Section 238 deals with the use of the common seal, refer below. The common seal is the “signature” of the owners corporation so its use should be controlled. In practice, it may not be practical to arrange for owners to be present for the common seal to be affixed, so the OC can resolve to delegate that power to the managing agent either specifically or generally, i.e. for a specific contract or for more general purposes.
How should the seal of the owners corporation be affixed?
238 How should the seal of the owners corporation be affixed?
(1) If an owners corporation has only one owner or 2 owners, the seal of the owners corporation must not be affixed to any instrument or document except in the presence of the owner or owners or the strata managing agent of the owners corporation.
(2) If an owners corporation has more than 2 owners, the seal of the owners corporation must not be affixed to any instrument or document except in the presence of:
(a) 2 persons, being owners of lots or members of the executive committee, that the owners corporation determines for the purpose or, in the absence of a determination, the secretary and any other member of the executive committee, or
(b) the strata managing agent of the owners corporation.
(3) The strata managing agent must attest the fact and date of the affixing of the seal:
(a) by his or her signature, or
(b) if the strata managing agent is a corporation, by the signature of the president, chairperson or other principal officer of the corporation or by any member of staff of the corporation authorised to do so by the president, chairperson or other principal officer.
(4) A strata managing agent who has affixed the common seal of the owners corporation to any instrument or document is taken to have done so under the authority of a delegation from the owners corporation.
(5) Subsection (4) does not operate so as to enable a person to fraudulently obtain a benefit.
(6) A person is taken not to have fraudulently obtained a benefit from the operation of subsection (4) if the benefit was, without any fraud by the person, obtained before the seal was affixed.