What a strata committee cannot do

The powers of owners corporations, and hence their strata committees, are tempered by various legislative restrictions.

For example, the strata committee cannot make decisions on matters that require a unanimous or special resolution, such as dissolving a strata property, amending by-laws or building rules, setting or changing levies, and changing the rights, privileges or obligations of property owners.Learn more about what a strata committee cannot do and find out more about the duties of care and obligations for strata committee members:

1. What a strata committee cannot do
2. What are the duties of care and obligations by strata committee members?

What a strata committee cannot do

In New South Wales

The strata committee does not have the power to make decisions on any of the below, as all owners are entitled to vote on these matters at a general meeting of the owners corporation:

• Improve or enhance the common property (requires approval by special resolution a general meeting)
• Set the levy contributions (requires approval by ordinary resolution a general meeting)
• Spend more than 10% above the budgeted amount for any item, except if the owners corporation has resolved they can spend over this amount approved by an ordinary resolution a general meeting
• Commence or obtain legal advice, except where the anticipated costs are less than $1,000 multiplied by the number of lots, or $12,500 (whichever is the lesser). More than this amount requires approval by ordinary resolution passed at a general meeting
• Approve by-laws (requires approval by special resolution a general meeting)
• Terminate the strata manager (requires approval by ordinary resolution at a general meeting)
• Obtain less than two quotes if an amount exceeds $30,000 in relation to any one item or matter (for large properties of more than 100 lots).

In Queensland

A body corporate committee cannot make decisions about:

• Setting or changing a body corporate levy
• Changing the rights, privileges or obligations of lot owners
• Decisions that must be made by ordinary resolution, special resolution, resolution without dissent or majority resolution
• Paying money to committee members unless it is less than $50 incurred by a committee member attending a committee meeting, or not more than $300 reimbursed to a committee member in a 12-month period.

Or start a legal proceeding, unless it is:

• To recover a liquidated debt against the owner of a lot
• Related to a proceeding where the body corporate is already a party
• For an offence under the by-law contravention provisions of the Body Corporate and Community Management Act 1997
• Or, a dispute resolution application is lodged with the Office of the Commissioner for Body Corporate and Community Management

In Victoria

Committees can make decisions within the limits set by the owners corporation and only on matters that require an ordinary resolution i.e. they do not require a general meeting, or on matters that must be decided by a special or unanimous resolution. This includes changing or repealing building rules, setting levy contributions, or improving common property. Committees cannot overturn a decision of the owners corporation.

What are the duties of care and obligations by strata committee members?

In New South Wales

Under Section 37 of the Strata Schemes Management Act 2015, each member of a strata committee of an owners corporation has a duty “to carry out his or her functions for the benefit, so far as practicable, of the owners corporation and with due care and diligence”.

In Queensland

Body corporate committee Code of Conduct

Voting members of body corporate committees in Queensland are bound to observe a Code of Conduct. The Code can be found in Schedule 1A of the Body Corporate and Community Management Act 1997.

There are six rules for the body corporate committee to comply with:

1. Be committed to acquiring an understanding of the Act, including the Code
2. Act honestly and fairly and not to unfairly or unreasonably disclose information held by the body corporate, including information about an owner, unless authorised or required by law to do so
3. Act in the best interests of the body corporate, unless it is unlawful to do so
4. Take reasonable steps to comply with the Act, including the Code, in performing their duties
5. Avoid causing a nuisance or behaving in a way that unreasonably affects a person’s lawful use or enjoyment of a lot or common property
6. Disclose any conflict of interest the member may have on a matter.

In Victoria

A committee or sub-committee member of an owners corporation must:

1. Act honestly and in good faith in the performance of his or her functions; and
2. Exercise due care and diligence in the performance of his or her functions; and
3. Not make improper use of his or her position as a member to gain, directly or indirectly, an advantage for himself or herself or any other person.