This article discusses strata decisions without an annual general meeting and what owners can do to access records and enforce proper procedures.
Question: The owners corporation hasn’t had a meeting for over a year, yet decisions are being made. We have received no meeting notices or minutes. Who is making the decisions?
We have been resident owners in a large apartment complex since the building opened. The owners corporation hasn’t had a meeting for over a year, yet decisions are being made by the “owners corporation” or the “strata committee”. There have been no meeting notices or minutes, and owners don’t know who’s on these committees.
Parking decisions change every month or so, communicated by strongly worded emails from the building management.
The most recent decision was converting the gym into a meeting room, yet again, no one knows when, or how this decision was made and there are no minutes. Can you advise a course of action?
Answer: The decision making process in strata schemes can be quite complex.
The decision making process in strata schemes can be quite complex. However, as a lot owner, you should be able to obtain records in relation to most decisions.
Some decisions may only be made by the owners corporation at a general meeting. For example, it is most likely the decision to change the gym to a meeting room must be made at a general meeting. Electing the members of the strata committee and the office holders is a decision made at the annual general meeting.
Section 18 of the Strata Schemes Management Act 2015 provides that “An owners corporation must hold an annual general meeting once in each financial year of the corporation.” Section 22 provides that you must be given notice of the meeting.
Some decisions may be made by the strata committee without the need to convene a general meeting. This may be the case if a resolution has been passed at a general meeting, providing the strata committee with the authority to make certain decisions. There are also decisions the strata committee is permitted to make under the Strata Schemes Management Act 2015. When the strata committee makes a decision (in the form of passing a resolution at a strata committee meeting), minutes of the meeting should be prepared, and you may have access to the minutes (review the following link in relation to your rights to the minutes: Strata Schemes Management Act 2015 No 50)
If there is a strata manager, the agency agreement may authorise, or there may have been a resolution passed at a general meeting authorising, the strata manager to make certain decisions.
If the owners corporation has engaged a building manager, the terms of the agreement may provide the building manager with authority to make certain decisions.
To obtain records in relation to decisions that have been made, a good starting point would be to make a request to inspect the records of the owners corporation pursuant to section 182 of the Strata Schemes Management Act. It may take some digging; however, if the scheme is being managed correctly, you should be able to source the information you require from an inspection of the records.
For example, when you inspect the records, you may focus on the minutes of the general meetings, the minutes of the strata committee meetings, the strata managers agency agreement and the building managers agreement.
If there is a strata manager, you would make the request to the strata manager. Otherwise, the request should be made to the secretary.
If you are unable to source the information you require from an inspection of the records, and you consider the owners corporation may not hold meetings, may not be keeping records, or if the strata manager or secretary will not comply with section 182, you should obtain advice from a legal practitioner who specialises in strata law.
To be involved in the decisions which will be made in the future, you should enquire with the strata manager or secretary when and where the annual general meeting will be held, or request a meeting be called to elect members to the strata committee, double check your address for service is correct, attend the general meeting, and volunteer your nomination to be elected as a member of the strata committee. To be eligible to be elected to the strata committee you must have paid all your strata levies.
This post appears in the July 2024 edition of The NSW Strata Magazine.
Shane Williamson Williamson Lawyers Pty Ltd E: shane@williamsonlawyers.com.au P: 0404 045 605