I have done a lot of director education for condominiums and one of the biggest sections is on ethics (it permeates the entire course). The message is that as a director you have specific duties and responsibilities, and those include ensuring that you never act in a conflict of interest.
Rob Ford is about to set a terrible example for the hundreds of thousands of board members out there – and the losers will be the owners in each of those condominium corporations.
Here is what is already being positioned – that his act of using corporate resources he shouldn’t have, and more importantly, the clear act of voting in a conflict of interest, should be overlooked. To be clear, it’s not contested by any that he took improper actions – just if it’s improper to find him guilty for the actions.
The National Post, a huge supporter of his, reports that Mr. Ford indicated his actions weren’t inadvertent, were not a judgment error, and were wrapped in a sense of entitlement, dismissiveness and confrontation.
If he fights the judgment, and is successful, then we are about to see a rash of similar actions performed by condominium corporations throughout Canada.
With Mr. Ford being a city Mayor – at least some scrutiny from the media and the public exists. There is some transparency of action and record that may be examined. With condominium boards the transparency is non-existent, and the records are far from detailed. Further, most provinces have little or no teeth for owners to vet, verify, or hold accountable their board.
Every week I get more news of an abusive board, or one that functions outside their bounds or limits. While I reference here a US report, it is applicable to Canada – the Colorado 2011 Annual Report of the HOA Information and Resource Centre indicates that abuse by the board is becoming owner’s number one complaint – eclipsing even people, parking and pets.
So what’s Rob Ford example to condominium board members that already act without real or enforceable oversight – do what you want, use corporate resources as you wish, remain unapologetic, and ignore conflict of interest rules.
Oh help our owners.
