This article discusses challenging a strata special resolution in NCAT NSW and when it may be overturned.
Question: Can a special resolution passed at an AGM/EGM be challenged if it adversely affects some owners.
Answer: Depending on the reasons, a decision of the owners corporation can be challenged in NCAT for a variety of reasons.
Yes. Depending on the reasons, a decision of the owners corporation can be challenged in the NSW Civil and Administrative Tribunal (NCAT) for a variety of reasons.
Order invalidating resolution of owners corporation
Section 24 of the Strata Schemes Management Act 2015 (‘the Act’) provides that the Tribunal can invalidate any resolution if the Tribunal considers that the provision of the Act or regulations have not been complied with in relation to the meeting. The Tribunal may refuse to make an order if that failure did not adversely affect any person and compliance with the provision would not have resulted on a failure to pass the resolution.
Order where voting rights denied or due notice of item of business not given
Section 25 of the Act provides that the Tribunal can nullify a resolution if a person entitled to vote on a motion was denied a vote on the motion or was not given due notice of the item of business. Again, the Tribunal must not make an order unless satisfied that the resolution would not have been passed but for the denial or proper notice given.
Orders to settle disputes or rectify complaints
Section 232 of the Act provided the general power for the Tribunal to make orders to settle disputes and may, depending on the reasons be the section relied upon if an owner or owners are seeking to challenge a resolution.
This post appears in Strata News #554.
Matthew Jenkins
Bannermans Lawyers
E: enquiries@bannermans.com.au
P: 02 9929 0226
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