#18347
Jimmy-T
Keymaster


    @newlsie
    said:
    Wow, does anyone know if that is the case in NSW.  Can an EC take legal action without asking the owners? 

    Generally speaking, no, except as allowed by the Regulations which state that you don’t need general meeting approval for legal costs that are less than $1000 multiplied by the number of units, or $12,500, whichever is the lesser.

    This allows ECs, for instance, to take legal action against levies defaulters.  But some cases are so complicated that lawyers have complained that they can’t even prepare a comprehensive quote for consideration at a general meeting because the costs are so restrictive.  

    These restrictions were brought in at the behest of developers who were annoyed at ECs (over which they had no control) launching legal action over defects.  

    This is what the Act says.

    80D Legal action to be approved by general meeting

    (1) An owners corporation or executive committee of an owners corporation must not seek legal advice or the provision of any other legal services, or initiate legal action, for which any payment may be required unless a resolution is passed at a general meeting of the owners corporation approving the seeking of the advice or services or the taking of that action.

    (2) The regulations may make provision for or with respect to exempting any type of legal service or legal action from the operation of this section.

    The current regulations  referred to in paragraph 2 allow for small scale legal actions, as described above.

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.