NSW: Resigning as strata secretary or treasurer: What happens if no one replaces you?

Question: Can I resign from my positions of both Secretary and Treasurer of our owners corporation, effective immediately? What happens if no one wants to take my position?

I am both Secretary and Treasure in our block of 4 units. Due to ongoing conflicts with a difficult owner, can I resign from my positions effective immediately?

There are adult children who live with their lot owner parents in our complex. Can these children be voted onto the committee? What happens if no one wants to take my positions?

Answer: A strata committee member can resign by giving written notice to the owners corporation.

A strata committee member can resign by giving written notice to the owners corporation (usually by email or letter to the secretary or strata manager if one is delegated the function of secretary) in accordance with section 35(c) of the Strata Schemes Management Act 2015 (NSW) (‘the Act’). The resignation can either be from an office bearers position (secretary, treasurer or chairperson) where you will remain on the committee just as a committee member or the resignation can be from the committee member position entirely (and therefore, from any office bearers roles you may have).

When a committee member resigns, there is a vacant position left on the strata committee (as well as any office bearers roles they may have resigned from).

Best practice would be that the strata committee (or strata manager) would then write to the owners to call for written nominations within a period of time (say 2-4 weeks) and then hold a meeting with a motion to elect a new member to fill the vacancy (and another motion to elect new office bearers if there are any vacancies) in accordance with section 35(2) of the Act for committee members, and/or section 45(2) of the Act for office bearers.

However, it is important to note that:

1. There is no strict legal requirement to immediately elect a new strata committee member as section 35(2) states that the strata committee “may” appoint a new member. However, section 45(2) of the Act suggests that the strata committee needs to appoint new office bearers in order to function properly.
2. The election is not required to be done at a general meeting (as opposed to the original election of committee members which is normally done at an annual general meeting) and can be done at a strata committee meeting.
3. The new strata committee member and/or office bearer fills the vacancy until the next election of a new strata committee.
4. Nominations for new committee members must come from an owner or person entitled to vote at a general meeting (in accordance with Schedule 1, clause 5 of the Act).

If no one nominates to fill the vacancy, then the committee will operate with a vacant position (similar to a committee member not attending a strata committee meeting) and it can therefore be difficult to reach a quorum and make decisions much like when you have a non-responsive committee member.

This post appears in Strata News #476.

Tim Sara
Sara Strata
E: tim@sarastrata.com.au
P: 04 8500 7960