September 20, 2020 at 3:54 pm #349905ThejoysofcommunitylivingMember
Sam Reece’s most informative summit session referred to the new requirement in WA to seek quotes when a member of the Committee or his/her associate is proposing to carry out work for the Owners Corporation for a fee.
Would appreciate being provided the link to relevant part of the new legislation.September 22, 2020 at 7:19 am #362264Amanda FarmerExpertOctober 20, 2020 at 7:30 pm #392903September20Member
Section 135 of the Strata Titles Act 1985 as amended in 2018 effective at 01/05/2020 states (1) The functions of a strata company, subject to this act and to any restriction imposed or direction given by ordinary resolution, are to be performed by the council of the strata company.
Schedule 1 By-law 4 (1) the powers and duties of the strata company must, subject to any restriction imposed or direction given at a general meeting, be exercised and performed by the council of the strata company and a meeting of the council at which a quorum is present is competent to exercise all or any of the functions or powers of the council.
By-law 8 (2) the council may (b) employ or engage on behalf of the strata company, any person as it thinks fit to provide any goods, amenity or service to the strata company;
My question then revolves round section 118 Common seal and execution of documents. This section appears to me to be in conflict with the above quoted sections of the act in that the council of the strata company can and or must carry out the powers and duties of the strata company but they cannot sign those documents that employ or engage the person to do the work required without the authority of the strata company.October 23, 2020 at 6:11 pm #393180Amanda FarmerExpert
My reading of s 118 of the WA legislation is that a strata company can resolve generally to authorise its council to affix the seal to documents. That is to say, there does not have to be a separate resolution for every separate document. Other WA members here may have a different view of this.
In addition, my experience in NSW (at least) is that it is a rare document that actually requires the the common seal: eg. – we don’t put them on work orders and I rarely see a common seal on my cost agreements when the owners corporation tells me to go ahead with legal work. It doesn’t stop me from going ahead.
I also refer to page 43 here, which says that a common seal for a WA strata company is ‘optional’: http://www0.landgate.wa.gov.au/docvault.nsf/web/PS_STPM/$file/Landgate_Guide_to_Strata_Titles.pdf
Hopefully some food for further thought there.
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