2 Why is the executive committee important? | Owners Corporation Network

2 Why is the executive committee important?

“Any decision made by the executive committee is treated as a decision of the owners corporation although there are some matters that the executive committee do not have the power to make (for example, fixing levies)” [Strata living: What you need to know about living in your strata community (July 2011 FT045). NSW Office of Fair Trading, pg 23].

Your executive committee makes the vast majority of the decisions that govern your strata scheme. Their decisions are considered your decisions. There are a number of prescribed functions of certain executive committee members. Legislation requires that certain things ‘must’ be done i.e. ‘duties’. However, what ‘can’ be done covers a wide scope i.e. ‘powers’.

Although the powers of an executive committee are governed by various acts and regulations it has enormous discretion about what and how decisions are made. The actual number of things the executive committee can decide directly or influence is enormous.

Relevant NSW Legislation: Strata Schemes Management Act (1996)

Section 21: Executive committee's decisions to be decisions of owners corporation