› Flat Chat Strata Forum › Strata Committees › Are “blank cheque” plans for work legal? › Current Page
It seems to me that the Owners Corporation is bound by section 73 (2) of the Act which says:
(4) Amounts payable from fund
An owners corporation may pay money from its capital works fund only for the following purposes–
(a) payments of the kind for which estimates have been made under section 79 (2) …
(There are other conditions which are not relevant to this question).
Section 79 (2) says:
79 Estimates to be prepared of contributions to administrative and capital works funds
(2) An owners corporation must, at each annual general meeting, estimate how much money it will need to credit to its capital works fund for actual and expected expenditure …
(f) to meet other expenses of a capital nature.
Note : Expenses of a capital nature would include expenses in relation to major repairs or improvements to the common property …
It’s pretty clear that a plan to build something comes under “expected expenditure” and the committee should at least present an estimate of what that cost would be at the AGM and that should be on the AGM agenda for it to be considered at the meeting.