This Q&A is about roles and responsibilities of the Owners Corporation Committee.
Table of Contents:
- QUESTION: 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?
- QUESTION: How do owners complain about the behaviour and actions of the committee, particularly breaches of the Act?
- QUESTION: Our small OC has no elected officials, let alone a chairperson. Does every owners corporation have to have a chairperson?
- QUESTION: A committee member’s family owns a plumbing company. That company has been engaged to carry out extensive work in the building. Should the committee member have declared this conflict and been excused from the decision making process?
- QUESTION: Are sub-committees in effect until dissolved by the committee, or are sub-committees appointed every year during the AGM in a similar manner as the Owners Corporation committee?
Question: 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)?
Answer: 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.
Joel Chamberlain Horizon Strata Management Group E: joel.chamberlain@horizonstrata.com.au P: 03 9687 7788
This post appears in the August 2025 edition of The VIC Strata Magazine.
Question: How do owners complain about the behaviour and actions of the committee, particularly breaches of the Act?
How do owners complain about the behaviour and actions of the committee, in particular, breaches of the Owners Corporation Act 2006? We brought these matters up and were bullied by the chair. The grievance committee includes members of the owners corporation (OC) committee.
Answer: If you don’t believe the committee has handled your dispute correctly, there is a mechanism within the Act.
Joel: When the OC and grievance committees are effectively the same people, that’s tricky. If you don’t believe the committee has handled your dispute correctly, there is a mechanism within the Act. Owners can, with 25% lot owner support, call a special general meeting. Otherwise, it’s the legal path.
Philip: When you buy into a subdivision, you’re buying into one with many lot owners, and many OC decisions are by majority. If 51% vote one way, 49% may be unhappy about the decision, but it stands, provided it is in good faith and in accordance with the obligations of the OC.
We have to distinguish between an owner complaining about a breach of the statutory duty or a failure to carry out the OC’s role (e.g., to repair and maintain common property) as opposed to just not liking a decision. I think many lot of owners end up at VCAT because they don’t like a decision. Your only option here is to employ a PR campaign to garner support and get the majority of votes, or you sell up. That sounds harsh, but sometimes that’s the downside of co-owning property. Sometimes you don’t get your way. If it’s a breach of statutory duty, that’s completely different, and you head to VCAT.
Joel Chamberlain Horizon Strata Management Group E: joel.chamberlain@horizonstrata.com.au P: 03 9687 7788
Phillip Leaman Tisher Liner FC Law E: ocenquiry@tlfc.com.au P: 03 8600 9370
This post appears in the June 2025 edition of The VIC Strata Magazine.
Question: Our small OC has no elected officials, let alone a chairperson. Does every owners corporation have to have a chairperson?
I own one of four residential units. We have no elected officials, let alone a chairperson. Does every owners corporation have to have a chairperson?
My owners corporation (OC) manager says we don’t need a chairperson. The Owners Corporations Act 2006 states that “if an owners corporation does not have a committee, the lot owners MUST elect a member to be the chairperson of the owners corporation.”
Is the OC manager correct?
Answer: The importance of nominating a chair is to alleviate responsibility from the manager making decisions without the OC’s consent.
The relevant section of the Owners Corporations Act 2006 Section 98, Division 8 – Office-holders
Sect – 98 Chairperson of owners corporation
- If an owners corporation does not have a committee, the lot owners must elect a member to be the chairperson of the owners corporation.
Further, as this is a Tier four OC (less than 10 occupiable lots), a committee may be elected.
Basically, if it’s legislated, i.e. the OC Act, it’s a requirement. However, from time to time no one shows up to an AGM and therefore, no one nominates to chair. The manager is left calling owners asking one to nominate for chair.
The importance of nominating a chair is to alleviate responsibility from the manager making decisions without the OC’s consent. If the manager has a chair, they can at least seek instructions from the chair. Also, Section 122 (f) if the manager is to receive any benefit, they must advise the chair.
The OC is in breach if no one puts their hand up. However, the reality is, without a chair, the manager has to send correspondence to all owners for instructions via email or ballots.
John Divita MBCM Strata Specialists E: administration@mbcm.com.au P: 1300 77 6226
This post appears in the February 2025 edition of The VIC Strata Magazine.
Question: A committee member’s family owns a plumbing company. That company has been engaged to carry out extensive work in the building. Should the committee member have declared this conflict and been excused from the decision making process?
We have a committee member who works for his father’s plumbing company. The committee voted to engage the plumbing company to upgrade the building’s hot water system. The price for the work has gone from around $500k to over $1m. The committee member’s family are gaining financially from this work that could have been done for half the cost with another plumbing company.
The committee have issued owners with a special levy to cover the extra expense. Should the committee member have declared this conflict and been excused from the decision making process?
Answer: You may decide to lodge a formal complaint.
Under section 117 of the Act, committees and their members must perform their duties honestly and in good faith, with due care and diligence and in the interests of the owners corporation. Further, the Act states a member of a committee must not make improper use of the member’s position to gain, directly or indirectly, an advantage.
Also in regards to the costs you have quoted, section 24 of the Act states, in summary, that special levies may be raised to cover extraordinary items of expenditure however a special resolution (75% of lot entitlements) is required if the amount is more than twice the annual budget.
You may decide to lodge a formal complaint in regard to this issue by referring to Part 10 – Dispute resolution – of the Act.
Stratabase Holdings E: info@stratabasemgt.com P: 0412 247 589
This post appears in the February 2023 edition of The VIC Strata Magazine.
Question: Are sub-committees in effect until dissolved by the committee, or are sub-committees appointed every year during the AGM in a similar manner as the Owners Corporation committee?
Answer: The OC Committee has the authority to create and dissolve sub-committees as it wishes
The OC Committee has the authority to create and dissolve sub-committees as it wishes, subject to a resolution at a general meeting that stipulates that sub-committees can only be appointed or dissolved at a general meeting (and/or subject to other resolutions or OC Rules that dictate how sub-committees are to be governed).
It would be rare that the OC Committee is not granted this authority. Given that sub-committees exist to help the OC Committee with their decision making, it would (in my opinion) be counter-intuitive to revoke this authority as it would likely stifle the decision making process.
Callum Wilson Bright & Duggan E: callum.wilson@bright-duggan.com.au P: 0427 339 980
This post appears in Strata News #620.
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.
Read next:
- VIC: Q&A Conflict of Interest on the Committee?
- VIC: Q&A Bullying and Harassment by One Lot Owner in Our Small Scheme
This post appears in Strata News #301
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