Section 260 of the Act covers bad decisions made by strata committee members “in good faith” (see below).
Conversely, you could argue, if members of the committee have been told that there is a problem with a contractor and something goes wrong and this results in additional cost to the owners corporation, then their “in good faith” protection is gone.
So, at the very least, insist that who voted for this and who voted against it is recorded.
If the committee member’s mate stuffs up and the building is damaged or someone is hurt, your strata insurers probably won’t cover the scheme for damages caused as a consequence of a conscious decision not to hire a registered and insured tradie.
But at least you and the other owners could take action to make sure that only the people who knowingly hired someone who was not registered or insured have to pay.
260 Personal liability
(1) A matter or thing done or omitted to be done by any of the following persons, or a person acting under the direction of any of those persons, does not, if the matter or thing was done or omitted to be done in good faith for the purpose of executing functions as such a person under this or any other Act, subject any of the following persons or person so acting personally to any action, liability, claim or demand:
(a) an officer of an owners corporation,
(b) a member of a strata committee.
(2) Any such liability of an officer of an owners corporation or a member of a strata committee attaches instead to the owners corporation.