G’day Struggs – Our Legal Experts are no doubt better qualified than me to comment, but I’ve always operated under the assumption that Executive Committee Members are held to the same Common Law Standards as apply to Company Directors in terms of them performing their fiduciary duties in good faith, with due care, and a reasonable level of knowledge (given that if a Member is lacking in some knowledge, they have a responsibility to inform themselves before making a decision).
So under those Standards, I would expect that an EC Member who makes an honest mistake in the performance of their duties would have any resultant legal costs covered under their Plan’s Office Bearers Liability cover.
Again, I would not expect that any legal costs to defend a mistake by an EC Member that arose from intentional misconduct, negligence, or dishonesty would be covered, or that any awarded cost against the Owners Corporation would be covered no matter what the circumstance; honest mistake or otherwise.