How long can a condo director serve? Thai is, what is the term of a condo director?
The Condominium Act 1998 stipulates that a condo director can serve at most three years, but if the By-laws of the condominium corporation say the term is shorter, then it’s the shorter term.[1]
When the term expires, the position is up for election. The same person can run as a candidate for the same (or a different) position on the Board. Nevertheless, other people can also run for the same position against the incumbent candidate.
If at the end of his/her term, a director does not want to run for the Board again, but there is no other person wants to fill up the vacancy, this director may (i.e. if he/she agrees to) continue to act as a director until a successor is found – even if it means the term is longer than three years.[2]
If a board consisting of five members has five new faces elected at the same AGM (Annual General Meeting), this would disrupt significantly the continuity of operations of the condo.
In order to minimize the chance of such happening and make the transition smooth, at the very first meeting (in legalese: the turnover meeting) the condo builder (in legalese: the Declarant) turns over the affairs of the condominium corporation to the owners of the condo, they help elect five directors. Usually (but no always), these five first directors are of different terms: two for a 1-year term, two for a 2-year term, and one for a 3-year-term.
After one year, the terms of those two 1-year directors expire and are up for election. The newly elected directors (it could be the same two persons, or two new faces) now start to serve 3-year terms.
After two years, the terms of those two 2-year directors expire and are up for election. The newly elected directors (same or different persons) now start to serve 3-year terms, too.
After three years, the term of the 3-year director expires and is up for election, The newly elected director (same or different person) now also serves a term of three years.
After that, all terms are of three-year durations. So every year, there are one or two positions on the Board up for election.
A director is expected to, but not obligated to serve the full term. There are many reasons why this may happen, and the most common reason is a director resigns. Other reasons are, touch wood, a director dies, or does not meet the qualifications of being a director. (Read more about the qualifications of being a condo director here.)
When a director cannot fulfill his/her term, the rest of the board may decide (by majority vote if they cannot all agree) to appoint some person to be a member of the Board. Of course, this person has to meet the basic qualifications of being a condo director.
This director, appointed but not elected, can only serve until the next Annual General Meeting (AGM), [3] even if the remaining term of the resigned director may be longer than one or two years.
[Note 1] Condominium Act 1998 Section 31, subsection (1):
A director is elected for a term of three years or such lesser period as the by-laws may provide.
[Note 2] Condominium Act 1998 Section 31, subsection (2):
A director may continue to act until a successor is elected.
[Note 3] Condominium Act 1998 Section 34, subsection (2):
If a vacancy arises in the board and a quorum of the board remains in office, the majority of the remaining members of the board may appoint any person qualified to be a member of the board to fill the vacancy until the next annual general meeting.
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