Do levies need an AGM vote if the administrative and reserve fund amounts are not changing from last year?
We have been told that if the levies for the administrative fund and reserve fund will stay the same as the previous year, they do not need to be approved by resolution at the AGM. Is this correct?
Best practice is to include levy motions on the AGM agenda and pass them each year.
The Strata Titles Act 1985 (WA) requires that a budget for each financial year be prepared and approved at the AGM (section 102), even if levies remain unchanged. The Act does not expressly require a new levy resolution each year.
If a previous General Meeting passed levy motions that were worded to apply until changed by future resolution, the strata company may not need to vote on levies each year.
However, best practice is to include levy motions on the AGM agenda and pass them each year. This ensures transparency, gives current owners the opportunity to have their say on the levies, and reduces the risk of disputes.
Note: Individual scheme by-laws may impose additional requirements. Always check your by-laws and seek advice from a specialist strata lawyer if in doubt.
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Senior Strata Community Manager / SCA Certified (CSCM)
Courtney joined B Strata in early 2015 bringing with her a background in restaurant and healthcare management. Having previously studied Law and Politics at Murdoch University, Courtney has since completed a Certificate IV in Strata Community Management and constantly undertaking further education and professional development to better her knowledge and understanding of all aspects of her role. Courtney is a Level 2 Certified member of SCA WA and has been the finalist for the SCA WA ‘Strata Manager of the Year – Rising Star’ award 2 years running.
As one of our most highly reviewed and well-respected strata managers, Courtney has recently accepted the position of B Strata’s Lead Strata Manager and now oversees that division within the office. This role requires sound knowledge and understanding of the strata industry and legislation, as well as strong leadership and communication skills, which Courtney delivers with friendly professionalism and confidence indicative of her six years’ experience in the industry.
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