This article discusses unauthorised use of a strata common seal and the required approval process.
Question; Two Committee members made changes to common areas without any vote and used the common seal without approval. What process should have been followed?
We are a strata of 3 townhouses. Is it illegal for 2 committee members/owners to use our strata’s common seal representing the Owners Corporation without having put the use of this to a vote?
2 owners completely cleared half of the common lot garden without any vote/special resolution and had used the common seal on a local council’s forms in case removal of trees was investigated. We had no knowledge about their plan to do any of this work or use the common seal. They are calling the clearing and reestablishment of the common lot gardens their private “project” and expect it to come out of strata funds.
Answer: An Owners Corporation can only make decisions through general meetings or strata committee meetings.
An Owners Corporation can only make decisions through general meetings or strata committee meetings and affix the common seal to documentation pursuant to such decisions having been made and in accordance with the strata legislation. The “clearing” appears to be over and above the repair & maintenance function of the Owners Corporation and would likely have required a special resolution for the “improvement” or “enhancement” carried out.
This post appears in Strata News #517.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
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