ACT: Can executive committee members be paid for their work?

This article discusses whether owners corporations can pay executive committee members for their work and the key legal considerations involved.

Question: Are we able to provide remuneration to EC members who make substantial time commitments to their roles, either through agreed payment for work or alternative incentives such as reduction of strata levies.

I’m on the EC of a large building in Canberra and a number of EC members undertake substantial work in order to discharge their duties.

We also struggle to recruit new members to the EC, possibly because it’s effectively a volunteer role with a sometimes onerous time commitment.

We have discussed very broadly the possibility of providing remuneration to EC members who make substantial time commitments to their roles, either through agreed payment for work or alternative incentives such as reduction of strata levies.

I was wondering whether there are any precedents for this or information about best practice information on how to ensure people are treated fairly and transparently in relation to the work they provide on Executive Committees?

Answer: In the ACT, there is nothing in the executive committee code of conduct or the UTMA which explicitly prohibits or approves this.

I am not aware of any owners corporations in the ACT that have paid executive committee members for their work on executive committees.

However, this does occur in NSW although not frequently. However, I understand that there are some rules in relation to remunerating NSW strata committee members. For example, strata committee members in NSW can be paid for work they’ve done on behalf of the scheme, but only retrospectively.

In the ACT, there is nothing in the executive committee code of conduct or the UTMA which explicitly prohibits or approves this but there are some provisions of the code of conduct that would need to be considered when deciding whether or not to remunerate executive committee members.

This post appears in Strata News #532.

Christopher Kerin
Kerin Benson Lawyers
E: enquiries@kerinbensonlawyers.com.au
P: 02 8706 7060