If this happened in my strata I would have major concerns in terms of transparency.
The OC has a right to know the exact details of each and every deal and cash flow from its funds. Have these been laid out?.
I have no problem with members/owners doing work and being fairly remunerated. In many instances owners/members do unpaid/voluntary work for strata but this still needs to be transparent.
Does the Committee chair have any relationship with the management company, does the chair receive any benefits that are not disclosed? Why do they ‘informally’ agree surely the OC have a right and obligation to know (and approve) the details of this informal agreement.
Your strata may be getting a great deal and everything is honest and fairly worked out. On the other hand there maybe all sorts of underhanded deals and kickbacks going on.
If the OC makes enquiries it needs to be careful to put anyone offside or accuse them. Indeed once the details are know the chair may be shown to be a great chair working diligently and saving the OC money.