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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.