Committee’s must put into effect the lawful decisions of the Body Corporate. If the resolutions were to engage given contractors, the committee appointed other contractors and there was no amending or revoking motion passed at a subsequent general meeting, then this committee has a problem!
When acting in good faith and without negligence, committee members are immune from civil liability.
Choosing a different contractor out of ignorance, arrogance or stupidity, is not necessarily negligent or acting in bad faith. Something more may well be required; for example a kick back, or if the choice of new contractors was ‘jobs for the boys’.
Even if one of those sorts of bad behaviour was present, committee’s in this situation will often reach for ratification.
That is, at a general meeting they will propose motions to authorise their engagement of the different contractors, and a committee that knows what it is doing, will also seek to revoke the earlier resolutions engaging the original contractors. Ratification gets the committee members off the hook, even though that would not be in the best interests of the Body Corporate.
Where to start can be tricky. At one end of the spectrum a discreet investigation, followed by adjudication is a viable alternative. At the other end of the range of options, is a frontal assault in the form of a requisitioned EGM, to effect a coup d’état replacing the committee, followed by a forensic audit of the material, experts reports and an action for breach of statutory duty (best done in the District Court, if possible).
Michael Kleinschmidt
Stratum Legal
E: info@stratumlegal.com.au
P: 07 5406 1282