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  • #10298

    Our building is 90 years old.  It still have the original wiring.  We received a comprehensive electrical report detailing the essential work to be done to prevent fire and electrocution, which the report rated as a high risk.  We got the report in October 2015 and we have still not discussed it at an EC meeting.

    In this situation, what is the liability of the EC members, and what is the likely status of our building insurance should there be a fire from electrical causes?

    Many thanks. 

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  • #24435
    Whale
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      sofgrain – presumably your Executive Committee (E/C) commissioned the Report on behalf of the Owners Corporation (O/C) because it suspected that something may be defective with the building’s 90 yo wiring, and now that the Report’s been received and even summarily read, Members would be expected to have “reasonable knowledge” of what remedial works are recommended.

      In those circumstances the Office Bearers’ Liability Cover that’s included in almost every Building Insurance Policy of the Owners Corporation in order to limit the costs of claims against E/C Members may be void, and even if the costs of defending any such claim was covered the amount of any settlement, or punitive actions by a Court would almost certainly not be.

      It’s been around 3 months since Members received the Report, and even though the holiday season occurred in the midst of that period, you’re justified in being concerned about the E/C’s lack of action.

      I’m guessing that your concern about inaction stems from your membership of the E/C (right?), in which case you need to obtain the support of other Member/s who together with you comprise at least 30% of the E/C membership, at which time you can require the Secretary to convene a Meeting within whatever timeframe you collectively specify in writing.

      Failing that, you should seek the support of like-minded Owners who together with you hold ≥25% of the aggregate units of entitlement for your Scheme, at which time you can collectively petition the Secretary in writing to convene an Extraordinary General Meeting of the O/C to consider a Motion to address the Report’s recommendations.

      The actions that I’ve suggested would in themselves limit your personal liability and to some degree that of the O/C itself should some incident arise that could have been mitigated had the Report’s recommendations been more promptly addressed.

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