Whilst in essence I agree that it can be problematic that an owner or committee member is appointed as a building manager, the act does not prevent such an event.
If all the owners are happy with such an arrangement, and the appointment has been carried out in accordance with the act, then so be it.
Readers will recognise that should the building manager fail in his duties, its almost impossible to rescind their contract ( could require a trip to NCAT) and since the owner is a member of the community , bad feelings can be established .
As for the fee paid. It would need to be a large site and require the building manager to be available at least all business hours for $50000
But again if the owners are happy to pay this, then there is nothing in the act preventing it – provided the contract was entered into in acordance with the act.