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Hi again, Thanks to you all. Is there any such thing as executive committee confidentiality? A new committee member apparently is disclosing trades quotes under close EC/Strata committee discussion, to an owner outside the SC. Said owner is also interested as wants a comparison with a quote that was provided by the owner to last AGM. In my experience, swapping quotes outside is an offputting thing, not only surely to the tradies concerned. Plus may get the building a bad name out there, not to mention compromising the meaning of a formal SC?
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Bonnie, there is no legislation preventing committee members from discussing quotes with other Lot owners.
The Strata Scheme Management Act (2015) has no code of conduct provision for strata committee members but does include a care and diligence clause.
Section 37: Duty of members of strata committee states:
It is the duty of each member of a strata committee of an owners corporation to carry out his or her functions for the benefit, so far as practicable, of the owners corporation and with due care and diligence.
Note : Section 260 provides protection from personal liability for members of strata committees who act in good faith.
Ethical behaviour is something that should be encouraged in our dealings with others. Unfortunately not everyone has the same ethical standards. It is ethical for the committee to treat suppliers like they would expect to be treated themselves. Respect their work and efforts and their need to make some profit. Of course, the committee need to get the best prices and service for the owners corporation they represent, but they should not do this in an underhand way, or harm someone’s business unnecessarily.
If you believe that a committee member is not acting ethically then you have an option to vote them out of office at the next general meeting.
If you yourself are a committee member then a quiet word with the other member may be appropriate.
Considering that every member of the owners corporation is entitled to know everything that’s going on and all decisions made in their collective names, secrecy is a no-no in just about every circumstance. Non SC members are allowed to attend meetings, after all.
The issue is whether any tradies are being put off or are gaining a commercial advantage from knowing what the discussions entail. In which case, the owners concerned should be told, as politely as possible, to keep their mouths shut.
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.
I am trying to think of what may be in a tradesman’s quote that would need the protection of a confidentiality clause. Unless there is information in it that is proprietary to the tradesman, it is difficult to see what would make it so special. The strata committee doesn’t owe any duty to tradespeople under the Act – the members of the Committee must carry out their functions for the benefit of the owners corporation.
Certain things discussed at a Committee meeting, or considered by the Committee members may be confidential but they are limited. The best example is legal advice that in some circumstances may be privileged.
As Jimmy has pointed out, an owner has the right to attend Committee meetings. If a Committee is considering quotes at a meeting, it is arguable that those quotes should be included in the agenda for the meeting, and that would be available to all owners. The minutes of the meeting also have to be provided to all owners. As they say, sunlight is the best disinfectant.
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