Election of the Strata Committee and Acting in Good Faith

Published: Friday 21 May 2021

The Strata Committee 

 

Election of the Strata Committee and Acting in good faith

NB - The following includes extracts of the Strata Scheme’s Management Act 2015 – noted in italics to suit - with “S” in front of the Section No being referenced in that legislation.

The Strata Committee is made up of 1-9 members which are generally elected at the scheme’s annual general meeting (AGM).

For a large scheme (ie. Over 100 lots not counting car spaces or storage lots etc) there must be at least 3 members on the committee each year.

The Strata Committee’s role is to administer the scheme between each AGM: How this works with a  professional strata manager is quite different from schemes who do not engage such assistance.

Strata Committees Duty and Liability 

S37 Duty of members of strata committee

It is the duty of each member of a strata committee of an owners corporation to carry out his or her functions for the benefit, so far as practicable, of the owners corporation and with due care and diligence.

Note the provisions of Section 260 

S260 Personal liability of officers of owners corporations and others

(1) A matter or thing done or omitted to be done by any of the following persons, or a person acting under the direction of any of those persons, does not, if the matter or thing was done or omitted to be done in good faith for the purpose of executing functions as such a person under this or any other Act, subject any of the following persons or person so acting personally to any action, liability, claim or demand--

(a) an officer of an owners corporation,

(b) a member of a strata committee.

(2) Any such liability of an officer of an owners corporation or a member of a strata committee attaches instead to the owners corporation.

Note well: The requirement to ACT IN GOOD FAITH. Merriam-Websters states Definition of good faith is “honesty or lawfulness of purpose”