“The owners corporation has responsibility for the overall management of the scheme. The executive committee as the owners corporation’s elected representatives needs to ensure that they or any appointed assistant (e.g. strata manager or building manager) does the following.”[Strata living: What you need to know about living in your strata community (July 2011 FT045). NSW Office of Fair Trading, pp. 27].
The executive committee needs to be mindful of the duties of the owners corporation as they are the owners corporation’s elected representatives and in the best position to ensure that the duties are carried out appropriately.
Relevant NSW Legislation: Strata Schemes Management Act (1996)
Section 21 Executive committee's decisions to be decisions of owners corporation
(1) A decision of an executive committee is taken to be the decision of the owners corporation, subject to subsection (4).
(2) However, the following decisions may not be made by the executive committee:
(a) a decision that is required by or under any Act to be made by the owners corporation by unanimous resolution or special resolution or in general meeting,
(b) a decision on any matter or type of matter that the owners corporation has determined in general meeting is to be decided only by the owners corporation in general meeting.
(3) An owners corporation may in general meeting continue to exercise all or any of the functions conferred on it by this Act or the by-laws even though an executive committee holds office.
(4) Despite any other provision of this Act, in the event of a disagreement between the owners corporation and the executive committee, the decision of the owners corporation prevails.