Question: Can a committee spread the spending for a project over several years so that each year the amount is less than the spending limit?
Given that the committee cannot spend more than its spending limit and the committee cannot divide a project in smaller parts, can a committee spread the spending for a project over several years so that each year the amount is less than the spending limit, in order to avoid having to obtain approval by ordinary resolution at a general meeting?
Is the committee obliged to send out the Statement of Accounts with the minutes when the Statement of Accounts is an agenda item? If they are not, then when can owners have the opportunity to ask questions about expenditures?
Answer: Spending limits exist for a reason and Committees and owners should respect that.
There is always a level of concern when people are looking for ways to get around the legislation as seems to be happening here. Spending limits exist for a reason and Committees and owners should respect that. What’s the objection to calling a general meeting to approve expenditure over the limit? If it is simply the cost of the meeting that is not a valid reason – owners need to accept that there are bureaucratic costs to running a body corporate. If it is because the Committee is worried that owners will reject the proposal it suggests there is something wrong with the proposal.
For the accounts, these are included as a part of the AGM notice but there is no requirement to send them out as part of a committee meeting notice/minutes. Still, accounts should be freely accessible to owners and if they are not that is a red flag. Tower’s owners can access updated accounts on a daily basis via the online portal.
This post appears in Strata News #498.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924