We received this question about what to do when the body corporate chairman resigns before the AGM, asked by a lot owner in NSW. Detailed information concerning this topic has been supplied by Leanne Habib, Premium Strata.
Question: Could you please tell me the correct procedure when the body corporate chairman resigns before the AGM
Could you please tell me the correct procedure required when the body corporate Chairman resigns before the Annual Meeting. Is it OK for the existing committee to select one of its members to act until the next annual meeting?
Answer: The body corporate chairman resigns, the Owners Corporation must appoint a person eligible for election as a member to fill the vacancy
Our reply is based on a Strata Scheme –
If a member has resigned from the Executive Committee it means a vacancy on the Executive Committee has occurred. The number of members set at the last Annual General meeting cannot be changed until the next Annual General Meeting. As such the Owners Corporation must appoint a person eligible for election as a member to fill the vacancy, for the balance of his or her predecessor’s term of office.
The Executive Committee have the power to fill the vacancy, this does not have to be referred to a General Meeting. The Vacant position can be filled by either calling on written nominations from all owners or inviting an owner to self–nominate (if eligible for election), which then must be considered and approved at a properly convened Executive Committee meeting.
Until such time the vacant position is filled, the Executive Committee members present at the meeting must elect someone to chair each meeting only, until a new chairperson is elected. The person elected must be entitled to vote as per Schedule 2, Part 2, Clause 15.
Strata Schemes Management Act 2015
8 Chairperson to preside
- Chairperson to preside The chairperson of the owners corporation is to preside at any meeting at which the chairperson is present.
- Presiding member where chairperson absent In the chairperson’s absence from a meeting, the members of the strata committee present at that meeting may elect one of their number to preside at that meeting and the person so elected is, while so presiding, taken to be the chairperson.
- Chairperson does not have casting vote The chairperson does not have a casting vote in relation to any motion but may vote in his or her own right if otherwise entitled.
- Chairperson may be the only person present A meeting is, subject to the provisions of this Schedule relating to the quorum, validly held even though the only person present at the meeting is the chairperson of the owners corporation.
Question: What is the procedure for filling a strata executive committee vacancy?
Our Executive committee has two vacancies. A nomination was sent to them and then they advertised the vacancies. If they put up two other candidates do they then have the right to choose who they want or does it then go to an Executive General meeting for all owners to vote?
Answer: The Executive Committee has the power to fill a vacancy on the committee.
The Executive Committee has the power to fill a vacancy on the committee. Filling vacancies doesn’t have to be referred to a general meeting. The committee must, however, make the decision at a properly convened executive committee meeting and table the written nomination electing for the vacant position.
The election of the committee is, however, a decision of owners at each Annual General Meeting.
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.