Question: At our AGM, our Strata Manager declared there will not be a committee and stated he has full delegated authority. Doesn’t the Act clearly outline the process of the election of a strata committee?
We recently had our AGM. At the motion “Call for Nominations to Strata Committee and Election” the strata manager first took a vote if the owners wanted to have a committee and used the votes for the motion as written, and declared there will not be a committee. When questioned the strata manager also stated that it does not matter if there is a committee, or not, as he has full delegated authority. Is this legal in the “‘Strata Schemes Management Regulation 2016 [NSW]”? It clearly outlines the process of the election of a strata committee.
Answer: Your strata managing should not be giving the Owners Corporation the option to NOT appoint a strata committe.
The relevant section is Section 29 of the Strata Schemes Management Act, 2015 (NSW) reproduced below:
29 Owners corporation to appoint strata committee
- An owners corporation must appoint a strata committee of the owners corporation in accordance with this Act.
- The owners corporation may appoint the strata committee before the first annual general meeting of the owners corporation.
- The members of the strata committee must be elected at the first annual general meeting of the owners corporation whether or not members were appointed before that meeting.
- 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 this Act from exercising any functions conferred on the agent.
Note sub-section (4) which permits the strata managing agent to exercising functions conferred in the absence of a strata committee.
Your strata managing should not be giving the Owners Corporation the option to NOT appoint a strata committee as it is mandatory provided eligible persons consent to Act. With Strata Hub almost upon us, your managing agent may want to reconsider his position as the Strata hub requires details of the Strata Committee.
This post appears in Strata News #602.
Leanne Habib Premium Strata E: info@premiumstrata.com.au P: 02 9281 6440