The Role of an Owners Corporation Committee

An Owners Corporation committee is a group of lot owners elected to act on behalf of the Owners Corporation between general meetings. Understanding how committees operate and what they are responsible for is important for both committee members and lot owners.

The committee's primary role is to make decisions on behalf of the Owners Corporation within the authority delegated to it. This includes approving routine expenditure, instructing the Owners Corporation manager, and addressing matters that arise between general meetings.

Committees do not have unlimited authority. Decisions that exceed the committee's delegated authority — such as major capital expenditure, changes to rules, or matters reserved for general meetings under the Owners Corporations Act — must be referred to a general meeting of all lot owners.

Committee members have obligations to act in the best interests of the Owners Corporation as a whole, not in the interests of individual lot owners or factions. Conflicts of interest should be declared and managed appropriately.

The relationship between the committee and the Owners Corporation manager is central to the effective operation of the building. The manager acts on the committee's instructions and provides advice and administrative support. A clear understanding of respective roles reduces friction and improves outcomes.

Lot owners who are not on the committee have the right to attend general meetings, review financial statements, and raise matters for consideration. Effective Owners Corporations maintain open communication between the committee, the manager, and all lot owners.

Lavida provides Owners Corporation management services and is available to discuss the governance and operational needs of any Owners Corporation.