Strata Title
6. The Executive Committee
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 21 Sep 2015
- An executive committee is made up of members of the owners’ corporation who are elected by the owners to manage the strata scheme.
- Elections are usually held once each year at the Annual General Meeting (AGM).
- The executive committee act as representatives of all owners.
- In a scheme that has more than 5 lots an executive committee is often used to ensure smooth administration.
- The executive committee can have a maximum of 9 members, 3 of whom are elected by the committee to perform the roles of chairperson, secretary and treasurer. These 3 members are known as the office bearers. Each office bearer has certain powers and duties including:
- Chairperson:
- presides at all meetings of the executive committee but does not have a deciding vote.
- Secretary:
- prepares and distributes minutes of meetings of the owners’ corporation;
- gives all notices required under the law;
- maintains the strata roll (list of owners);
- answers all communications received by the owners’ corporation;
- convenes all meetings (whether executive or otherwise); and
- all other necessary secretarial and administrative functions.
- Treasurer:
- issues all levy notices and acknowledges receipt of funds;
- prepares section 109 certificates (in NSW) and reporting on the property’s finances when someone wants to purchase a unit;
- manages all finances;
- prepares and maintains all financial and accounting records; and
- plans out future expenditure of the scheme’s trust funds.
- To be eligible for executive committee election you must be:
- a lot owner or co-owner;
- a nominee of a company that is an owner of a lot; or
- a person nominated by an owner who is not standing for election.
- If you are nominated to stand for election to an executive committee there are legal obligations and disclosures that you must make including disclosing any business or personal connections you have with:
- the developer; or
- any person or business being paid to work on the building.
- An executive committee is usually appointed at the first Annual General Meeting (AGM) but can also be appointed earlier.
- If there is no executive committee then the strata scheme is administered directly by the owners’ corporation.
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