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You are here: Home / Committee Concerns / NAT: Why Bother Joining Your Strata Committee?

NAT: Why Bother Joining Your Strata Committee?

Published July 23, 2019 By Michael Ferrier, Eyeon Property Inspections 2 Comments Last Updated November 27, 2020

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This post about why you should join your strata committee has been provided by Michael Ferrier, Eyeon Property Inspections.

Do Strata Committee members always make decisions that are in the best interests of the Owners Corporation?

You’d think that they do.

Unfortunately, this is not always the case. We have inspected thousands of properties around Sydney and have seen many cases where the Strata Committee members seem to put their own agenda ahead of the needs of the building. And in Strata Schemes, where the majority of Owners are not engaged in the day-to-day running of their community, it can be very easy to influence things.

This alone should be a good reason for you to want to join your Scheme’s Strata Committee.

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So, what exactly is a Strata Committee?

The Strata Committee is comprised of the members or representatives of the Owners Corporation (all lot owners within the Scheme). The members are elected by the Owners Corporation at a General Meeting and are responsible for overseeing the running of the Scheme.

The Corporation also determines the number of people who can join the Committee: there can be a minimum of 1 and not more than 9 members. Large Schemes are required to have at least 3 active Committee members, and where a Scheme consists of only 2 lots the Strata Committee will be comprised of the owners of both those lots.

The Owners Corporation has the authority to dismiss members of the Strata Committee, as well as delegate some or all of the Committee’s responsibilities to a Strata Managing Agent or a Caretaker.

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Who can be elected as a member of a Strata Committee?

According to NSW Fair Trading, the following people are eligible to be nominated:

  • An Owner
  • A Company Nominee of a Corporation that is an Owner
  • A Person who is not an Owner but is nominated by an Owner who is not standing for election
  • A Co-Owner of the lot nominated by another Owner who is not a Co-Owner of that lot or is not a candidate for the election

If you are nominated, you must disclose any connections you have with the developer or building manager, as well as any other conflict of interest.

Why have a Strata Committee at all?

In any larger Scheme, it becomes simply impractical to have every Owner involved in every issue that arises. Of course, there will be major items that will require everybody’s involvement, such as approving major works or legal proceedings. On the other hand, less significant issues like a broken mirror in the lift or a clogged garbage chute shouldn’t require everyone’s attention.

The Strata Committee has the authority to make decisions and deal with such issues on behalf of the Owners Corporation, unless specified otherwise by the legislation or Owners have placed restrictions on the Committee’s authority.

What do members of a Strata Committee do?

Once the Committee members are elected, they will decide who is to hold the office-bearer positions. These are the Chairperson, the Secretary and the Treasurer. Interestingly enough, one person can be nominated for all 3 positions. Each position is allocated certain duties and responsibilities in accordance with the NSW Strata Schemes Management Act 2015.

But remember, most of these duties will be delegated to a Strata Manager if you choose to appoint one.

  1. Chairperson:

    • Presides at all meetings
    • Determines quorums and procedural matters, such as declaring the result of voting and ruling a motion out of order
  2. Secretary:

    • Convenes all meetings
    • Prepares and distributes minutes of meetings
    • Puts a motion to confirm the previous minutes
    • Gives notices for the Owners Corporation and the Strata Committee
    • Maintains the Strata Roll
    • Provides information for the Owners Corporation under Section 184
    • Looks after correspondence addressed to the Owners Corporation
    • Oversees all administrative and secretarial duties for the Owners Corporation and the Strata Committee
  3. Treasurer:

    • Issues levy notices
    • Issues receipts, does the banking and account for any money paid to the Owners Corporation
    • Prepares any certificates under Section 184
    • Keeps all accounting records and prepares the financial statements

So, why bother getting involved?

committee Joining your Scheme’s Strata Committee is not a decision to be made lightly. Becoming a member of the Strata Committee means a certain level of responsibility, as well as the possible risk of being part of unpleasant meetings if there is a dispute between the Owners. As a Committee member, you can also become a target for everything other owners don’t like. And in most cases, there is no pay involved for the hours you’ve spent on the job.

But the Strata Committee effectively controls the scheme’s long term future by giving a clear indication on where they want the Scheme to be positioned in the marketplace.

How?

The Strata Committee directly influences the running of the Scheme and can ensure that no corners are being cut when it comes to maintenance, appearance and compliance matters. This, in turn, will help to preserve (and possibly even increase) the property market value, as property buyers would much rather live in a well-maintained building where the Owners Corporation cares about how things are going. Wouldn’t you?

We have prepared thousands of strata reports throughout the years and have seen some truly remarkable transformations where Strata Committees were able to literally raise their Schemes from the ashes.

So if you care about the Scheme you are part of, being on the Strata Committee will help you make a real difference.

If you have a question about your strata committee, some tips or something to add to the article, please leave a comment below.
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Related articles:

  • NSW: Think strata construction is bad? Strata records are worse!
  • NSW: Do you have vacancies in your committee? Here’s what to do

This post appears in Strata News #268.

Michael Ferrier
Eyeon Property Inspections
P: 02 9260 5510
E: [email protected]

This article has been republished with permission from the author and first appeared on the Eyeon Property Inspections website.

Visit our Strata Committee Concerns OR NSW Strata Legislation.

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Comments

  1. AvatarDebbie says

    November 25, 2020 at 4:30 am

    Hi we have just had our AGM
    5 owners nominated to be on the committee
    Then we had a vote as to how many would be on the committee two of the OC members had proxy blank votes
    With using the proxy votes changed the number down to 3
    Because of proxy votes I feel people were denied their right to be on the committee and question why they wanted less.
    Less to know what they are doing
    Less so they have control?

    Again the proxy votes were used to get the three on the committee that two people wanted
    Two if them work together so the 3rd vote really does not matter they will do what they like
    This AGM was useless. As only 8 Apartments out of 13 were represented and 2 proxy
    Three people work together and they had 2 proxy votes
    So any other votes became useless
    This is how to get what you want and how to control strata

    Reply
  2. AvatarZiggy says

    August 11, 2019 at 9:28 am

    Sometimes being on a Strata Committee can be exhausting. The main ones being lack of transparency, communication and project management as well as adherence to Strata laws and codes.

    What is the best way to make sure this doesn’t happen? Particularly the management of common property projects.

    Reply

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