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  • #8930

    When you have a managing agent, what is the role of the chairperson, secretary and treasurer exactly?

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  • #18987

    This depends on how pro active your committee wishes to be (the more the better for you and your strata scheme).

    The SSMA states that the chairperson of the committee has to chair the meetings. In practice plenty of chairpersons request the managing agent to carry out this delegated function but it is first and foremost the right of the chairperson.

    Many EC’s will regularly meet without the strata manager present (which can significantly cut costs if they meet often).

    In practice a secretary should regularly check/clear the owners corporations mail box and reply to or forward any necessary correspondence as well as posting any notices & minutes on the notice board. If your agent is not attending meetings the secretary should take the minutes and distribute them.

    The treasurer will not have hands on access to funds if they are held in a trust account managed by your agent however in many circumstances they would be checking and approving invoices prior to the agent paying, giving investment instructions for any term deposits required and should be regularly seeking out and checking through financial statements provided by the strata manager. It is also helpful for an active treasurer to be involved in the preparation of a proposed budget prior to your AGM.

    Hope this is helpful.

    #18994
    Jimmy-T
    Keymaster

      Just like to add that in smaller schemes, especially, the strata manager is often delegated to fulfill any or all of those roles (and charges accordingly).

      But in the hierarchy of who’s the boss of whom,  it’s Owners Corp (at a general meeting) at the top, then the EC, then the strata manager.  The EC office bearers have only responsibilities – they do not have executive “rights” except for the secretary’s power to call meetings.

      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.
      #18996
      Cosmo
      Flatchatter

        Paula, I tried to look at this issue in terms of a dispute between a managing agent and the OC. The below is my view only:

         

        In terms of pure legalities and in the absence of a dispute, the roles of the managing agent depends upon the terms of the appointment. In short the Act uses the words “The instrument of appointment”, which is probably best defined by the contract the OC signs.    

         

        Basically the interplay of powers/roles are outlaid in sections 28 and 29 of STRATA SCHEMES MANAGEMENT ACT 1996.

         

        Interestingly sections (2) and (6) of section 28 provides that: 

         

        (2) An owners corporation may, if authorised to do so by a resolution at a general meeting, revoke a delegation under this section

        (6) Despite any delegation made under this section, the owners corporation may continue to exercise all or any of the functions delegated

         

        My reading of the above is that a strata manager can’t override, or prohibit, an OC from making decisions for the respective roles just because they have a contract.  

         

        It would appear then that the chairperson, secretary and treasurer can do as little or as much of the roles as the OC wants them to even if there is a managing agent.  

         

        In practice, unless the managing agent was found wanting in certain areas the OC should/would let the managing agent perform what they were engaged to do.

         

         

         

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