A number our lot owners have requested a special General meeting be held to discuss issues of concern to all owners. Our Strata Manager has said that all costs for holding a special general meeting will be charged to those owners who requested the meeting.
A number of owners of our Owners Corporation have requested that a special General meeting be held to discuss issues of concern to all owners, one being the security of the complex.
Our Strata Manager has said that all costs for holding a special general meeting (hire of room, cost of Strata staff to attend, mail out of Agenda etc) will be charged to those owners who requested the meeting (9 Owners out of 28 in the Owners Corporation).
There is no mention of this condition in the Managers' Agreement, nor is it specified in the Legislation as far as I can see.
Is this a fair and reasonable reaction by the Strata Manager, and is this legal?
There is nothing in the Unit Titles (Management) Act 2011 or the accompanying regulation which enables the cost of a meeting to be charged to those owners who requested the meeting.
There is nothing in the Unit Titles (Management) Act 2011 or the accompanying regulation which enables the cost of a meeting to be charged to those owners who requested the meeting.
Section 3.5 of Schedule 3 is the relevant section which enables people who are entitled to vote to make a meeting request (see below).
3.5 General meetings other than annual general meetings
- The executive committee of an owners corporation may call a general meeting, by notice under section 3.6, whenever it considers appropriate.
- Subsection (3) applies if the executive committee of an owners corporation receives a written request (a meeting request), stating the matters to be considered at the meeting, from people who are entitled to vote on all motions for units whose combined unit entitlement is at least 1/4 of the total unit entitlement in the units plan.
- The executive committee must hold a general meeting, by notice under section 3.6, within 28 days after the day it receives the meeting request.
Finally, section 31 of the UTMA, which enables expenses incurred by an owners corporation to be recovered from lot owners, only applies where an expense has arisen due to a willful or negligent act or omission of a lot owner or a breach of the rules by a lot owner.
A meeting request is not a wilful or negligent act or omission of a lot owner or a breach of the rules.
Christopher Kerin Kerin Benson Lawyers P: 02 8706 7060 E: enquiries@kerinbensonlawyers.com.au
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Christopher worked for many years in leading commercial construction law practices acting for government, developers and contractors in the building, transport infrastructure and resources sectors. He has been involved in all forms of dispute resolution including litigation, arbitration and alternative dispute resolution in a range of jurisdictions in Australia. Christopher also has a number of years’ experience in contract drafting, risk analysis and providing general construction advice having been involved in a whole range of construction projects, from minor works to projects worth billions of dollars. Christopher holds a Masters of Laws, is a Law Society of NSW accredited specialist in commercial litigation and is a member of the National Editorial Panel of the Australian Construction Law Newsletter. He has published in a range of law journals and associated publications. In the last few years, he has brought his specialist construction industry knowledge to the strata sector and now only acts for owners corporations in a range of jurisdictions. Christopher has also developed a specialization in ACT strata law, acting for ACT owners corporations in a range of matters. He has provided training to most ACT strata managers and is the author of the Kerin Benson Lawyers Guide to ACT Strata Law which is intended to become the standard reference for strata law in the ACT.
Christopher is a regular contributor to LookUpStrata.
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