Should a committee member with a vested interest abstain from voting, and should the strata manager enforce this?
Regarding a strata committee member proposing a motion they have a vested interest in, which may constitute a conflict of interest: the legislation mentions a maximum penalty of 10 penalty units, which I understand to be $1,100.00. However, the legislation doesn't clearly explain how a lot owner can instigate action when a committee member has breached Part 15 of Schedule 2 of the Strata Schemes Management Act 2015. Could someone provide the steps required to implement this course of action?
Should the strata manager have advised the committee member to abstain from voting on their own motion? What happens if the strata manager fails to do so? Are they in breach of their statutory obligations, and if so, what are those breaches and under which legislation?
The strata manager cannot restrict voting unless instructed to do so by the committee.
The statutory requirement under schedule 2, clause 18 is for the impacted strata committee member to declare any pecuniary interests to the broader strata committee. It is then up to the strata committee to determine how the interest is handled, by way of majority vote, i.e. whether the particular committee member should abstain or otherwise. However, this is not a set requirement under the legislation.
Further, while the strata manager is required to maintain an accurate record of any disclosures which may occur, they are not empowered to restrict voting on any matters unless this is the instruction of the strata committee.
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During her tenure as a Licensed Strata Manager, Megan played an integral part of the strata industry since 2017 when commencing with an Industry Leader and was recognised for her dedication in the awarding of the 2019 SCA NSW Rising Star Award and 2020 SCA Australasia Rising Star Award.
Equipped with a Class 2 Strata Management Licence and Certificate 4 in Strata Management, she possesses a strong foundation of knowledge and expertise with respect to the multi-faceted management requirements of Owners Corporations, Building Management Committees, and all forms of Registered Associations, including but not limited to, Asset Management, Trust Account Management, Compliance Management, and complex Meeting Management with internal and external stakeholders.
Through the combination of all aspects of her professional experience, business management skills and passion for achieving success on behalf of her client base, Megan has been drawn to co-founding Tender Advisory to help Owners Corporation’s re-gain their confidence and control over the management of their properties and their trust accounts.
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