WA: What Are the Duties of a Strata Company Representative?

Question: Please define the duties and obligations required of a strata company representative.

Answer: To understand the role, you would need to reference the definitions and terms and conditions contained within the specific contract.

This is depended on in what context you are referencing “representative”.

This reference appears most commonly in Strata Management Contracts and to understand the role, you would need to reference the definitions and terms and conditions contained within the specific contract.

In most cases, this person is a nominee of the council of the strata company who acts in delivering instruction from the council to the agent. The contract usually sets out that the agent can act on instruction from the representative as if it was instruction from the Council in full.

The title “Strata Company Representative” is not used within the Strata Titles Act 1985, however, if you are referencing a member of the council of owners, then this information is contained in Division 4, sections 135 to 137 of the ACT.

In brief, the council of owners are governed by the ACT itself and any directions imposed by a general meeting of the strata company, the council of owners can not overrule a decision of all owners made at a general meeting.

Section 137 tells us about the general duties of the council and how they must handle conflicts of interest and it states that a council member:

• must at all times act honestly, with loyalty and in good faith in the performance of functions as a member of the council or an officer of the strata company; and
• must at all times exercise the degree of care and diligence in the performance of those functions that a reasonable person in the person’s position and the circumstances of the strata company would reasonably be expected to exercise; and
• must not make improper use of the person’s position —
  
  1. to gain, directly or indirectly, an advantage for the person or any other person; or
  2. to cause detriment to the strata company.

Members of the council have an obligation to disclose in writing to the collective council any direct or indirect pecuniary or other interests that may conflict with the duties as a member of the council. In the event that such a conflict exists, it is also important that the member reframes from voting on any relevant decision to the conflict.

This post appears in the November 2021 edition of The WA Strata Magazine.

Luke Downie
Realmark Strata
E: strataperth@gmail.com
P: 08 9328 0999