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Topic
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The agency agreement between the Owners Corporation and the Strata Management company sets out the terms and limitations of the Strata Managers appointment.
Normally under the agreement the Strata Manager is appointed to be the Chairman (so they can Chair a meeting if and when required), Secretary (so they can send notices of meetings and do correspondence on behalf of the Owners Corporation) and Treasure (so they can pay invoices up to their expenditure limit normally $1000 and raise levies).
In additon the Strata Schemes Management Act requires the Owners Corporation to have a Chairperson, Secretary and Treasure. The Executive Committee elects the 'Office Bearers' at the EC meeting directly following the AGM (when the committee is elected).
The Owners Corporation needs to have these “Office Bearers” in additon to delegating these functions to the Strata Manager – if they do not – they cannot Chair a meeting, Call a meeting, Approve invoices.
Murray Cameron
Strata Real Estate Services
1300 997 905
“making strata living easy”
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I wonder what happens when there is nothing in the Strata Management contract to appoint the strata manager to these default roles and the EC fails to elect office-bearers. OK, both situations are highly unlikely but – hey, this is strata we're talking about. Anything can and does happen.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
Hi Generous and Learned Posters, Thanks, Pretty much that is the question I would love an answer to. What if not any one person AT ALL on the EC or in fact in the entire building is willing to take on these roles even if it is only a role on paper? What if a building is barely able to find owners prepared to hold even a Committee position?Can the Strata manager hold all positions and liase with the Committee?
HELP!
Yes. Absolutely!
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
Section 28 of the Strata Schemes Management Act 1996 provides that –
(1) An owners corporation may, by the instrument appointing a strata managing agent or some other instrument, delegate to the strata managing agent:
(a) all of its functions, or
(b) any one or more of its functions specified in the instrument, or
(c) all of its functions except those specified in the instrument,
but only if authorised to do so by a resolution at a general meeting and subject to subsection (3).
(2) An owners corporation may, if authorised to do so by a resolution at a general meeting, revoke a delegation under this section.
(3) An owners corporation cannot delegate to a strata managing agent its power to make:
(a) a delegation under this section, or
(b) a decision on a matter that is required to be decided by the owners corporation, or
(c) a determination relating to the levying or payment of contributions.
(4) A function delegated under this section may, while the delegation remains unrevoked, be exercised from time to time in accordance with the delegation.
(5) A delegation under this section may be made subject to such conditions or such limitations as to the exercise of all or any of the functions, or as to time or circumstances, as may be specified in the instrument of delegation.
(6) Despite any delegation made under this section, the owners corporation may continue to exercise all or any of the functions delegated.
(7) Any act or thing done or suffered by a strata managing agent while acting in the exercise of a delegation under this section:
(a) has the same effect as if it had been done or suffered by the owners corporation, and
(b) is taken to have been done or suffered by the owners corporation.
Thanks so much to all involved. Big sigh of relief.
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