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Executive Committee Excellence
• Overview – Executive Committee (EC): What is it?
– Roles and responsibilities
– Delegated functions
– Liability
– Dysfunctional ECs
– Best practice ECs
– Recruiting, developing and retaining productive members
– Best practice meetings
What is the Executive Committee?
• A group of people elected by the Owners Corporation responsible for day-to-day decisions concerning the management of the strata scheme.
• Elected at every Annual General Meeting (AGM)
Who can be on the Executive Committee?
• An owner (does not need to be financial)
• Company nominee of a company that is an owner
• A non-owner that is nominated by an owner that is not standing for election (e.g. tenant)
• Co-owners can only be nominated: – By another owner that is not co-owner of their lot
– By their co-owner provided they are not standing for election
Executive Committees: The basics
• EC is limited to nine (9) members
• The three (3) office bearer positions are:
– Chairperson
– Secretary
– Treasurer
• A member can hold one or all of the office bearer positions
Executive Committee: The basics
• No requirement to hold a set number of Executive Committee Meetings (ECMs) each year
• Best practice: Minimum four (4)
• Recommendation: Always hold an ECM immediately following the AGM to appoint office bearers
Roles and responsibilities
• Self-managed strata schemes vs strata managing agent appointment
• Delegation of all or some of the responsibilities
• Take back any responsibilities at any time
• The strata manager is not the decision-maker
Roles and responsibilities
• Chairperson
– Chairs all meetings of the EC and owners corporation
– Single vote only – NO casting vote
– If the chairperson is not in attendance the EC must elect a person to perform this role
Roles and responsibilities
• Secretary
– Preparation and distribution of notices and minutes
– Maintaining the strata roll (S108)
– Issuing breach notices
– Convening meetings of the Owners Corporation and the EC
– Replying to all correspondence
Roles and responsibilities
• Treasurer
– Issuing levies
– Provide receipts, banking and accounting for monies paid
– Preparation of S109 certificates
– Preparing budgets and financial statements
Personal liability
• EC’s decision-making power limited by:
– Strata Schemes Management Act 1996
– By-laws of the strata scheme
– Resolutions by the Owners Corporation at general meetings
• Ignoring these restrictions will hold the EC personally liable
Personal liability
• EC’s may be personally liable with regards to:
– Approval of renovations to lots
– Entry into, or termination of agreements
– Acts in conflict of interest
– Defamation
– Negligence
• Office bearers’ liability insurance
Personal liability
• Office bearers’ liability typically excludes:
– Dishonest, fraudulent or criminal acts
– Acts in conflict of interest
– Acts outside the scope of the EC’s authority
– Acts causing death, personal injury or damage or loss to property
Personal liability: reducing risk
• Avoid acting independently of general meeting resolutions…..if in doubt…..call a meeting!
• Ensure the Owners Corporation has appropriate office bearers liability insurance
• Strata managing agent experience can reduce risk
Dysfunctional Executive Committees
• EC members don’t understand their roles and responsibilities
• EC is disorganised or in conflict
• EC members have individual agendas
• History of inactivity
• Negative culture
• Difficulties to remove inactive members
Dysfunctional Executive Committees
• Meetings are undesirable
• Obtaining people’s commitment is difficult
• No recruitment process to attract new members
• Example of dysfunctional EC
Best Practice Executive Committees
• Good governance
– Participatory
– Transparent
– Accountable
• Above and beyond the legislation
– Minutes to all
– Communications outside meetings
– ‘Open’ meetings
Best Practice Executive Committees
• Aware of roles and responsibilities
• Effective meetings
• Code of conduct
• Working parties and sub-committees….share the load
• Active and committed members
• Community…..this isn’t about ‘YOU’
• Live with the consequences of your actions
Recruiting productive members
• Develop an EC profile
• Intangible assets
• Encourage diversity
• Engage potential members year-round
• Advertise roles and responsibilities early
• Manage the nomination process at the AGM
• Create opportunities for non-EC members
Developing productive members
• Clarify roles, responsibilities and expectations immediately after the AGM
• Follow through
• Integration of new members
– Induction pack
– Orientation of common property
• On-line training and continuing education
• Working parties and sub-committees
Retaining productive members
• Effective meetings
• Utilise paper meetings
• Conflict management
• Rotation of office bearers
• Social interaction
• Recognition
Effective meetings
• Planning
• Agenda
– Priorities
– Results
– Participants
– Sequence
– Timing
• Venue
Effective meetings
• Access to timely information
• Start the meeting on time
• Recap terms of communication
• Important dates
• Stick to the agenda
• Stick to the allotted time
• Comprehensive meeting minutes
• Action items
Executive Committee Excellence
• Understand their roles and responsibilities
• Have the best interests of the Owners Corporation as their goal
• Participatory, transparent, accountable
• Above and beyond the legislative requirements
• Establish terms of communication and ‘housekeeping rules’
• Recruit members with the required skill set
• Run effective meetings