#24773
Jimmy-T
Keymaster

    I just Googled “strata committee liability” and up came this paper from our old friends at Bannerman’s strata lawyers.

    It’s called Executive Committee Members – How Broad is their Personal Liability? and includes the following: 

    Executive committee members can also have personal liability in relation to performance of their functions, including:

    • Approval of renovations to lots.
    • Entry into or termination of agreements, e.g. caretaker agreements.
    • Acts in conflict of interest.
    • Defamation.
    • Negligence.

    In some cases, office bearers’ liability cover may be available under the owners corporation’s insurance policy. However, there will typically be exclusions which are generally not well understood, such as:

    • Dishonest, fraudulent or criminal acts.
    • Acts in conflict of interest.
    • Acts outside the scope of the executive committee member’s authority, such as when a decision is made without a requisite general meeting resolution.
    • Acts causing death, personal injury or damage or loss to any property, unless an exception applies.

    Now, David Bannerman who co-authored the paper, is one of our top strata lawyers.  So, Austman, unless you have a clear ruling that proves what he says is not true, this aspect of the topic is closed.

    However, there is a whole other discussion about personal liability of EC members for failure to maintain common property HERE.

    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.