FactSheet: Strata Committee Concerns - What is an Owners Corporation?

What is an owners corporation?
What is a body corporate?
How can I become involved with my strata committee?

This FactSheet is not printable, but rather full of the latest information in the form of dynamic links and/or presentations about Strata Committee Concerns. New information and links are added regularly. Be sure to check back to be kept up-to-date.

If you have enjoyed this FactSheet about the strata committee, discover more great information in our other FactSheets in this series.

Feature Article

NSW: Do you have vacancies in your strata committee? Here’s what to do

Allison Benson, Kerin Benson Lawyers
Mar 2017: A strata manager client recently called to ask about what to do when a strata committee member, who was also an officer of the Owners Corporation, resigned.

Feature Video

NSW Strata Window Safety

Peter Berney, Solutions In Engineering
Jun 2016: This edition of LookUpStrata’s Strata Snapshot Series, Peter shares his knowledge about:

Why window safety is important
Why the new window safety legislation has been put in place in NSW
Who is responsible? The owner or the owners corporation?
Why should owners corporations comply?

Check your State’s tab for articles and information about the strata committee

National

Articles

The Power of Choice: A simple choice for Bodies Corporate Nov 2017 - Regulatory bodies have gone about introducing an adjustment fundamental to the way electricity is managed inside an embedded network (commonly
SCA Education Spreads Its Wings: Strata Committee Training Course Oct 2017 - This comprehensive, national Strata Committee Training Course provides a practical overview of the role for existing Strata Community Committee Members
Cladding Risk Requires Urgent Action by Strata Owners Sep 2017 - The government failure to deal with problems associated with non-complying aluminium cladding has created a massive trust deficit with strata
Response to Senate Inquiry Into Non-Compliant Building Products Sep 2017 - The long-delayed Senate report into non-conforming building products demonstrated why strata owners could not sit back and wait for leadership
Bread and butter Strata – Retaining Strata Records Aug 2017 - How long should you keep strata records before they are destroyed? The big one here is, whilst it isn't covered
Is there a need for “Professional (paid) Committee Members?” Aug 2017 - Is there a specific need for professional persons to take paid positions on committees for large schemes, not dissimilar to
Bread and butter Strata: Minutes – What goes in? Jun 2017 - Writing minutes is a staple diet item for Strata Managers. Whilst Strata Legislation throughout the country may provide a basic
Strata Legislation Smackdown Jun 2017 - The vast difference between the system for strata committee spending limits in Queensland and Victoria is amazing. Which system is
What Makes A Great Strata Committee? Podcast Feb 2017 - Amanda chats with Steven King, a long term strata council committee member, about why his committee seems to work so
Why the ABMA Building Management Code is the Key to Maintaining Your Strata Property – PODCAST Oct 2016 - Primary goal of the ABMA Building Management Code is to achieve a nationally consistent minimum standard and delivery in Building

The Keys To Effective Strata Budgets – Podcast

Amanda Farmer, Your Strata Property
Jul 2016: The two keys to creating ideal strata budgets for your strata building – A data oriented and specific strata budget & one that is easily explained with no ambiguity. Featuring Andrew Terrell.

Strata Finance: What is it?

Janette Comish, StrataLoans
Apr 2016: The decision of which strata finance option your owners corporation uses will depend on the circumstances. You do have choices and should consider them all.

Bodies Corporate Potentially Liable for Bullying of Contractors

Laura Gercken, ClarkeKann Lawyers
Jan 2016: A recent Fair Work Commission decision demonstrates how far the Fair Work Act 2009 (Cth) bullying jurisdiction extends, which will have serious ramifications for Bodies Corporate, strata committee members and individual lot owners.

WHO KNEW? Some Tricks Of The Strata Banking Game

Wayne Stevens, (UOAQ President) Unit Owners Association of Queensland (UOAQ)
Dec 2015: Body corporate bank accounts: does your Body Corporate Manager park large sums of body corporate funds in cheque accounts earning virtually no interest?

The three most common strata problems and how they can be resolved

Stephen Raff, CEO of Ace Body Corporate Management
Nov 2015: In my experience, there are three common strata issues from owners that rise above all else when living in a strata community: Pets, Parking and Noise!

The Pros and Cons of Self Managed Body Corporates

Lisa Rutland, MyBodyCorpReport.com.au
Apr 2014: You can’t search records for very long without coming across a self-managed body corporate and for me it’s always a stressful moment. It usually means a more difficult job for me. Which is not to suggest that there are necessarily issues with the scheme. The problems I experience are more to do with amateurs working in a field dominated by professionals, with the most common issue being access to the records.

Who does what in a Strata Community?

Abode Strata Team
Dec 2013: Roles in strata ownership, management, councils and strata committees. There is frequent confusion about the division of roles and responsibilities in a strata community. We often hear owners asking: owners … the Strata Company … the Strata Council … the Strata Manager… who does what?

Effective Governance for Bodies Corporate: The Mission, Vision and Values of a Strata Community

Teys Lawyers
Jul 2013: A clear sense of direction is taken as fundamental for the running of a company and indeed a not-for-profit organisation, but rarely is it a consideration for the strata community. We believe the strata committee should have a strategic plan, which is a process of setting objectives and deciding how to accomplish them.

Effective Governance for Executive Bodies of Strata Communities: The Job of the Committee

Teys Lawyers
Jun 2013: A clear statement of the role and responsibilities of any group can be the biggest step towards improving effectiveness and satisfaction. While there are some legal differences between the role of a strata committee, council or executive of a strata community (as they are variously called), there are analogies between the practical functions of a strata committee and the board of a company. In this analogy, the strata manager is the CEO of the company.

The SUPER to-do list for the most productive strata meetings

LookUpStrata
Jun 2013: A few weeks ago, in response to the blog article A Litany of Woes by Michael Teys which I posted on our Facebook page, a member of our site asked the following question:

“So…..what are the solutions to this kind of non-productive meeting? The Chairperson’s role is so important. Why do so many Body Corporates have weak chairpersons? Maybe the law should introduce compulsory training for Chairpersons.”

Effective Governance for Executive Bodies of Strata Communities: In the Chair

Teys Lawyers
May 2013: The chairman of a strata committee is a curious position. Normally a chairman is a figurehead and leader of an organisation and is closely identified with the organisation’s success or failure. It is normally quite a powerful job. However, in a strata committee the chairman’s only power is to chair the meetings. Beyond that, the power rests with the strata committee and the owners at large.

Effective Governance for Executive Bodies of Strata Communities: Purposeful meetings

Teys Lawyers
May 2013: Strata communities are renowned for meetings that seem to lack purpose, or drag on too long. This is one of the reasons why it is hard to get people involved. A well-run strata committee should pride itself on purposeful meetings that run for no more than two hours.

City Living: Urban consolidation and the social sustainability of cities

UNSW

The project is investigating the broader implications of the lived experiences of apartment residents and owners for the social sustainability of cities. The project aims to raise awareness of the unique challenges of apartment ownership and apartment living and provide proposals to support better outcomes for apartment residents and for the broader community. Access multiple case studies, including the Social Case Study.

FAQs

Q&A Master Key System – Body Corporate Committees Voting Themselves Master Keys! Aug 2016 - Our chairperson proposed that ALL committee members be issued a master key, despite us a having a full time on

Training for Executive Committees

Free Online Executive Committee Training.

Strata Community Australia (NSW)
Even though the content is based on NSW legislation, Strata Community Australia believes that most of the information is applicable for strata across Australia.

New South Wales

Articles

NSW: Community Leadership – It’s your asset, only you can care! Apr 2018 - Great organisations have always been determined by their leadership, not by giving somebody unfettered control. Take the opportunity to use
NSW: Democracy is stuffed in Strata Management Mar 2018 - The amendments to the Strata Schemes Management Act 2015, introduced in December 2015, have made strata schemes totally undemocratic. I
NSW: The benefits of keeping accurate records to avoid confusion Mar 2018 - This is an absolute timely warning about the benefits of keeping accurate records in your owners corporation. Also, it is
NSW – The First Collective Sales Cases Hit the Land and Environment Court Mar 2018 - The new laws allow a strata scheme to be sold or redeveloped with the agreement of 75% of the owners
Nothing happens without a decision Mar 2018 - If you want to do something in a community living arrangement, you must always look to your legislation to ensure
NSW Owners Corporation Network: Strata living not always a bed of roses Feb 2018 - Owners Corporation Network is hosting an informative and interactive 1-day event, Strata Matters! on Saturday 10 March 2018, 10am –
NSW: Pre 1974 Schemes and the Centre Line Rule Feb 2018 - For owners corporations with a strata plan registered prior to 1 July 1974, things work a bit differently than for
NSW: Shifting Services Costs and Secret Profits – Owners Getting Shafted Jan 2018 - It has become increasingly common for developers to pursue a development in such a way that owners corporations and lot
NSW: Bipolar Voting and the Duties of the Strata Committee Member Dec 2017 - It is strange that we set up a structure whereby people have to act in a bipolar manner. The Strata
NSW: Dealing with Disparaging OnLine Articles Dec 2017 - Strata committee members and strata managing agents of owners corporations are often subject to disparaging commentary published in various online

Goodbye Strata Adjudications?

Michael Pobi, Pobi Lawyers
Jul 2016: It is important to remember that while the Tribunal hearing process may appear simple, there is a tendency for complex legal issues to suddenly arise.

New Strata Laws: Procedure for Removing a Motor Vehicle Parked on Common Property Explained

Michael Pobi, Pobi Lawyers
June 2016: As part of the NSW Strata Reforms, a new regulation 34 made under section 125 of the Act sets out the procedure an Owners Corporation can take to have a motor vehicle left on common property, which blocks an exit or entrance or otherwise obstructs the use of common property, moved.

Executive Committee (Strata Committee): Powers, Functions and Meetings

Allison Benson, Kerin Benson Lawyers
May 2016: When a strata plan is registered, the owners corporation comes into existence and is given the principal responsibility for the management of the scheme. Other people can assist in managing the strata scheme including a strata managing agent or a caretaker. However the day to day management of the scheme often falls onto the executive or strata committee.

Can a Strata Meeting Be Recorded?

Adrian Mueller, J. S. Mueller & Co Lawyers
Apr 2016: It is becoming increasingly common for strata meetings to be recorded. But is it legal to do so? The answer might surprise you.

Can A Lot Owner Revoke the Appointment of a Compulsory Strata Managing Agent?

Michael Pobi, Pobi Lawyers
Mar 2016: For many lot owners, the compulsory appointment strata manager to manage their strata scheme produces mixed emotions. Some are happy, some not so much….

Resolving Disputes at Strata Meetings – The Role of The Strata Managing Agent

Matthew Jenkins, Bannermans Lawyers
Feb 2016: Strata managing agents should approach strata dispute resolution with caution & in most cases take on a role akin to a mediator/facilitator and not a decision maker.

NSW Strata Schemes: Size Does Matter (Sometimes) – Part 2 Strata Schemes Management Act 2015

Allison Benson, Kerin Benson Lawyers
Feb 2016: This article discusses the legislative requirements for different sized schemes in relation to the new strata Act NSW.

NSW Strata Schemes: Size Does Matter (Sometimes) – 1996 Act

Allison Benson, Kerin Benson Lawyers
Feb 2016: The size of NSW strata schemes affects how they are treated under both the current & the new Act. Read a table of these difference to see how they compare.

My Strata Manager won’t help … what can I do?

Paula Byrnes, Metropolitan Strata Reports
Nov 2015: The Executive Committee’s role is to make decisions on behalf of the Owners Corporation … so what can be done about Executive Committees who act in the best interest of themselves, thereby disenfranchising the other owners?

I Don’t Like What Is Proposed To Be Built Next Door – What Can I Do?

David Bannerman and Craig Blackwell, Bannermans Lawyers
Oct 2015: How to object to a development proposal: Owners Corporations and residents have rights which may assist in stopping, modifying or having mitigating conditions imposed on a new development.

Is A Proxy Entitled To Vote on Behalf of the Estate of A Deceased Lot Owner?

Michael Pobi, Pobi Lawyers
Aug 2015: In the situation of a deceased estate, could a proxy attend a general meeting of an owners corporation and vote on motions on behalf of the estate of the deceased lot owner?

How are successful strata title scheme meetings run?

Leanne Habib, Premium Strata
Aug 2015: This article explains how typical strata title meetings, such as Annual General Meetings (AGM) or Extraordinary General Meetings (EGM) are run.

Decision Making in an Owners Corporation

Allison Benson, Kerin Benson Lawyers
Aug 2015: Strata & community title lawyers are constantly asked about the validity of owners corporation decision making. Why is this an issue?

Proxies and Participation at General Meetings

Allison Benson, Kerin Benson Lawyers
Jul 2015: To Attend or Not to Attend, that is the Question. Owners Corporation Proxies: can a lot owner could have someone else attend a meeting on their behalf and if so, what power does the proxy possess?

What to do if the Executive Committee is not Acting Appropriately

David Bannerman and Sven Bjerkhamn, Bannermans Lawyers
Mar 2015: It is quite an issue if you think the strata executive committee is acting improperly, or doesn’t care enough. If this is happening with your owners corporation there are a number of things you can do.

A Game of Thrones OR A Game of Knowns? Self Managed Strata Schemes V Strata Managing Agents

Allison Benson, Kerin Benson Lawyers
Mar 2015: In self managed strata schemes, often the lot owners start with good intentions but can dissolve into a microcosm of the politicking in HBO’s Game of Thrones.

Executive Committee Members – How Broad is their Personal Liability?

Mark Pollinger and David Bannerman, Bannermans Lawyers
Jan 2015: Executive committee members are responsible, under the Strata Schemes Management Act 1996 (SSMA), for assisting its owners corporation with the management of its functions.

Solicitors Attending EGMs On Behalf Of Their Clients

Michael Pobi, Pobi Lawyers
Sep 2014: Does a solicitor require a valid proxy to appear at an extraordinary general meeting acting on behalf of their client lot owner(s)? Be sure your vote counts!

Is that Owner Unfinancial and what are their Entitlements?

David Bannerman and Mark Pollinger, Bannermans Lawyers
Jun 2014: Owners corporations and their strata managing agents are frequently faced with difficult questions concerning non-payment of levies and other amounts due by lot owners.

FAQs

NSW: Q&A Can the committee lock the gates outside of pool open hours? Mar 2018 - Question: Our swimming pool open hours are between 8 am and 9:30 pm daily. Can the committee decide to lock
NSW: Q&A Overruling Strata Committee decisions Mar 2018 - Question: What are deemed as justifiable reasons for an owner’s corporation to call a vote to overrule its strata committee
NSW: Q&A Window locks for strata – admin or capital works fund expense? Mar 2018 - Question: What costs are associated with the two respective Funds, in this instance the fitting of window locks for strata?
NSW: Q&A Delegating an Acting Chairperson Feb 2018 - Question: The chairperson nominated the strata secretary as acting chairperson for a strata committee meeting. I believe this "delegation" can't
NSW: Q&A Should Lot Owners View the Proposed Strata Managing Agency Agreement? Feb 2018 - Question: Should the Strata Management Company attach a copy of their proposed Strata Managing Agency Agreement to the Agenda for
NSW: Q&A Renovations including installing a waterproof membrane Feb 2018 - Question: We are looking to renovate our bathroom, toilet and laundry in the single story townhouse we purchased last year.
NSW: Q&A The Importance of Accurate Meeting Minutes Feb 2018 - A lot owner does not believe accurate meeting minutes have been present from our last AGM. They feel the minutes
NSW: Q&A Strata Meeting Procedures and Valid Voting Jan 2018 - Question: Does our recent vote meet strata meeting procedures? The vote was like a secret ballot. I expected the executive
NSW: Q&A Can we adopt a generic renovation bylaw for the use of all lot owners? Dec 2017 - Question: Is it possible to have a generic renovation bylaw for major works set up by the Committee so that
NSW: Q&A Distribution of General Meeting minutes Dec 2017 - Question: Our strata manager told me she doesn’t have to distribute the General Meeting minutes until two weeks before the

Q&A Strata Unit Entitlements Affecting Maintenance

Leanne Habib, Premium Strata
Jun 2016: Questions about Strata Committees: What are the rules of strata voting at the AGM concerning strata unit entitlements NSW?

Q&A Frequency of Owners Corporation Meetings

Leanne Habib, Premium Strata
Apr 2016: I feel we do not have enough owners corporation meetings at my scheme. What are the meeting requirements for a strata scheme in NSW?

Q&A Who Decides on the Strata Maintenance Contractors?

Leanne Habib, Premium Strata
Apr 2016: Who’s decision is it to appoint strata maintenance contractors? My issue is that our strata committee want to appoint an expensive gardening company when we have cheaper quotes.

Problems in two lot strata schemes NSW

LookUpStrata
Feb 2016: An owner in a two lot strata schemes NSW has some questions about strata concerning fire safety, sinking funds and common area maintenance.

Q&A – When the body corporate chairman of the Strata Committee resigns before the AGM

Leanne Habib, Premium Strata
Nov 2015: Questions about Strata Committees – Could you please tell me the correct procedure when the body corporate chairman of the strata committee resigns before the AGM

Q&A Disabled Access – Can I install a stair lift on common property?

Leanne Habib, Premium Strata
Nov 2015: I need to installation a stair lift on common property. If the proposal is not well received by the Owners Corporation, can I go ahead at my expense?

Strata Dysfunction in a Self Managed Two Lot Scheme

Premium Strata
Oct 2015: Strata Dysfunction issues can occur just as easily in small two lot schemes as in larger developments, as shown by this lot owner battling it out in NSW.

Proxy voting, storage units and unit entitlements. Do they count as legal votes?

Leanne Habib, Premium Strata
Oct 2015: In this building, storage units hold unit entitlements. Then what happens in a meeting – does the vote of a storage unit equal that of an apartment?

FAQs: Strata Schemes: Strata Committee and Meetings of the Owners Corporation

NSW Fair Trading

Can you subpoena emails between strata committee members?

Question

We have a dysfunctional executive committee where the chairperson has resigned and then retracted her resignation. (3 times)

We have put up with infighting within the executive committee as well.

Back in August this year we had the CTTT issue orders to repair our unit. Both the managing agent and the executive committee keep applying for extensions for the work to be carried out.

The main reason I’m contacting your office and I’m not sure if you can put me on the right path:

I’m trying to obtain or subpoena emails between strata committee members which are defaming and show contact with the managing agent and chairperson a month after she resigned with works regarding our unit. (we have been told they exist but another member is scared of this person and wont give copies to me.)

We have had a waterproofing issue since 2007 and a mould issue since 2004. (Not repaired) I also have a document stating if my mum should die from an asthma attack the building insurance co would be liable.

Also I’d like to ask we have had constant water from this person throwing water on to our balcony, the strata have sent one letter, not a notice to comply and their response is its a civil matter and do not wish to get involve.

Can you offer any advice on the above information?

Answer

From Susan Cornish, Dubbo Strata:

This does not sound like a very healthy situation. Do not think you would be able to subpoena emails due to privacy laws between strata committee members unless there is a court matter taking place where you are required too. I am not a solicitor so you would be best to ask that question from a legal advisor.

The important thing is to get your owners corporation functional and attend to your repairs. Are you the owner of the lot or acting as Power of Attorney for your mother? For what reason have you not been able to get your repairs attended to and that extensions have been requested? It should not be that hard.

Do you have the support and leadership from your strata manager to try and get this resolved? Otherwise you will have to go back to the CTTT. You could request an inspection of records to see if there is any EC meeting minutes or correspondence in the records.

In regards to throwing water on to your balcony I would of thought that this is a breach by interfering with the peaceful enjoyment of another occupier within the scheme. The executive committee need to approve and issue a Notice to Comply once they have agreed that a breach has occurred. In the meantime you will need to document information in a diary of any events which may be able to be used as evidence. Photos are always good.

Hope this is of some help?

Can a non-director or non-company representative be the company nominee?

Question

On a company nominee form does the person completing the form on behalf of the company have to be one of the listed directors? Can a non-director or non-company representative be the company nominee? Is there any requirement that some kind of proof of directorship be provided with the form?

Answer

From Simone Balsara, TEYS Lawyers:

Where an owner is a company, the company is required to appoint a company nominee who will be entitled to vote on the company’s behalf at an Annual General Meeting and / or an Extraordinary General Meeting. A vote cannot be cast until a company nominee is recorded in the Strata Roll in accordance with s118 of the Strata Schemes Management Act 1996.

If the appointed company nominee is unable to attend a meeting and wishes to appoint a proxy, a proxy form must be completed by the company to take effect. A company nominee cannot appoint a proxy on the company’s behalf.

Therefore, if an owner is a company with two directors, one of which is the company nominee listed on the Strata Roll, and neither director is able to attend the general meeting, a proxy (e.g. who could be a non director or company representative) can only be appointed if both directors execute and affix the company seal on the proxy form.

Question: Can the owners corporation pass a resolution limiting the spend of the executive committee?

Answer

From Simone Balsara, TEYS Lawyers:

Yes, especially with respect to large schemes. Section 80A allows for a limit on spending by executive committee’s of large schemes. This is achieved by resolution at a general meeting.

Question: How long do you have to wait for an adjourned meeting?

Answer

From Simone Balsara, TEYS Lawyers:

This depends on the reason for the adjournment of the meeting. If the meeting is adjourned because a quorum is not present, the meeting stands adjourned for at least 7 days (clause 12 (4) in schedule 2 of the Strata Schemes Management Act 1996).

However, if adjourned for any other reason, notice of the time and place of the resumed meeting must be served by the Secretary on the members of the owners corporation at least 1 day prior to the resumed meeting (clause 13 (2) (b) in schedule 2 of the Strata Schemes Management Act 1996).

Question: What is the difference between a proxy and power of attorney?

Answer

From Simone Balsara, TEYS Lawyers:

A proxy is more limited in scope than a power of attorney. A proxy is an authorisation to vote on one’s behalf in respect of certain matters as stated in the proxy instrument. A power of attorney is an authorisation to act on another person’s behalf in their name.

Resources

Executive Committees and How They Should Function

Owners Corporation Network, with funding from the NSW Fair Trading, has produced some guides for the information of strata owners in NSW

Meetings In a strata scheme: Electronic communications

NSW Fair Trading
Owners can now adopt electronic communications to suit their collective needs. This includes online voting, emailing meeting papers, allowing people to phone-in to meetings and more.

The Owners Corporation

NSW Fair Trading
The owners corporation is the body made up of all the owners in the strata scheme.

Mixed Media

Strata title living – how much do you know?

UNSWTV
May 2012: One in ten Australians live in strata titled homes such as apartments or townhouses; in Sydney it’s closer to one in four. But how much do we know about strata title living and what it involves?

Queensland

Articles

QLD: Can you build a contingency into a body corporate budget? Jun 2017 - What you absolutely cannot do is build a contingency (and call it that) into your body corporate budget. Having that
QLD: Audits, Auditors & Planning For the Unexpected | EXCLUSIVE Dec 2016 - Many owners would be familiar with the confusion, and difficulty, in ensuring their body corporate financial statements are audited. The
Who Manages Our Body Corporate Managers QLD? Caveat Emptor II Nov 2016 - There is an abundance of anecdotal information, supported by formal evidence like reported Adjudications, which informs us that there are
The most expensive balcony in Queensland – High Court tells Bodies Corporate what it means to act “Reasonably” Oct 2016 - The High Court’s decision will no doubt come as a huge relief to Bodies Corporate in Queensland, in particular those
QLD: QCAT disputes – can I get my costs paid? Oct 2016 - It is a mistake for parties and practitioners alike to assume costs will never be awarded in QCAT, as QCAT
QLD: EXCLUSIVE – WHO KNEW? Some Insights into Strata Security. Master Keys… who has the keys to your unit? Sep 2016 - Do you know about your master key lock system? It is a common practice for nominated people at a complex
QLD: EXCLUSIVE – WHO KNEW? Some Insights Of The Strata Banking Game: Whose Bank Account Is It? Aug 2016 - Body Corporate Banking: Lot owners may not be aware their funds are sitting in someone else’s bank account..and it's a
QLD: Why would anyone combine two quite different proposals into the one Motion? Jul 2016 - A practice has emerged where two quite different proposals are being bundled into single alternative motions and presented to owners
QLD: Interim orders in the Commissioner’s Office Jul 2016 - Interim Orders: Everything in every dispute is usually urgent. This is especially true if there is any form of emotional
QLD: Is the Gold Coast’s tourism hub at risk of going up in flames? Jul 2016 - The Queensland government may be putting thousands of lives at risk. One leading figure claiming that flammable building cladding imported

When is 21 days not 21 days?

Hynes Legal
Feb 2016: Australia Post’s changes to postage rates and service delivery times have real implications for body corporates. What do you need to know?

How to make an offer a body corporate cannot refuse

Hynes Legal
Feb 2016: How did we help secure exclusive use common area loft space for a Queensland Lot owner? By making an offer the body corporate couldn’t refuse.

WHO KNEW? Some Tricks Of The Strata Banking Game

What does ‘ acting reasonably ’ mean?

Hynes Legal
Nov 2015: If you only read one article from us this year, make it this one on acting reasonably – because it is the most significant strata case in Queensland since the High Court’s decision on building defects.

How to waste a body corporate’s money

Frank Higginson, Hynes Legal
Jul 2015: When it comes to body corporate spending, a strata committee’s mind set should be to treat it like their own. If they were spending it from their own pocket, would they contemplate the action?

Body corporate spending limits

Frank Higginson, Hynes Legal
Apr 2015: The rules relating to body corporate spending limits are scattered across the relevant Regulation Modules. This post sets them out in one place.

The different body corporate committee roles

Frank Higginson, Hynes Legal
Mar 2015: There are a maximum of 7 voting committee positions for a committee formed under the BCCM Act. What are each of these body corporate committee roles responsible for?

What Does it Mean to Act ‘Reasonably’?

Jason Carlson, Thynne + Macartney
Feb 2015: Body corporate obligations to act reasonably – more to do with whether there is a logical and understandable basis for the decision rather than making the correct, best, fairest or most preferable decision.

Authority levels for body corporate decision making

Frank Higginson, Hynes Legal
Feb 2015: How are body corporate decisions made? There are two levels of decision making – committee level and general (either annual or extraordinary) meeting level.

Do you have paid Committee Members sitting on your Body Corporate Board?

Kelly Borell, Tower Body Corporate Administration
Nov 2014: Are you an owner in a Body Corporate with paid committee members? Are you aware whether approval for payment has been carried out by following the correct procedure?

What is defamation?

Frank Higginson, Hynes Legal
Oct 2014: It is critical to exercise caution and courtesy in all communications lest your words come back to haunt you in the form of a defamation claim.

The Validity of Voting Papers – Part 2

Frank Higginson, Hynes Legal
Aug 2014: We present you with six different methods of delivery for voting papers, set out how the votes were cast and discuss whether the methods were lawful or not.

No confidence motions, rights of veto and more

Frank Higginson, Hynes Legal
Mar 2014: This is a post regarding some of the most common misconceptions we have to address in our day-to-day advices to strata managers, resident managers and strata committee members. It also comes from having sat through plenty of meetings ourselves.

Do you inadvertently accept unlawful voting papers?

Frank Higginson, Hynes Legal
Aug 2013: This newsletter is based on a piece of decided litigation from the year 2000, but as we bounce around the body corporate management industry, it seems that what was a very hot topic at the time needs refreshing in the minds of some of the newer industry participants.

Seconding motions – is that really necessary?

Frank Higginson, Hynes Legal
Aug 2013: No. This could be the shortest newsletter in history but we will elaborate just a little bit. In a body corporate context there are two types of meetings at which motions are considered.

FAQs

QLD: Q&A Breached Spending Limit on Legal Fees May 2018 - Question: A maximum spending limit on legal fees was passed at an AGM some time ago because of reckless spending
QLD: Fire alarms and False Fire Alarms – Who makes sure we all get out? May 2018 - Question: What does the legislation state around requirements for the management of false fire alarms and fire alarms in general.
QLD: Q&A Can Chairman Hold All 3 Positions on the Executive Committee? May 2018 - Question: At our recent AGM, our chairman received majority votes (9 votes for all executive positions). Our Body Corporate Managers
QLD: Q&A Changing the date of when the committee meeting will be held Apr 2018 - Question: Advice is needed regarding changing a date for when a committee meeting will be held to accommodate two committee
QLD: Q&A How do I go about applying for Dispute Resolution? Apr 2018 - Question: How do we go about applying for dispute resolution to resolve problems among the Executive Committee at our Scheme?
QLD: Q&A What about good old body corp community? Apr 2018 - Question: What happened to body corp community? I am frustrated with my committee’s apathy. The common property is not maintained
QLD: Q&A Body Corporate Spending – Who pays for a defibrillator? Feb 2018 - Question: Our body corporate is considering buying a defibrillator in case any of the owners, guests etc have a heart
QLD: Q&A Body corporate committee voting – should each box be marked / ticked? Jan 2018 - Question: During body corporate committee voting, do I vote for every person standing for election, or just for the people
QLD: Q&A Who can carry out a strata roll inspection? Dec 2017 - Question: Can a lot owner, strata committee member, strata secretary or owner carry out a strata roll inspection? What qualifies
QLD: Q&A Body Corporate Responsibility – Developer seeks compensation Dec 2017 - Question: While developing two rental properties, an electrical fault resulted in delay. What are the Body Corporate responsibilities here? Can

Q&As About Strata Living

Kelly Borell, Tower Body Corporate Administration
Apr 2016: Questions about Strata Committees – changing to a self managed body corporate, filling strata committee positions and strata levies.

Rules regarding committee comments on owner motions at AGM

Question

What are the rules regarding the comments that a strata committee may place in the meeting notice, regarding an owners motion to be considered at the AGM? More specifically, can the strata committee state under ‘strata committee comments’ ( or in any format ) that an owners motion is ‘unenforceable’ or ‘out of order’, or is the proper place for this at the meeting by the chairperson?

Answer

We have received the following response back from Tower Body Corporate:

The person chairing the meeting must rule that a motion is out of order if:

the motion if carried, would-
1. conflict with the Act, this regulation or the By-Laws, or a motion already voted on at the meeting; or
2. be unlawful or unenforceable for another reason; or
except for a procedural motion for the conduct of the meeting or to correct minutes, the substance of the motion was not included in the agenda.

The person chairing the meeting, when ruling a motion out of order must: give reasons for the ruling; and

state how the ruling may be reversed by the persons present and
entitled to vote.

The persons present (who are entitled to vote) may by ordinary resolution disagree with the chairperson and reverse the ruling.

The reasons given by the chairperson must be recorded in the minutes of the meeting.

Question (cont.)

I now understand this as the process at the AGM meeting itself.

However, what about the strata committee stating that an owners motion is ‘unenforceable’ or ‘out of order’ in theAGM meeting notice documents, therefore prior to the vote. Is this permitted?

Scenario – an owner put forward 3 motions for the AGM, correct procedures were followed, they were included in the list of motions. The strata committee in the notice of the meeting, under the heading “strata committee comments”, stated about each “this motion is unenforceable”. It gave a brief reason which in effect just dismissed the motion. At the AGM all 3 motions failed.

My reading since then suggests that the strata committee cannot make comments that are specific or particular to an owner motion in this way, that the correct and only place unenforceable or out of order can be declared is at the AGM by the chair, as your original reply states.

My question is, did the strata committee follow the correct procedures?

Answer

Once again from Tower Body Corporate:

A strata committee can advise that motions are ruled out of order and included on the AGM Agenda prior to the meeting. There is no provision in the ACT that says this practice cannot be implemented.

However, at the meeting the motions that were ruled out of order by the Strata Committee could also be over ruled by those present if a majority agreed.

Do we need to formalise the acceptance of our new committee members?

Question

Our AGM is not until May. We want to put two more lot owners onto the strata committee to fill vacant – 2 vacant spots. We sent out the nomination papers to all owners and only 2 nominations received so we don’t need to vote. However, I presume we need to formalise the acceptance.

Answer

We have received this response from Tower Body Corporate:

Are the Strata Committee replacing 2 Committee Members that have resigned since being nominated at the last Annual General Meeting? if this is the case, then the Strata Committee has 1 month to fill the vacant positions. If this is not achieved within the given timeframe, then the Strata Committee must call a General Meeting and call for nominations from all owners to fill those vacant positions.

If say only 5 owners are nominated at the Annual General Meeting to be on Strata Committee, the Strata Committee cannot increase the number by adding another 2 between meetings. If 1 Strata Committee Member resigns during the year, leaving 4, the Strata Committee must replace that member to bring the total back to 5.

So if 5 Strata Committee Members are nominated, you would not be able to increase the number on Strata Committee until the next Annual General Meeting.

Can an owner not present at the AGM be placed on a strata committee?

Question

I understood that if an owner was NOT present at the AGM, even though financial, but no Proxy for them, then they could NOT be put onto strata committee regardless if they wanted to be on committee or not.

Answer

From Kelly Borell, Tower Body Corporate:

If an owner has validly nominated to Strata Committee, they can still be elected to the Strata Committee, whether they attend the general meeting or not.

The person asking the question may be getting confused with the part of the legislation that requires owners to be present at the meeting if they wish to cast a vote for a strata committee nominee, where nominations for vacant strata committee positions have been called from the floor of the meeting?

Proxy vote for election of a new strata committee member.

Questions about Strata Committees

We have a secretary (not an owner) who is on the Body Corporate committee owing to being a family member of the owner who gave him their proxy (S11 Accommodation Regn). As a proxy the secretary cannot vote for election of strata committee members at an AGM. Can they vote for election of a new strata committee member to fill a vacancy at a Body Corporate committee meeting?

Answer

From Kelly Borell, Tower Body Corporate:

Proxies and Strata Committee nominations are two different things.

I believe the Secretary in question is legitimately on the Strata Committee as they were validly nominated by the Lot owner and was elected at the AGM.

The Strata Committee nominee had also received the Lot owner’s proxy for the AGM, however they did not attend the AGM. Instead, the Lot owner attended the AGM and voted for the motions themselves.

At a Strata Committee meeting, the Secretary is voting on matters as an elected Strata Committee member, and not as a proxy, therefore they are eligible to vote to elect a new strata committee member to fill a vacancy.

eBooks

The Basics of Body Corporates: What Every New Lot Owner Needs To Know About Their Investment

Lisa Rutland, MyBodyCorpReport.com.au

A little knowledge is a powerful thing

Lisa spends a lot of time reading about body corporates and their various challenges.

One of the most common, and worst, issues relates to disputes. No one likes conflict and when it’s in your home it has a special sense of awfulness.

Luckily with a bit of knowledge you can avoid frustrating and stressful interactions and instead feel empowered you know and understand exactly what is happening within your strata committee and community.

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