A major Strata insurer in NSW advised that Office holders will be covered for anything including illegal (not in accordance with “The Act”) actions provided they acted “in good faith”.
I have a suspicion that many Strata Managers (SM’s) don’t advise about requirements such as where there is a requirement for special resolutions/percentage of entitlements to pass or reject same – in order to provide cover for EC members, if sued they could genuinely state that they were unaware of the legal requirements and presumed the SM would advise of any breaches. Any manager who was diligent in this area may well face being removed for being overly legalistic or pedantic where some EC members hear that some other managers don’t mention these inconvenient rules or as in a case I’m very familiar with are no longer or never were aware of the rudiments of Strata legislation.