Have your strata council’s expenditures been approved? How do you know?

Knowing what your council can spend without the need of an AGM or SGM is important, and it can vary from one Strata Corporation to another. 

 Section 98 of the Act requires council to report any unapproved expenditures if a proposed expenditure has not been approved in the budget or at an annual or special general meeting.  

The Strata Corporation may only make the expenditure in accordance with this section, less than the amount set out in the bylaws, or if the bylaws are silent as to the amount, less than $2000 or 5% of the total contribution to the operating fund for the current year, whichever is less.

The expenditure may be made out of the operating fund or contingency reserve fund if there are reasonable grounds to believe that an immediate expenditure is necessary to ensure safety or prevent significant loss or damage, whether physical or otherwise.

Council should ensure at all times that such unapproved expenditures be reported in the minutes of the council meeting held following such expenditures informing the Owners.

More Strata Governance Pages & Articles:
 

• Strata Governance & How We Help 
   
• The Truth About Strata Depreciation Reports
• Are There People in Your Strata Complex Getting a Free Ride?
• Myths Surrounding the Dreaded Strata Depreciation Report
• Strata Governance and Compliance. Do you know the difference?
• Your Strata could be NON COMPLIANT. How do you know for sure?
• Is Your Strata properly insured? Many are not and don't know it!
• How to avoid Personal Liability as a Strata Council Member
• One of the most neglected & misunderstood areas of the Strata Property Act
• Have strata council's expenditures been approved? How do you know?