Good Corporate Governance

 

Good corporate governance


Establishing a well-managed strata scheme

 

Every strata scheme is governed by its owners corporation and just like any other corporation it must be run in accordance with specific rules and regulations. This is achieved through the appointment of an executive committee and a strata managing agent.

 

Executive committees and strata managers work alongside each other and the scope of their powers and responsibilities are clearly defined. An executive committee member holds the same corporate responsibility and legal liability for their decisions as a company director. A strata manager’s accountability is stipulated under the Property Stock & Business Agent’s Act.

 

The executive committee must make decisions for the good of all stakeholders, while the strata manager’s role is to inform and guide the executive committee in its decisions and implement its instructions diligently.

 

What to look for

 

Good corporate governance requires balanced and intelligent decision making, taking into account both the long and short term interests of all residents. It requires an ability to look at the needs of the broader community and not get bogged down in detail, or factional interests.

 

Owners can evaluate the effectiveness of their management by its performance in the following areas:

 

•    Day to day running of the scheme
•    Financial management of owners’ funds
•    Maintenance of common property
•    Legislative compliance
•    Protection and appreciation of the real estate value of the property
•    Long term viability of the corporation
•    The lifestyle enjoyment of residents


A well run strata scheme requires a great partnership between a strong and decisive executive committee and a knowledgeable and supportive strata manager. Together they can build a real sense of community and a peaceful place for residents to live. At Cambridge Management Services, we believe this is the very essence of good governance.