This article discusses the limits and authority of a strata manager under delegated functions.
Question: Should the owners corporation delegate all functions to the strata manager, including those of the office bearers and committee? Can the strata manager override committee decisions?
We are about to renew our strata management agreement, and a motion in the AGM agenda states:
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“(b) The owners corporation delegate to the agent all its functions (other than those listed in section 52-2 of the Act) and all the functions of its chairperson, secretary, treasurer, and strata committee.”
If the owners corporation delegates all functions to the strata manager, what effect does this have on the office bearers and committee members? Can the strata manager override their decisions?
Answer: The owners corporation or office bearers of the strata committee may continue to exercise all or any of the functions delegated.
In short, the answer is no, the strata manager cannot override the decisions of an elected strata committee or the owners corporation, depending on the decision that is being made or the resolution that is required to be passed.
The strata manager acts as an agent for the owners corporation. The committee, as the elected representatives of the owners, directs the manager’s actions.
Despite any delegation made under this division of the Act, under sections 53(2) and 54(2), the owners corporation or office bearers of the strata committee may continue to exercise all or any of the functions delegated.
For absolute clarity, we suggest that the minute relevant to the motion within the agenda be amended to clearly reflect any limitations the owners corporation wishes to impose on the strata managing agent, such as limits on spending from the administrative and/or capital works fund, limits on convening meetings for unapproved purposes, and expectations or parameters around insurance renewals. We also recommend that the owners corporation seek independent legal advice to ensure these limitations are appropriately worded and enforceable.
Megan Parkins
Tender Advisory
E: megan@tenderadvisory.com.au
P: 0435 893 670
This post appears in the November 2025 edition of The NSW Strata Magazine.
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