Financial Statements, Cheques, and Owners' Permission

Financial Statements

Generally, boards of directors obtain monthly financial statements from their management company or an accounting firm. These statements present what has been budgeted for each category (i.e., electricity) for each month and what was actually spent that month. A list of all cheques cut out for each category is attached to the statement.

A board who is accountable and has a policy of transparency may want to post a monthly financial statement on a bulletin board accessible to residents (rather than guests).


Have you ever wondered who signs cheques for expenditures in your condo corporation? Two signatures are required. Often, one is the designated person in the management company and the other is one or two designated board members, usually the treasurer and the president. Or both signatures come from the board of directors.

Owners' Permission

There is a general rule in the Ontario Condo Act that owners’ permission is required when a projected expenditure for an upgrade, an improvement, an addition, or a change is more than 10% of the current annual budget. Or, in any month, if the expenditure is more than either $1,000 or 1% of the budget. Owners can requisition a meeting to vote it down, even if it could be covered by an existing surplus. (Click here for Requisitioned Meetings)

However, expenditures that are necessary to maintain and repair the property are a board’s duty, no matter the cost. No permission is required and even a notification to owners is not legally necessary. It is nevertheless advisable and respectful to inform owners and engage them in the challenges faced.