#12851
Billen Ben
Flatchatter

    Section 80D is governed by the Regulations.

    Legal advise can be sought up to the amounts specified by the Regs without the need for a resolution at a general meeting; i.e. the EC can make the decision. Do not forget the power of veto over the EC given to owners by cl 11(2) of Sch 3 of the Act. If the owners do not want to spend the money then they can veto an EC decision if they have the numbers.

    If the estimate exceeds the amount specified by the Regs, below, then you need an ordinary resolution from a general meeting for the spending.

    SSMR 2010
    15
       Exemptions from need for approval for certain legal action

    (1)  The seeking of legal advice, the provision of legal services or the taking of legal action is exempt from the operation of section 80D of the Act if the reasonably estimated cost of seeking the legal advice, having the legal services provided or taking the legal action would not exceed:

    (a)  an amount equal to the sum of $1,000 for each lot in the strata scheme concerned (excluding utility lots), or

    (b)  $12,500,

          whichever is the lesser.

    good luck with it.