› Flat Chat Strata Forum › Finance, budgeting and loans › Transferring funds from Capital works to Admin fund › Current Page
Can you advise if a motion to transfer funds from Capital Works to Admin passed by the SC is invalid?
Strict reading of the Act would suggest that it’s only if the strata committee has delegated powers to Act on behalf of the Owners Corporation (a fairly standard set-up) that they can do this. In the absence of any such approval, the SM may be right. This is what the Act says (my emphasis):
(4) Amounts payable from fund
An owners corporation may pay money from its capital works fund only for the following purposes:
(d) the transfer of money to the administrative fund or to pay expenditure that should have been paid from the administrative fund.
Even so, the strata committee is taken to be acting as the OC in all matters except those specifically requiring approval at a General Meeting, so I think your strata manager may be being a tad pedantic.
Of course, you might have passed the standard motion at your last AGM limiting the SC’s spending powers. I would check it out.