Short answer
A conflict of interest arises when a committee member has a personal or financial interest in a matter the committee is deciding. The expectation is that the member discloses the interest and generally steps back from voting on that matter, so the decision is made in the scheme’s interest rather than the individual’s. Recording the disclosure protects both the member and the scheme.
What counts as a conflict
A conflict is any situation where a member stands to gain — or a person close to them stands to gain — from a committee decision. Common examples include:
- A contract being awarded to a company the member owns, works for, or is related to.
- A decision affecting the member’s own lot in a way that differs from other owners.
- A financial relationship with a supplier, contractor or manager being considered.
The interest doesn’t have to be improper to be a conflict. The point is that it exists and could influence — or appear to influence — the member’s judgement.
Disclose, then step back
The safe pattern is straightforward: the member declares the interest before the matter is discussed, the disclosure is recorded in the minutes, and the member does not vote on that item (and often leaves the discussion). Handling it this way keeps the decision clean and shows, on the record, that the committee acted in the scheme’s interest. Committee members owe duties to act honestly and with due care, and managing conflicts openly is part of meeting that standard.
Making disclosures automatic, not awkward
Conflicts are only a problem when they’re hidden. Straita builds the disclosure step into how a self-managing committee decides — flagging where a member has an interest, capturing the declaration in the record, and noting that they stood aside — so nothing rests on someone remembering to raise it, and the decision trail is clean if it’s ever queried.
Primary sources
- Strata Schemes Management Act 2015 (NSW) — duties of committee members and disclosure of interests.
- Serving on a strata committee (NSW Government) — acting honestly and managing conflicts.