What exactly does a strata building Executive Committee do? Take a look at the roles within this elected group of unit owners and their responsibilities.

When you purchase a unit  in a strata block, you will hear the terms ‘owners corporation’, ‘executive committee’ and ‘strata manager’ frequently.

If you’re finding it confusing, here’s a quick breakdown of the three:

  • Owners Corporation is made up of each unit owner
  • The Executive Committee is a smaller group of unit owners, elected each year at the Annual General Meeting of the Owners Corporation. It is their responsibility to govern strata issues on behalf of the other unit owners
  • The Strata Manager is the property professional who helps the Executive Committee by taking care of a range of issues, including the day-to-day management of the premises.

Here’s a breakdown of the roles and responsibilities of the Executive Committee.

Key roles on an Executive Committee

In a small building, the Owners Corporation may double as the Executive Committee. In a larger block, up to nine people are elected to represent the Owners Corporation and make some decisions on their behalf.

Once elected, the Executive Committee (EC) will meet regularly to discuss and review the management of the building. Their overall goal is to ensure people are happy and safe, and to arrange for the building to be taken care of so it maintains value for unit owners.

According to ACT Government legislation, this committee’s official function is to “develop matters in relation to the common property and the strategic affairs of the owners corporation”.

The EC is responsible for keeping the Owners Corporation up to date and managing finances for the property. It also deals with matters such as creating and changing by-laws, approving requests for domestic pets, deciding on upgrades to the building and arranging for upkeep and maintenance to take place.

The size of an Executive Committee will vary depending on the number of units on the premises. However, each committee includes some specific roles. These are the:

  • Chairperson
  • Secretary
  • Treasurer

In some Executive Committees, one person will hold more than one of these roles.

Role of the Chairperson

An EC Chairperson in the ACT is responsible for:

  • Chairing general meetings of the Owners Corporation and meetings of the executive committee
  • Setting the agenda for General Meetings and Executive Meetings, in consultation  with the secretary and Owners Corporation manager (if there is one)
  • Talking to the secretary, treasurer and manager (if there is one) about the way they plan to carry out their functions.

Role of the Secretary

In the ACT, an EC Secretary should:

  • Give notice of meetings of the Executive Committee and General Meetings
  • Prepare and send Executive Meeting minutes to executive members and Owners Corporation members
  • Keep records about the Owners Corporation (contact details, etc.)
  • Give notices to Owners Corporation members on behalf of the EC
  • Give out the certificates required under the Unit Titles Management Act
  • Prepare and answer correspondence on behalf of the EC
  • Provide other administrative support to the EC and Owners Corporation.

Role of the Treasurer

The functions of the EC Treasurer are:

  • To give unit owners notices of contributions to general funds (used for day to day purposes) and sinking funds (strata ‘savings’ which go towards larger projects)
  • To ensure strata levies go into the corporation’s account in accordance with regulation
  • To pay bills as authorised by the EC, using Owners Corporation funds
  • To keep the necessary financial records
  • To arrange for financial auditing if necessary
  • To give financial reports to meetings of the Executive Committee so it can monitor the financial performance of the Owners Corporation
  • To prepare and certify the annual financial statements.

Executive Committee Code of Conduct

The Executive Committee Code of Conduct in the ACT includes requirements for individuals to act:

  • Honestly and fairly
  • With care and diligence
  • In the Owners Corporation’s best interests
  • In compliance with ACT regulations
  • In a way which does not deem them a nuisance.

The Code of Conduct also requires EC members to disclose any activities which may be a conflict of interest.

Key responsibilities of the Executive Committee

The EC has a great deal of responsibility but some of the essential requirements are to:

  • Arrange and hold the Annual General Meeting of the Owners Corporation
  • Delegate its functions to one or more executive members
  • Engage or employ people who are appropriate to help in the exercise of the corporation’s functions.

When it comes to engaging or employing people, this includes finding a strata manager to help support the day to day and long term needs of the premises.

To find out more about the roles and responsibilities of an Executive Committee in the ACT, join our online EC Course here.

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