WA: Can a strata manager sub-contract scheme functions to another strata management company?

Question: In WA, can a strata manager sub-contract out scheme functions to another strata management company, or not?

Answer: Some strata management companies may engage the services of another strata manager from a different company to chair a general meeting.

I have been asked to weigh in on this question and the subsequent answer given.

To start with I feel that both parties are correct but, there hasn’t been sufficient information given about the situation and there has possibly been some misinterpretation on the application of section 143 (5)(c).

In my experience, some strata management companies may engage the services of another strata manager from a different company to chair a general meeting.

This is not subcontracting out the management of the strata scheme.

This may occur when there is a challenging general meeting to be dealt with and the combined skills of the strata managers are necessary to keep the meeting on track, both with the agenda and the motions that are made or voted on.

Surely this can only be seen as working in the best interests of all owners to ensure that proper meeting protocols and outcomes are managed.

Let’s deal with this question and answer in bite-sized chunks.

My take on section 143(5)(c) –

This section deals with the “Authorisation of Functions of Strata Manager”.

The first couple of subsections (1) and (2) deal with the authorisation of “a person” who may be “a strata manager” to perform specified scheme functions.

The authorisation is subject to any conditions specified and may be varied or revoked by the strata company.

Subsection (3) specifies the different resolutions that may be required to approve some functions such as Unanimous, Resolution Without Dissent, Special or Ordinary resolutions. The strata manager may perform such functions subject to the motion and resolution being passed.

Subsection (5) details the functions that a strata manager “cannot” be authorised to perform.

Sec.143(5)(c)

5. A strata manager cannot be authorised to perform any of the following functions —
   
   1. authorising a person to perform a scheme function other than as an agent, employee or contractor of the strata manager;
   2. determining contributions;
   3. entering into a contract with another strata manager, varying, extending or terminating such a contract or making a decision relating to such a contract or the meaning of such a contract;
   4. terminating a contract for services or amenities under section 115;
   5. commencing proceedings on behalf of the strata company in the Tribunal or in a court or other tribunal;
   6. authorising the strata company’s common seal to be applied to a document;
   7. authorising a person to sign documents on behalf of the strata company or on behalf of the council or an officer of the strata company;
   8. a scheme function declared by the regulations to be a scheme function that may not be performed by a strata manager.

From the scant details that I have been provided, I cannot see any breach of section 143(5)(c) has occurred.

There is no indication that the contract has been varied, extended, or terminated.

It is important that when you read the Act, the sections are read in their entirety and not misconstrued.

I agree with the answers previously given by Jamie Horner from Empire Estate Agents. I suggest that if you still have questions, consult a Lawyer and pay for the advice.

The answers given to the questions asked are given with the best interests of the person asking the question in mind and given at no cost.

Shane White
Strata Title Consult
E: shane.white@stratatitleconsult.com.au