What is the role of the Chairperson of an Owners Corporation?

By Owen Day, Managing Director LDB Property Pty Ltd

The chairperson of an Owners Corporation plays a vital leadership role in the governance of strata-titled properties such as apartment buildings, townhouses, or commercial complexes. Whether you’ve been appointed or elected from among the lot owners, here is a breakdown of the chairperson’s role, which may vary depending on whether or not there is a committee. 

1. Representation and Communication

The chairperson often acts as the public face or spokesperson for the Owners Corporation, particularly in communications with external parties such as strata managers, contractors, regulatory authorities, and legal representatives. They may:

• Represent the Owners Corporation in dispute resolution proceedings.

• Work with the strata manager to communicate decisions and updates to lot owners.

• Sign official documents on behalf of the Owners Corporation.

While the chairperson has a leadership role, they are not a unilateral decision-maker. All significant decisions must be made collectively by the Owners Corporation or its committee

2. Oversight and Accountability

The chairperson helps to ensure that the Owners Corporation complies with relevant laws, regulations, and by-laws. This includes:

• Making sure the corporation meets its legal obligations (e.g. maintenance of common property, insurance, and record keeping).

• Overseeing the implementation of decisions made at meetings.

3. Leadership and Meeting Management

If there is a committee one of the primary responsibilities of the chairperson is to preside over committee meetings. In this role, the chairperson ensures that meetings:

• Follow the proper procedures as outlined in the relevant strata laws.

• Stay on topic and within the scope of the agenda.

• Allow for fair and balanced discussion among members.

• Reach decisions in a democratic and transparent manner.

Effective chairpersons help in facilitating discussions, encouraging participation, and managing conflicts diplomatically.

4. Collaboration with the Strata Manager

The Owners Corporation often engage a professional strata manager to handle administrative and financial tasks. The chairperson works closely with this manager to help manage the day-to-day affairs of the OC. A good working relationship between the chairperson and the strata manager can significantly improve the efficiency and harmony of the Owners Corporation.

5. Limitations of the Role

It is essential to understand that the chairperson:

• Is not a sole decision-maker or executive authority.

• Must act within the decisions made by the committee or corporation.

• Is bound by the same rules and obligations as all other owners.

Their role is more about leadership, facilitation, and representation, rather than executive power.

6. Acting in Good Faith

The chairperson must act in the best interests of all owners and in accordance with legislation and the OC’s rules.

Conclusion

The chairperson of an Owners Corporation holds a crucial position that demands fairness, organisation, and a strong sense of responsibility. While they do not hold excessive power, their ability to guide discussions, represent the group, and oversee compliance makes them a key figure in maintaining a harmonious and functional strata community. For any Owners Corporation to thrive, having a competent and cooperative chairperson is a major asset.