Korteriühistu Board Member in Estonia: Term, Pay and Liability

A board member of an Estonian korteriühistu (apartment owners' association) is elected for up to three years unless the statutes set another term, and the statutes cannot make the term longer than five years. The member may be paid unless the statutes provide otherwise, and the general meeting decides the amount and how it is paid. Members who cause loss by breaching their duties are liable jointly and severally, and a claim generally expires after five years. A member can resign for any reason by notifying the general meeting. The law is quoted below in the original Estonian, with an explanation.

What is the board, and must there be one?

The rules sit in two acts: the Korteriomandi- ja korteriühistuseadus (Apartment Ownership and Apartment Associations Act, KrtS) and the Mittetulundusühingute seadus (Non-profit Associations Act, MTÜS). KrtS says which MTÜS provisions apply:

„Juhatus on korteriühistu juhtorgan, kes esindab ja juhib korteriühistut. Korteriühistu juhatusele kohaldatakse lisaks käesolevas seaduses sätestatule mittetulundusühingute seaduse § 26 lõikes 2 ning §-des 27–29 ja 32 mittetulundusühingu juhatuse kohta sätestatut.“ (KrtS § 24(1))

The board (juhatus) manages and represents the association, and MTÜS § 26(2), §§ 27–29 and § 32 also apply to it. By default it has one to three members; the statutes may set another number (KrtS § 24(2)). The board chair (esimees) is also a board member, so the same rules on term, pay and liability apply.

„Korteriühistul ei pea olema juhatust, kui korteriomandite arv ei ole suurem kui kümme või kui kõik korteriomandid kuuluvad ühele isikule.“ (KrtS § 24(3))

With ten or fewer apartment ownerships, or a single owner, no board is required. The owners then manage and represent the association jointly (KrtS § 24(4)).

Who can be a board member, and how is one elected?

„Juhatuse liige peab olema teovõimeline füüsiline isik.“ (MTÜS § 26(2))

A board member must be a natural person with active legal capacity, so a company cannot be one (see valitseja below). Appointment needs the member's consent (MTÜS § 28(1)).

The election takes place at the general meeting (üldkoosolek). The board convenes it, with at least seven days' notice unless the statutes set a longer period (MTÜS § 20(1) and (5), applied by KrtS § 20(1)). Each apartment ownership has one vote unless the statutes say otherwise (KrtS § 22(1)).

„Isiku valimisel loetakse üldkoosolekul valituks kandidaat, kes sai teistest enam hääli, kui põhikirjas ei ole kehtestatud kõrgemat häältenõuet. Häälte võrdsel jagunemisel heidetakse liisku, kui põhikirjaga ei ole ette nähtud teisiti.“ (MTÜS § 22(1¹))

The candidate with the most votes wins; a tie is decided by lot unless the statutes say otherwise. Record the result in the minutes template (in Estonian). An owner can send a representative with a proxy. Owners can also decide without a meeting (KrtS § 21(1)).

How long is the term, and how is it extended?

„Juhatuse liige valitakse tähtajaliselt kuni kolmeks aastaks, kui põhikirjas ei ole ette nähtud muud tähtaega. Põhikirjaga ei või ette näha, et juhatuse liikme ametiaeg on pikem kui viis aastat. Juhatuse liikme ametiaja pikendamist ei või otsustada varem kui üks aasta enne ametiaja kavandatavat möödumist ja pikemaks ajaks kui seaduses või põhikirjas ettenähtud ametiaja ülemmäär.“ (MTÜS § 28(1¹))

The term is up to three years, five at most. An extension cannot be decided earlier than one year before the term ends, nor for longer than the maximum, and for a member entered in the register it must be filed with the registrar without delay (same subsection). The general meeting can also recall a member at any time:

„Juhatuse liikme võib üldkoosoleku otsusega igal ajal, sõltumata põhjusest, tagasi kutsuda.“ (MTÜS § 28(2))

The statutes can narrow this, so check yours:

„Põhikirjas võib ette näha, et juhatuse liikme võib tagasi kutsuda üksnes kohustuste olulisel määral täitmata jätmise või võimetuse korral mittetulundusühingut juhtida või mõnel muul mõjuval põhjusel.“ (MTÜS § 28(3))

Who decides the pay, and how much is it?

„Kui põhikirjaga ei ole ette nähtud teisiti, võib juhatuse liikmele maksta tasu. Juhatuse liikmele makstava tasu suurus ja maksmise kord määratakse üldkoosoleku otsusega.“ (MTÜS § 28¹(1))

The law sets no figure. The limit is reasonableness: the total paid to the member must be in reasonable proportion to their duties and the association's finances (MTÜS § 28¹(2)). One caution: KrtS § 24(1) refers to MTÜS §§ 27–29. In our reading that range includes § 28¹ on pay, but the act does not say so separately. We do not cover the tax treatment of the pay here; ask an accountant.

What is a board member's liability?

„Juhatuse liige peab oma kohustusi täitma juhatuse liikmelt tavaliselt oodatava hoolsusega.“ (MTÜS § 32(1))

„Juhatuse liikmed, kes on oma kohustuste rikkumisega tekitanud mittetulundusühingule kahju, vastutavad tekitatud kahju hüvitamise eest solidaarselt. Juhatuse liige vabaneb vastutusest, kui ta tõendab, et on oma kohustusi täitnud juhatuse liikmelt tavaliselt oodatava hoolsusega.“ (MTÜS § 32(2))

Members must act with the care usually expected of a board member. Liability is joint and several, and the member has to prove due care, so keep decisions, minutes and correspondence. The limitation period is five years unless the statutes or an agreement with the member set another (MTÜS § 32(3)). A creditor who cannot be paid from the association's assets may also claim (MTÜS § 32(4)).

What are the board's duties?

The board convenes the general meeting (MTÜS § 20(1)) and drafts the majanduskava (annual budget), which the general meeting adopts (KrtS § 41(1) and (3)). Where the association must prepare an annual report, the board prepares it (KrtS § 51(1)); see annual report deadlines. After a decision without a meeting, the board draws up the voting protocol (KrtS § 21(4)). The board has a quorum when more than half its members take part, and it can decide without a meeting if all members vote for it in writing, unless the statutes say otherwise (MTÜS § 29(1) and (3)).

How does a board member resign?

„Juhatuse liige võib juhatusest tagasi astuda sõltumata põhjusest, teatades sellest enda määranud organile. Juhatuse liikmega sõlmitud lepingust tulenevad õigused ja kohustused lõpevad vastavalt lepingule.“ (MTÜS § 28(3¹))

The resignation letter (tagasiastumise avaldus) goes to the body that appointed the member: the general meeting. No reason is needed, and a contract ends on its own terms. Write the association's name and registry code, your name, a clear sentence that you resign from the board, the date and your signature. How the notice reaches the general meeting (for example, sent to all owners) is our suggestion, not a legal rule: agree it with the association's lawyer.

Can a company run a korteriühistu?

„Korteriühistu juhatuse asemel võib korteriühistut juhtida ja esindada juriidiline isik (edaspidi valitseja).“ (KrtS § 26(1))

A company called the valitseja may run and represent the association instead of a board, and the rules on electing a board, its activity and its liability apply to it (KrtS § 26(3)). The valitseja names a natural person, the majahaldur, for each association it runs (KrtS § 28(1)).

„Majahalduril peab olema kinnisvarahalduri, korteriühistujuhi või korterelamuhalduri kutse kutseseaduse tähenduses.“ (KrtS § 28(2))

The majahaldur must hold one of three professional qualifications: kinnisvarahaldur, korteriühistujuht or korterelamuhaldur. Before signing, ask who your majahaldur will be and which one they hold.

What Unitify does

Unitify is neither a board nor a valitseja but a tool for them. Notices to owners, such as news of a new board member, go out in the resident app, and you choose the text and the language. Owners can vote in the app, and you follow participation and the vote count per apartment. The app records votes, but whether such a vote counts under the law is a question for the association's lawyer. Minutes, annexes and signed scans are stored per building and can be published to owners. Charges and arrears are tracked per apartment, with reminders. The app interface is in English for now and is set up for each project. There is no Estonian interface yet: the task is filed, and we do not promise a date.

See Unitify in Estonia or book a demo.

Sources: Korteriomandi- ja korteriühistuseadus, https://www.riigiteataja.ee/akt/123122022004; Mittetulundusühingute seadus, https://www.riigiteataja.ee/akt/123122022015. Checked 4 November 2026; the text changes: open the current version before relying on it.