Functions and Powers of a Committee
An Owners Corporation has the authority to delegate certain powers to a committee, the chairperson of the OC, the manager, an individual owner, or others, as decided in a general meeting.
A committee that has been granted delegated authority can make decisions within the scope of its delegated powers on behalf of the owners. However, decisions that require a special or unanimous resolution cannot be made by the committee.
Breaches of Duty for Committee Members
As a committee member, there are specific duties and responsibilities that must be adhered to. Failure to do so may be considered a breach of duty:
- Failure to Act in Good Faith
Committee members must act with good faith and always prioritize the best interests of the Owners Corporation. Any actions taken for personal gain or with dishonest intent are considered a breach of duty. - Failure to Act with Care and Diligence
Committee members are expected to exercise reasonable care and diligence in performing their roles. This includes making well-informed decisions and ensuring they understand the implications of their resolutions. - Conflict of Interest
If a committee member has a personal interest, whether financial or otherwise, in a decision made by the Owners Corporation, they are required to disclose this conflict. In some cases, they may need to recuse themselves from voting on the matter. Failing to disclose a conflict of interest is a breach of duty. - Failure to Comply with the Owners Corporation Act 2006
Committee members must adhere to all relevant laws, including the Owners Corporation Act 2006, to ensure legal compliance in their actions and decisions.
*Please do not misconstrue the above as legal advice.