A Strata Council runs a Strata Corporation. A Strata Corporation in BC is a legal entity that has legal rights and obligations. It is owned and controlled by the owners of strata lots which are often in the form of condos or townhouses.
The Strata Corporation, however, cannot function by itself. Therefore, like companies that are run by board of directors, the powers and duties of the strata corporation must be exercised and performed by a strata council, subject to some exceptions.
What Are The Strata Council Powers And Duties in BC?
Generally, the strata council manages, maintains and runs the Strata Corporation. Some powers and duties include:
- calling and facilitating annual and special general meetings;
- managing and maintaining common property and assets;
- preparing budgets and financial statements;
- collecting strata fees;
- collecting other money owed to the Strata Corporation;
- enforcing Bylaws;
- record keeping; and
- complying with the general obligations set out in the Strata Property Act and Regulations.
How are Council Members Elected and What are Their Positions?
Strata Councils are elected by eligible voters, in person or by proxy, at annual general meetings. In this regard, elections are held in accordance with strata bylaws. The process is democratic, and the eligible voters must elect:
- a president,
- a vice-president,
- a treasurer, and
- a secretary.
What are the Eligibility Criteria for Strata Council Members?
Persons eligible to become Council Members include:
- owners;
- individuals representing corporate owners (e.g., commercial strata lot owners); or
- tenants who have been assigned a landlord’s right to stand for council.
Strata Corporations may also pass bylaws at annual or special general meetings to allow other people to be council members too.
Who is Not Eligible?
If, however, a Strata Corporation registers a lien against an Owner’s lot based on the Owner’s failure to pay certain money, and the bylaws make an Owner non-eligible for that reason to become a Strata Council member, then that Owner may not stand or continue to be a member. For clarity, a Strata Corporation may register a lien against an Owner’s strata lot (subject to some exceptions) if the Owner fails to pay:
- strata fees;
- a special levy;
- reimbursement of the cost of work per a work order issued from a public or local authority; and
- the strata lot’s share of a judgement against the Strata Corporation.
How Many Strata Council Members are Allowed?
Strata Corporations may determine the number of people on council through its bylaws. As a result, strata council sizes vary from each strata corporation to the next. The Standard Bylaws (i.e., the default bylaws set out by the Strata Property Act), however, say that three (3) to seven (7) people may form a strata council:
- If a Strata Lot is owned by more than one person, then only one owner of the Strata Lot may be a strata council member at any one time, unless all the owners are on the council.
- If a Strata Lot is owned by corporation (e.g., commercial strata lot owners), then only one corporate representative may be a council member at any one time with respect to that lot.
- If a Strata Corporation is composed of four (4) or less owners, then all owners must be Strata Council members.
Do Council Members Get Paid in BC?
Strata Council members are volunteers, and therefore are not paid for their services. However, Council members may be compensated for their exercise of council powers or performance of duties if their cost is pre-approved:
- in the budget;
- in the bylaws; or
- by a resolution passed by 3/4 vote at an annual or special general meeting.
Strata Council Terms and Early Removal
A Strata Council member’s term ends after a new council is elected at an Annual General Meeting. Strata Council members, however, can be re-elected multiple times unless prohibited by a Strata Corporation’s bylaws.
If Owners have concerns about a Strata Council member, then the Strata Corporation may, by a resolution passed by majority vote at an annual or special general meeting, remove one or more members. After removing a council member, the Corporation must hold an election at the same annual or special general meeting to replace the members for the remainder of the term.
Alternatively, Owners may apply to the Civil Resolution Tribunal for the removal of one or more Council members.
If you are a new or existing Strata Corporation or council member and require legal advice as you navigate the world of strata, contact our experienced strata lawyers for a no-fee consultation at 604 974 9529 or get in touch.
Author: Harry Saini is a strata lawyer working at YLaw’s Auckland office, and specializes in all issues relating to strata corporations, council, members and tenants.