This article discusses when a committee nomination is invalid after lot sale and what options are available at the AGM.
Question: An owner nominated another owner for a committee position leading up to our AGM. They’ve now sold their lot. The scheduled settlement date of the property is 11 days before the AGM. Is the nomination valid?
Answer: If an owner makes nominations then sells before the meeting, those nominations would no longer be valid.
Any nominations would have to be valid at the time of appointment – the meeting. So if an owner makes nominations then sells before the meeting, those nominations would no longer be valid.
The handling of the situation may depend on how hot the competition for committee places at your scheme. Owners can self-nominate for committee positions, so you may allow the nominated owner to self-nominate and they can join the committee and everyone is happy.
That nominated owner could also self-nominate from the floor at the AGM. If you don’t have all committee positions filled, or everyone is generally happy with the nominated owner, then I think you can be relaxed about the process. However, if you have some discord among owners or there is a vote for committee positions, then sticking to the letter of the law is the fairest way to deal with all parties. This may mean the nominated owner misses out. It happens and next time around they can self-nominate to avoid this circumstance.
This post appears in Strata News #640.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924