Question: A tie vote for numbers on the committee resulted in the exclusion of three willing members from contributing to their committee. Why can the owners corporation determine committee size?
Our strata consists of six owner-occupied townhouses. To set the number of committee members at our recent AGM, three owners voted to restrict the number to three, whilst the remaining three voted for six members.
A poll vote was called, resulting in the same outcome as lot entitlement. The strata manager called a tie vote, and the status quo of three remained.
The result excludes three willing owners from contributing to their strata committee.
Why does the legislation give the owners corporation power to determine the number of members on the committee?
Answer: Since the recent vote resulted in a tie and no new committee was elected, the current committee remains in place.
In this situation, the deadlock over the number of strata committee members arises from an evenly split vote—three owners advocating for a three-member committee and three supporting a six-member committee. According to Schedule 1, Clause 14 of the Strata Schemes Management Act 2015 (NSW) (the Act), a decision is made only when a majority of the votes cast are in favour. In the event of a tie, whether by simple majority or a poll vote, the motion does not pass. This legal framework ensures that decisions reflect the majority’s preference, maintaining fairness and order within the strata scheme.
Furthermore, Section 35(1)(d) of the Act specifies that existing committee members retain their positions until a new committee is elected at the next meeting. Since the recent vote resulted in a tie and no new committee was elected, the current committee remains in place. This provision is crucial as it guarantees that the owners corporation always has a functioning committee to manage day-to-day operations, thereby preventing any disruption in the governance of the strata scheme.
It is also important to recognise that those advocating for a six-member committee must ensure there are six willing candidates to fill those positions. Without six committed individuals stepping forward, maintaining a six-member committee becomes unfeasible.
Additionally, a professional chairperson plays a key role in facilitating these meetings. Before declaring the outcome of a vote, the chairperson should inform owners about the implications of a tied vote and offer an opportunity for owners to reconsider and potentially change their votes. This practice can help achieve a decisive outcome and ensure that all willing contributors have the chance to participate in the committee.
If the current impasse continues to hinder the participation of interested owners and the efficient management of the strata, it may be beneficial to seek mediation or consult with a strata law specialist. Addressing the underlying disagreements collaboratively can help find a sustainable solution that accommodates the interests of all owners and upholds the integrity of the strata management.
This post appears in the November 2024 edition of The NSW Strata Magazine.
Tim Sara
Sara Strata
E: tim@sarastrata.com.au
P: 04 8500 7960
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