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NSW: Is an EGM valid without prior notice to submit motions in a small strata scheme?

NSW@2x

Question: An EGM has been called to approve painting the building in our small strata scheme. If no notice of intention had been sent out prior, doesn’t this preclude other owners from submitting motions? Is this a legitimate EGM?

In early January 2024, owners received an email from the strata manager attaching the agenda for an EGM a few weeks later.

The agenda contained four motions submitted by one owner regarding painting. The project would deplete our capital works fund and require a special levy.

If no notice of intention had been sent out prior, doesn’t this preclude other owners from submitting motions? Is this a legitimate way to call an EGM?

The three other owners and the strata manager believe the EGM was validly called and would proceed.

If it is an invalid EGM, how do I stop it from proceeding? As the proposal is a large expense for non-urgent works, does the strata manager have any responsibility if they allow it to proceed?

Answer: There is no requirement to call for motions before sending out a meeting notice for an AGM or EGM.

Provided correct notice had been provided (7 clear days’ notice and, if any meeting notices had to be posted, an additional 7 business days’ notice) then the required meeting notice has been provided.

This post appears in Strata News #685.

Allison Benson Kerin Benson Lawyers E: allison@kerinbensonlawyers.com.au P: 02 4032 7990

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