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  • #11848
    Avatardustyrusty
    Flatchatter

    With what mandate should Strata Committee members be thinking about when exercising their duties diligently in the interests of the Owners Corporation?

    I understand that as a committee member I must act in the best interests of the OC and at general meetings can  vote in the best interests of myself and these might be completely opposite position on the exact same topics. But what does acting in the interests of the Owners Corporation entail?

    What does being fair entail?

    Should I be representing the desires of most owners?

    Should I be protecting the owners corporations assets/bank balance at all costs?

    When a dispute arises how do I know I’m taking the right stance?

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  • #30286
    Sir HumphreySir Humphrey
    Strataguru

    @dustyrusty said:
    How do you think these questions might be considered for committee member who practices property law in their day job?  

    Your question still seems a bit abstract. Without a concrete example, it is hard to know how your day job might be relevant. 

    It is conceivable that the interests of the OC could be different from the desire of a majority. There are conceivable circumstances when it would be more appropriate to spend rather than save OC funds. Indeed not spending might be irresponsible in some circumstances – eg. if preventative maintenance done now would save the OC money in the longer term. 

    #30280
    Avatardustyrusty
    Flatchatter
    Chat-starter

    How do you think these questions might be considered for committee member who practices property law in their day job?

    #30278
    Sir HumphreySir Humphrey
    Strataguru

    Without specifics it is hard to answer the questions. What is ‘fair’ depends on what you are talking about.

    If you are taking part in decision making as a member of a committee you have to act in the interests of the OC. If you are voting at a general meeting of the OC, you can vote in your own interests. 

    I would suggest that if you have a conflict of interest as a committee member, you should 1) disclose that conflict and 2) abstain from voting on the committee on the particular matter, and 3) possibly absent yourself from committee discussion of the matter.

    I also suggest you should make sure the committee minutes record that you absented yourself so that you can later show that you acted properly, should that turn out to be necessary. 

    I would not say you should always be protecting the OC bank balance at all costs. Sometimes the OC should spend. For example, the OC has an obligation to maintain the common property. If something is a significant safety risk, you should spend the money to fix it promptly and worry about recouping the cost later.

    If a majority of owners don’t want to spend the money because they are cheapskates but a danger is clear and present and you are on the committee, fix the risk first and worry about the rest later. 

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