Question: Does an owner need to be financial to be voted onto the council of owners?
Answer: If an owner is not up to date with payment of their levy contributions, this does not prevent them from being nominated to the Council of the Strata Company .
If an owner is not up to date with payment of their levy contributions, it does place certain restrictions upon their voting rights at a general meeting.
It does not prevent them from being nominated to the Council of the Strata Company – however, it does stop them from nominating their lot or another lot to Council. See Schedule 1(5)(2) and Section 132(2).
Election of council at general meeting
The chairperson must call on those persons who are present at the meeting in person or by proxy and entitled to nominate candidates to nominate candidates for election to the council.
Conducting business at general meetings
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.
All owners have a great responsibility in who they nominate to represent their Strata Company by serving on the Council. They represent you and act on behalf of you!
When considering candidates to nominate, should owners consider whether the nominee will be suitable?
Do they contribute to the scheme by paying their levy contributions on time (as is required by all owners). Will they act in the schemes best interests with no conflict of interest? Will they act honestly, with loyalty and in good faith, and, will they exercise a degree of care and diligence in their performance?
There may be an acceptable reason for a lot owner to be unfinancial at the time of the Annual General Meeting. Whilst this does not allow them to nominate themselves, if other financial owners see value in their contribution to Council, they may nominate an unfinancial member.
ESM Strata E: mchurstain@esmstrata.com.au P: 08 9362 1166