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