2.4 Delegating functions of the executive committee

2.4.1 Delegating to the strata manager

Many of the duties and functions can be and are delegated to the appointed strata manager e.g. issuing of levy notices, financial recording and chairing meetings. In most instances the strata manager normally performs all the functions of the secretary and treasurer who operate in a mainly supervisory capacity. The office bearers can then focus on managing the scheme rather than concerning themselves about the day-to-day communications, logistical, accounting, compliance, legislative and legal details. Even if certain duties have been delegated to the strata manager, the chair, secretary and treasurer are still able to exercise their powers, if they choose to do so. However, the chair, treasurer and secretary need to liaise closely with the strata manager and approve or follow-up tasks or actions as appropriate.

2.4.2 Delegating to others

Some executive committees delegate functions, work or activities to others than the strata manager, such as a building manager, non-executive owners, front desk staff, caretakers, sub-committees, trusted service providers and lawyers. The legislation allows a caretaker to assist in exercising one or more of the functions of the owners corporation of managing and controlling the use of common property (otherwise than by the owners or occupiers of lots) and of maintaining and repairing common property.

However, there are some duties you cannot delegate to non-executive committee members. An executive committee member or strata manager needs to authorise these activities which include:

  • the preparation of estimates and levying of administrative and sinking funds contributions
  • issuing receipts and payment of money to or from the owners corporation
  • the taking out of insurance
  • the conduct of meetings, handling of correspondence and the maintenance of records

Other items as specified in the regulations - including arranging fire inspections, complying with the Occupational Health and Safety Act 2000, contracting services and maintenance of common property or the provision of services to the common property inspections of records under section 108 of the Act, section 109 certificates.

Relevant NSW Legislation: Strata Schemes Management Act (1996)

Section 29A: Functions that may only be delegated to member of executive committee or strata managing agent

Part 4 – Others involved in management--strata managing agents

Part 4A – Others assisting in management--caretakers

Section 40C: With which functions of an owners corporation can a caretaker assist?

 

Relevant NSW Legislation: The Strata Schemes Management Regulation (2010)

Regulation 13: Restriction on delegation of certain functions