This question about whether a SA lot owner with outstanding funds is able to vote has been answered by Flavia Ger, Ace Body Corporate Management.
Question: Is a lot owner entitled to vote an EGM or AGM if there are outstanding amounts payable to the corporation for work done?
I live in an apartment complex under a set of By-Laws and The Community Titles Act 1996 (SA).
If a member of the Body Corporate has a debt and/or owes money to the Corporation (for work done etc), is that person permitted to cast a vote including proxies at a properly convened meeting i.e. EGM or AGM whilst that debt is outstanding?
Your assistance with this issue will be greatly appreciated.
Answer: If the lot owner has NOT paid all contributions/ levies and any other amounts recoverable by the meeting date they are non-financial and cannot vote.
Under Community Titles Act 1996, Section 84, Voting at general meetings, clause (1) states that – The owner of a community lot is entitled to attend general meetings of the corporation, and is entitled to vote if there are no outstanding amounts payable to the corporation in respect of the lot. And a vote cannot be exercised in relation to a lot unless all amounts payable to the corporation in respect of the lot have been paid (Section 14).
This means that if the owner has NOT paid all contributions/ levies (unpaid debt owing to the Corporation) and any other amounts recoverable him/her by the actual meeting date, he/ she is non-financial and cannot vote at the AGM (unless a unanimous resolution is needed).
- SA: Q&A Common Property Alterations – Can a single owner veto a decision?
- SA: Q&A Changing Strata ByLaws: How do we go about this?
This post appears in Strata News #227.
These articles are not intended to be personal advice and you should not rely on it as a substitute for any form of advice.