Question: Our Strata is in NSW. Is a member of an Executive Committee eligible to vote on a motion they put forward? I understand the Committee members have a responsibility to make decisions on behalf of all lot owners, not for personal gain.
Answer:
You are correct. Sch 1 Cl 18 of the Strata Schemes Management Act, 2015 (NSW) states:
18 Disclosure of pecuniary interests
(1) If:
(a) a member of a strata committee has a direct or indirect pecuniary interest in a matter being considered or about to be considered at a meeting, and
(b) the interest appears to raise a conflict with the proper performance of the member’s duties in relation to the consideration of the matter,
the member must, as soon as possible after the relevant facts have come to the member’s knowledge, disclose the nature of the interest at a meeting of the strata committee. Maximum penalty: 10 penalty units.
Further,
37 Duty of members of strata committee
It is the duty of each member of a strata committee of an owners corporation to carry out his or her functions for the benefit, so far as practicable, of the owners corporation and with due care and diligence.
Section 260 provides protection from personal liability for members of strata committees who act in good faith.
Have a question or something to add to the article? Leave a comment below.
Do you have a question relating to your property or development? Contact us!
Please note that this article is provided for information purposes only and is not a substitute for professional legal advice.