This Q&A providing information about strata council member problems and apathy has been answered by Shelley Fitzgerald, Allsorts Community Strata.
Question: We have Strata Council member problems. Our chair has just resigned. Are we required to call another general meeting to reestablish a viable committee? What options are there if no committee can be elected?
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As a small strata company of 8 units, we are having strata council member problems. We had a committee of 3, which is the minimum number of council members noted at the last AGM.
The chair has just resigned. Are we required to call another general meeting to reestablish a viable committee? What options are there if no committee can be elected?
In order for a committee to be re-established:
- Can unfinancial lot owners now be elected to the committee?
- Can an owner nominate his/her tenant to the committee if the owner is unable or unwilling to be on the committee themselves?
Answer: The continuing 2 members of the Council form a quorum and can continue to act for the purpose of increasing their membership or to convene a General Meeting of the Strata Company.
I provide the following comments based on this Strata Company having the standard Schedule 1 & 2 bylaws in place.
Please see below Schedule 1 bylaws and Section 46 of the Strata Titles Act as reference points for this response.
In summary, the continuing 2 members of the Council form a quorum and can continue to act for the purpose of increasing their membership or to convene a General Meeting of the Strata Company.
If the Strata Company is unable to obtain the numbers for the Council then Section 46 of the Strata Titles Act provides for a General Meeting to perform those functions of the Council.
I would also note, to return to a General Meeting for the functions of the Council may be time consuming and costly process. The Strata Company (the collective 8 owners) will still be required to meet the requirements for the General Meetings, including:
- providing 14 days written notice to all owners for those General Meetings,
- ensure a quorum of the owners is present to be able to proceed to business,
- and obtain a majority vote for the items under notice.
It would be advantageous to all owners to ensure they meet the number of council members to comply with the bylaws, and to enable the Strata Company to continue to perform their functions in a timely and cost effective manner.
Schedule 1 Bylaw 4 Constitution of council
- The powers and duties of the strata company shall, subject to any restriction imposed or direction given at a general meeting, be exercised and performed by the council of the strata company and a meeting of the council at which a quorum is present shall be competent to exercise all or any of the authorities, functions or powers of the council.
- Where there are not more than 3 proprietors the council shall consist of all proprietors and where there are more than 3 proprietors the council shall consist of not less than 3 nor more than 7 proprietors as is determined by the strata company.
- A member of the council vacates his office as a member of the council —
- if he dies or ceases to be a proprietor or a co-proprietor of a lot;
- Except where there is only one proprietor, a quorum of the council shall be 2 where the council consists of 3 or 4 members; 3, where it consists of 5 or 6 members; and 4, where it consists of 7 members.
- The continuing members of the council may act notwithstanding any vacancy in the council, but so long as the number of members is reduced below the number fixed by these by-laws as the quorum of the council, the continuing members or member of the council may act for the purpose of increasing the number of members of the council or convening a general meeting of the strata company, but for no other purpose.
Schedule 1 Bylaw 12 Proceedings at general meetings
- All business shall be deemed special that is transacted at an annual general meeting, with the exception of the consideration of accounts and election of members to the council, or at an extraordinary general meeting.
Section 46 Performance of functions where no council or no quorum
If at any time there is no council of a strata company or there are insufficient members of the council to constitute a quorum in accordance with the by‑laws of the strata company, the functions of the council may be performed by the proprietors in general meeting of the strata company.
Can unfinancial lot owners now be elected to the committee?
Schedule 1 Bylaw 13 states that the person nominating the council member must be entitled to vote however the standard bylaws do not prevent an unfinancial owner being nominated to council by a person entitled to vote.
Schedule 1 Bylaw 13. Restriction on moving motion or nominating candidate
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
Can an owner nominate his/her tenant to the committee if the owner is unable or unwilling to be on the committee themselves?
The language consistent in the bylaws speaks to proprietors or an authorised individual in the case of a corporation being a proprietor. A tenant or other person can be an owner’s proxy at a general meeting however a council member must be a proprietor.
Schedule 1 Bylaw 4 Constitution of council
- Where there are not more than 3 proprietors the council shall consist of all proprietors and where there are more than 3 proprietors the council shall consist of not less than 3 nor more than 7 proprietors as is determined by the strata company.
Schedule 1 Bylaw 8 Meetings of council
- A member of a council may appoint a proprietor, or an individual authorised under section 45 of the Act by a corporation which is a proprietor, to act in his place as a member of the council at any meeting of the council and any proprietor or individual so appointed shall, when so acting, be deemed to be a member of the council.
This post appears in Strata News #281
Have a question about providing information about strata council member problems and apathy or something to add to the article? Leave a comment below.
Shelley Fitzgerald
Allsorts Community Strata
P: 0423 243 100
E: [email protected]
Note: this general information about strata council member problems is an opinion only and suitable specialists in these areas should be sort for clarification and assistance on all points.
Please note this advice was provided prior to the proclamation of the new strata title amendments and will be updated in due course.
Read next:
- WA: Q&A What Do Strata Levies Cover? How are Increases Calculated?
- WA: Reforms to WA Strata Legislation – As a Lot Owner, Should I Care?
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Hello
I was just wondering if a person that resides overseas and owns a unit in a strata village are they able to serve in a position on the committee I understand that we can vote and attend meetings remotely via phone video link etc but can we serve on a committee if we don’t actually live in the village or the country. Perth wa
Hi Tina
Any Owner can nominate to the Committee and, usually, if you’re interested and willing to learn about your strata investment you are welcomed.
Since 01/05/2020 where electronic meetings are valid, and technology allows you to see the same as those visiting the site, it can be beneficial to have a different perspective. There can be a challenge being in a different time zone but if an agenda for the council of owners’ meeting is issued with the required minimum 7 days notice, every member’s response can be considered irrespective of whether they are present electronically, in person, or by proxy.
Good on you for retaining interest in it. As an owner of strata property and a strata manager (both as a volunteer and employed), it is the owners who need to work on a vision for the scheme as a whole (the village) and to do this means having ideas and agreement, but especially interest and working as a group to help other owners catch the vision, and with assistance from the strata manager to discover how the vision can be implemented. A vision is really only limited by legislation, funds and the willingness of those involved to keep adapting. All the best!
Hi, I’m in a very similar situation as the Questioner in this article. We’re in a group of 8 units and have a Council of 3. One resigned & there are two council members left. We’ve found another owner that is willing to join the council, but are not sure how to proceed. For the new member to join the council, do we need to call a General Meeting, or can we just notify our strata management company of the new member and carry on with our role. I’m assuming that there has to be some sort of formal notification, but I’m not sure who it should go to, or who it should come from. Could you shed some light on what we need to do to formalise our new council/council member?
Coincidentally, I asked a question about a person who is not a proprietor but holding an enduring power of attorney or power of attorney being on the Council of Owners on another thread. The link is below for your easy reference.
https://www.lookupstrata.com.au/wa-how-does-proxy-voting-work/#comment-69768
Just a suggestion…. an agenda item stating the levies are going to triple to cover the cost of strata management…. it’s amazing how many people turn up when the back pocket is affected. 😉
OMG! I hear over and over again about ” incident i.e. someone trips over an uneven surface because maintenance has not been done” and just wonder how many cases did really happen with this type of incident in order to be wort it to have a strata manager I a first place.
Is there actually a good reason for having a paid strata manager, in the first place? What sort of major issues cannot be solved among the owners/occupiers of the lots in a strata without hiring a third party to “manage” your own properties?
I need to recognise, there are some situations created by these newly created “common living” strata, where owners prefer green titles, so they can manage themselves their own properties. Australia is not a communist country, yet the “common properties” in strata are paid by all the strata owners “in common”.
Is everyone aware what they actually purchase when buying into a strata property? Does everyone know and agrees that the external walls, and the roof above your own property, and what you call your own backyards, are actually all considered “common property”, on which everyone needs to contribute financially for their maintenance and repairs?
Would be very interesting to understand where is Australia aiming in the future with the strata legislation across the nation, and weather we’ll continue to pay for maintaining someone’s else’s backyards, damaged pipes or roofs, and all of these just because it happens to live in the close vicinity and share in reality just a driveway.
I live in a strata of 4 units… 3 owner occupied and 1 rental. Since 2006, on my arrival, they asked me to take over as secretary as our manager wanted to stop doing the role. I have been acting everything…with no assistance. The other owners are non existent with their help. I pay the bills and keep record of fees only. I have the cooperation of only 1 other owner…and she rents her unit out.
I have sussed out a strata management situation but for us it is horribly expensive and over the top for our simple setup.
I have tried to Survey strata without success.
I send out emails suggesting a meeting… with no replies!
How do you motivate people who just want to live behind their closed doors? Too expensive to opt out.
Hi Vicki. When you say “they asked me to take over as secretary as our manager wanted to stop doing the role”, did they ALL ask you to take over, and in which manner did they actually ask you? If you wish to continue in your role then try to get it in writing from every other owner (and not just “over the back fence etc.”) that they wish you to continue in your role..
I suggest that you take pains to contact the two freeloading owners in person AND by mail (hand them the letters in person if you can and keep DATED copies of everything) and inform them that unless they start to cooperate it will leave you with no alternative but to resign. Furthermore, should you wish, if you can get them to read the above article, tell them verbally and in writing (keeping DATED copies) that you will make yourself available to discuss any concerns that they may have in understanding that continued apathy on their part will only further compound existing problem$ for EVERYONE in your AND THEIR strata complex.. It’s best that these two apathetic owners come to the rapid understanding that they won’t EVER be able to credibly say to you or anyone else that they didn’t understand that it is their apathy that has been causing problems, be these problems of unnecessary and perhaps exorbitant cost ever-ready to lob later down the track and/or the smooth-running of your, AND THEIR, strata complex. Best of luck to you!
Thanks Allan for your comments…
It was done at the first meeting of owners and minuted. Correction – in 2010.
Only 1 of the owners has changed in that time but he’s been there 3 years now I think …. although doesn’t hesitate to speak his mind 🙂