Question: Should a committee member with a vested interest abstain from voting, and should the strata manager enforce this?
Regarding a strata committee member proposing a motion they have a vested interest in, which may constitute a conflict of interest: the legislation mentions a maximum penalty of 10 penalty units, which I understand to be $1,100.00. However, the legislation doesn’t clearly explain how a lot owner can instigate action when a committee member has breached Part 15 of Schedule 2 of the Strata Schemes Management Act 2015. Could someone provide the steps required to implement this course of action?
Should the strata manager have advised the committee member to abstain from voting on their own motion? What happens if the strata manager fails to do so? Are they in breach of their statutory obligations, and if so, what are those breaches and under which legislation?
Answer: The strata manager cannot restrict voting unless instructed to do so by the committee.
The statutory requirement under schedule 2, clause 18 is for the impacted strata committee member to declare any pecuniary interests to the broader strata committee. It is then up to the strata committee to determine how the interest is handled, by way of majority vote, i.e. whether the particular committee member should abstain or otherwise. However, this is not a set requirement under the legislation.
Further, while the strata manager is required to maintain an accurate record of any disclosures which may occur, they are not empowered to restrict voting on any matters unless this is the instruction of the strata committee.
This post appears in the August 2026 edition of The NSW Strata Magazine.
Megan Parkins
Tender Advisory
E: megan@tenderadvisory.com.au
P: 0435 893 670
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