Can Executive Committtee members demand a payment for their role from the funds

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  • 07/03/2011 at 8:29 pm #7277
    Anonymous

      I’m on an executive committee and there is only 3 of us who volunteer and therefore we have to be the committee. We all share responsibility and all find it work that we don’t have a lot of time for but we do it, and it’s been that way for the years with no change and no interest from other owners. Cannot convince anyone to be on the c/ttee.

       

      Question – What happens if one member feels strongly that they do all the work and would like to be paid for their role any of the three roles? I'm researching to find out what can/cannot be given and know its a volunteer role, the person is seeking legal action/advice and is serious. Is this a matter submitted to be an agenda item in a meeting and all owners would decide/vote?? OR is this something that is not possible and fair trading would have direction on this? Our strata managing agent has small advice and no direct answer. Help please? thx.

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    • 08/03/2011 at 10:35 am #12529
      Jimmy-T
      Keymaster

        My understanding (and maybe one of our professionals will correct me if I'm wrong) is that you can't pay office-bearers a wage but you can award a gratuity in retrospect at an AGM for work done the previous year.

        If I were in your position I would have two motions at the next AGM – one to award a reasonable payment for work done and the other, should the first one fail, to employ someone to do the work at commercial rates.

        I know which one I'd be voting for.

        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.
        10/03/2011 at 9:37 am #12540
        Anonymous

          Hi Ali

          Section 25 of the Strata Schemes Management Act states:

          “An owners corporation may pay to a person who is the chairperson, secretary, treasurer or a member of the executive committee such amount as the owners corporation determines at an annual general meeting in recognition of services performed by the person for the owners corporation in the period since the last annual general meeting.”

          Please note that resolution for such a payment is made at an AGM for services provided since the last annual general meeting.

          There is no guidance as to high much is appropriate. However, in the event that the services are similar to those provided by a strata manager, the amount of remuneration could be similar to that received by a strata manager for the provision of similar services.

          Finally, given a member of the EC is not carrying on the business of an agent, he or she is unlikely to contravene section 8 of the Property, Stock and Business Agents Act (which prohibits a natural person acting as or carrying on the business of a strata managing agent without a license).

          Regards

          Chris Kerin

          TEYS Lawyers

          9562 6500

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