Legal Opinion on Actions of Committee not adhering the the Act

Committee’s don’t (and can’t) ‘do’ anything, without passing a resolution.

‘I reject your reality and substitute my own’ Adam Savage, MythBusters. Whenever I am asked this question, that quote comes to mind. 

Committee’s don’t (and can’t) ‘do’ anything, without passing a resolution. That is the sole function of a committee, to make decisions on behalf of the Body Corporate. 

A committee decision, once properly made and if it is within the committee’s (legal) competence to make, is a decision of the body corporate. ‘Informal’ decisions of a committee have no force at law – they are either a valid, properly made decision… or they are not. 

Committees who ‘accept’ a quote without a VOC or a meeting, are doing so by email, phone calls or even over a cup of tea in an unit are not acting within legislation.

The extra effort involved in sending a VOC is effectively zero, except in very large community titles schemes. In those larger schemes, decisions should be ‘batched’ to be dealt with at the quarterly committee meeting or, in urgent circumstances, the next VOC. 

It’s critical to remember that committees are not a law unto themselves and that the formal requirements of a meeting or a VOC exist for good reason. 

For example, completion of the mandated processes help show the world (including adjudicators) that the committee has deliberately, and intentionally, made a decision, and exactly what that decision is. 

Committee decision making involves notice being given to lot owners, including so that they can either be involved, or challenge the committee’s decision, including if necessary, before it is implemented

A committee who acts on an informal decision, is rejecting the reality of the legislation and substituting their own…

Michael Kleinschmidt
Stratum Legal
E: info@stratumlegal.com.au
P: 07 5406 1282