This was the closest discussion I could find on this topic and rather than start a new discussion decided to add to this existing one.
We are having extreme difficulty getting owners to go on our executive committee (EC). It has been proposed that members of the EC be given a discount on their levys. What are peoples thoughts on this?
We are aware of:
“STRATA SCHEMES MANAGEMENT ACT 1996 – SECT 25
Can members of the executive committee be paid?
25 Can members of the executive committee be paid?
An owners corporation may pay to a person who is the chairperson, secretary, treasurer or a member of the executive committee such amount as the owners corporation determines at an annual general meeting in recognition of services performed by the person for the owners corporation in the period since the last annual general meeting.“
The above legislation would indicate that payments can only be made retrospectively. However we are considering passing a bylaw such that EC members get to pay the agreed levy minus say 10%. Would the bylaw be legal? or how can it be done otherwise?
One way we discussed was, at the AGM passing a motion saying that,
” members of last years EC were to receive payment equal to !0% of next years levys. Payment to be made by EC members paying each quarterly levy minus 10%.”
This way we are making sure payment (by way of reduction in future levys) is only made after an EC member has served the period for which they are being ‘paid’.