This question from an ACT Lot Owner about executive committee spending has been answered by Jan Browne, Whittles Strata Partners.
Question: If the Executive Committee is unable to justify expenditure can the Owners Corporation request reimbursement from the Committee members to the appropriate fund?
What options are available to the Owners Corporation in seeking reimbursement from the Executive Committee?
If the Executive Committee is unable to justify expenditure on any given cost can the Owners Corporation simply request reimbursement from the Committee members to the appropriate fund?
Answer: The EC is elected to act in the best interests of the Owners Corporation.
The Executive Committee is elected to act in the best interests of the Owners Corporation in exercising the member’s functions as an executive member.
If the Owners do not like the decisions of the Executive Committee, then they elect a new Executive Committee at their next meeting or call a General Meeting. This is very much like local, state and federal elections.
The Executive Committee should contain spending to the amounts approved in the budget, however, without knowing the background it is difficult to comment further.
A party to a dispute relating to an owners corporation for a units plan may bring an application to the Australian Capital Territory Civil & Administrative Tribunal (ACAT). if the application relates to the dispute and one of the parties is:
- a unit owner or occupier;
- the owners corporation manager or former manager;
- a service contractor;
- an executive committee member.
This post appears in Strata News #246.
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
Have a question about executive committee spending or something to add to the article? Leave a comment below.