Part 3Part 3 Others involved in management—the executive committee
Introductory note. This Part requires an owners corporation for a strata scheme to appoint an executive committee to make decisions for the owners corporation. However, the owners corporation may limit the matters that the executive committee may decide and the Act contains various matters that must be decided by the owners corporation in general meeting.The executive committee must appoint a chairperson, secretary and treasurer. This Part sets out the functions of those officers.
This Part gives effect to Schedule 3 which contains more detailed provisions about the constitution and procedure of executive committees.
Division 1 Constitution of the executive committee
16 Owners corporation to appoint executive committee
(1) An owners corporation must appoint an executive committee of the owners corporation in accordance with this Division.(2) The owners corporation may appoint an executive committee before the first annual general meeting of the owners corporation.(3) If an executive committee has not been appointed before the first annual general meeting of the owners corporation, the owners corporation must appoint an executive committee at that meeting.(4) If there is no executive committee of an owners corporation, the strata scheme must be administered by the owners corporation, but nothing in this subsection prevents a strata managing agent appointed under this Act from exercising any functions conferred on the agent.
17 What happens if executive committee is not appointed?
(1) An Adjudicator may, on application, make an order appointing a person nominated by the applicant (and who has consented to that nomination) to convene a meeting of the owners corporation if no executive committee of the owners corporation exists after the first annual general meeting.(2) The meeting is to be convened and held within such time as is specified in the order.(3) A meeting held under this section is, for the purpose of the election of an executive committee, taken to be the first annual general meeting of the owners corporation.(4) An order made under this section may include such ancillary or consequential provisions as the Adjudicator thinks fit.(5) If an order made under this section so provides:(a) the person appointed to convene a meeting of an owners corporation by the order is to preside at the meeting and, while the person so presides, is taken to be the chairperson of the owners corporation, and(b) notice of that meeting may be given in the manner specified in the order.(6) An application under this section may be made only by an owner, mortgagee or covenant chargee of a lot in the relevant strata scheme.
18 Executive committee to appoint chairperson, secretary and treasurer
(1) The members of an executive committee must, at the first meeting of the executive committee after they assume office as members, appoint a chairperson, secretary and treasurer of the executive committee.(2) The chairperson, secretary and treasurer of the executive committee are also, respectively, the chairperson, secretary and treasurer of the owners corporation.(3) One person may be appointed to more than one office under this section.
19 What happens if chairperson, secretary and treasurer are not appointed?
(1) An Adjudicator may, on application, make an order appointing a person nominated by the applicant (and who has consented to that nomination) to convene a meeting of the executive committee of the owners corporation if there is not a chairperson, secretary and treasurer of the executive committee of the owners corporation after the first meeting of the executive committee has been held.(2) The meeting is to be convened and held within such time as is specified in the order.(3) A meeting held under this section is taken to have been held by the executive committee of the owners corporation.(4) An order made under this section may include such ancillary or consequential provisions as the Adjudicator thinks fit.(5) If an order made under this section so provides, notice of the meeting may be given in the manner specified in the order.(6) An application under this section may be made only by an owner, mortgagee or covenant chargee of a lot in the relevant strata scheme.
20 Provisions relating to constitution of executive committee, appointment of office holders and meetings of executive committee
(1) Part 1 of Schedule 3 makes further provision with respect to the constitution of an executive committee and the appointment of the chairperson, secretary and treasurer.(2) Part 2 of Schedule 3 makes further provision with respect to meetings of an executive committee.
21 Executive committee’s decisions to be decisions of owners corporation
(1) A decision of an executive committee is taken to be the decision of the owners corporation, subject to subsection (4).(2) However, the following decisions may not be made by the executive committee:(a) a decision that is required by or under any Act to be made by the owners corporation by unanimous resolution or special resolution or in general meeting,(b) a decision on any matter or type of matter that the owners corporation has determined in general meeting is to be decided only by the owners corporation in general meeting.(3) An owners corporation may in general meeting continue to exercise all or any of the functions conferred on it by this Act or the by-laws even though an executive committee holds office.(4) Despite any other provision of this Act, in the event of a disagreement between the owners corporation and the executive committee, the decision of the owners corporation prevails.
Division 2 Members and office holders of the executive committee
22 What are the functions of the secretary of an owners corporation?
The functions of a secretary of an owners corporation include the following:(a) to prepare and distribute minutes of meetings of the owners corporation and submit a motion for confirmation of the minutes of any meeting of the owners corporation at the next such meeting,(b) to give on behalf of the owners corporation and of the executive committee the notices required to be given under this Act,(c) to maintain the strata roll,(d) to enable the inspection of documents on behalf of the owners corporation in accordance with section 108,(e) to answer communications addressed to the owners corporation,(f) to convene meetings of the executive committee and (apart from its first annual general meeting) of the owners corporation,(g) to attend to matters of an administrative or secretarial nature in connection with the exercise, by the owners corporation or the executive committee, of its functions.
23 What are the functions of the treasurer of an owners corporation?
(1) The functions of a treasurer of an owners corporation include the following:(a) to notify owners of any contributions levied in accordance with this Act,(b) to receive, acknowledge, bank and account for any money paid to the owners corporation,(c) to prepare any certificate applied for under Division 4 of Part 5 of Chapter 3,(d) to keep the accounting records and prepare the financial statements.(2) The treasurer of an owners corporation may delegate the exercise of any of the treasurer’s functions (other than this power of delegation) to another member of the executive committee if:(a) the delegation is specifically approved by the executive committee of the owners corporation, and(b) the executive committee specifically approves of the function being delegated to that member of the executive committee, and(c) the delegation is subject to such limitations as to time or otherwise as the executive committee requires.(3) While a delegate is acting in accordance with the terms of such a delegation, the delegate is taken to be the treasurer of the owners corporation.(4) The executive committee of an owners corporation may, by a notice in writing served on the treasurer of the owners corporation, order the treasurer not to exercise any of the treasurer’s functions that are specified in the notice unless the treasurer does so jointly with another person so specified.
24 Who can exercise functions relating to the finances and accounts of the owners corporation?
A person must not exercise any of the functions of an owners corporation or the treasurer of an owners corporation relating to the receipt or expenditure of, or the accounting for, money of the owners corporation or the keeping of the books of account of the owners corporation unless the person is:(a) a member of the owners corporation or of the executive committee and the treasurer of the owners corporation or of the executive committee, or(b) a strata managing agent who is empowered to exercise that function, or(c) a person with whom the treasurer of the owners corporation is required by an order of the executive committee to exercise that function jointly, and who is enabling the treasurer to comply with the order, or(d) a member of CPA Australia, or a member of the Institute of Chartered Accountants in Australia, authorised by the owners corporation to exercise the function, or(d1) a member of the National Institute of Accountants authorised by the owners corporation to exercise the function, or(e) during the initial period only—a person authorised by the original owner to exercise the function.Maximum penalty: 5 penalty units.
25 Can members of the executive committee be paid?
An owners corporation may pay to a person who is the chairperson, secretary, treasurer or a member of the executive committee such amount as the owners corporation determines at an annual general meeting in recognition of services performed by the person for the owners corporation in the period since the last annual general meeting.