This Q&A is about roles and responsibilities of the Owners Corporation Chairperson.
Table of Contents:
- QUESTION: I recently took on my first Owners Committee Chairperson role. Our management company has asked me to sign contracts. Can you clarify if this is usually part of the Chairperson’s role?
- QUESTION: Who usually chairs the AGM? Does it always have to be the Owners Corporation Manager? Why can’t we elect a Chair at the AGM each year?
Question: I recently took on my first Owners Committee Chairperson role. Our management company has asked me to sign contracts. Can you clarify if this is usually part of the Chairperson’s role?
I recently took on my first Owners Committee Chairperson role. Our management company has asked me to sign two contracts for supply of a new nbn connection for the cctv system and for the install of facility management software.
The previous chairperson has told me that he never signed any contracts in the 2 yrs that he was chairperson. He states this has always been the responsibility of our management company.
Can you clarify if this is usually part of the Chairperson’s role?
Answer: The manager typically has delegated authority under the terms of the management contract that enables them to execute contracts on behalf of the Owners Corporation.
The manager typically has delegated authority under the terms of the management contract that enables them to execute contracts on behalf of the Owners Corporation.
The Committee may choose to execute contracts themselves, but they are not obligated to if they employ an owners corporation manager.
It’s important to note that the Committee member signing the contract cannot be held personally liable for any litigation or loss that may arise if they acted in good faith and for the benefit of the Owners Corporation.
Tristan Veurink
VIC Branch Manager
Civium Communities
E: [email protected]
This post appears in the February 2021 edition of The VIC Strata Magazine.
Question: Who usually chairs the AGM? Does it always have to be the Owners Corporation Manager? Why can’t we elect a Chair at the AGM each year?
Answer: Each owners corporation is different.
In line with the Owners Corporation Act 2006 “the members of a committee must appoint a member of the committee to be a Chairperson” and this position is generally filled at each AGM when the committee is elected.
The Chairperson does often chair the AGM and other meetings that are held by both the committee and the owners corporation, however this role can also be delegated to the owners corporation manager if the owners corporation decides to at the time that each meeting is held, and that does include the AGM.
One reason that an owners corporation may decide to delegate the role to the owners corporation manager, is so they can run the meeting professionally and help mediate any matters that may arise without any conflict of interest. They may also be able to continue to move the meeting and decisions along so that the agenda is adhered to and the meeting runs within the required timeframe.
Jane Giacobbe
Strata Reports Victoria
E: [email protected]
P: 0402 341 848
Have a question about roles and responsibilities of the Owners Corporation Chairperson or something to add to the article? Leave a comment below.
This article is for reference purposes only and is not intended to be a comprehensive review of the developments in the law and practice or to cover all aspect of the subject matter. It does not constitute legal or other advice and should not be relied upon this way. Readers should take legal or other advice before applying the information containing in this publication.
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This post appears in Strata News #301
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Thank you for your comment.
It does sound like things are not being run very professionally and it may be an idea to obtain some specialised owners corporation legal advice, if you have concerns around the way your owners corporation manager is managing the scheme.
You may also consider speaking with Consumer Affairs Victoria who may be able to provide some information and guidance for you and the owners.
Interesting comment- Last year our OCM sent out an Agenda which had incorrect dates and matters that needed to be discussed at the AGM. Just prior to the meeting started the OCM started making comments about OC members and was told by the Chairperson to sit down., The OCM continue to ramble on and started distributing minutes which had already been seen by owners then walked out, The chairperson continued the meeting as a quorum was present, minutes were circulated – six months later the OCM sends out fee notices takes his monthly allowance and has refused to abide by the minutes stating he was not present so cannot verify if the motions area valid. This is making life hard for the OC as one motion related to the OCM contract
Our experience has been that whenever the Strata Manager has chaired the AGM it has been a fiasco. This answer to the question assumes that the Chairperson or other members of the committee are not professional and the Strata Manager is. That has not been our experience