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  • #8492
    Paddy37
    Flatchatter

      A strata manager will pay the usual ‘routine’ expenses (such as rates, electricity and cleaning), but for out of the ordinary expenses, how does the EC approve? Is there an alternative to the EC holding a meeting to approve the expense? Can a member of the EC be nominated to ‘approve’ other expenses?

      Our EC seems to run without holding meetings.

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    • #16901
      FlatChatFan
      Flatchatter

        The O.C. would have voted the E.C. a maximum spending amount at an AGM.

        Our small (11 villa) O.C. votes the amount every year and last year was $1,000.

        Our E.C. organises regular quarterly ‘clean=ups’ and ‘handy man’ visits. Owners are asked by email or note in the letter boxes if there is any work around the property needed.

        We have a regular lawn mowing gardener.

        E.C. meetings are organised to discuss Agenda Items that have arisen since the last AGM or E.C. meeting.  There are only three people on our E.C. and two members work in the city so it can take a couple of weeks to organise the meeting time.  (It must be very hard with larger E.C.’s).

        We can approach the Strata Manager direct but have a ‘Secretary’ letter box for written requests.  I discovered that ‘written’ needed to be on paper and signed, not by email, but I guess I only need one page of paper, where the Secretary would have higher expenses if he printed everything sent to him.

        #16905
        kiwipaul
        Flatchatter

          Assuming the SM doesn’t have extra spending authority at every AGM you authorize a admin fund budget for the next year. Each line item is what you are authorizing the SM to spend on that item. eg budget $4,000 SM can spend up to $4,000 on insurance.

          All spending not budgeted for in the admin has to be authorized by the EC or OR on a vote (can be postal or email if all members approve).

          EC or OC can grant members authority to approve spending up to a particular limit (you can impose conditions such as all spending so authorized has to be notified to EC or OC before spending occurs).

          In most strata situations the biggest mistake owners make is to assume the SM is a manager as in effect they just administer the Strata on behalf of the owners and have very little power (unless given it by the owners).

          #16920

          Paddy,

          Normally a strata manager will rely on the EC authorising the Treasurer to approve invoices, however, the EC should be authorising the spend initially, making the decision whether or not to do the work or accept a quote.

          Depending on how big a job or the nature of the issue, the EC may approve these works via a quick discussion or may require an ec meeting.

          For example, fixing a leaking or burst pipe is something that hopefully the ec will move swiftly on while painting common property internal or external may involve getting several quotes and referring to an ec meeting or a general meeting depending on availability of funds.

          This is in many ways dependent on the OC’s corporate governance and agreed approach and also any limitations the OC placed on the ec at the AGM.

          A good strata manager should simply be the agent to act under the OC/EC instruction.

          Mr S

          #16981
          imported_dech
          Blocked

            @Paddy37 said:
            A strata manager will pay the usual ‘routine’ expenses (such as rates, electricity and cleaning), but for out of the ordinary expenses, how does the EC approve? Is there an alternative to the EC holding a meeting to approve the expense? Can a member of the EC be nominated to ‘approve’ other expenses?

            Our EC seems to run without holding meetings.

               If it’s a block with <15 units then the usual procedure would seem to be that no limitation would have been placed on EC spending nor specific funds allocation, EC members would have little idea and no interest in what a (properly convened) meeting is and nor would they hesitate to alter common property without proper approval (special resolution at a General meeting, at least in areas they consider minor/common sense e.g. changing colours on replacement carpet or adding a couple of lights after someone expressed a passing concern). 

                With no limitation there would apparently be no legal comeback if they spent all funds from both admin. and sinking funds hiring a related party to clean daily and manicure every plant. 

             

                The Act specifies a “detailed agenda” for EC meetings and that it should be either displayed on a notice board or sent to all OC members 

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