The housing company board chair: duties, liability and information
In this article
The Limited Liability Housing Companies Act has no single section listing the responsibilities of the board chair; the provisions are spread across the Act. But the law is only part of the role: the chair can also make sure that the board gets the information it needs about the building.
The chair’s duties under the law
The section references are to the Limited Liability Housing Companies Act (asunto-osakeyhtiölaki, 1599/2009; in Finnish) (opens in a new tab).
Election (chapter 7, section 8)
If the board has several members, a chair must be elected. The chair is elected by the board, unless otherwise decided when the board was elected or otherwise provided in the articles of association. The property manager may act as chair only if the articles of association provide for it or all shareholders consent.
Board meetings (chapter 7, section 5)
The chair is responsible for ensuring that the board meets when necessary. A meeting must be convened if a board member or the property manager requests it. If the chair does not convene a meeting despite such a request, the notice can be sent by a board member, provided at least half of the members approve, or by the property manager alone.
Casting vote (chapter 7, section 3)
The board’s decision is the opinion supported by the majority, unless the articles of association require a qualified majority. If the votes are tied, the chair has the casting vote. In the election of the chair, a tie is decided by drawing lots, unless otherwise provided. The board has a quorum when more than half of its members are present.
Minutes (chapter 7, section 6 and chapter 6, section 23)
The minutes of a board meeting are signed by the chair of the meeting and, if the board has several members, by at least one member chosen by the board or by the property manager if present at the meeting. The minutes are numbered consecutively and stored securely.
The minutes of the general meeting must be made available for shareholders to inspect at the property manager’s or the board chair’s premises no later than four weeks after the meeting. The chair of the general meeting is elected separately at the meeting and is not automatically the board chair.
Is the chair’s liability greater than other members’?
Not under the law. The chair is subject to the same provisions on the duty of care (chapter 1, section 11), conflicts of interest (chapter 7, section 4) and liability for damages (chapter 24, section 1) as other members. In practice, however, the chair’s role may affect what can reasonably be expected of them: the chair leads the board’s work and is often the property manager’s main point of contact. Liability is explained in more detail in the article on the responsibilities of a board member.
The chair is neither the housing company’s managing director nor its property manager. Their most important task is to create the conditions for the board to get the information it needs and make decisions together.
Three questions you should be able to answer
If a shareholder asked you today, what would you say?
- What is the company’s most critical repair need over the next two years?
- Has it been provided for in the budget, and if not, how will it be financed?
- When did a professional last inspect the building, and what did they recommend?
If any answer comes down to guesswork, the board has a clear task to work on.
Putting observations to use
The board does not visit every apartment or walk through every stairwell every day. The first people to notice the start of a moisture problem, unusual noises in the pipework or ventilation getting weaker are those who live in the building. When a resident reports a damp smell and it is investigated quickly, the repair may stay small. If the observation goes unreported or nobody reacts to it, extensive damage may follow.
Shareholders’ expertise
A housing company may have residents who are construction or electrical professionals, lawyers or experienced project managers, yet nobody ever asks for their expertise. The chair can ask a knowledgeable shareholder to comment on a particular project or gather views through a survey. Decision-making power remains with the board and the general meeting.
Tenants
Tenants have no vote at the general meeting, but they use the building in the same way as owner-occupiers and may be the first to notice a broken door or a damp smell. Make sure that notices and fault reporting instructions reach them too.
How to increase participation
Communicate regularly. Even a short notice about upcoming work and decisions made builds trust.
Ask. Have you noticed any problems? What risks do you see in the property?
Make reporting easy. Clear instructions on where and how to report faults lead to more reports. See reporting a fault in a housing company.
Respond to every observation. Not all of them lead to action, but when people feel they have been heard, they will report again next time.
You don’t have to do everything yourself
The chair does not need to be a property professional. Tasks can be shared among board members, and the property manager prepares matters and sees to their implementation. When information and expertise are not concentrated in one person, the board can keep functioning even when a long-serving chair moves away. The role of an ordinary member and getting up to speed are covered in the article on being a housing company board member.
Legal provisions at a glance
| Topic | Provision |
|---|---|
| Election of the chair | Chapter 7, section 8 |
| Board meetings | Chapter 7, section 5 |
| Decision-making and casting vote | Chapter 7, section 3 |
| Board minutes | Chapter 7, section 6 |
| Availability of general meeting minutes | Chapter 6, section 23 |
| General duties of the board | Chapter 7, section 2 |
| Duty of care | Chapter 1, section 11 |
| Conflicts of interest | Chapter 7, section 4 |
| Duties of the property manager | Chapter 7, section 17 |
| Liability for damages | Chapter 24, section 1 |
This article provides general information and does not replace case-specific legal or technical advice.
