Forums Strata Committees Current Page

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  • #10767 Reply | Quote
    Jimmy-T
    Keymaster

      In my 21 things about the new laws article, I said strata managers couldn’t be elected to committees unless they were owner.  This was a slip of the mind – I should have said BUILDING managers – a big difference.

      My humble apologies if anyone was misled.

      Meanwhile, it’s worth looking at other potential conflicts of interest.  If committee member has a direct or indirect financial interest in a decision that is being made – and the regulations state that an indirect interest means having a personal or business relationship with anyone who has a direct financial interest in a decision – they have to declare it, then absent themselves while a decision is made by the rest of the committee on whether or not they are allowed to participate in the discussion and vote.

      This is what the Act says:

      18 Disclosure of pecuniary interests
      (1) If:
      (a) a member of a strata committee has a direct or indirect pecuniary interest in a matter being considered or about to be considered at a meeting, and
      (b) the interest appears to raise a conflict with the proper performance of the member’s duties in relation to the consideration of the matter, the member must, as soon as possible after the relevant facts have come to the member’s knowledge, disclose the nature of the interest at a meeting of the strata committee.
      Maximum penalty: 10 penalty units.
      (2) A disclosure by a member at a meeting of the strata committee that the member:
      (a) is a member, or is in the employment, of a specified corporation or other body, or
      (b) is a partner, or is in the employment, of a specified person, or
      (c) has some other specified interest relating to a specified corporation or other body or to a specified person,
      is a sufficient disclosure of the nature of the interest in any matter relating to that corporation or other body or to that person which may arise after the date of the disclosure and which is required to be disclosed under subclause (1).
      (3) Particulars of any disclosure made under this clause must be recorded by the strata committee in a book kept for the purpose and that book must be open at all reasonable hours to inspection by any person on payment of the fee determined by the strata committee.
      (4) After a member has disclosed the nature of an interest in any matter, the member must not, unless the strata committee otherwise determines:
      (a) be present during any deliberation of the strata committee with respect to the matter, or
      (b) take part in any decision of the strata committee with respect to the matter.
      (5) For the purposes of the making of a determination by the strata committee under subclause (4), a member who has a direct or indirect pecuniary interest in a matter to which the disclosure relates must not:
      (a) be present during any deliberation of the strata committee for the purpose of making the determination, or
      (b) take part in the making by the strata committee of the determination.
      (6) A contravention of this clause does not invalidate any decision of the strata
      committee.
      (7) Without limiting subclause (1), a person has an indirect pecuniary interest in a matter if a person connected with the person has a direct interest in the matter.

      If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
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    • #25887 Reply
      Lady Penelope
      Flatchatter

        Thanks Jimmy T. 

        It is useful to point out the differences between the roles of ‘strata manager’ and ‘building manager’. These terms and roles can sometimes be confusing.

        In another Forum comment Jimmy T stated: It is OK for the owners to delegate the roles of chairman and secretary to the strata manager (for which he and she will be paid) and under the new laws building managers and letting agents can’t be on the committee unless they are also owners. 

        The differences are explained here: 

        https://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Strata_schemes/The_owners_corporation/Managing_agents_and_caretakers.page

        #25889 Reply
        easty
        Flatchatter

          @proudsceptic said:
          Thanks Jimmy T. 

          It is useful to point out the differences between the roles of ‘strata manager’ and ‘building manager’. These terms and roles can sometimes be confusing.

          In another Forum comment Jimmy T stated: It is OK for the owners to delegate the roles of chairman and secretary to the strata manager (for which he and she will be paid) and under the new laws building managers and letting agents can’t be on the committee unless they are also owners. 

          The differences are explained here: 

          https://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Strata_schemes/The_owners_corporation/Managing_agents_and_caretakers.page  

          Actually all I am trying to ascertain is if a strata manager can hold an office bearer’s position. I am aware they can be delegated powers but can they be an office bearer?

          I spoke with OFT today and their advice was while they can be delegated powers they can’t hold a position but when pressed on the relevant part of the new legislation couldnt provide me with a convincing answer. 

          It’s all pretty confusing.

          #25891 Reply
          Jimmy-T
          Keymaster
          Chat-starter

            According to Section 54 (below) the Strata Manager can be appointed to any “officer” role in the strata scheme but elected officers of the committee can take over at any point.

            The law also says that any valid member of the strata committee can be elected as an officer.

            54 Functions of officers and strata committee may be given to strata managing agent
            (1) The instrument of appointment of a strata managing agent may provide that the strata managing agent has and may exercise all the functions of the chairperson, secretary, treasurer or strata committee of an owners corporation or the functions of those officers or the strata committee specified in the instrument.
            (2) However, the chairperson, secretary, treasurer and strata committee of an owners corporation may continue to exercise all or any of the functions that the strata managing agent is authorised to exercise.

            If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
          Viewing 3 replies - 1 through 3 (of 3 total)
          Reply To: Ooops! I got it wrong
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