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Is there a conflict of interest set up by management agreements whereby the agent makes the decision under the delegated authority in the agreement to represent the OC at mediation (for the additional services fee rate of course)?
The delegated authority is the delegation to make decisions of the SC.
Recently the SC received a mediation application and as usual it got no mention on an agenda.
There was no motion on an SC agenda relating to whether or not the OC would accept this mediation; and who would represent them if accepted. There was no formal decision by the OC who sometime include a SC agenda motion and other times do not. Nobody really cares about the simple formalities.
When this lack of decision was brought up at a mediation the agent claimed the agent made the decision, which is possible BUT what about the conflict.
Interesting part of that is that under s 55 the agent is supposed to record this exercise of function and present an annual report to the OC of such exercising of functions.
In the long history of having this agent we have never had such a report so it is safe to assume the agent never utilities the delegated authority but it seems the agent is happy to claim to have used it if necessary.
Which brings us back to the question; how big a conflict is it that the agent decides the OC will have the agent represent them at additional services rates?
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