Question: The committee put a motion to the body corporate for major works up to estimated costs based on a quote. They would decide on the contractor once more quotes were received. The motion passed. Was the motion valid?
At our AGM, the committee put a motion to the body corporate for major works. The committee provided no quotes to the body corporate, but they did provide an estimated cost that exceeded committee and major spending limits. The committee sought body corporate approval up to the estimated cost and advised it would subsequently obtain two or more quotes. The committee would then decide which quote to accept. The motion passed. Was the motion valid?
Answer: The motion would appear to be invalid.
On balance, the motion would appear to be invalid. However, it is difficult to conclusively determine this without reviewing the agenda in detail.
Section 163 of the Accommodation Module provides (our emphasis):
- This section applies if—
- a motion to be moved at a general meeting of the body corporate proposes the carrying out of work or the acquisition of personal property or services, including the engagement of a body corporate manager or service contractor, but not including the engagement of a service contractor who is also, or is to be, a letting agent; and
- the cost of giving effect to the proposal is more than the relevant limit for major spending for the community titles scheme.
- The owner of each lot must be given copies of at least 2 quotations for carrying out the work or supplying the personal property or services.
- Copies of the quotations or, if voluminous, summaries of the quotations and advice about where the complete documents may be inspected, must accompany the notice of the meeting at which the motion is to be considered.
Based on the information provided, it would appear that the motion does not:
- identify the relevant third party contractor proposed to carry out the works;
- provide any details about the scope of works; or
- provide copies of any quotations, which owners are invited to consider as part of the motion in contravention of section 163(5) of the Accommodation Module.
Without including these three matter in the agenda, it would be difficult for the motion to be considered valid.
This post appears in the July 2024 edition of The QLD Strata Magazine.
Liam Boudin
Mahoneys
E: lboudin@mahoneys.com.au
P: 07 3007 3724
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