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Topic
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Can the strata committee renew the insurances without holding a strata committee meeting. If no meeting is held how do the owners know what the quotes are, been submitted in the correct format and commissions declared. At the AGM owners are asked to confirm insurances without having the information to make an informed decision. When this is raised at the AGM the strata manager says the strata committee know and moves on. The strata committee may know but this is not passed on.
How should I handle this at the AGM and what questions should I ask.
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There should be an item in the Annual General Meeting Agenda to authorise renewing the building’s insurance. As well, there are 2 optional insurance policies that should be decided at the AGM – whether to take out “Office Bearers Liability” and “Fidelity Guarantee” policies (generally these should be done). Strata law now requires the Owners Corporation obtain at least 3 quotes for insurance, or else, to provide a reason why this was not done – and that disclosure is usually in the Agenda – possibly as a note.
Strata law also now requires the strata manager to declare any insurance commissions received (as well as other real or potential compensation), and this should be disclosed in the Agenda, or a statement made that no (insurance or other) commissions were received – do not accept silence on this issue – there should be a clear statement one way or the other.
To ensure that the building is properly insured, as the strata manager, or strata committee secretary, for a copy of the building’s current CoC “Certificate of Currency”. This sets out the insurance policy details. You should also be able to get a copy of the invoice for the insurance renewal – which will specify the cost, as well as the commission (if any) paid to the strata manager (and insurance broker). This may be refused, but will be available to the treasurer of the strata committee, so an obliging treasurer can pass this on to you. Otherwise, you can carry out a “strata search” to inspect the invoice, but there is a small cost for this (and this will only be demanded if the strata manager is being a bit difficult, or is instructed to be difficult by the strata committee).
If this information is missing from the AGM’s Agenda, then this is a problem. The strata manager would be in trouble with Fair Trading, since many of these items are mandatory to include in the AGM Agenda. But this is unlikely – renewing the building’s insurance policy is a mundane activity that the strata manager usually handles almost automatically. But the recent amendments to strata law has increase these requirements, and some manager may be slow at adapting. But don’t assume malfeasance – maybe just puzzlement at your intense interest.
If this information is missing from the AGM’s Agenda, then this is a problem. The strata manager would be in trouble with Fair Trading, since many of these items are mandatory to include in the AGM Agenda.
A problem? Just ask Netstrata…
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NSW?
Strata law now requires the Owners Corporation obtain at least 3 quotes for insurance, or else, to provide a reason why this was not done – and that disclosure is usually in the Agenda – possibly as a note.