Question: Our strata manager makes decisions on small repairs, but bigger repairs are referred to the chair and treasurer for a decision. Planning for larger items is handled by the entire committee. Is this correct?
I am an elected member of my strata committee. Our strata manager makes immediate decisions on small repairs, but larger repairs are referred to the chair and treasurer for approval. Planning for larger items is handled by the entire committee. Is this correct?
I reported water damage to my ceiling and common wall late last year and further damage a few months later. When I asked whether the owners corporation would take preventative measures to prevent more serious damage, the strata manager said they were waiting on instructions from the chair. Is this usual?
Answer: The strata manager may have an expenditure limit. If the chair (acting within a duly convened meeting) is the point of contact, this may be the most appropriate approach.
The strata manager may have an expenditure limit. If the chair (acting within a duly convened meeting) is the point of contact, this may be the most appropriate approach. However, the overriding concern here is that the owners corporation is under a strict duty to repair and maintain the common property without delay.
To protect your position, take whatever steps you can to mitigate any damage that may be caused to your property.
This post appears in Strata News #747.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
Hi, an AGM is held after the strata contract ends. There is only one person with a proxy. They had to agree to continue with the strata company as they said they were going to cut all services on the day. After this meeting they send a contract. Can we not sign the contract and change strata companies ? Or because during the AGM it was agreed to continue, do we have the obligation to do so?
Hi An
Thank you for yourt comment. The following response has been provided by Megan Parkins, Tender Advisory:
We are working on the assumption that a strata committee meeting was not convened, within the agreement term, for the purpose of initiating a three-month extension, in accordance with Section 50(4) of the NSW Strata Schemes Management Act 2015.
Therefore, notwithstanding the consent provided by the Owners in attendance at the meeting continue, as the Strata Manager was out of the agreement term prior to the Annual General Meeting, there would be question surrounding whether or not the notice/agenda for the meeting was validly issued.
To elaborate, if the end date of the agreement was prior to the meeting notice/agenda being published, the Strata Management Company would have had no authority to perform this function on behalf of the Owners Corporation and this would subsequently render the meeting and the motion for re-appointment invalid.
What do you do if the committee is acting very bad costing strata to go very high by taking loans and going into court cases and losing a lot of money on the strata how can they be stoped or removed when
They have proxy voices and over turn the needs of the
Owners and you can’t get them of the committee because of the proxy
Hi Hilda
This recent article should provide you with more information: NSW: Is Your Owners Corporation Performing Satisfactorily?
RE Chris Irons and the religious icons on common property.
A cultural /religious issue arose in 2014 at a complex I’m involved with in Qld, concerning our annual Xmas party. One owner told the Committee that while he had no problems with a Xmas party (which he would not attend) being held in our community recreational area, he objected, on religious grounds, to the use of body corporate funds to subsidize it, eg the food . This posed a real problem for the committee; he wasn’t being shouty about it but presented as a genuine objector, and all parties wished to respect his beliefs. Thankfully a recent Adjudication provided some divine intervention, ie Pivotal Point Residential [2014] QBCCMCmr 370, which banned use of body corporate funds for social events. So the Xmas party changed to a full ‘user pays’ model and everyone seemed happy with the new arrangements.
Can a non owner vote at the AGM
QUESTION: When our strata manager emails for a decision, all committee members are not aware of who has voted and how. Should we be aware of the decision making process? Should we be aware of the decision making process?
You didn’t answer the question ! The meaning of the question is: ” Is it right that committee members are not informed of WHO voted for or against and why”
I have, also, noticed that in AGM electronic voting online there is no disclosure who voted for or against motions and that during the AGM the Strata Manager does not offer to disclose. who and how each owner voted. Why is this secrecy allowed?
I have applied to the strata committee to install a solar system on what I now find is a roof which is common property and they ruled against me. Do I have any avenue of appeal?
Hi Leanne
I thought an owners corporation could block or override a committee’s decision using a petition with at least 25 % of owners signatures. The petition is simply presented to the secretary and tabled with an appropriate motion for the next committee meeting, avoiding the need for a general meeting
Hi Brett
We have received the following reply back from Leanne Habib, Premium Strata:
See Section 36 of the Strata Schemes Management Act, (NSW) 2015 entitled “Functions of strata committee” (emphasis added)
(1) A strata committee has the functions conferred on it by or under this or any other Act.
(2) A decision of a strata committee is taken to be the decision of the owners corporation. However, in the event of a disagreement between the owners corporation and the strata committee, the decision of the owners corporation prevails.
So, a motion at a general meeting would need to be passed to override the decision of the strata committee because the Owners Corporation can only make decisions at a duly convened meeting (or valid strata committee resolution).
What is the difference between Owners Corporation and strata Committee?
I am hoping to get onto the Stata Committee at our meeting next month, but how do you get to be on the Owners Corporation?
Jo W
“Any decision made by the strata committee is treated as a decision of the owner’s corporation. However, the owner’s corporation can vote to overrule its strata committee’s decisions or put limits on what they can make decisions about”. From the NSW Fair Trading FactSheet: Meetings of the strata committee.
The above assume several things, it is nothing more than a very general statement that reflects the intent of s 36(2). It is far from literal and far from gospel.
The statement should say “any valid decision, within their authority, made by the strata committee” (SC) just to be clear the SC can’t just do as it pleases; there are limits.
The Act sets out various decisions which are solely for the owners corporation (OC) to determine at a general meeting so such decisions are not within the scope of the SC. The Act, as a whole, also sets limits on what the OC and SC can make decisions about and when the OC / SC steps outside those boundaries it acts ultra vires (beyond its authority).
As far as the procedural aspects of a committee meeting goes the Court’s seem to not really care about most of the musts that are in the Act.
Must does not mean must in the Strata Act in most instances of its use, i.e. there is often no consequence for not doing what the Act says ‘must’ be done.
Q1 has no objective answer. The Act sets out what is required to call a general meeting and you should read s 19 to understand the provisions at your disposal.
The problem with utilizing s 19 is the time factor. The SC can easily in most cases action their resolution long before a general meeting is called and in those circumstances the GM then becomes mute.
If the owners do not like what the SC has done then in urgent matters the owners should seek an interim order to restrain the SC from relying on their decision until after a general meeting to fully determine the matter. There is more to that suggestion than is possible to outline here but it is an option.
Q2 is in part answered by s 19. You need to get the Secretary to call the general meeting or force the issue via s 19(2) if you can get the support.
Q3. There is no longer a meeting called an EGM, there is the FAGM, the AGM and a general meeting is now what was formerly known as an EGM. As per s 19 you will need a general meeting.
Q4. If you can get a a general meeting to resolve the matter then you need just an ordinary resolution (majority vote) but for future reference I would refer readers to Sch 2 cl 9(3) which enables the owners to effectively “veto” a decision of the SC but that veto must be exercised before the SC make the decision, i.e. if you see something on the SC meeting agenda that you do not want the SC making a decision about there is a way to ‘nullify’ any decision the SC make on that matter using the provisions found in cl 9(3).
Clause 9(3) is not easy to meet the conditions of but it is something owners should be aware of.
Q5. Provided they are entitled to vote at the general meeting; simplistically put, as long as they are financial at the time of the general meeting then they are entitled to vote.
Q6.
The best response is probably: The Fair Trading statement is a very general statement; it is not literal nor is it gospel. The decision/s needs to be a valid decision/s within the scope of the authority of the SC, the SC can’t just do as it pleases.
If you think your SC aren’t following the Act then s 238 sets out a way to seek to have NCAT make an order removing one or more SC members from being SC members. Also if you can force a general meeting then perhaps the odd motion to declare a SC members position vacant, see s 35(1e), would add to the entertainment of the day.