Question: If the number of committee nominations exceeds the available positions, our strata manager adjourns the AGM and sends a paper ballot by mail. Can the election be run at the meeting?
Our AGM passes a motion every year to set the strata committee at 5 members.
There are always more than 5 owners nominated.
Our strata managing agent says the AGM has to be adjourned and a paper ballot mailed out to collect wet signatures whenever nominations exceed positions. This makes the extra nominees feel pressured and, frankly, seems to discourage anyone from putting their hand up. Why can’t we hold committee elections in person?
I feel they are protecting their own interests over ours by making the process deliberately tedious. This is a very big firm, so they should have proper processes in place.
Answer: When strata committee nominations exceed available positions, the ballot must be conducted at the meeting itself, not by adjournment and postal vote.
Your strata managing agent is correct that a ballot is required where the number of nominations for the strata committee exceeds the number of available positions. This is not discretionary. It is a requirement under the Strata Schemes Management Regulation 2016.
However, the ballot does not need to be conducted after the meeting by way of an adjournment and postal vote. The legislation contemplates that the ballot is to be conducted at the meeting itself.
Regulation 10 sets out the process. The chairperson must:
- announce the candidates,
- provide ballot papers to those entitled to vote, and
- collect completed ballots.
These can be conducted by paper ballot or, if appropriate, by electronic means. A signed ballot is required for the vote to be valid.
In practical terms, this means your strata managing agent should attend the AGM prepared to run a ballot if required. This can be done on the spot, either by open or secret ballot, or by electronic voting when systems are in place. There is no requirement to adjourn the meeting and conduct a postal ballot simply because nominations exceed positions.
Why does this issue matter?
Strata governance is a core part of committee elections. Unnecessarily complex or delayed processes can discourage participation and create a perception that nominations are being managed or limited.
It’s important to consider that adjourning the election of the strata committee may leave the owners corporation without an active committee. This can impact day-to-day decision-making and governance.
The legislation is designed to support fair and transparent elections. A properly run ballot at the meeting allows all eligible owners to participate in real time and ensures the outcome reflects the will of those present or represented.
Understanding and being prepared for the correct process helps maintain confidence in the election and avoids unnecessary administrative burden.
What are your next practical steps?
If it is usual for for your strata scheme to to have more nominees than positions, the committee and strata managing agent should take a more structured and proactive approach.
- Confirm the election process in advance: The meeting notice should outline the voting process, including whether ballots will be paper-based or electronic. It is also good practice to include a nomination form to invite pre-nominations, noting that this is not mandatory but does help with preparation.
- Ensure the strata managing agent is properly prepared: Make sure they bring sufficient ballot papers, ideally pre-populated with any pre-nominated candidates, and have a clear process for issuing and collecting votes. The strata managing agent should also have a tally sheet prepared in advance to record and count votes at the meeting efficiently.
- Raise the issue formally if needed: If the current process involves adjournments and postal ballots, you can request clarification on the legal basis for this approach and refer to regulation 10.
- Consider modern voting options: Many strata schemes now adopt electronic voting or hybrid meeting formats. This streamlines the process while remaining compliant.
- Encourage participation: A clear and efficient process makes it easier for owners to nominate and vote. This supports a more engaged and representative committee.
Preparation, rather than postponement, is key to ensuring fair and efficient committee elections. A well-run election process should be simple, transparent, and conducted at the meeting wherever possible.
This post appears in Strata News #791.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
You turn up to an AGM and the controlling group often with the managers support is reelected. The whole AGM system needs to change those wishing to be elected must nominate and supply their details and policies in the AGM notice plus AGMs must now be done electronically as usually at least half the units are rentals and owners no matter where they are need to participate, another nasty trick is to hold the AGM at a time on a working day before people can get there from work.. It is important that people elected to committees have some business skills or management experience.