Question: Does the decision to renew building insurance, made by the committee behind closed doors without a compliant strata meeting, fulfil the requirements for sufficient disclosure and transparency?
A compliant strata meeting per the Strata Scheme Management Act 2015 offers transparency and disclosure to all owners.
Does the decision to renew building insurance, made by the committee behind closed doors without a compliant strata meeting, fulfil the requirements for sufficient disclosure according to John Trowbridge’s Strata Insurance Disclosure Handbook?
Insurance is a significant item of expenditure with serious ramifications if not executed correctly.
If renewing strata insurance doesn’t warrant a strata meeting per the SSMA, then what does?
Answer: Providing full disclosure to the committee and subsequently incorporating this information into the strata records is a reasonable and acceptable approach.
While strata legislation across Australia imposes conditions on the approval of certain decisions at a general meeting for strata buildings, it’s important to note that decisions related to insurance are not explicitly included in this requirement.
The owners typically elect a committee to take on the responsibility of making certain decisions on behalf of all owners, and buying decisions on insurance is part of the function and mandate of a committee.
In the context of John Trowbridge’s recommendation, the disclosure proposed should undoubtedly be integrated into the owners corporation’s records. These records should be accessible to all owners, ensuring transparency and accountability within the community.
Although I cannot speak on behalf of John Trowbridge and his specific findings, I personally hold the perspective that providing full disclosure to the committee and subsequently incorporating this information into the strata records is a reasonable and acceptable approach. This approach aligns with the principles of informed decision-making and promotes a well-informed committee that can act in the best interest of all owners.
John Trowbridge, Trowbridge Consulting has recently developed a Disclosure Handbook User Guide outlining the intended use of the material within the Handbook.
This post appears in the October 2023 edition of The NSW Strata Magazine.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.