Strata Schemes Management Act
29 Can a strata managing agent exercise the functions of the chairperson, secretary and treasurer or the executive committee?
(1) The instrument of appointment of a strata managing agent may provide that the strata managing agent has and may exercise all the functions of the chairperson, secretary, treasurer or executive committee of an owners corporation or such of those functions as may be specified in the instrument.
What does your agreement say; but then does it really matter what it says because if we read on, part 2 says
(2) However, the chairperson, secretary, treasurer and executive committee of an owners corporation may continue to exercise all or any of the functions that the strata managing agent is authorised to exercise.
Run part 2 of section 29 of the strata scheme management act (SSMA) by your strata manager (SM) and then let him know he is on borrowed time if he wishes to continue to contend he is now the “Fuhrer of finances” in your SP because you will make sure the owners and the EC are made aware of his limited role, which is that of being the “minion” of the OC.
The guy is the OC's employee, he is not the boss of your finances.
The most relevant section of the SSMA would be;
24 Who can exercise functions relating to the finances and accounts of the owners corporation?
A person must not exercise any of the functions of an owners corporation or the treasurer of an owners corporation relating to the receipt or expenditure of, or the accounting for, money of the owners corporation or the keeping of the books of account of the owners corporation unless the person is:
(a) a member of the owners corporation or of the executive committee and the treasurer of the owners corporation or of the executive committee, or
(b) a strata managing agent who is empowered to exercise that function, or
(c) a person with whom the treasurer of the owners corporation is required by an order of the executive committee to exercise that function jointly, and who is enabling the treasurer to comply with the order, or
(d) a member of CPA Australia, or a member of the Institute of Chartered Accountants in Australia, authorised by the owners corporation to exercise the function, or
(d1) a member of the Institute of Public Accountants authorised by the owners corporation to exercise the function, or
(e) during the initial period only—a person authorised by the original owner to exercise the function.
Maximum penalty: 5 penalty units.
Note at part b) the SM can exercise functions if empowered … is your SM empowered by his agreement ?
The idea the EC has no control over the expenditure in the SP is somewhat humorous.
Even if your SM is empowered this does not negate part a) and your SM needs to be reminded who is employing him; that should get his attention.
As a bonus you could refer to
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.
Ask the SM why he thinks the EC cannot make decisions relating to maintenance given the OC has an obligation to maintain.
Without convolution with unusual situations, the pecking order is simple;
The Owners Corporation (the collective owners at a General Meeting)
The Executive Committee (those the OC appoint at the AGM to represent the OC)
The lowly strata manager (the OC's employee)
Just politely let your SM know that you know the pecking order and that if he wishes to try to dictate to the OC then the AGM may well find itself faced with a motion to appoint a new SM
I am never surprised at some of the nonsense SM's come up with – they are not all bad though.