Is the strata committee legislated to hold a paper meeting to approve expenditure over $5,000?

NSW
Committee & Governance
question
Lookupstrata community member

Is the committee legislated to hold a "paper meeting" to vote and approve expenditure on repair and or maintenance works over $5,000?

answer
Leanne Habib headshot
Leanne Habib Premium Strata

The restriction you refer to may be an internal limit on spending.

There is a limit on spending by an owners corporation where the proposed expenditure exceeds the prescribed amount (currently $30,000) (where at least two independent quotations must be obtained) and for legal fees.

In terms of any restriction on a strata committee, a strata committee cannot make a decision on any matter that the owners corporation has determined in a general meeting is to be decided only by an owners corporation in general meeting.

The restriction you refer to may be an internal limit on spending to ensure that the strata managing agent (if that person is delegated that function) cannot commit the funds of the owners corporation unless the strata committee has first approved incurring that expense.

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