Does the duty to act in the interests of the owners corporation mean that committee members must prevent actions that don't reflect the will of the full ownership, and refer such matters to a special general meeting?
The Owners Corporation Act 2006 at section 117, "Duties of members of committees and sub-committees", requires, in addition to (a) acting honestly and in good faith, and (b) exercising due care and diligence, that they:
- act in the interests of the owners corporation.
Does (c) mean:
- owners corporation committee members must prevent matters from happening if they know those matters do not reflect the "will" of the entire owners corporation?
- that such matters should go to a special general meeting initiated by the chairperson or secretary under s 74(a) or (b)?
It's up to the committee if they believe a decision is necessary to be brought before all owners.
It's entirely up to the committee if they believe a decision is necessary to be brought before all owners, especially when they have the power to decide in the first place.
The owners elect the committee each year, and they do so on the basis that those members will not only comply with their obligations under the Act, but also make decisions which benefit and add value to the entire owners corporation. It's entirely possible that in some circumstances, not everyone will receive exactly what they want. This is the nature of shared communities.
There is still a mechanism within the Act that allows for a Special General Meeting to be called by a lot owner who represents 25%, and so if the "will" of the rest of the owners is being ignored, then endorsing an individual to convene a meeting should not be difficult to achieve. Refer to section 74.
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Joel is the Director of Strata Operations at Horizon Strata, based in Melbourne. His focus on building strong client relationships and transparent business operation has provided success over a number of years. Operating as an Owners Corporation Manager for the last 7 years, he has managed a vast range of properties, from small townhouse subdivisions to large high-rise buildings in the CBD and surrounding areas. More recently, Joel completed 2 years management of a 12,000-lot business for one of Australia’s largest Strata Management companies. His experience includes management of large land estates in Melbourne, including a pool and gym facility that services over 1000 apartments. Joel has also assisted on a number of new buildings for developers through to completion and recently completed a term as an Administrator appointed by VCAT. Joel is a regular contributor to LookUpStrata.
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