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
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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 Owners Corporation chairperson 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 predecessors 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 than 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 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.
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
Are you interested in more information about executive committee resignations or strata living particular to NSW legislation? Visit our FactSheet: Committee Concerns OR FactSheet: Strata Legislation NSW