I’ve highlighted Gary Bugden OAM’s paper on strata manager’s fiduciary role in the Daily Post So, What Did Gary Bugden OAM say about Strata Managers?
In that paper, he summarises his messages in 9 take away points as follows.
1. Each appointment of a strata managing agent needs to be looked at to determine whether a fiduciary relationship exists with the owners corporation.
2. Delegations of powers, operation of bank accounts and performance of governance functions are good indicators that a fiduciary relationship exists
3. Personal gains by the fiduciary (such as the receipt of insurance commissions) can be authorised by the terms of the ‘contract’ under which they are appointed.
4. If so authorised, no issue of full and frank disclosure and informed consent arises.
5. The wording of the authorisation needs to be carefully drafted, particularly where at the time of the contract the consideration or other benefit has already been obtained.
6. If there is no authorisation, then disclosure and consent will be necessary.
7. Where possible, “risky practices” should be avoided and where that is not possible, they should be carefully managed.
8. Statutory disclosure obligations and fiduciary duties can co-exist, in which case it may sometimes be necessary to discharge them both.
9. Rather than pushing the indirect income boundaries to the limits, consider being more professional in your approach by being more transparent
Thanks @GaryBugden.