Question: The committee has been advised that approval can be given for improvements to Exclusive Use and Common Areas that exceed the $3000 limit on the condition they are then ratified retrospectively at a general meeting. Does this comply?
We are in a complex of 140 units under the Accommodation Module and Building Format Plan.
The committee has been advised that approval can be given for improvements to Exclusive Use and Common Areas that exceed the $3000 limit on the condition they are then ratified retrospectively at a general meeting. In other words, the applicant doesn’t have to wait for a General Meeting to commence the improvements but must seek retrospective approval at a General Meeting. This is in effect a workaround of Section 183 and Section 177 of the Regulations. Is the advice correct?
Answer: The ratification approach provides a helpful practical solution to avoid the need to call a general meeting each and every time a request like this is made, however……
Strictly speaking – the approval requires general meeting approval. However, the ratification approach provides a helpful practical solution to avoid the need to call a general meeting each and every time a request like this is made. Adjudicators will generally accept ratification as a way to remedy any technical issue and not invalidate the decision.
However, the risk in taking this approach is if the general meeting votes against the ratification. This means the improvement has not been properly approved and it may need to be reinstated.
This post appears in Strata News #513.
Todd Garsden Mahoneys E: tgarsden@mahoneys.com.au P: 07 3007 3753