EC spending limits | Executive Committees | Flat Chat Forum: Your Questions Answered




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EC spending limits
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JimmyT
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27/06/2012 - 11:13 am
Member Since: 06/01/2014
Forum Posts: 3285
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The Act is quite specific on all this - but only, it seems, in relation to 'large' strata schemes (schemes with 100 lot or more). There seem to be no spending limitations or rules on schemes with fewer lots in them (apart from when ir comes to taking legal action).

Assuming you are in a large scheme, firstly there's Section 75 (5)

An owners corporation of a large strata scheme must include in the estimates prepared under this section at an annual general meeting specific amounts in relation to each item or matter on which the owners corporation intends to expend money, or on which the owners corporation is aware money will be likely to be expended, in the period until the next annual general meeting.

Then there's this ...

80A   Limit on spending by executive committees of large strata schemes

(1)  If a specific amount has been determined as referred to in section 75 (5) for expenditure on any item or matter, the executive committee of the owners corporation concerned must not, in the period until the annual general meeting next occurring after the determination was made, spend on the item or matter an amount greater than that determined amount for expenditure on the item or matter plus 10 per cent.

(2)  The owners corporation of a large strata scheme may by resolution at a general meeting remove the limitation imposed by subsection (1) generally or in relation to any particular item or matter.

80B   Quotations to be obtained for certain items of expenditure by large strata schemes

An owners corporation of a large strata scheme must obtain at least 2 quotations in relation to proposed expenditure in respect of any one item or matter if the proposed expenditure will exceed an amount prescribed by the regulations for the purposes of this section.

80C   Exceptions in relation to emergencies

Sections 80A (1) and 80B do not apply to expenditure undertaken for emergency purposes, including, for example, expenditure to remedy any of the following:

(a)  burst or blocked water or sewerage pipes,

(b)  serious damage caused by fire or by storm or any other natural disaster,

(c)  unexpected electrical or security system failure,

(d)  glass breakages that affect the security of any building in the strata scheme or could result in damage to the inside of any such building.

Hope this clarifies more than it confuses

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