Question: Our community manager chaired the EGM. They refused to table motions to discuss issues at a separate meeting after the EGM. Is this a breach of legislation?
Our community manager chaired the EGM. Without giving a reason, they refused to table motions received two days before the meeting. They refused to hear motions or owners’ issues during the EGM, instead offering to discuss issues at a separate informal meeting after the EGM. Is this a breach of legislation?
- If the chair is present, must they chair an EGM?
- If items/motions that should be on the agenda are omitted, is the agenda out of order?
- Can a motion for an EGM be submitted after the agenda and voting papers are distributed to owners?
- Can motions/agenda items be added at any time for an EGM – including at the EGM?
- If owners have issues to discuss, can this be done at an EGM?
- Can the chair (community manager in this instance,) refuse to discuss items or accept motions, if not out of order, at an EGM?
- Can the chair call for separate meetings at an EGM? One to complete the EGM without owners’ issues discussed, and the other as an informal meeting – not minuted – to discuss issues.
Answer: You seem to be complaining that a manager held a meeting in accordance with the legislation.
I don’t want to sound too dismissive, but you seem to be complaining that a manager held a meeting in accordance with the legislation and also offered to help owners with their issues by holding a discussion with them? Maybe that’s not how you perceive it, but that is what you seem to describe in the question.
It also seems that the main point of contention is that the manager didn’t allow the inclusion of motions at the meeting that were submitted two days prior to the meeting or from the floor at the meeting. Well, yes. It’s against the legislation to do so, and with good reason, as all motions voted on at a general meeting need to be presented to owners in a notice 21 days before the meeting to allow time to consider and submit their vote. There was no choice other than to rule them out. A straightforward decision like this shouldn’t cause stress.
Body corporate legislation isn’t perfect, but it is broadly functional. You should expect committees and body corporate managers to apply it. If you buy into a body corporate, you must familiarise yourself with the general rules and procedures of how they operate. If you have questions, that’s fine, but it’s reasonable for committees and managers to expect owners to be aware of general procedures. If you are not familiar with these, the BCCM website provides an excellent plain English explanation for most critical body corporate matters: Office of the Commissioner forBody Corporate and Community Management. It can help give you a basis of understanding for most issues.
So, from the description here, it seems the manager correctly decided to not include or debate motions that weren’t part of the agenda during the meeting. It seems the manager understood this process may not have been satisfactory to all attendees and tried to resolve that by facilitating an informal discussion subsequent to the meeting, during which they would have presumably advised how you could have your issues heard and voted on. That sounds like a manager taking a proactive and practical approach toward ensuring a valid meeting while creating space to listen to owner’s issues. Perhaps there is a personal issue here, or maybe there was poor or miscommunication at the meeting, but the manager can’t facilitate what you think should happen, only what can happen. If they say no, it is probably for a good reason.
In terms of the questions:
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If the chair is present, must they chair an EGM?
If they are in attendance, the chair is technically the chair, but they can defer to a manager for advice and assistance. Often, this takes the form of the manager effectively running the meeting. Not everyone likes this, but given that most managers have attended and run innumerable meetings, this usually helps the meeting to run professionally.
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If items/motions that should be on the agenda are omitted, is the agenda out of order?
The omission of an item would not invalidate a meeting in and of itself, but you may have to consider what items were omitted, whether the omission was valid and what effect they had on the meeting. The omission may invalidate some motions at the meeting, or you might have to call a subsequent meeting for the item to be considered.
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Can a motion for an EGM be submitted after the agenda and voting papers are distributed to owners?
No, if there was a typo or other minor issue it may be reasonable to send out a correction to a meeting notice, but you can’t add new agenda items.
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Can motions/agenda items be added at any time for an EGM – including at the EGM?
No. Owners can submit motions for inclusion at the next general meeting at any time, but as per the above, if the meeting notice has been issued, you can’t add motions to it. Motion submissions received after the notice is issued would have to be included at the next general meeting. If you are talking about AGMs, owner’s motion submissions need to be submitted by the end of the financial year.
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If owners have issues to discuss, can this be done at an EGM?
There is no requirement to have a discussion at an EGM. The purpose of the EGM is to record the votes of owners, not their opinions. This isn’t to say that discussions don’t happen or can’t be valuable. Many successful meetings revolve around constructive discussions. Equally, there are many meetings that drag on with pointless discussions.
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Can the chair (community manager in this instance) refuse to discuss items or accept motions, if not out of order, at an EGM?
As above, there is no need for discussion – just voting. If a valid motion is on the agenda, it is the job of the chair to ensure people vote on it. Owners may find the lack of a formal discussion point frustrating. As a manager, I would usually look to encourage some discussion if it helps people get their point across and helps owners make their decisions. On the other hand, if you have 50 votes for a motion, 49 people voted yes, and one person voted no and wants to debate the matter, there is not much point in having a discussion.
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Can the chairman call for separate meetings at an EGM? One to complete the EGM without owners’ issues discussed, and the other as an informal meeting – not minuted – to discuss issues.
The chair is bound by the same legislation as everyone else when it comes to calling meetings. There is no obligation to discuss matters not formally on the agenda. Informal discussions can be held at any time. It is quite common to have an informal discussion at the end of the meeting, but you need to remember it is just that, an informal discussion. They can be a good point to hear opinions and shape the direction of future decisions, but they aren’t a point where owners can make formal decisions.
Lastly, and for what it is worth, I understand the body corporate process can be frustrating sometimes, and sometimes owners feel the legislation is being used to trap them. In most cases, if you approach a matter reasonably and accept there is going to be some give and take in the decision making process, good outcomes can be achieved.
This post appears in Strata News #728.
William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924
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