ACT: Q&A Cost of Holding a Special General Meeting

This question about the cost of holding a special general meeting has been answered by Christopher Kerin, Kerin Benson Lawyers.

Question: A number our lot owners have requested a special General meeting be held to discuss issues of concern to all owners. Our Strata Manager has said that all costs for holding a special general meeting will be charged to those owners who requested the meeting.

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A number of owners of our Owners Corporation have requested that a special General meeting be held to discuss issues of concern to all owners, one being security of the complex.

Our Strata Manager has said that all costs for holding a special general meeting (hire of room, cost of Strata staff to attend, mail out of Agenda etc) will be charged to those owners who requested the meeting (9 Owners out of 28 in the Owners Corporation).

There is no mention of this condition in the Managers’ Agreement, nor is it specified in the Legislation as far as I can see.

Is this a fair and reasonable reaction by the Strata Manager, and is this legal?

Answer: There is nothing in the Unit Titles (Management) Act 2011 or the accompanying regulation which enables the cost of a meeting to be charged to those owners who requested the meeting.

There is nothing in the Unit Titles (Management) Act 2011 or the accompanying regulation which enables the cost of a meeting to be charged to those owners who requested the meeting.

Section 3.5 of Schedule 3 is the relevant section which enables people who are entitled to vote to make a meeting request (see below).

3.5 General meetings other than annual general meetings

1. The executive committee of an owners corporation may call a general meeting, by notice under section 3.6, whenever it considers appropriate.
2. Subsection (3) applies if the executive committee of an owners corporation receives a written request (a meeting request), stating the matters to be considered at the meeting, from people who are entitled to vote on all motions for units whose combined unit entitlement is at least 1/4 of the total unit entitlement in the units plan.
3. The executive committee must hold a general meeting, by notice under section 3.6, within 28 days after the day it receives the meeting request.

Finally, section 31 of the UTMA, which enables expenses incurred by an owners corporation to be recovered from lot owners, only applies where an expense has arisen due to a wilful or negligent act or omission of a lot owner or a breach of the rules by a lot owner.

A meeting request is not a wilful or negligent act or omission of a lot owner or a breach of the rules.

This post appears in Strata News #182.

Read next:

• ACT: Q&A Rules Around How to Chair a General Meeting. Can this be done by an Independent person?
• ACT: Q&A Calling a Special General Meeting – What do I need to do?

Christopher Kerin
Kerin Benson Lawyers
P: 02 8706 7060
E: enquiries@kerinbensonlawyers.com.au

This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.

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