#16350
Jimmy-T
Keymaster

    @kiwipaul said:

    Can an OC decision (at the AGM say) be later reversed by an EC decision at a later date  OR  Would it require a OC vote to reverse the original OC decision. This sounds the most logical ans but hey it’s strata so who knowsCoolCoolCool

    It depends. The Owners Corp is the superior body to the EC but decisions of the EC are taken as decisions of the Owners Corp for the sake of just getting things done. For instance the Owners Corp might decide not to undertake certain work because it was too expensive but the EC might agree to it later when the price was right.

    The Act is quite clear on the demarcation … up to a point (see below).  The EC can’t countermand decisions that MUST be made by the Owners Corp in a general meeting – like by-laws and special resolutions.  And the EC can’t make decisions that Owners Corp has specifically told it not to make – any such decisions would probably be declared invalid if challenged at the CTTT. Finally, if the Owners Corp and the EC disagree, the Owners Corp wins.

    What that means is, if the EC makes a decision that it hasn’t been forbidden from making but which goes against the will of the majority, the signatures of 25 percent of the owners can call an AGM where the decision can be reversed and, in all likelihood, the EC would be sacked (you’d think).

    Any EC can defy the wishes of the majority of owners – many do –  but only until that is challenged or they face their day of reckoning at a general meeting

     

    21   Executive committee’s decisions to be decisions of owners corporation

    (1)  A decision of an executive committee is taken to be the decision of the owners corporation, subject to subsection (4).

    (2)  However, the following decisions may not be made by the executive committee:

    (a)  a decision that is required by or under any Act to be made by the owners corporation by unanimous resolution or special resolution or in general meeting,

    (b)  a decision on any matter or type of matter that the owners corporation has determined in general meeting is to be decided only by the owners corporation in general meeting.

    (3)  An owners corporation may in general meeting continue to exercise all or any of the functions conferred on it by this Act or the by-laws even though an executive committee holds office.

    (4)  Despite any other provision of this Act, in the event of a disagreement between the owners corporation and the executive committee, the decision of the owners corporation prevails.

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