Whenever we get new legislation, confusion reigns regarding the application of the new requirements. To assist strata managers and members of strata committees, we will attempt to clarify questions, which have been raised with Leverage. Leverage will endeavor to keep it as current as possible.
In the past week, Leverage has been asked about the application of the requirements of strata managers to keep a register where they have exercised their authority.
The Strata Schemes Management Act 2015 says that the owner’s corporation is responsible for undertaking functions under the act. Some of these functions can be delegated to a strata manager. Section 55 of the Strata Schemes Management Act 2015 requires that a strata manager keep a register where they have exercised their delegated authority.
This provision is not meant to require strata managers to keep a register of every action undertaken within a strata scheme. What it requires is where the strata manager has made a decision, which has not been endorsed by a strata committee; they record it in their register. In other words, where they have acted under their agency agreement to make a “decision” unilaterally to do or not to do something.
Strata managers usually operate in accordance with the act and under the directions of their strata committee. Very rarely does a strata manager unilaterally make a decision to undertake a function under its own auspices. There are urgent situations where those decisions have to be made and those are the ones referred to under this legislation.
Section 55 should be read as follows:
• A register should be maintained by each strata manager regarding using their authority to act without directions; and
• This needs to be made available at each AGM of the owner’s corporation.