VIC OC Strata Regs of fees used for OC social event food & drinks

[Mewser]

Question:
Are Owners Corporation Committee Members Allowed to Use Strata Funds for Social Events in Victoria?


Hi everyone,
I’m seeking clarification on the rules and regulations around the use of Owners Corporation (OC) funds in Victoria. The committee members in our strata block have approved themselves to have a night out using OC money for their meals and drinks. These funds were raised by all owners, and this has been happening once a year.

Is it within the rights of the OC committee to use owners’ funds for such social events? Are there any laws or guidelines in Victoria that specifically address this kind of spending?

Thanks in advance for your help!

 

[Rod]

Answer
Maybe.

The general rule is expenditure of funds is to benefit all owners, which a 'night out' does not. However, maybe, the expenditure was approved at the AGM.

Alternatively, a night out might be in lieu of receiving stipend for the work they do, particularly if there is no appointed manager.