Committee Governance
In essence, the executive committee is probably one of the most crucial elements to get right as the committee (together with the manager) guides all other functions, relationships, and decisions.
With our years of experience, Platinum concedes that many committees experience periods of difficulty within their memberships for apparent reasons. Although various acts and regulations govern the executive committee’s powers and functions, it has enormous discretion about what and how decisions are made.
Platinum believes that for the executive committee to be influential, the selection of executive committee members is the most critical decision to ensure an inclusive e-management style in solving issues, thus overseeing a harmonious and flourishing building and living environment.
An executive committee, if possible, should contain people who will bring something more to the group than just a desire to protect their interests.
Strata Management and the building management provide the platform of communication, and Platinum believes in direct contact with all parties personally and via mobile phone and email.
Platinum advocates that strong relationships between members make for a better committee and require an open communication network with reasonable rules and procedures for forums like meetings.
Regular committee meetings are necessary while maintaining regular communication via phone and email. Platinum believes in a close working relationship with the building manager, at least weekly or more frequently.
Platinum Manager’s engagement with the committee with the decision making in respect to common area
Platinum’s view on this issue is not negotiable. The manager must play an adversarial role while being able to empower the committee with dos and don’ts in the process. The common area’s management falls directly in the Owners corporation’s ambit, and the manager becomes the conduit for communication and the principal proponent in the entire scheme.
Platinum’s recommendation for achieving efficient and transparent communication practices with the committees
Most Owners Corporations have a committee with powers delegated under Section 11 of the Owners Corporations Act 2006 (Vic) (“the Act”).
However, many committees are inefficient and, as a result, can be more of a hindrance than a help to the Owners Corporation manager and can result in the Owners Corporation incurring unnecessary costs.
Practical tips for increasing the efficiency and effectiveness of your committee.
1. Preparing a Manual for Committee Members
Prepare a written manual for a committee member and, in particular new committee members that confirm their obligations under the Act and the expectations of their position on the committee.
That manual will act as a helpful reference tool for committee members. It will also reduce the number of questions you need to answer and, therefore, the amount of time you need to allocate to your role on the committee or as manager.
Make sure Committee Members understand their Obligations
Committee members are volunteers, but they also have specific duties under the Act, which are set out in Section 117 to act honestly in good faith in the performance of their functions, to exercise due care and diligence in the performance of their functions; and must not make improper use of their position as a member to gain, directly or indirectly.
Immunity of Committee Members
Committee members should understand that they have immunity under Section 118 of the Act for anything done or omitted to be done in good faith in the conduct of their role.
Committee members must understand that protection so that they are more willing to be usefully involved in the operation of the Owners Corporation. They also need to be aware that this immunity does not apply where they do not act in good faith. An example of a committee member acting in bad faith would be using their position on the committee to gain an advantage (financial or otherwise) for themselves or a third party.
Committee Members’ awareness of Functions of Owners Corporation
Section 4 of the Act sets out the functions of an Owners Corporation.
The committee members must understand those functions and the powers delegated to the committee.
Functions that may be delegated to the committee may include (subject to the specific rules of the Owners Corporation and some specific legislative limitations):
(a) To manage and administer the common property
(b) To repair and maintain the:
- Common property
- Chattels, fixtures, fittings and services related to the common property or its enjoyment
- •Equipment and services which are for the benefit of all or some of the land affected by the Owners corporation
(c) To take out, maintain and pay insurance premiums as required under the Act
(d) To provide an Owners corporation certificates
(e) Any other functions conferred on the Owners Corporation by:
- The Act and regulations.
- Subdivision Act;
- Any other law; or
- Rules of the Owners Corporation
Conduct Meetings
Committee meetings should be conducted properly to maintain the committee members’ enthusiasm and ensure that the Owners Corporation runs efficiently and effectively. Accordingly, the following procedures should be adopted:
- A clear agenda should be circulated to the committee members in advance of
- the meeting with copies of any materials proposed to be reviewed or discussed at the meeting
- A chairperson should administer the conduct of the meeting to make sure that the agenda items are addressed and that the meeting runs on time
- The committee secretary should be at the meetings to clarify the meeting minutes and any resolutions or decisions of the committee.