Conflict of interest. Committee Member

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Forums Disputes and litigation Conflict of interest. Committee Member

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  • #229852
    puppyluv
    Member

    Hi Amanda

    Just wanted clarification.

    Can a committee member/Secretary accept money from our Strata Plan by performing cleaning duties in our building as a contractor.

    Your assistance is appreciated.

    Kind Regards

    Puppyluv

     

    #230509
    Amanda Farmer
    Expert

    Hi puppyluv,

    Sorry for the late reply to your post.

    Short answer: yes.

    But there should be a formal contract / written agreement in place confirming the scope of this person’s duties and the agreed payment.

    The committee member would have a conflict when it came to any motion on a committee meeting agenda regarding that person’s work/remuneration and would need to disclose that conflict, but otherwise: there is no express prohibition.

    You’d want to ensure there was no risk that the person could be seen to be an employee rather than a contractor. If an employee, then Workplace Health and Safety issues arise.

    Consider also whether that person falls within the definition of “building manager” (see section 66). If so, unless they are also a lot owner, they are not eligible for election to the committee (section 32(1)).

    Consider also whether that person is properly licensed and insured for the work they are carrying out?

    While not illegal, it’s generally not a good idea. Should something go wrong, it makes for a messy situation where the contractor is also a member of the committee.

     

    Amanda.

     

    #230536
    puppyluv
    Member

    Thank you so much Amanda.

    Kind Regards

    Puppyluv

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