The Law Handbook 2024

Chapter 6.5: Owners corporations 603 (s 103(7)(a)). A committee member in arrears remains suspended until the amount is paid (s 103(7)(b)). Under section 101(1) a committee has all the powers and functions that may be delegated by the owners corporation under section 11, and individual committee members no longer require their powers to be delegated individually. However, a committee may, by instrument, delegate any of its powers and functions to the manager or to a lot owner (s 102). Committee members have immunity. A member is not personally liable for anything done or omitted to be done in good faith (s 118(1)). It would follow that a member may be personally liable for not acting in good faith as required under section 117(a). A committee must elect one of its members to serve as chairperson (s 105). That person is also the chairperson of the owners corporation (s 98(2)). A chairperson elected by lot owners may be removed by resolution at a general meeting (proposed s 98(3)). Achairperson elected by a committeemay be removed by resolution of the committee (s 105(2) b)). Committee members may only be added (with the exception of casual vacancies (see ‘Casual vacancies’, below) or removed at a general meeting (s 103(6)). Notice of a committee meeting must be given at least three business days before the meeting (or another time frame determined by the owners corporation) and must include the minutes of the previous committee meeting (s 109). The secretary A committee must appoint a member of the committee or the manager to be the secretary of the committee (s 107). Under section 99(1), if an owners corporation does not have a committee, the lot owners, at a general meeting, may elect a member to be the secretary. The secretary may subsequently be removed by resolution at a general meeting (s 99(1)). The secretary of the committee also becomes the secretary of the owners corporation (s 99(2)). The secretary must give notice to committee members before a meeting (s 109(2)), although the meeting may be called by others (s 108). The secretary is responsible for keeping minutes of meetings (s 114(2)). The notice shall include the minutes of the previous committee meeting and a statement that a member of the committee may appoint a proxy for the purpose of the meeting provided the committee member is also a lot owner (s 109(3)(b)). Resolutions Committees can have interim resolutions (s 112(7)), where the resolution in the absence of a quorum takes effect if confirmed at the next meeting at which a quorum is present (see ‘Meetings and decisions’, above). Under section 112(9), the chairperson of the committee has a second or casting vote that is discretional. A resolution of the committee has effect as a resolution of the owners corporation (s 113). Casual vacancies A casual vacancy is a vacancy that occurs between AGMs. If there is a casual vacancy on a committee, the remaining committee members may co-opt another lot owner or a person holding a proxy for a lot owner to be a member of the committee, or if there are three or more remaining members, proceed without filling the vacancy (s 104). The OC Act is silent on whether resignations need to be in writing, and it may be sufficient proof that such casual vacancy is recorded in the minutes. Managers of owners corporations Registered and volunteer owners corporation managers A manager of an owners corporation who receives a fee or reward must be registered (s 119 OC Act). The penalty for non-compliance is 60 penalty units ( pu ) (from 1 July 2023 to 30 June 2024, the value of one pu is $192.31) (s 178). A registered manager must: • pay an annual registration fee to the Business Licensing Authority (s 183); • act honestly and in good faith in the performance of the manager’s functions; • exercise due care and diligence; and • not make improper use to gain an advantage personally or for any other person (s 122(1)). A volunteer manager has similar immunity to a committee member (s 123). Such immunity may be viewed as alleviating the need to have office bearers’ liability insurance, although the prospect of funding a legal defence is a consideration.