Question: For our AGM, we are changing to an Informal Meeting with no agenda provided, no minute taking and no call for submissions. Are these processes in line with the legislation?
Since the last AGM in September, our Secretary has not called General Meeting although a good deal of subjects have arisen.
Re our next AGM, our Secretary/Treasurer has followed a procedure of what he calls An Informal Meeting. They will bring forward spreadsheets regarding Finances etc. whilst we make decisions at the meeting. The Strata Manager’s view is that we don’t need to take Minutes / Record Decisions.
I have been on other Owners Corporations as both an Owner of an Investment Apartment & a Company Board who hold an asset via an Apartment Block. I don’t agree with this stance, of note:
- Providing an Agenda in Advance of the
- Calling for Input / Recommendations
- Not recording Decisions made
- Not finding it appropriate to provide Minutes.
Answer: The Act and Regulations have some specific requirements in regards to meetings of the Owners Corporation.
If the required processes under Strata Legislation for the holding of meetings are not followed there is the potential for all decisions being open to challenge and an Order invalidating these decisions if the provisions in the Act or regulations are not complied with.
The Strata Schemes Management Act 2015 and Strata Schemes Management Regulations 2016 have some specific requirements in regards to meetings of the Owners Corporation.
The Strata Schemes Management Act 2015 Section 18 specifies that the Annual General Meeting must be held once in each financial year, there is no requirement to hold additional meetings but the Secretary can convene a general meeting at any time and must call for a meeting if a ‘qualified request’ is received from at least one-quarter of the owners (via the aggregate of unit entitlement) as per Section 19 of the Strata Schemes Management Act 2015. So there are mechanisms under the Act for a meeting to be called if individuals feel that the correct processes are not taking place.
Sections 24 & 25 of the Strata Schemes Management Act 2015 specifically allow for Tribunal to invalidate resolutions and nullify these decisions.
Schedule 1 of the Strata Schemes Management Act 2015 has numerous sections that specify how a meeting must be called, what motions must be included on the agenda and that minutes must be prepared. Anyone who is holding Annual General Meetings and other meetings of the Owners Corporation and Strata Committee needs to be across their requirements and obligations by familiarising themselves with these section of the Act.
Robert Fothergill Strata Life E: Robert@thestratalife.com.au P: 02 9456 9917