Question: We own a lot in a small strata of 9 units where 6 lots are owned by one family. They run the council and we get outvoted on every motion. They are in arrears, but have just voted against debt recovery. What do we do?
We own a lot in a small strata of 9 units where 6 lots are owned by one family.
We would happily go on the Council of Owners. Our strata council voted for only 3 members to be on the council – all members of the one family. We get outvoted on every motion and cannot get a place on the council as the family members vote against us every time. It is an extremely difficult situation as we are unable to do anything about the strata.
There are several irregularities in the budget and expenditure which we cannot get access to as the council just passes the budget and council minutes each meeting. They are all in arrears on all units except one but have just voted against the motion regarding debt recovery.
We feel as though we are paying all the money for the strata to run. What can we do?
Answer: Firstly, determine if the process of appointing the Council of the Strata Company was valid.
I’m wondering if you have a Strata Manager assisting with your scheme. They would be best placed to guide you in these matters.
Firstly, we need to determine if the process of appointing the Council of the Strata Company was valid.
Section 132(2) of the Strata Titles Act 1985 states; a person is not entitled to move a motion at a general meeting or to nominate a candidate for election as a member of the council unless the person is entitled to vote on the motion or at the election.
Section 120(2) states; the owner of a lot is not entitled to cast the vote attached to the lot if there is an outstanding amount recoverable under this Act owed to the strata company by the owner of the lot.
Therefore, if all but one owner of the 6 lots mentioned was financial at the meeting, they would be the only person able to nominate a candidate to be put up for election to the Council.
It sounds like the motion on notice was to have 3 members on the Council. There is the provision for an owner to make an amendment to the motion on notice to change this number – unless there’s a bylaw stating that there can only be 3.
If more than 3 are nominated for Council, a ballot must be held. The 3 owners who received the most votes, would then form the Council. Here is an opportunity for the other 3 owners to gain a place on the Council.
As an owner you are entitled to view the books and records of the Strata Company under a Section 107 application. Any questions you have about the budget and expenditure should be placed in writing to the Secretary of the Council, so they investigate and provide a response to you.
Ultimately, further to the amendments to the Act, greater accountability has been placed on Councillors. Please refer to Section 137.
- A person to whom this section applies —
- must at all times act honestly, with loyalty and in good faith in the performance of functions as a member of the council or an officer of the strata company; and
- must at all times exercise the degree of care and diligence in the performance of those functions that a reasonable person in the person’s position and the circumstances of the strata company would reasonably be expected to exercise; and
- must not make improper use of the person’s position —
- to gain, directly or indirectly, an advantage for the person or any other person; or
- to cause detriment to the strata company.
If you feel that the Council has not carried out their duties for the benefit of all owners, it may be prudent to obtain independent legal advice. Should there be substantive evidence that the Council is not conducting themselves in accordance with the Act and Regulations, you then have the avenue to have the matter heard by the State Administrative Tribunal.
This post appears in the August 2022 edition of The WA Strata Magazine.
ESM Strata
E: info@esmstrata.com.au
P: 08 9362 1166
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