The OC could always pass a by-law to protect the EC.
This is the worst by-law my SP has.
THAT every member for the time being of the Executive Committee of the owners corporation shall be indemnified by the owners corporation out of its funds and assets against personal liability for the acts, receipts, neglects or defaults of any other member of the Executive Committee or of any managing agent or for any loss or liability occasioned to the owners corporation by any error of judgement or oversight on his part or for any loss, damage or misfortune whatever which shall happen during the course of the execution of the duties of his office or in relation thereto AND shall be further indemnified in similar manner against any liability incurred by him in defending any proceedings, whether criminal or civil, in respect of any such act, receipt, neglect, default, error or oversight to the extent that Effective office bearers indemnity insurance covers members of the executive committee of SP*****.
I have tried to have this by-law removed, it failed unanimously because i am the one submitting the motion to delete the by-law and the owners do not realize how their funds and assets are backing the EC; that is if the by-law stood up if required. This OC is happy to vote down any motion to get a WHS report – that is due diligence where i come from.
The owners in my SP are constantly exposed to potential liabilities that they need not be exposed to — but they also live in a world where ignorance is bliss and live with the belief that it won’t happen to them.
We do from time to time have Office Bearers insurance as the Secretary just throws it in with a motion for the compulsory insurances at the AGM and the poor naive owners just pass the motion not realizing Office Bearers insurance should be its own motion.
If the Office Bearers insurance policy fails then I can assure you that the members of my EC would say the by-law applies and want to start using OC funds and assets to cover themselves.