Question: Can owners corporation members attend and speak at executive committee meetings?
At the first meeting of our owners corporation, a resolution was passed allowing all eight units to be represented on the executive committee. Does this resolution need to be renewed at each AGM?
We also understand the difference between the owners corporation (OC) and the executive committee (EC). In our eight-lot unit plan, one or two people per unit sometimes attend EC meetings. We know there is only one vote per EC member. Our secretary claims that while OC members are allowed to attend, they are not permitted to speak.
As the UTMA states that the chair may determine how meetings are conducted, can OC members attend and speak at EC meetings?
Answer: As a general rule, non-EC members can attend with the agreement of the EC, either in part to address their concern/area of interest, or in full.
Section 39 of the Unit Titles (Management) Act 2011 deals with the executive committee – at and from the First Annual General Meeting.
In accordance with section (39)(4)(i) of the Act, an elected member holds office until the earlier of (a) the next AGM, or (b) the EC member ceases to be a qualified person.
In practice, this means that the executive committee is essentially dissolved at each AGM, when a new executive committee is appointed. It is therefore necessary to renew the EC resolution at each AGM, regardless of the number of EC members or whether all owners represent the EC.
Section 2.8 (1) of the UTMA allows the executive committee to regulate its business as it considers appropriate. However, the Act is otherwise silent on attendance at EC meetings.
As a general rule, non-EC members can attend with the agreement of the EC, either in part to address their concern/area of interest, or in full. If they are attending the entire meeting as an observer, rather than to address a particular topic, they should only speak if invited to do so. Importantly, only EC members are eligible to vote. Attendance of non-EC members is not legislated, so it ultimately depends on what the EC considers (and agrees upon) as appropriate.
This post appears in Strata News #760.
Nina Cannell
Signature Strata
E: nina@signaturestrata.com.au
P: 02 6185 0347
I started to receive Strata News after issue #626 was published, so I have only just read the Q and A on the matter of setting a date and time prior to an AGM for receiving nominations for membership of an Executive Committee. I am aware that the first paragraph of an order issued on 27th August 2018 by Senior Member H Robinson of the ACAT reads as follows:
“For the avoidance of doubt, any member of the Owners Corporation is entitled to stand for election as a member of the executive committee, upon nominating from the floor at the Annual General Meeting. Nominees do not need a seconder.”
has the ACT legislation changed to allow someone who holds a power of attorney from an owner to be elected to the Executive Committee of an Owner’s Corporation.
can a person who holds the power of attorney attend and vote at the AGM
Hi June
Jack Stoker, Bright & Duggan
has responded to your comment in the article above.
“Question: Are we able to provide remuneration to EC members who make substantial time commitments to their roles, either through agreed payment for work or alternative incentives such as reduction of strata levies.”
I am a paid member of an Executive Committee. If an EC member has specialist skills that are of benefit to the OC I would encourage an OC to recognise that and approve remuneration. In my opinion the benefits that the OC receive justifies the fee I receive.
“Question: Is an Executive Committee legally elected if the election process does not comply with the Owners Corporation rules? We have a rule that sets a deadline for when nominations must be received”.
Personally I would encourage the Owners of an OC to challenge this at ACAT where such a Rule exists. Although the UTMA is silent on the matter NSW legislation forbids such a Rule, ie Owners can raise their hands form the floor at an AGM.
‘The strata manager cannot be elected to the Committee, however the Committee may delegate any of its functions to the manager, pursuant to Section 58 of the Unit Titles (Management) Act 2011’
With respect I don’t think Michael Smythe of Civium Communities view is correct on the EC delegation of Chair to a strata manager. It maybe in NSW, but by implication in the ACT the UTMA 2011 at s3.13,(1) ‘ The chairperson of a general meeting is the chairperson of the executive committee..’, and at s3.23(2) chairperson at meeting replaced by person ‘entitled to vote’ (i.e UTMA: ‘qualified person’) being that a manager is not a ‘qualified person’ or entitled to vote on motions. Also at s3.26,2(b)(i); manager excluded from holding proxies (s3.7), and therefore a manager as chair of a meeting and being the appointed authorised proxy to vote by an absent owner could not exercise that right because they are specifically excluded because they are prohibited person, i.e a manager. Section 58 is vague and only mentions EC ‘functions’, which are different from a statutory role (Chairperson, Secretary & Treasurer) as defined in the UTMA. The above qualification and assumptions are that an elected EC exist as opposed to an owners corporation (OC) with no elected EC. In that case an OC may by contract appoint an strata manager to conduct the functions of an EC, However I would be interested in a lawyers view on a strata manager contracted to function in the EC role with the above statutory exclusions, and therefore by extension could say, ACAT appoint a manager as an Administrator under s38 of the UTMA?
Hi Jan
Is it possible for the unit owner to put in place a power of attorney type document, allowing their Mum to act on their behalf?
Cheers
Hi Kelly
We have received the following reply back from Jan Browne, Bridge Strata:
A power of attorney can certainly act on behalf of the owner of the unit but the wording of the legislation (at this time) specifically states that membership of the Executive Committee has to be the Owner of the unit. Or if owned by a company the nominated company nominee. If a unit is owned by more then one owner then only a nominee of all the owners can be elected.