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STAA2018

New directions and limitations on the Council

By January 17, 2020May 15th, 2020No Comments

The Strata Titles Amendment Act, which came into effect on May 1st 2020, introduces new directions and limitations upon Strata Company council members. Members of the council will have the following statutory duties imposed upon them:

  • act honestly, with loyalty and in good faith in the performance of their functions
  • exercise due care and diligence in the performance of their functions
  • ensure they do not make improper use of their position as a member to gain a direct or indirect advantage for themselves or for any other person or to cause detriment to the Strata Company
  • inform the council in writing of any conflict of interest as soon as is practicable after they become aware of the conflict

They have also introduced safeguards for the council members so that they cannot be held liable in any civil proceedings for an act that they do in good faith.

The STAA 2018 also states that;

  • A COO member may be removed from the council if they breach any of the statutory duties listed above.
  • One of the members of the council MUST hold the office as chairperson of the Strata Company.
  • Council election votes, if demanded/requested, can now be counted via unit entitlement of lots.
  • Owners of the lots have the power to perform functions of the council if there is no council or an insufficient number of members.
  • Council members should not vote on any matter in which they have an interest. (eg a council member is the owner of a company that carries out the fire services with a contract of $50k)
  • Any conflict of interest must be disclosed in writing to the Strata Company.

More information regarding the council of owner’s constitution and functions can be found in Part 8, Division 4, Sections 135 – 142 of the act.