Question: What should a strata manager do if the committee approves a motion for the manager to implement but the motion is in breach of the Act?
What should the strata managing agent do if the committee approves a motion for the manager to implement but the motion is in breach of the Community Land Management Act 2021 (the Act)?
In this case, a Community Association paid for the maintenance of a property owned by one of its subsidiary schemes, e.g. an owners corporation. Under Clause 71, shouldn’t the payment be made by the owners corporation that owns the property?
Answer: The managing agent, as delegated chairperson, should have declared the motion out of order at the meeting.
At first instance, the managing agent, as delegated chairperson, should have declared the motion out of order at the meeting. The chairperson is empowered to do this if the motion conflicts with the community management statement/the by-laws or is otherwise unlawful or unenforceable.
As the motion has already passed, the managing agent should recommend the motion be rescinded or, alternatively, ask the Strata Committee to seek legal advice on the legality of the motion.
If the strata manager does not act, you will need to seek legal advice. In summary, you may challenge the validity of the resolutions passed through NSW Civil & Administrative Tribunal (NCAT) but will need to attempt mediation through NSW Fair Trading first. The owners corporation may refuse to attend, but you may then proceed to NCAT to seek orders to invalidate resolution(s) or election(s) of the owners corporation.
This post appears in Strata News #701.
Leanne Habib Premium Strata E: info@premiumstrata.com.au P: 02 9281 6440