How safe are an owners corporations’ funds?

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  • 27/07/2012 at 4:19 pm #8280 Reply | Quote
    cautious
    Flatchatter

      ConfusedMainly as the result of implementing a 10-year plan for our strata scheme’s Sinking Fund, the scheme now holds approximately $80,000. Those funds are likely to increase, at least in the foreseeable future until needed to meet the planned expenditure. The funds are presently held in current bank accounts or term deposits in the “name of the strata manger as trustee for our strata scheme No. ####”.

      Our current strata management group has now been taken over by another strata manager, which is a fairly large company listed on the Stock Exchange. The owners are about to consider whether to approve the transfer of the management of the scheme to that strata manager.

      My concern is to ensure the safety of the Owners Corporation’s funds being handled by whichever strata manager is appointed. If a strata manger failed financially and became bankrupt, how safe would our funds be? Is there any protection under the SSM Act or any other Act which would protect our funds held in trust by the strata manager?

      Cautious

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    Reply To: How safe are an owners corporations’ funds?
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