The presentation by Professor Cathy Sherry and Dr Nicole Johnston at the Strata Impact Conference 2025 next week promises to be a defining moment in the professionalisation of strata management. This presentation will question the widespread belief that disclosure alone effectively resolves conflicts of interest within strata management.
Cathy will explore the concept of fiduciary responsibility, including why strata managers are fiduciaries, and the true scope of these obligations. This remains inadequately understood across the strata sector.
Nicole’s presentation will go beyond insurance commissions and look at the broader framework of conflicted interests, exploring strategies for prevention and ethical management of these situations.
It is right that this presentation be made at a national conference held outside of NSW.
There is a view among some strata managers and leaders that the troubles facing strata management are confined to NSW. It’s a view that’s simply not true.
Since the ABC investigations broke, here are some things we've come across –
· A consortium of strata management firms in WA that own an insurance broker and adopt the same business model as exposed by the media.
· A strata manager in SA involved in multiple undisclosed related party transactions. This case makes the arrangements investigated in NSW look virtuous. This manager received income from related parties like remedial contractors, debt collectors, and insurance brokers, without any justification or statements about how they were competitive and in the interest of the strata.
· A unit titles manager in the ACT called a meeting just before the expiration of their appointment as a compulsory manager of a dysfunctional scheme. They put a motion that the gardener and caretaker be sacked without notice to remedy any breach and be replaced by the strata manager’s own (differently named) gardener and caretaking companies for a period of five years each. The only so-called disclosed conflict of interest in this case were the words ‘Conflict Declared’. That was it – nothing to see here!
There is a great future ahead for strata, but not if we keep pretending that everything is fine.
If ever strata managers want to increase their profitability, reduce the heat on them and their staff, and be trusted and respected like professionals, then conflicts of interest is a monkey we must get off our back.
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
