Question: Is it compulsory to have a strata committee under the NSW Act? Is it a breach of the act if there isn’t a strata committee working with the managing agent?
I’m an owner of a complex of seven townhouses. Currently, we have five committee members. We’re going to have our AGM next month with the managing agent. I’ve read the agenda and motions put forward by a few owners for discussion at the meetings.
The main concern is that a couple of the motions have suggested that we don’t have a strata committee and have suggested that each owner is to liaise with the managing agent as an independent responsibility.
I’m a bit confused about part three, Division One, section 29(4). Is it compulsory to have a strata committee under the Act? And is it a breach of the act if there isn’t a strata committee with the inclusion of the managing agent?
Answer: Each Owners Corporation is required to appoint a strata committee at each Annual General Meeting.
Under Section 29 part One of the Strata Schemes Management Act 2015 it states that an Owners Corporation must appoint a strata committee of the Owners Corporation in accordance with the act. Each Owners Corporation is required to appoint a strata committee at each Annual General Meeting. So, you’re absolutely right.
However, I will note 29(4) which says that if there is no strata committee of an Owners Corporation, the strata scheme must be administered by the Owners Corporation. But nothing in this subsection prevents a strata managing agent appointed under the act from exercising any other functions conferred on the agent. What that means is that you must appoint a strata committee. However, they’ve also provided a sister section to that, which basically says that if there isn’t one, the strata managing agent can continue to action and act under the functions of their agreement. However, decisions can then be taken back to the Owners Corporation for decision at a general meeting.
My advice to the Owners Corporation would be to appoint a strata committee. All of our buildings in our portfolio have strata committees. However, if the building goes the way, which it seems to indicate from this question where they won’t have a strata committee elected at the AGM, then they can continue to function via the strata manager and taking major decisions at General Meetings of the Owners Corporation.
So I think you’re on the right track. The Act says they must appoint one but if they don’t, then this is what happens.
This post appears in Strata News #525.
Rod Smith The Strata Collective E: rsmith@thestratacollective.com.au P: 02 9879 3547