Can a committee member with multiple lots outvote other owners?

VIC
Rules & Bylaws
Committee & Governance
Maintenance & Common Property
question
Lookupstrata community member

I own 2 lots in an 8-unit complex and believe that gives me 2 votes on our deadlocked committee, but our strata management company disagrees. Who is right?

I live in a block of 8 units. For the past 10 years, as a committee member, I have raised an issue with our owners corporation manager regarding another owner utilising the common property laundry, common garden and laneway as their personal storage room. This is causing concern and devaluing the property because of its messy appearance.

Aside from sending out breach notices with no follow-up after 28 days, the strata manager refuses to do anything further. They say they have no power to enforce the rules and it is up to the committee members to make decisions about what happens next.

The breaching owner is one of the three committee members and refuses to comply or to have a dispute resolution meeting. The other owner wants to abstain from making any decisions, so I am left as the only person fighting this out. I own 2 units. Do I have 2 votes in the matter? If one owner abstains and the other is the breaching party, do I have the majority? The strata management company does not think so.

answer
Kate Yeowart
Kate Yeowart Strata Savvy

Voting rights are one vote per person on the committee, not per lot owned.

It is incredibly frustrating when common property is misappropriated, especially when it impacts the amenity of your home and the committee appears unwilling to act.

To set aside one simple matter first: no matter how many lots you own, in accordance with section 112(3) of the Owners Corporations Act 2006 (the Act), you would only have one vote on the committee. However, if there were a vote of all lots, you would have as many votes as you own lots, except if you have a conflict of interest (section 117 of the Act).

As for the issue in dispute, the matter is simple: the lot owner using the common property for storage is in breach of rule 4.1(1) of the Owners Corporations Regulations 2018 Schedule 2 Model Rules (the Model Rules), which apply here provided the owners corporation hasn't registered its own rules dealing with this. If it has registered rules, those would govern instead of the Model Rules on this point.

As to how to manage the dispute, I would again rely upon the Model Rules, assuming no registered rules cover the grievance process. The Model Rules make it clear that should you make a written complaint in the approved form, the owners corporation must convene a grievance meeting (either with the grievance committee or the whole owners corporation). The parties meet to discuss the matter, and a decision must be made and notified to the parties within 14 days of the meeting. My advice is to start by filing a formal complaint to trigger the dispute resolution meeting. The appropriate form is available online.

At any such meeting, the two parties in dispute are not entitled to vote on the matter (due to conflict of interest), but if the owners corporation does not convene a dispute resolution meeting in accordance with the Model Rules, you have the right under Part 11 of the Act to make an application to VCAT to adjudicate on the matter.

If you were to make such an application, you need to consider whether to include the owners corporation as well as the manager in the action. At all times, the manager has a duty to act in accordance with the Act and the Model Rules, but may be hampered by the committee not providing instructions. Therefore, the best course of action is for you to trigger the matter by making a formal complaint.

To support your position further, you should ensure that you keep clear records of all communications on the matter and take images of the common property areas in question.

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