Q: My query does not relate to my Strata Manager. I am enquiring about owners funds being used to pay for a legal case involving one of our PBC members and the Liaison officer used by the PBC for defamation of a former GM in the resort I live in. (this has been going on since 2019). Is this true? Can they use our money without our authorisation? We the owners have had our levies increased, (my own has doubled) to cover this and other cases currently in litigation. The PBC has spent $120,000.00 in the past year alone.
Owners funds being used to pay for a legal case involving PBC member for defamation of a former GM. Can they use our money without our authorisation? – Margaret, QLD
A: The body corporate for a community title scheme may start a proceeding only if the proceeding is authorised by special resolution. The only exception is if it is a prescribed proceeding, which means one of the four scenarios below:
1. A proceeding for the recovery of a liquidated debt against the owner of a lot included in the scheme
2. A counterclaim, third-party proceeding or other proceeding, in a proceeding to which the body corporate is already a party
3. A proceeding for an offence under chapter 3, part 5, division 4
4. A proceeding for the enforcement of an adjudicator’s order or an appeal against an adjudicator’s order.
