best practices. This post builds on that work. It starts with a brief overview of governance and then outlines several governance policies every condo board should consider. The goal is practical: to help boards create a governance policy checklist that supports better decision-making.

What is governance?

Before looking at specific policies, it helps to step back and clarify what governance actually means in a condominium context. The term is often used loosely, yet it carries real weight for boards tasked with making difficult decisions on behalf of the corporation.

Governance is a large topic, and this post only scratches the surface. Still, a bit of context is helpful. The (IOG) provides an excellent overview of governance principles, including a short introductory video. While their work is not condo-specific, the concepts apply directly to boards.

In the webinar “Governance at Home: The Wild West of Condo Boards,” governance is discussed specifically in the condo context. Simply put, governance is the process of steering and controlling the condominium corporation.

Boards are given significant authority—but that authority is constrained by fiduciary responsibility. Directors must act in the best interests of the corporation, not their own personal interests. Establishing clear governance policies is one of the best ways to guide boards in fulfilling that responsibility.

So what governance policies does a condo board actually need?

Code of Ethics

Every condo board should have a written code of ethics. This policy sets expectations for how directors behave and handle information.

One essential clause addresses confidentiality. Directors must not share privileged board information outside the boardroom. What is discussed at meetings stays in the boardroom—not with spouses, neighbours, or other owners. When the meeting ends, directors take off their board hat and put on their owner hat.

A code of ethics is often where boards first confront the seriousness of governance.

Conflict of Interest

Condo boards manage significant sums of money. Avoiding conflicts of interest is therefore critical—and often more complicated than expected.

If a director has a direct or indirect material interest in a contract or transaction, that conflict must be disclosed. In Ontario, Sections 40 and 41 of the Canadian Condominium Act, 1998 outline the required process. Other jurisdictions have similar rules, but boards should always confirm local requirements.

A director with a conflict of interest must not participate in discussions or decision-making on the matter. When in doubt, disclosure is always the safer path.

Making decisions in the corporation’s best interest is challenging enough. Ensuring there is no real—or perceived—conflict adds another layer of responsibility. This article provides an excellent overview of how boards can avoid conflicts of interest.

Condo boards manage significant amounts of money.  Avoiding conflicts of interest is harder than it seems, even when the concept is well understood.  A director who has a direct or indirect material interest in a contract or transaction must follow specific guidelines to disclose the conflict.  In Ontario, the Condominium Act (Sections 40 and 41 of the Act, 1998) describes a process for reporting conflicts in condominiums.  Other jurisdictions likely have similar guidelines, but check.  Directors with a conflict must not participate in the discussion or decision at the board meeting.  Always err on the side of caution and disclose any possible conflict of interest.

But it is necessary if a director is to prevent a conflict of interest.  Making decisions in the best interest of the corporation is already challenging, and ensuring that no conflict of interest or appearance of one exists adds further complexity. This article on avoiding conflicts of interest on condo boards explains how to avoid them.  conflicts of interest.

Privacy

At the same time, privacy policies are increasingly important, especially as condos adopt more technology.

Many corporations install security cameras in common areas before deciding how to handle the footage. Who can view it? How long is it retained? Should current or future directors have access? These questions matter.

Boards must balance privacy with safety. I do not want my board knowing who comes and goes from my home—and neither do most owners. At the same time, law enforcement may legitimately require access to footage in serious situations.

Email raises similar issues. Boards often overlook questions such as:

• What happens to personal emails between a director and an owner?
• Which email address is used for board business?
• How long are emails retained, and where?
• What happens when an owner becomes a director and gains access to past complaints about themselves?
• Are decisions made by email properly recorded in the minutes?

Creating a privacy policy that protects owners while supporting security and governance is not easy—but it is necessary.

Rules

As a result, boards also need clear policies on rule enforcement. Some boards quietly stop enforcing certain rules. When that happens, the rule should be revised or removed.

An annual rule review is ideal, though some communities may choose a longer cycle. Rules are generally easier to amend than other governing documents. Updating them is far better than ignoring them.

Meeting Protocol

Many people suggest using Robert’s Rules of Order for board meetings. In practice, they are often too complex for regular monthly meetings.

That said, using some elements of Robert’s Rules can be helpful, particularly as preparation for the AGM, where meetings are larger and more procedural. Many boards adopt simplified rules of order instead. If you have experience with alternatives that work well, I would love to hear about them.

Final Thoughts

Ultimately, these policies form the backbone of a condo board’s governance framework. A future post will focus on the financial policies every board should have in place.

Do you have suggestions for governance policies that have worked well for your board? Or questions about the ones listed here? I respond to every comment.