KP I think we share the same basic concerns but a few points:
– there is no requirement in the Act that all owners vote as to whether funds be invested and if so how. The section says the OC – this may be the EC, it depends on whether any limits have been put on decisions they make. The owners may decide they want it put to a resolution at an AGM, that is up to them;
– a strata manager may be empowered to invest funds on behalf of the OC, it depends on what delegations have been given to him/her. For example, the owners could resolve at a GM to invest the funds in a term deposit and for the strata manager to effect that investment for them.
– the money is trust money, special obligations in relation to accounting for those funds flow from that. Note that any investment should be in the name of the OC, not the person. Otherwise if the person went bankrupt you would have a hell of a time proving that the money didn’t belong to them.
– personally I would never agree to a single person on the executive committee having control of the investment of funds. You need to ensure there are checks and balances, e.g. have two people who are signatories to an account. In addition to that I would expect to have regular reporting in relation to the investment, i.e. at every EC meeting, backed up by statements etc.
– refusing to pay levies isn’t really going to achieve much, it’s still a debt you owe the OC. If the investment went missing and the OC was in a black hole, you would still be liable to make up the shortfall. Yes the OC could pursue the errant investor, but that is a separate issue.
If it were me, I wouldn’t be waiting for the next EC meeting, I would be asking for one to be convened asap.