People serving as Office Bearers do so in a very selfless manner. However, a surprising number of Officer Bearers are unaware of the legislation and the inherent risks they assume by virtue of their position.
Nowhere to hide
Office Bearers face the very real prospect of having their personal assets exposed in legal actions brought by members of the Bodies Corporate (BC).
This may occur even where the Office Bearer is innocent of any personal wrongdoing. Being involved in legal action resulting from another person’s act, error or omission may appear unfair, but Officers may be left with no choice but to defend their position. Defending an action can be a complex and time-consuming exercise requiring appointment of specialist legal assistance. In such cases, who will pay the substantial legal defence costs?
The potential for being sued exists because errors, misstatements, omissions, neglect and breach of duty do happen in real life. Few Office Bearers, however, fully appreciate their potential exposure.
Part of the issue, and the solution, is education. Just as a prudent company director will consider Directors and Officers Liability insurance – Office Bearers must ensure they have adequate insurance in place to protect them in their role.
Office Bearers insurance is available, and most specialist strata insurance policies will offer this as an optional cover within their insurance plan.
