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Topic
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The general question is who should hold the Common Seal of the OC, the SM or the EC?
A more specific query follows on from previous discussions regarding insurance commission.
Our EC has decided to appoint a licensed broker and therefore take the management and commission away from the SM. The insurance company are insisting on a letter of appointment signed under the Common Seal of the OC, and the Common Seal is held by the SM.
Do the EC instruct the SM to provide the letter of appointment under seal or do we prepare the letter and present it to SM to stamp?
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Replies
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From the legislation:
Part 4 Seal of owners corporation
237 Who may keep seal of owners corporation?
(1) If an owners corporation has only one owner, the seal of the owners corporation must be kept by the owner or by the strata managing agent of the owners corporation.
(2) If an owners corporation has 2 or more owners, the seal of the owners corporation must be kept:
(a) by an owner, or member of the executive committee, that the owners corporation determines is to keep the seal or, in the absence of a determination, by the secretary of the executive committee, or
(b) by the strata managing agent of the owners corporation.As to who writes the letter, you decide it’s your decision (OC). You could even ask the broker to supply a suitable letter which you will get signed and sealed (make sure their are no unreasonable clauses in it).
Much safer to DIY.