These Q&As have been received from our NSW audience about general meetings, motions on an agenda and also include an example of a motion.
Table of Contents:
- QUESTION: Does sending out an AGM notice 26 days before the AGM preclude owners from submitting motions?
- QUESTION: What should the managing agent do if the strata committee approves a motion for him/her to implement, but the motion is in breach of the Community Land Management Act 2021?
- QUESTION: What should a strata manager do if the committee approves a motion for the manager to implement but the motion is in breach of the Act?
- 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?
- QUESTION: As an owner, what communication approach is most effective for prompting the strata committee to respond to requests, instructions, or questions?
- QUESTION: We are a two lot Strata. The other lot owner is overseas for 12 months. How do I write an explanation instead of holding an AGM until they return next year?
- QUESTION: As owners are not allowed to speak at committee meetings unless given permission, are there any exceptions to this? Can the committee resolve at the meeting to permit a person to speak?
- QUESTION: Our committee’s agenda mentions an ‘action list’. The list is only available to committee members and items are discussed by the committee after the meeting closed. Are the SC allowed to do this?
- QUESTION: Does the meeting have to follow the order of motions in the agenda? Can a motion early in the agenda be discussed at the end?
- QUESTION: A lot owner has made a qualified request for a general meeting. His motion does not include any item to be voted on. Can he pick the time and place of the meeting?
- QUESTION: Can a deferred Motion be amended at an Association Committee meeting?
- QUESTION: I am the Secretary of our Strata Committee. Is there a Strata Committee agenda I can refer to? [Sample Motion]
- QUESTION: When an agenda regarding approval for renovations is sent to non Strata Committee members, should it include attachments?
- QUESTION: At our recent AGM, there was no vote taken on any of the motions. Is it a requirement that all motions at an AGM have a mover and seconder and then are put to the vote?
- QUESTION: At our last AGM I proposed a motion that meetings be held after 6pm. Our Strata Manager denied the motion from being on the agenda. Does the Strata Manager have authority to dismiss a motion?
- QUESTION: At an AGM, can you amend a motion in the meeting and then the motion be voted on and passed
- QUESTION: At a committee meeting, I proposed a motion concerning a topic under discussion for the committee to adopt. The topic had been included in the meeting agenda. The strata manager ruled the proposed motion ‘out of order’. Is this correct?
- QUESTION: At an EGM, one motion was to add 8 new by-laws. Should each bylaw have been considered in a separate motion? I voted to disapprove the motion because I agreed with some, but not others.
- QUESTION: At our recent AGM, a number of motions were being considered. As each motion was read, the OC gave their recommendation. Should the committee have this influence?
- QUESTION: Can significant matters that require special resolutions be raised verbally under a general heading at the AGM?
- QUESTION: Do the strata committee get a copy of the AGM agenda first, or do all owners get the agenda at the same time? If the committee get it first, does it put others at a disadvantage?
Question: Does sending out an AGM notice 26 days before the AGM preclude owners from submitting motions?
Generally, AGM notices are sent out 15 days or a bit earlier before the AGM. Can a strata manager send out a notice for an AGM 26 days before the AGM to preclude owners from submitting motions for the AGM in time?
Can the strata manager rely on the strata committee meeting minutes to act as sufficient notice to owners to submit motions for the AGM?
Are motions submitted on the same date as the notice of AGM validly submitted in the above instance?
Answer: 26 days sounds about right for an Annual General Meeting.
Recent changes to the Strata Schemes Management Act 2015 mean that notice must be given to owners and people entitled to a priority vote at least 14 days before the meeting. Likewise, changes to the Interpretation Act now mean that the time it takes to effect service of notice of documents has increased from 4 business days to 7 business days. In practice, this means that the agenda should be sent out to allow for the following:
- 14 days’ notice period (not including the day the agenda is sent or the date of the meeting)
- 7 working days service of notice (can work out to be up to 2 weeks if there are public holidays)
So, to my mind, 26 days sounds about right for an Annual General Meeting. Your strata manager likely convened the meeting using the correct notice periods rather than sending the notice out early to prevent owners from submitting motions.
Notice to submit motions for the AGM
There is no requirement for an owners corporation to send out a notice to other owners before the Annual General Meeting asking them to submit motions. Owners can submit a motion at any time during the year. The secretary, or in this case, the strata manager, must add the motion to the next general meeting agenda so owners do not need to wait for an invitation to submit a motion.
When is the general meeting “convened”?
There is still some discussion about when a general meeting is deemed to have been “convened”. In general, once the notices have been posted/emailed to owners, then the meeting is convened, and you will need to wait until the next general meeting for your motion to be included on the agenda. So, if the agenda has not been sent to the printers to be distributed, my position would be that your motion should be included on the agenda. To ensure you are not disappointed, I recommend sending in motions during the year and perhaps sending a reminder once your building reaches its end of the financial year.
Edward Baker
Responsive Strata
E: edward.baker@responsivestrata.com.au
P: 0493 970 875
This post appears in the November 2024 edition of The NSW Strata Magazine.
Question: What should the managing agent do if the strata committee approves a motion for him/her to implement, but the motion is in breach of the Community Land Management Act 2021?
Answer: As delegated chairperson, the managing agent should have declared the motion out of order at the meeting.
The chairperson is empowered to declare a motion out of order if the motion conflicts with the community management statement/the by-laws or is otherwise unlawful or unenforceable. In the first instance, as delegated chairperson, the managing agent should have declared the motion out of order at the meeting.
As the motion has already passed, the managing agent should recommend the motion be rescinded, or alternatively, ask the strata committee to seek legal advice on the legality of the motion to avoid the community association/owners corporation from potentially attracting unwanted liability.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
This post appears in Strata News #701.
Question: What should a strata manager do if the committee approves a motion for the manager to implement but the motion is in breach of the Act?
What should the strata managing agent do if the committee approves a motion for the manager to implement but the motion is in breach of the Community Land Management Act 2021 (the Act)?
In this case, a Community Association paid for the maintenance of a property owned by one of its subsidiary schemes, e.g. an owners corporation. Under Clause 71, shouldn’t the payment be made by the owners corporation that owns the property?
Answer: The managing agent, as delegated chairperson, should have declared the motion out of order at the meeting.
At first instance, the managing agent, as delegated chairperson, should have declared the motion out of order at the meeting. The chairperson is empowered to do this if the motion conflicts with the community management statement/the by-laws or is otherwise unlawful or unenforceable.
As the motion has already passed, the managing agent should recommend the motion be rescinded or, alternatively, ask the Strata Committee to seek legal advice on the legality of the motion.
If the strata manager does not act, you will need to seek legal advice. In summary, you may challenge the validity of the resolutions passed through NSW Civil & Administrative Tribunal (NCAT) but will need to attempt mediation through NSW Fair Trading first. The owners corporation may refuse to attend, but you may then proceed to NCAT to seek orders to invalidate resolution(s) or election(s) of the owners corporation.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
This post appears in Strata News #701.
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.
Allison Benson
Kerin Benson Lawyers
E: allison@kerinbensonlawyers.com.au
P: 02 4032 7990
This post appears in Strata News #685.
Question: As an owner, what communication approach is most effective for prompting the strata committee to respond to requests, instructions, or questions?
Answer: You need to make sure that your message to the committee is clear and it needs to be something they can make a decision on.
The clearer, the better. You need to make sure that your message to the committee is clear, and it needs to be something they can make a decision on.
If you provide a lot of words, and include nothing that enables the committee to make a decision, you’re just throwing out statements without any questions. That’s a mistake.
To begin with, you need to compel the committee to take an action they can take, and committees make decisions. You’ve got to give them a firm concept, we call it a motion, that they can decide upon. That way, they must take action.
Chris Irons
Strata Solve
E: chris@stratasolve.com.au
P: 0419 805 898
This post appears in the December 2023 edition of The NSW Strata Magazine.
Question: We are a two lot Strata. The other lot owner is overseas for 12 months. How do I write an explanation instead of holding an AGM until they return next year?
Answer: The other lot owner should appoint a proxy to ensure the owners corporation meets its legislative obligations.
We do not recommend delaying the AGM due to the requirement set out below in the Strata Schemes Management Act, 2015 (NSW)(emphasis added):
18 AGM must be held
An owners corporation must hold an annual general meeting once in each financial year of the corporation.
The other lot owner should be appointing a proxy to ensure the owners corporation meets its legislative obligations.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
This post appears in Strata News #660.
Question: As owners are not allowed to speak at committee meetings unless given permission, are there any exceptions to this? Can the committee resolve at the meeting to permit a person to speak?
The Act says that owners are not allowed to speak at strata committee meetings unless permitted by a resolution of the strata committee.
Are there exceptions for asking questions/clarifications about the treasure’s report or expenditure by the strata committee etc?
Also, is there a definition of what constitutes a resolution in this regard? For instance, does it have to be a written resolution passed before the meeting? How long before the meeting? And can the resolution limit the topics and depth of the enquiry?
Or can the committee resolve at the meeting to permit a person to speak?
Answer: Owners are not allowed to speak at committee meetings unless permitted. The strata legislation does not mention any exceptions to this.
You are correct. Owners are only allowed to speak at committee meetings if permitted. No exceptions to this are listed in the strata legislation.
Is there a definition of what constitutes a resolution in this regard? Not specifically. However, once passed, a resolution is a motion. The legislation states:
“A motion put to a meeting is to be decided according to a majority of the number of the votes cast for and against the motion by the members present (other than any tenant member) or in the manner set out in subclause (2)”.
Nothing in the legislation mandates that the written resolution has to have been passed before the meeting.
Theoretically, and while it is not expressly permitted in the legislation, the resolution might be able to “conditionally” permit owners to address the strata committee based on your parameters “limit the topics and depth of the enquiry” which could also include restrictions on the duration of time that an owner is permitted to speak.
In our view, because an agenda must detail the motions to be resolved, for the committee to resolve at the meeting to permit a person to speak, there would either need to be a motion on the agenda or a generic authorisation resolved (at a meeting or as a written resolution) before the subject meeting. Often strata managers have a template included in standard agendas for strata committee meetings to consider whether owner observers may address the meeting in case non-member owner(s) attend.
Further, as an owner, you have rights to block the strata committee from considering a matter if you have support from other owners and together you have unit entailments that exceed 1/3 of the aggregate unit entitlement) (Sch 2, Section 9(3)) and if you give notice to the secretary of the owners corporation that you oppose the decision before the decision is made. An alternative approach is to requisition motions at the owners corporation/general meeting level seeking the detail/clarification you require, which may serve your purposes and would supersede a decision of the strata committee.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
This post appears in Strata News #659.
Question: Our committee’s agenda mentions an ‘action list’. The list is only available to committee members and items are discussed by the committee after the meeting closed. Are the SC allowed to do this?
We have a committee that produces its agenda for each SC meeting and then issues minutes for the meeting.
The agenda also included an item called ‘action list’ and I requested a copy of this list as it was on the agenda. My request as an owner was refused and the chairman said the action list is only for the committee members.
Meeting agendas held by the SC after the request now do not show the item ‘action list’ so the committee run the meeting then officially close the meeting, then discusses the action list.
I believe this is inappropriate and hides records about many topics of the building that should be on record and part of the meeting with appropriate record keeping so all owners can see what is going on with their building.
Are the SC allowed to do this?
Answer: Perhaps a suitable compromise with the Strata Committee to maintain the peace would be to ask that a similar report be provided at the AGM to be tabled and discussed so that the owners are kept informed about the building priorities.
This is an interesting question. I’m not sure why the Strata Committee wouldn’t report the action list to the other owners. They may be concerned about providing incomplete information to the owners before projects are completed?
An owner could do a search of the books and records under section 182 of the Strata Schemes Management Act 2022 and ask that the action list be made available for inspection when making the appointment. This should be checked with the Strata Manager, assuming you have one.
Perhaps a suitable compromise with the Strata Committee to maintain the peace would be to ask that a similar report be provided at the AGM to be tabled and discussed so that the owners are kept informed about the building priorities.
Rod Smith
The Strata Collective
E: rsmith@thestratacollective.com.au
P: 02 9879 3547
This post appears in Strata News #627.
Question: Does the meeting have to follow the order of motions in the agenda? Can a motion early in the agenda be discussed at the end?
Answer: Yes. I note that the chair has conduct of the meeting and can move to deal with a motion earlier in the meeting or later in the meeting.
Andrew Terrell
Bright & Duggan
E: Andrew.Terrell@bright-duggan.com.au
P: 02 9902 7100
This post appears in Strata News #619.
Question: A lot owner has made a qualified request for a general meeting. His motion does not include any item to be voted on. Can he pick the time and place of the meeting?
A lot owner has made a qualified request for a general meeting. He has presented a document of 1680 words which he is calling the motion, but so far the motion does not contain a resolution or statement to be voted on.
The strata committee has asked for the motion to be amended to include a resolution and provided a link to the example on the LookUpStrata site.
The lot owner has sent an email to all other owners stating the time and date of the meeting (in 9 days’ time) but no agenda has been completed yet or sent to lot owners due to the ‘motion’ not containing a resolution to vote on. Does the ‘…14 days after receipt of a qualified request’ still apply?
Is a lot owner (who is not a committee member) able to set a time and date for a general meeting?
Answer: The lot owner who issued the qualified request does not get to choose the time and place for the meeting.
The obligation on the secretary is to include the motion as written, assuming it also contains an explanatory note. If the motion is defective (for example there is nothing to vote on), then the Chairperson can rule it out of order at the relevant meeting, under Schedule 1 clause 19, as it would be unenforceable. It is not the strata committee’s job to fix up defective motions.
For the qualified request, the necessary percentage of owners need to sign it (25% of the unit entitlement).
The lot owner who issued the qualified request does not get to choose the time and place for the meeting. This is done by the Secretary, whose role it is to convene the meeting under section 19(2) (and generally).
James Moir
Madison Marcus
E: Strata@madisonmarcus.com.au
P: 02 8022 1222
This post appears in the December 2022 edition of The NSW Strata Magazine.
Question: Can a deferred Motion be amended at an Association Committee meeting?
Answer: Logically, a motion at an adjourned meeting could be amended provided the motion is substantially the same motion.
There’s nothing in the Act regarding deferred motions for committee meetings, or the amendment of motions at committee meetings.
Below are the relevant sections of the Community Lands Management Act 2021: See Schedule 2.
Logically, a motion at an adjourned meeting could be amended provided the motion is substantially the same motion (e.g. decision on a cleaner not being amended to be a decision on a gardener).
14 Adjournments
- A meeting may be adjourned for any reason if a motion is passed at the meeting for the adjournment.
- The time and place at which a meeting adjourned under this Part is to be resumed must be fixed by the person who was presiding at the meeting.
- The secretary of the association must give to the members of the association, at least 1 day before the resumed meeting, a notice specifying the time and place of the meeting.
- Notice is to be given in writing (including by email or other electronic means).
7 Decisions at meetings
- Voting at meetings A motion put to a meeting is to be decided according to a majority of the number of the votes cast for and against the motion by the members present (other than any tenant member, in the case of a neighbourhood committee) or in the manner set out in subclause (3).
- If there is only 1 member of the association committee, the decision of the committee is the decision of that member.
- Voting in writing A motion proposed to be put to a meeting is taken to have been validly passed even if the meeting was not held if—
- notice was given of the meeting in accordance with this Schedule, and
- a copy of the motion was given to each member of the committee, and
- the motion was approved in writing by a majority of the members of the committee (other than any tenant member, in the case of a neighbourhood committee).
- Decisions to have no effect if opposed by more than specified owners A decision of an association committee has no force or effect if, before the decision is made, notice is given to the secretary of the association by 1 or more owners of relevant lots, the sum of whose unit entitlements exceeds one-third of the total unit entitlements, that the making of the decision is opposed by those owners.
- Voting rights cannot be exercised if contributions not paid A member of the association committee is not entitled to vote on any motion put or proposed to be put to the committee if the member was, or was nominated as a member by a member who was, an unfinancial member of the scheme at the date notice of the meeting was given and the amounts owed by the unfinancial member were not paid before the meeting.
- Tenant member not entitled to vote A tenant member of a neighbourhood committee is not entitled to vote on any motion put or proposed to be put to the committee.
8 Manner of voting
- A vote at a meeting by a person entitled to vote must be cast in person unless the association committee, by resolution, determines that a vote may be cast by some other specified means.
Note—
A person may be present at a meeting even if not actually at the meeting (see the Dictionary definition of person present).
- The regulations may make provision for or with respect to the following—
- the means of voting (other than in person) that may be adopted by an association committee,
- without limiting paragraph (a), procedures for voting by those means,
- prohibiting the use of specified means of voting.
Andrew Terrell
Bright & Duggan
E: Andrew.Terrell@bright-duggan.com.au
P: 02 9902 7100
This post appears in the December 2022 edition of The NSW Strata Magazine.
Question: I am the Secretary of our Strata Committee. Is there a Strata Committee agenda I can refer to?
I am the Secretary of our Strata Committee. When it comes to preparing for Strata Committee meetings, I struggle with the format of the agenda (not the content). I have searched online and come across many samples.
Is there a Strata Committee agenda I can refer to?
Answer: See our template agenda below.
A great strata committee agenda is critical for managing a smooth, productive and well run Strata Committee meeting. One of the main signs that a Strata Committee is not working effectively together is when matters get rolled over from meeting to meeting without any action. In almost all instances, matters should be discussed and voted on, postponed to a determined date (ie in one years’ time) or voted down as no longer being relevant (ie a matter carried forward from the last meeting that has now resolved itself).
Our template agenda is as follows:
Motion 1 – Minutes
A motion to consider the minutes of the last meeting.
Motion 2 – Matters Arising
A motion listings matters arising from previous meetings, with a detail on the action to be taken. EG – Balcony railings – THAT the quotations for balcony railings be tabled and approval be given to accept one of the following quotes:
- ABC at a cost of $X; or
- XYZ at a cost of $X.
Motion 3 – Financial Statements
A motion to table and discuss the interim financial statements for the last period and a sub motion to table and discuss the arrears report.
Motion 4 – Building Managers Report
A motion to table the Building Managers report and list any items for action. The final items should be a motion THAT any other repairs and maintenance items be discussed and actioned.
Motion 5 – Other Matters
A motion to list any other matters for consideration.
Motion 6 – Applications
A motion to approve or ratify any pets or renovation applications that the Strata Committee can vote upon.
Motion 7 – Residents Feedback or questions
A motion for owners to ask any questions of the Strata manager, Building Manager or the Strata Committee.
Motion 8 – Next Meeting
Date, time and place of the next Strata Committee Meeting.
If you would like a draft template, I would be happy for LookUpStrata clients to email me to assist. See below for my contact details.
Rod Smith
The Strata Collective
E: rsmith@thestratacollective.com.au
P: 02 9879 3547
This post appears in the November 2022 edition of The NSW Strata Magazine.
Question: When an agenda regarding approval for renovations is sent to non Strata Committee members, should it include attachments?
When a Strata Committee agenda is sent to non Strata Committee members, should it include the attachments mentioned in the agenda? If not, why not?
A Strata Committee meeting agenda has been sent regarding approval for the installation of a new kitchen. This is the motion:
MOTION 2: LOT 4 KITCHEN RENOVATION APPROVAL: THAT the strata committee approve the minor works application for lot 4 as per the attached application and documents.
Should the agenda have included the application and documents?
Answer: There is no requirement to distribute attachments to non-strata committee members.
There is a requirement to distribute agenda and minutes for strata committee meetings (or place on the noticeboard, depending on whether the scheme is large or not).
There is no requirement to distribute attachments to non-strata committee members, however these should be available on the schemes records and on request.
Andrew Terrell
Bright & Duggan
E: Andrew.Terrell@bright-duggan.com.au
P: 02 9902 7100
This post appears in the November 2022 edition of The NSW Strata Magazine.
Question: At our recent AGM, there was no vote taken on any of the motions. Is it a requirement that all motions at an AGM have a mover and seconder and then are put to the vote?
Answer: Once all motions are set out in an agenda/notice of meeting, they simply get voted on. They pass or fail.
In practice, once all motions are set out in an agenda/notice of meeting, they simply get voted on. They pass or fail. However, if there are minor amendments to a motion which do not have a substantive impact on the intention of the motion, then that amendment is proposed and seconded (as you suggest), then that amendment is put to the vote and the motion amended accordingly. The Chairperson may make determinations as to technical matters such a quorums and procedural matters including ruling motions out-of-order.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
This post appears in Strata News #607.
Question: At our last AGM I proposed a motion that meetings be held after 6pm. Our Strata Manager denied the motion from being on the agenda. Does the Strata Manager have authority to dismiss a motion?
I proposed a Motion for our last AGM within the correct guidelines and timing, that being, that future Annual General Meetings, Extraordinary General Meetings and General Meetings be held at 6 pm instead of 10 am on a weekday, so that proprietors who cannot make it during normal business hours could attend.
The Strata Manager informed the Secretary that it was their office policy not to have meetings out of business hours, as a result, my Motion was denied from being on the Agenda. I believe this is a serious breach of the Strata Titles Regulations for NSW.
However, my question isn’t about the actual time of the meeting, but I am concerned that the Strata Manager took it upon herself to dismiss the Motion from the Agenda altogether. If the meeting voted against it, so be it, but it was denied by the Strata Manager to be voted on at all.
Answer: Your strata manager, presumably as delegated Secretary, has no legal authority to exclude your motion.
Your strata manager, presumably as delegated Secretary, has no legal authority to exclude your motion (provided you comply with the provisions of Schedule 1, Clause 4 of the Strata Schemes Management Act, 2015 (NSW) (“SSMA”) with regard to the manner in which motions may be required to be included in an agenda).
On the contrary, the strata managing agent, as delegated Secretary, must give effect to the requirements and include your motion.
The only person with authority to rule a motion “out of order” once the motion is before a meeting is the Chairperson and then only if the motion is, among other things, unlawful or non-compliant with the requirements of the SSMA.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
This post appears in Strata News #590.
Question: At an AGM, can you amend a motion in the meeting and then the motion be voted on and passed
At a Community Association AGM (for a community association with precincts), can you amend a motion in the meeting and then the motion be voted on and passed?
The motion was for levies, and it was amended to increase the levies by approx $100k during the meeting and then voted on.
In previous meetings, the strata managing agent has advised that a motion can not be changed in a meeting. It must be voted on as written or lost and a new motion raised at another meeting. I feel we have received very conflicting and confusing advice.
Answer: Amendments to a motion cannot be a direct negative or materially change the motion.
Persons present at a meeting can move a motion to amend a motion.
In doing so, they propose precisely how they wish to amend the original motion.
A vote is then taken on whether the amendment to the motion is made, followed by another vote on the amended version of the motion.
In other words, first, the persons present and entitled to vote will vote on whether the motion should be amended to begin with (i.e. they are simply voting on whether to amend it).
They then separately vote on whether to carry the amended version of the motion (i.e. they are now voting on the actual outcome).
However, amendments to a motion cannot be a direct negative or materially change the motion. A motion to consider one thing cannot be amended to consider something completely different. It must be similar.
For example, a motion to make a by-law about pets cannot be amended to be a motion to make a by-law about short-term letting.
In the case of voting on raising levies, it could be argued that the owners who were not present were not given sufficient notice of the proposed amount. The validity of the decision could be contested.
For example, a motion to raise a special levy of $10,000 should not be amended to be $100,000.
The reason being, owners were not given proper notice of the possibility of this decision. They may have decided not to attend a meeting or give a proxy on the basis of there being a “low” amount being raised.
Any motions to raise levies need to be carefully considered and the possibilities need to be made clear to those who are given notice of the meeting so they can assess whether they wish to participate and vote.
Tim Sara
Strata Choice
E: tsara@stratachoice.com.au
P: 1300 322 213
This post appears in Strata News #585.
Question: At a committee meeting, I proposed a motion concerning a topic under discussion for the committee to adopt. The topic had been included in the meeting agenda. The strata manager ruled the proposed motion ‘out of order’. Is this correct?
A committee meeting was called by our strata manager with a written agenda containing a few fully written-out motions.
At the meeting, I proposed a motion concerning a topic under discussion for the committee to adopt. The topic had been included in the meeting agenda. It was not an issue that required approval at a general meeting.
Our strata manager was chairing the meeting. She ruled my proposed motion ‘out of order’ because the actual wording had not been included in the published agenda for the meeting.
I have been on strata committees for over 30 years. My understanding is that motions for a general meeting have to be written out clearly in the agenda, but at committee meetings, matters can be raised under a heading of ‘other business’ or under category headings such as: ‘discuss reports of leaking roof over lot 4’. In this scenario, an issue can be raised, a discussion held and a motion drawn up and voted on at the meeting.
Under the strata manager’s ruling, you couldn’t even raise an issue and propose a motion to be included in the agenda for the next committee meeting, unless it had been fully written out in the agenda.
Answer: A notice of strata committee meeting must include a “detailed” agenda pursuant to the requirements of the strata legislation.
Unfortunately, your strata manager is correct.
A notice of strata committee meeting must include a “detailed” agenda pursuant to the requirements of the strata legislation. In your scenario, passing a motion that was not included in the agenda would deny proper notice being given to all owners/committee members etc., and, in turn, deny owners the right to oppose the proposed decision by the strata committee or raise queries prior to the strata committee passing any resolution.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
This post appears in Strata News #581.
Question: At an EGM, one motion was to add 8 new by-laws. Should each bylaw have been considered in a separate motion? I voted to disapprove the motion because I agreed with some, but not others.
We recently had an EGM via pre-meeting electronic voting. One of the motions was to add 8 new by-laws. Should there have been 8 separate motions so each new by-law could be considered individually, or can all 8 be considered as 1 motion. I voted to disapprove the motion, as I agreed with some of them, but disagreed with others.
Answer: It may be relevant to have various decisions packaged into one motion. Sometimes two decisions need to be made at once.
There are no hard and fast rules on how this motion should have been drafted. Ultimately it is up to whoever submitted it and the outcome they are seeking.
The obvious downfall is the inability to make separate decisions on the merits of each by-law as they have been packaged together into one decision. Had they been separated, each one could have been considered on its merits.
In some cases, it may be relevant to have packaged various decisions into one motion. Sometimes two decisions do need to be made at once.
For example, these by-laws may have been interrelated somehow and may not make sense if one is registered without the other. Another example might be to authorise works and also enter into the contract to do so.
Tim Sara
Strata Choice
E: tsara@stratachoice.com.au
P: 1300 322 213
This post appears in Strata News #577.
Question: At our recent AGM, a number of motions were being considered. As each motion was read, the OC gave their recommendation. Should the committee have this influence?
I have a question regarding the protocol at an AGM.
Recently we had a number of motions to be considered by the Owners Corporation.
As each motion and the explanation was read to the Owners the Chairperson finished with the words “The Committee supports this motion” or “the Committee does not support this motion”.
The motions supported by the Committee were passed and the motions not supported by the Committee failed. In addition to this, each Committee member held a proxy for Owners not able to attend.
Is it correct that the Chairperson and Committee have this influence?
Answer: It is not unusual for the Strata Committee to put forward a recommendation.
It is difficult to provide any specific guidance as I do not know the motions being considered. It is not unusual, in my experience, for the Strata Committee to put forward a recommendation. They are usually involved with the day to day running of the strata scheme and so often they know more about what the matter relates to and have formed an opinion.
Section 26 of the Strata Schemes Management Act 2015 details the requirements around the appointment of a proxy and Committee members are often provided with proxies by owners unable to attend as they are visible elected members of the Owners Corporation.
Robert Fothergill
Strata Life
E: Robert@thestratalife.com.au
P: 02 9456 9917
This post appears in Strata News #569.
Question: Can significant matters that require special resolutions be raised verbally under a general heading at the AGM?
At our recent AGM, two matters were discussed that were not specified on the agenda.
Both items were raised verbally. The first was under ‘Maintenance’. The second matter, requiring a special resolution, was introduced in our Zoom meeting by a new owner under ‘Matters Arising.’
Can significant matters that require special resolutions can be raised verbally under a general heading at an AGM?
Answer: No motion, whether ordinary or special, can be resolved unless it appears on the notice/agenda of the general meeting.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
This post appears in Strata News #562.
Question: Do the strata committee get a copy of the AGM agenda first, or do all owners get the agenda at the same time? If the committee get it first, does it put others at a disadvantage?
Answer: There is no formal requirement that the AGM agenda must be given to the strata committee first.
The legislation states that written notice of a meeting must be given to each owner (and each first mortgagee or covenant chargee). There is no formal requirement that the AGM agenda must be given to the strata committee first, though, in practice, strata managers often do circulate a draft AGM agenda to the committee first, to ensure all matters that the strata committee wish to determine at an owners corporation level are included for consideration at the AGM.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
This post appears in Strata News #521.
Have a question or something to add to the article? Leave a comment below.
Read next:
- NSW: Q&A Owners Corporation Meetings – Times and Frequency
- NSW Fair Trading: Meetings of the owners corporation
These articles are not intended to be personal advice and you should not rely on them as a substitute for any form of advice.
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stephen says
“The strata committee’s ability to place motions on the agenda of a general meeting was confirmed in an NCAT Appeal Panel ruling in The Owners Strata Plan no 63731 v The Bunker Pty Ltd [2021] NSWCATAP 119 handed down on 5 May 2021.”
Not exactly.
This is a single Member Appeal Panel decision and the decision does not make it clear the SC can place motions on the agenda. I would go as far as to say I doubt a real Court, not some Administrative Decision maker, would agree with the notion the SC can request motions.
It is very clear the SC can’t place motions on the agenda as they are not part of the “class of person” the Act states can place motions on an agenda. It is that simple and some Member looking for some equitable outcome can’t change that with hand waiving reasoning.
What Bunker seems to do is focus on capacity.
Even if somehow a motion ends up on an agenda when it was not put there in compliance with Sch 1 cl 4 then the resolution of that motion is likely to stand.
A lot of the Members reasons revolve around the lack of the name sponsoring the SC’s motion. This indicates there is in the back of the Member’s mind the need for some compliance with Sch 1 cl4.
If it is as suggested that the SC can just throw motions on an agenda then we do not see this line of reasoning.
Bottom line was the defects are not fatal to the outcome. It is not the case we have case law that says the SC can put motions on the agenda.
The big reason the SC can’t request motions is, imagine a SC made up of non owners. Theoretically possible. No one has entitlement to request a motion. If, as is suggested, the SC can request motions then we circumvent the Act.
If the decision is to be viewed as giving capacity to the SC to put motions on an agenda then it is a rubbish decision. I don’t think the decision says the SC can put motions on the agenda. It says that absent a sponsors name, non compliance with Sch 1 cl 4 (2b), the resolution of the motion is still good.
Sarah B says
Our Body Corporate Manager provides different committee meeting agendas to the committee members and owners.
Owners are sent a notification of the meeting, with generic ”agenda items’ that never change or have any information: e.g. Business arising, Ratify VOC’s, General Business.
The committee’s version of the agenda includes dot points of the specific topics and motions that will be discussed.
Are owners allowed to know what’s on the agenda to be discussed at the meeting?
Why are there two versions of the agenda and is the one given to owners compliant?
BB says
Answer: …. “then that amendment is proposed and seconded (as you suggest)”.
There is actually no requirement to second it and i always find it funny people think there is.
Some case law which supports that position:
Horbury Bridge Coal, Iron and Waggon Co (1879) 11 Ch D 109 at 117-18
AND
National Australia Bank Limited v Market Holdings Pty Ltd (in liq) (2001) 161 FLR 1; 37 ACSR 629
You only need to second something if the ‘organisations’ rules say you need to.
BB says
Answer: A notice of strata committee meeting must include a “detailed” agenda pursuant to the requirements of the strata legislation.
Even if you do not send an agenda the decisions can still be valid, see The Owners Strata Plan No 57164 v Yau [2017] NSWCA 341
Absent any words or motion at all the SC can still make valid decsions. Whether the agenda is a worded motion or an indicative item seems to be at the centre of this question.
I can guarantee neither Macquarie St of NCAT really care less about Sch 2 cl 9(3) and the power of owners to in effect veto the SC on any matter. I have brought up the disenfranchising of owners by not giving any ‘detail’ or an agenda item and it has always resulted in zilch.
I have it, in writing, from former Commission for Fair Tradin Rob Stowe that the SC is confined to the agenda. But if you look at Yau that is not the case.
Ignoring the ‘must’ of ‘must include a detailed agenda’, because that is just rubbish after Yau, the question is “what constitutes detailed?”
A notice of meeting should be worded in such a way that ordinary minds can understand its meaning: Henderson v Bank of Australasia (1890) 45 Ch D 330.
A notice must give members fair warning of the matters to be dealt with: Ryan v Edna May junction Gold Mining Co (NL) (1916) 21 CLR 487; 22 ALR 222.
The test is to ask whether the information, if provided to an ordinary shareholder who scanned or read the document quickly, not as a lawyer, but as an ordinary person in commerce or as an ordinary investor, would fully and fairly inform and instruct the shareholder (owner) about the matter on which he or she would have to vote: Devereaux Holdings Pty Ltd v Pelsart Resources NL (No 2) (1985) 9 ACLR 956.
Without seeing the agenda or the wording of the motion it is hard to say if the agent got it right.
In my own SP there has not been an actual worded motion on an SC agenda for years. We are lucky to even see an item rate a mention. Typically the first owners know about a matter is a note in minutes; an NCAT do not care at all.
CJ says
What is the correct procedure for a Lot Owner to take when they believe that a By-law is harsh, unconscionable or unreasonable?
My understanding is that the Lot Owner ought to be directing their grievance by filing an application to NCAT for the Tribunal to decide, and not raising it to the Strata Committee nor at a General Meeting.
Liza Admin says
Hi CJ
The following comment has been supplied by Leanne Habib, Premium Strata:
There is nothing to stop the owner from raising their concerns with the strata committee or at a general meeting, however, as you correctly state, the procedure is to make an application under Section 150 of the Strata Schemes Management Act 2015 (NSW)(the “Act”) for an Order declaring the by-law to be invalid (as NCAT has that jurisdiction) and compliance with the mediation requirements under the Act first.
David Speyers says
Hello. Can you include an item of discussion on an agenda, rather than a motion, that doesn’t have a yes or no answer. For example if the council want to discus the landscaping of the common gardens. Then at the meeting a plan can be put in place and a formal vote can take place after the meeting once quotes have been obtained. Is this possible?
Liza Admin says
Hi David
The following response has been provided by Leanne Habib, Premium Strata:
Yes, you can have a motion “THAT The Owners Corporation discuss” a matter or item.
Norika says
My Motions complied with the above. However I did not provide a 300 word explanation as it was well known that we had run an SGM resolving to remove the existing Committee. I followed up for confirmation several times. The Committee then decided to hold an AGM 3 days before the SGM voted in Committee was effective. They then put my motions up in a preamble and belittled their relevance and the SGMs relevance. Even though we had close to a quorum at SGM of 48.6% and 96% of owners voted to remove the Committee and voted in a new one.
Jeff Flegg says
I recently put forward a motion (with explanatory notes) to our Annual General Meeting seeking approval for owners to access various reports and documents on the […] owners portal. The motion was included on the AGM agenda which was sent to owners with a recommendation from the Committee that they vote NO to my motion. I have asked for but have yet to receive an explanation as to why the Committee made this recommendation which was subsequently defeated. Has the Committee acted correctly in making this recommendation to owners? Further, should it have been necessary for me to have to put a motion to the AGM to get […] access to reports and documents that owners are entitled to see (eg minutes of meetings, budgets, financials, insurance, pool compliance etc).
Charles Button says
What action can a resident take if the body corporate committee fails to discuss, record or table correspondence from a lot owner at a committee meeting ?
Queensland. Accomodation Module
Liza Admin says
Hi Charles
The following response has been provided by Leanne Habib, Premium Strata:
You would need to “requisition” a motion that the strata committee “table, discuss and resolve to respond” to the issues raised in your correspondence.
CJ says
Regarding the issue of a SC Member proposing a motion to the SC that they have a vested interest in which constitutes a breach of conflict of interest: The legislation mentions that there is a maximum penalty of 10 units which as I understand it to be $1,100.00. ($110.00 per penalty unit).
The article is quite interesting but it doesn’t mention how a Lot Owner can instigate this action when an SC member has breached art 15 of Schedule 2 of the said legislation? Could someone provide the steps required in implementing this course of action?
Also, shouldn’t the Strata Manager have mentioned to the SC and in particular to the member that they abstain from voting on their motion? What happens if the Strata Manager fails to do so? Are they in breach of their statutory obligations? If so, what would these breaches be under which legislation?
Liza Admin says
Hi CJ
Leanne Habib from Premium Strata has responded to your comment in this article: NSW: Q&A When are Pecuniary Interest Disclosures Required?
Arthur says
Can the honorarium Strata administer who is drafting the agenda for AGM enter their own motion to counter a motion having prior knowledge only from receiving the motion for input to agenda before the agenda is propagate d to body Corp owners.
Please note that the honorarium Strata administer is also an owner. Would this be taken as a unfair or disadvantage to the owner of the first motion.
Nikki Jovicic says
Hi Arthur
We have received the following response from Leanne Habib, Premium Strata:
It would be interesting to see if the strata administrator “complied” with the requirements of the legislation in his capacity as “owner” (though there is no breach of legislation in the person preparing the agenda countering motions or the manner in which they are sequenced) and provided an “explanation” for the motion
4 Inclusion of matters on agenda
1. Any owner, or any person entitled to vote at a general meeting of an owners corporation, may require a motion to be included in the agenda of the next general meeting of the owners corporation.
2. The requirement is to be made by written notice given to the secretary of the owners corporation that:
a. sets out the required motion, and
b. states the name of the person making the requirement, and
c. includes an explanation of the motion of not more than 300 words in length.
3. The secretary must give effect to the requirement.
4. However, if the requirement is made after notice has been given of the meeting, the secretary must include the motion in the agenda for the next subsequent meeting.
5. An owner or a person may make a requirement even if the owner or person cannot vote because the owner is an unfinancial owner.