Conflict of interest on council: disclose, abstain, leave the room
Hiring a council member's company is not forbidden. Hiding the connection is. Section 32 sets out three steps, and the minutes are the proof they happened.
In a volunteer council drawn from a small building, interests overlap constantly: the treasurer's spouse cleans gutters, a member owns the unit beside the leak, someone's brother is the cheapest plumber in town. The Strata Property Act does not pretend this away. Section 32 sets a procedure for it, and councils that follow the procedure to the letter can transact honestly with people they know.
What section 32 requires
A council member who has a direct or indirect interest in a contract or transaction with the strata corporation, or in a matter that is or is to be considered by council, where that interest could conflict with their duty, must do three things: disclose the nature and extent of the interest fully and promptly to council, abstain from voting on the matter, and leave the council meeting while the matter is discussed and voted on. All three. Disclosing and then staying to argue the case fails the section just as surely as saying nothing.
The minutes are the evidence
Nothing protects a council member like a clean line in the record: "Item 7, gutter cleaning contract. D. Lee disclosed an interest as the owner of the bidding company, left the meeting at 7:41 pm, and did not vote. Council discussed two quotes. MOTION: moved and seconded to award the contract to Lee Exteriors for $1,200. CARRIED. D. Lee returned at 7:52 pm." Four sentences, and any owner, buyer, or tribunal member reading the file years later sees the section was honoured. A conflict handled properly but minuted vaguely looks identical to a conflict concealed.
What counts as an interest
The obvious case is money: the member or their business stands to gain from the contract. Indirect interests count too, which reaches spouses, close family, and businesses the member benefits from. Not every opinion or neighbourly stake is a conflict; owning a strata lot near the repair, on its own, is usually just being an owner. When a member is unsure, the inexpensive answer is to disclose anyway and let the remaining members proceed. The Act also provides remedies where an undisclosed interest comes to light, including court-ordered accounting for profits, so the stakes of silence are real.
Keep the meeting workable
When a member leaves the room, check your quorum: under Standard Bylaw 16 a council of five or six needs three members present. If departures break quorum, defer the item rather than pushing through. And handle the discussion itself with restraint in the minutes: record the decision and the process, not speculation about the absent member. Our guides to council roles and quorum cover the machinery around this.
Let us handle the minutes themselves
StrataMinutes turns your council's rough notes into complete, professionally formatted minutes that meet the requirements of the Strata Property Act, usually within minutes. Every document comes with a compliance checklist.
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This page is general information for BC strata councils, not legal advice. Always check your strata's registered bylaws. See sections 32 and 33 of the Strata Property Act, Part 4 on BC Laws.
Related guides
Council Roles
Quorum Rules
Removing Members
Minutes as Evidence