Powers of the OSBB chair and board: what the meeting decides and what the board decides
Author: Svitlo-Lux editorial team. Published , updated . Review (legal): approved (Project owner).
Facts on this page were checked against official sources as of ; next check by . Terms change: open the official source before making a decision.
The powers of the OSBB (condominium association) chair are often overestimated: the chair does not decide on a project alone. The law divides functions among the general meeting, the board and the audit commission, and leaves the details of the chair’s powers to the charter.
Three governing bodies
The governing bodies of an OSBB are the general meeting, the board and the audit commission. The meeting is the supreme body. The board is the executive body and is accountable to the meeting. Control over the board’s financial and economic activity is exercised by an audit commission or an auditor elected by the meeting from among the co-owners, or the meeting decides to engage an outside auditor.
| Body | What it does in the project |
|---|---|
| General meeting | Approves the cost estimate, sets the procedure, list and amounts of contributions, elects the board, approves large contracts |
| Board | Prepares the cost estimate, manages funds under the approved cost estimate, concludes contracts for works and services and monitors their performance, keeps records, monitors payment of contributions |
| Audit commission | Monitors the financial and economic activity of the board |
| Board chair | Elected under the procedure set by law and the charter; the scope of powers is specified by the charter |
What belongs exclusively to the meeting
The issues within the exclusive competence of the meeting under the law include: approving the cost estimate, balance sheet and annual report; setting the procedure for paying, and the list and amounts of, contributions and payments; deciding on reconstruction and repair of the building; use of common property; electing board members; setting the amount of remuneration for the chair and board members; and prior approval, before conclusion, of contracts for an amount exceeding the one stated in the charter, as well as of contracts concerning common property.
For a project this means a simple rule: the board prepares, the meeting approves, the board executes within what has been approved. Decisions taken by the board outside the cost estimate can be challenged.
What about the chair’s powers
The provisions of the law we reviewed say that the board chair is elected, replaced and removed under the procedure provided by the charter, and that the first board and chair are elected by the founding meeting. We did not find in these articles a separate list of the chair’s powers, such as the right to sign contracts or manage the account, so we claim nothing beyond this.
What to check in your charter
- who signs contracts on behalf of the OSBB;
- who manages the account and whether two signatures are required;
- the threshold amount above which a contract is approved by the meeting;
- the term of office of the board and the chair;
- the procedure for the chair’s report to the meeting.
The special martial law exception
The final provisions of the law contain a temporary rule for buildings damaged by hostilities in certain territories: the board may independently decide on restoration using grant aid and the remainder of the reserve fund while martial law is in effect and for one year after it. This rule concerns restoring a damaged building, not installing backup power. Whether it covers your case can be decided only by a lawyer.
Who does what at each step of the project
| Action | Who decides or performs it | Which document remains |
|---|---|---|
| Preparing the draft cost estimate | Board | Cost estimate version with date |
| Approving the cost estimate | General meeting | Minutes and voting results |
| Setting contributions | General meeting | Decision on the procedure, list and amount |
| Calling a written survey | Board and the commission it creates | Board decision, survey sheets |
| Concluding a contract within the cost estimate | Board | Contract signed by an authorized person |
| Contract above the charter threshold | Prior approval by the meeting | Extract from the minutes |
| Annual report on the execution of the cost estimate | OSBB to the meeting | Report and approval |
| Checking financial activity | Audit commission or auditor | Act or conclusion |
How to reduce the risk of disputes over powers
- record in the minutes exactly what the meeting instructs the board to do, and within what amount limits;
- add to the contract a reference to the meeting decision and the approved cost estimate;
- do not mix officials’ personal funds with OSBB funds;
- give the audit commission the contracts and statements before the work is completed;
- keep correspondence with the contractor in the board’s archive.
These are general practical tips, not requirements of the law. They are useful because they let you show every co-owner that the money was spent under a meeting decision.
Board accountability
The composition of the board, the number of members and the terms of election are set by the general meeting. The board has the right to decide on issues defined by the charter and is accountable to the meeting. Practical conclusion: so as not to depend on one person, specify in the meeting decision which board member is responsible for the project, and require regular short reports.
Frequently asked questions
- Can the OSBB chair decide alone to buy equipment?
- No, if the expenses are not provided for in the cost estimate approved by the meeting. The board manages funds under the cost estimate, and large contracts require prior approval by the meeting above the threshold from the charter.
- Where can I find the limits of the chair’s powers?
- In the OSBB charter and in the meeting decisions electing the board. The law refers to the charter, so for specific amounts and signatures, check its text.
Next steps
Sources
- Law of Ukraine “On Associations of Co-owners of a Multi-apartment Building” (No. 2866-III, current version), Verkhovna Rada of Ukraine (official source), accessed
- Law of Ukraine “On Amendments to Certain Laws of Ukraine Regarding the Simplification of Management of Multi-apartment Buildings” (No. 3270-IX), Verkhovna Rada of Ukraine (official source), accessed
This material is for general information only and is not a power supply design, legal or financial advice. Calculations are indicative; installation and protection selection must be done by qualified specialists only. The platform does not accept or hold funds.