These ACT lot owners are concerned about the actions of their owners corporation and / or strata manager in the ACT.
Table of Contents:
- QUESTION: What requirement is there for elected members to attend EC meetings?
- QUESTION: Without reference to the EC, our chair instructed our building staff to keep the heated pool closed for the first six weeks of Spring. When I complained about the loss of amenities to our 44-unit serviced apartment scheme, I was brushed aside. Does the Chair have the authority to make this decision?
- QUESTION: I resigned from a position on the executive committee, returning cash, keys and records. No acknowledgement has been given for receipt of the items. I’m concerned the member is not meeting their duties.
Question: What requirement is there for elected members to attend EC meetings?
A member of our Executive Committee regularly does not attend meetings. They do not attend in person or online, nor do they organise a proxy to attend in their place.
What requirement is there for elected members to attend EC meetings now that the legislation has been amended to allow for online participation? The Act appears to be silent on this issue.
Answer: It’s becoming commonplace for Owners Corporations to develop guidelines or charters which outline what is required by members of the Committee, including meeting attendance.
In the ACT, the only way to remove a member of the Committee is by ordinary resolution at a general meeting, provided another eligible owner is elected to replace them. See section 39 of the Unit Titles (Management) Act 2011.
Section 39 – Executive Committee – at and from the first annual general meeting
(5) An executive member (the removed member) of an owners corporation may be removed by the ordinary resolution that elects a qualified person to replace the removed member until the next annual general meeting.
It’s becoming commonplace for Owners Corporations to develop guidelines or charters which outline what is required by members of the Committee, including meeting attendance. These guidelines are presented and relied upon during the Annual General Meeting to ensure nominating candidates understand their obligations.
In other states, the legislation includes meeting attendance requirements for elected members, refer to the Owners Corporation Act 2006 – VIC.
Jack Stoker Bright & Duggan E: Jack.Stoker@bright-duggan.com.au P: 02 9902 7100
This post appears in Strata News #630.
Question: Without reference to the EC, our chair instructed our building staff to keep the heated pool closed for the first six weeks of Spring. When I complained about the loss of amenities to our 44-unit serviced apartment scheme, I was brushed aside. Does the Chair have the authority to make this decision?
Answer: The chairperson (or any member of the EC) should not be operating in isolation, unless delegated the authority to do so by the EC more broadly.
Section 41 of the UTMA does not extend authority to the chairperson of the EC beyond any other members. Accordingly, the chairperson (or any member of the EC) should not be operating in isolation, unless delegated the authority to do so by the EC more broadly.
The Chairperson should be advised of the extent of authority under the Act and a decision made by the EC more broadly regarding closure of the pool or otherwise.
Nina Cannell Signature Strata E: nina@signaturestrata.com.au P: 02 6185 0347
This post appears in Strata News #621.
Question: I resigned from a position on the executive committee, returning cash, keys and records. No acknowledgement has been given for receipt of the items. I’m concerned the member is not meeting their duties.
In the middle of last year I resigned from our owners corporation Executive Committee.
To finalise my involvement I returned some cash, a set of keys and a full set of records to do with my particular responsibility. I asked for a receipt and acknowledgement that the records had been received.
Nearly 10 months later and despite several reminders I have yet to receive any response. I am concerned that the EC member who received the money, keys and records is not meeting his duties as a director and would appreciate some advice on how I can progress a complaint and/or resolve this issue?
Answer: There may not actually be a problem
The first issue to determine is whether there is an actual issue. You don’t actually know that the executive committee has not complied with your request. Further, to determine whether there has been non-compliance, you would need to conduct a wide ranging investigation which would necessarily involve, at a minimum, interviewing the various executive committee members and strata manager.
Further, the only formal way in which the matter can be dealt with is to seek an order from ACAT that the Code of Conduct for executive committee members has been breached. However, this would involve a significant amount of work and there may not actually be a problem. For example, you would need to prove that the money was actually not paid to the owners corporation and questions would arise as to why you gave the money to another executive committee member rather than the strata manager who operates the bank account. In my experience, most treasurers don’t actually carry out the functions attributed to them under the legislation and rely upon the strata manager.
It would seem that a lot of work awaits you for something that may not merit such work.
Christopher Kerin Kerin Benson Lawyers E: enquiries@kerinbensonlawyers.com.au P: 02 8706 7060
This post appears in Strata News #471.
Have a question about suing your owners corporation or strata manager in ACT or something to add to the article? Leave a comment below.
Embed Read next:- ACT: Q&A Difference Between House Rules, Rules and ByLaws
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This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
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