4.6 Making appropriate decisions | Owners Corporation Network

4.6 Making appropriate decisions

Making appropriate decisions can be the hardest part of serving on an executive committee. No matter the good intentions of members, they all bring in their own opinions, background, experiences, biases and desires. These may or may not coincide with those of the wider owners corporation on whose behalf they need to make decision or with the other members of the executive committee.

There may be strong personalities or some with many years of experience who control the meeting and the decisions. There may be complete agreement on some items and no consensus on others.  Section 5discusses in detail some actual situations and decisions and provides some tips that may prove useful to a new or struggling committee or even a smooth running committee looking for new perspectives.

Golden rules in making executive committee decisions

“.... there are two golden rules affecting decision making in strata living.

First, regardless of whether you are sitting as a member of the executive committee or as a proprietor in a general meeting - the "litmus test" for a good resolution is whether the decision will "increase or decrease the capital value of common property".

Second, when sitting as an executive committee member and asked to consider a motion about which you are uncertain I observe that after considering the first test (noted above) you need to ask "is this decision inside or outside the ordinary course of business". If the decision you are being asked to consider falls outside the ordinary course of business - refer it to a general meeting of proprietors.”             

                                                             Stephen Goddard (Chair, Owners Corporation Network)


“The executive committee acts similar to a board of directors and must ensure that the ‘assets’ that they are responsible for are not diminished while they are in charge.”

                                                                                                     Colin Grace (Grace Lawyers)