Should the owners corporation delegate all functions to the strata manager, including those of the office bearers and committee? Can the strata manager override committee decisions?
We are about to renew our strata management agreement, and a motion in the AGM agenda states:
"(b) The owners corporation delegate to the agent all its functions (other than those listed in section 52-2 of the Act) and all the functions of its chairperson, secretary, treasurer, and strata committee."
If the owners corporation delegates all functions to the strata manager, what effect does this have on the office bearers and committee members? Can the strata manager override their decisions?
The owners corporation or office bearers of the strata committee may continue to exercise all or any of the functions delegated.
In short, the answer is no, the strata manager cannot override the decisions of an elected strata committee or the owners corporation, depending on the decision that is being made or the resolution that is required to be passed.
The strata manager acts as an agent for the owners corporation. The committee, as the elected representatives of the owners, directs the manager's actions.
Despite any delegation made under this division of the Act, under sections 53(2) and 54(2), the owners corporation or office bearers of the strata committee may continue to exercise all or any of the functions delegated.
For absolute clarity, we suggest that the minute relevant to the motion within the agenda be amended to clearly reflect any limitations the owners corporation wishes to impose on the strata managing agent, such as limits on spending from the administrative and/or capital works fund, limits on convening meetings for unapproved purposes, and expectations or parameters around insurance renewals. We also recommend that the owners corporation seek independent legal advice to ensure these limitations are appropriately worded and enforceable.
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During her tenure as a Licensed Strata Manager, Megan played an integral part of the strata industry since 2017 when commencing with an Industry Leader and was recognised for her dedication in the awarding of the 2019 SCA NSW Rising Star Award and 2020 SCA Australasia Rising Star Award.
Equipped with a Class 2 Strata Management Licence and Certificate 4 in Strata Management, she possesses a strong foundation of knowledge and expertise with respect to the multi-faceted management requirements of Owners Corporations, Building Management Committees, and all forms of Registered Associations, including but not limited to, Asset Management, Trust Account Management, Compliance Management, and complex Meeting Management with internal and external stakeholders.
Through the combination of all aspects of her professional experience, business management skills and passion for achieving success on behalf of her client base, Megan has been drawn to co-founding Tender Advisory to help Owners Corporation’s re-gain their confidence and control over the management of their properties and their trust accounts.
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