WA: Q&A Strata Council: Roles and Responsibilities

Are there any qualifications or previous experience required to join the council of owners? Can the strata company contract a strata manager to work for a company without the office bearers having any previous experience or qualifications?

Answer: Generally, everyone tries to do their best.

Since the Strata Titles Act (STA) came out in 1966, there has been a requirement to have meetings to approve things.

There have been several iterations of the STA since then, and the current Act is still called the “Strata Titles Act 1985” even though the latest amendments were proclaimed (approved) on 1 May 2020.

One of the changes involved the inclusion of strata managers into the STA and also “volunteer strata managers”.

The Constitution of the Council is defined in Schedule 1 By-law 4.

If you are “entitled”, meaning a financial member of the strata scheme, you can nominate yourself or be nominated by someone else.

One of the curious things is that if you are unfinancial as of the date of the General Meeting, your voting power is restricted to only Unanimous Resolutions or Resolutions Without Dissent.

You are unable to vote on Special Resolutions or Ordinary Resolutions.

You may not nominate yourself to go on the council if you are unfinancial, but another financial member can nominate you.

It would be advantageous if the council of owners members knew how meetings were run and could follow an agenda. Despite having an agenda, some meetings get sidetracked and discuss things not listed as items of special business on the agenda. There is no prerequisite for this experience.

Whilst advantageous to have this prior experience, the SCA (WA) run short courses on council proceedings and what is expected of a council member.

Under the new provisions of the STA, a strata manager must have:

A contract compliant with the requirements of the Act and the Strata Titles General Regulations 2019 (Regs);

Professional indemnity insurance;

A criminal record check;

Educational requirements or progress toward completing the requirements during the transitional period;

Must at all times act honestly and in good faith;

Have a reasonable degree of skill, care and diligence in the performance of the functions;

Must have a good working knowledge of the Act;

Must disclose conflicts of interest.

A volunteer strata manager who may also be a member of the COO would also have to keep in mind the topic of conflict of interest.

The Act states that a volunteer strata manager:

Is not required to have professional indemnity insurance;

Is not required to have the same educational qualifications as a strata manager;

Must have a criminal record check done;

Must operate under a volunteer strata management contract;

Must be an owner of a lot in the strata scheme;

Must pay all money received on behalf of the strata company into an ADI account of the strata company;

Members of the COO represent all owners of the strata scheme and make decisions or follow instructions from a general meeting to benefit all owners.

I wouldn’t say that it happens all the time, but some people have agendas and only become a member of the council to influence decisions that are favourable for them.

Generally, everyone tries to do their best. The guidance of a good strata manager helps.

Shane White Strata Title Consult E: shane.white@stratatitleconsult.com.au

This post appears in the July 2023 edition of The WA Strata Magazine.

Question: A unit owner and Council member’s son is his Enduring Power of Attorney (EPA). Does an EPA extend to making decisions on the Council of Owners for the whole of our strata?

A unit owner and Council member permits his son, in the capacity of his Enduring Power of Attorney, to represent him on our Council of Owners.

He has been permitted to do anything on the COO that his father would do.

The father and son are interchangeable, the father goes to the SAT hearings, while the son does the day-to-day tasks.

It is my understanding an Enduring Power of Attorney (commonly known as an EPA) is a legal document a person can make that gives another person/s or organisation the legal authority to make financial and/or property decisions on their behalf. If an EPA can do anything with your property which you yourself could do, does this extend to making decisions for the whole of our strata.

Answer: Only the father can act as a council member and the son cannot perform duties on his behalf pursuant to an EPA.

An EPA provides the person to whom the EPA is given (‘donee’) with the authority to make financial and property decisions on behalf of the person that gave the EPA (‘donor’). However, the EPA is limited, and the donee cannot perform acts for the donor that requires the donor to exercise their personal skill or discretion such as acting in the donor’s capacity as trustee, executor, company director or secretary.

A member of the council of a strata company is elected to exercise their personal skill and discretion in performing the functions of the strata company much like a company director.

Section 137 of the_ Strata Titles Act_ place duties on a council member that requires them to act personally and so they cannot appoint someone to act on their behalf. These duties are acting honestly, with care and diligence, not making improper use of their position and disclosing any conflicts of interest.

Section 136 of the_ Strata Titles Act_ provides that a corporation that is a member of a council may appoint an individual to act on its behalf, but no such provision is made for an individual to appoint another person to act on its behalf.

For these reasons an elected council member cannot appoint someone else to act on their behalf to perform their duties.

To answer the question directly; only the father can act as a council member and the son cannot perform duties on his behalf pursuant to an EPA. If the son performs the father’s duties as a council member under a power of attorney, these acts of the son may be invalid and can cause problems for the strata company.

Eduard Ferreira & Claudia Merenda Douglas Cheveralls Lawyers E: eduard@dclawyers.com.au P: 08 9380 9288

This post appears in Strata News #634.

Question: Is the Council of Owners (COO) now called the Strata Council?

Answer: The Strata Council and the Council of Owners are one and the same as the “Council of the Strata Company”.

The Act refers to this entity as the “Council of the Strata Company”. See Section 135 of the Strata Titles Act 1985.

135. Functions and constitution of councils

The functions of a strata company, subject to this Act and to any restriction imposed or direction given by ordinary resolution, are to be performed by the council of the strata company.

The council of a strata company must be constituted and perform its functions in accordance with this Act and the scheme by-laws.

Definitions – see section 3: council means the governing body of a strata company;

The Council can only be constituted by the Owners of the Lots within the strata scheme, hence the reference and use of the abbreviation COO [Council of Owners].

Shane White Strata Title Consult E: shane.white@stratatitleconsult.com.au

This post appears in Strata News #624.

Question: What should an owner do if Council never replies to any correspondence and never distributes minutes of Council meetings even though our scheme bylaws require the Council to do this?

Answer: If the council continue to breach the bylaws then you can make an application for an order regarding contravention of by-laws to SAT.

That’s great if your scheme has specific bylaws regarding council communication expectations and distribution of minutes. I would ensure you have reminded your strata council of the specifications of that bylaw. Also, that if they continue to fail to meet the parameters of such, you will be forced to make an application to State Administrative Tribunal (SAT).

If the council continue to breach the bylaws then you can make an application by an owner, occupier, or mortgagee for an order regarding contravention of by-laws to SAT. You can apply via the State Administrative Tribunal website.

Jordan Dinga Abode Strata E: abode@abodestrata.com.au P: 08 9368 2221

This post appears in Strata News #591.

Question: We have an owner who hounds the COO almost weekly, demanding immediate responses to his email queries. What is the best practice in this situation?

We have an owner who hounds the COO almost weekly, demanding immediate responses to his email queries. Many are hypothetical or disagreeing with the action that the COO has taken. Rarely does the issue require urgent attention, rather they are designed as nuisance value.

This is very time-consuming and stressful for the volunteer COO. What is the best practice in this situation? Any suggestions for managing this behaviour would be appreciated.

Answer: The most meaningful response comes from establishing boundaries and resetting expectations on how communications will be moving forwards.

The COO has my sympathy. Putting up one’s hand for a volunteer strata role is often a thankless task.

To be honest, I think you have mostly answered your own queries. When I read words such as ‘hypothetical’, ‘disagreeing’ and ‘demanding immediate responses’, that tells me that the most fundamental thing which the COO can do is to simply not reply. In other words: if no response is needed, then don’t respond. If there is no legislated timeframe for a response, ignore the ‘immediate’ demands and respond when (and if) necessary and on the COO’s terms.

As for ‘hypothetical’ concerns or ‘disagreeing’, I’m yet to encounter any strata legislation requiring the governing body (be that a body corporate, an owners’ corporation or a COO) to engage in hypothetical debate or to engage in a back-and-forth exchange of words based on one party’s disagreement. If the owner in question is serious in their concerns, they will avail themselves of qualified legal advice to support their position, or they will initiate proceedings as necessary. The fact they have seemingly done neither tells you about their intentions.

Behaviour of this time becomes ingrained over time and in my experience – and believe me, I’ve seen plenty of it – the most meaningful response comes from establishing boundaries and resetting expectations on how communications will be moving forwards. Put another way: show, rather than tell. Don’t communicate back to the owner telling them what will be happening. Instead, simply do it and lead by example. This will take time, patience and resilience. Yet I have seen it work.

You can always investigate formal proceedings (e.g., in Queensland, a by-law enforcement process or nuisance application might be options), but if I know the personality type of this particular owner, I would speculate they would be ecstatic at the prospect of protracted proceedings. It would merely fuel their fire and strongly imprint upon them the idea they are engaged in a battle from which they must emerge as victor. So don’t give them what they want!

Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898

This post appears in Strata News #586.

Question: As a COO member, I should be able to have ‘quiet enjoyment’ of common areas without being berated, door stopped, yelled at, threatened whilst traversing common property!

As a CoO member, I hate being ‘door stopped’ by whinging tenants and owners.

All matters should, in the first instance, be sent to the Property Managers who then forward the information onto the CoO Secretary who will either call an urgent meeting or hold the matter over until the next scheduled CoO meeting.

Everyone should be able to have ‘quiet enjoyment’ of common areas without being berated, door stopped, yelled at, threatened whilst traversing common property!

Answer: Each strata scheme is different and how things work will therefore differ from building to building.

You have my full empathy on door stopping and also the far more disturbing instances of being yelled at or threatened. That latter should not happen to anyone, least of all a volunteer strata participant.

To me, this situation highlights one of the truisms of strata and irrespective of which State, Territory or indeed, Country it is located in: namely, that each strata scheme is different and how things work will therefore differ from building to building.

Put another way: while government gives a legislative framework for strata operations, it is also acknowledged – and indeed, entirely appropriate – that that framework be ‘elastic’ enough to suit.

In your scenario, I know there are plenty of schemes in Queensland (from where I write this) in which it is both common and encouraged for door stopping and personal interactions (in the car park, in the lobby, in the stairwell) to ventilate issues or indeed to simply have a chat. To me, if that is happening in a constructive way and not impinging on one’s personal boundaries, that is to be encouraged. My experience is that quite a few strata schemes get results from this approach. It is also the best example I can think of to emphasise the ‘community’ aspect of strata. Like it or not, strata is all about a community, a group of participants who otherwise would have nothing to do with each other but who, by virtue of ownership, residency or contract, are very much part of a community.

The key here is setting boundaries. You don’t like being door stopped? That’s totally fine – just make sure that is clearly known and if necessary, communicated in writing. While you are at it, make sure everyone knows how to communicate in the alternative. Do all owners, tenants and relevant contractors have the best contact details? If there are communication preferences (such as a certain number of emails or communication at particular times of day)? Do they know those? Do you or your fellow councillors have a strata-specific email address? If not, time to think about getting one, as it will remove your personal email address from the equation and create the kind of separation and distance between strata and personal that you are after.

And then, if you are being berated, yelled at or threatened, that too warrants boundaries being clearly defined. To emphasise those boundaries, that may mean initiating formal proceedings against the offending party or parties. My point is that if there is behaviour occurring which you do not appreciate, you need to take steps to firstly make it clear you don’t appreciate it and then be prepared to follow through on it, if the behaviour keeps occurring.

Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898

This post appears in the June 2022 edition of The WA Strata Magazine.

Question: In WA, is the Council Of Owners required to appoint a secretary and treasurer? Our Strata Manager says it is not necessary as he does all that work. If he does all the work, what tasks should the secretary and treasurer do? Do they have some responsibility?

Answer: It is common for the strata manager to take on the duties of those two roles.

Technically speaking every strata council is required to elect a specific chair, secretary and treasurer at their first council meeting.

It is common that the strata manager does take on the duties of those two particular roles. I have included a list of those items under the act further below.

My suggestion would be; that since the strata manager has the software and knowledge to facilitate a lot of those things; essentially the secretary and treasurer would then be responsible for checking over the strata manager’s work in that regards. I.e. strata manager prepares the financials but the treasurer takes the time to look over and approve on behalf of the council similarly the strata managers prepares the minutes but the secretary signs off on those! By all means every council and property is different so some councils like to take on more or less of the load.

Schedule 1 — Governance by‑laws

9.Powers and duties of secretary of strata company

The powers and duties of the secretary of a strata company include —

the preparation and distribution of minutes of meetings of the strata company and the submission of a motion for confirmation of the minutes of any meeting of the strata company at the next such meeting; and

the giving on behalf of the strata company and of the council of the notices required to be given under the Act; and

the supply of information on behalf of the strata company in accordance with the Strata Titles Act 1985 sections 108 and 109; and

the answering of communications addressed to the strata company; and

the calling of nominations of candidates for election as members of the council; and

subject to the Strata Titles Act 1985 sections 127, 128, 129, 200(2)(f) and (g) the convening of meetings of the strata company and of the council.

[By‑law 9 amended: No. 30 of 2018 s. 95.]

10.Powers and duties of treasurer of strata company

The powers and duties of the treasurer of a strata company include —

Strata Titles Act 1985

the receipt, acknowledgment and banking of and the accounting for any money paid to the strata company; and

the preparation of any certificate applied for under the Strata Titles Act 1985 section 110; and

the keeping of the records of account referred to in the Strata Titles Act 1985 section 101 and the preparation of the statement of accounts referred to in the Strata Titles Act 1985 section 101.

Jordan Dinga Abode Strata E: abode@abodestrata.com.au P: 08 9368 2221

This post appears in Strata News #574.

Question: What are the duties of a Chair of the Council of Owners? Can they act for the Council Of Owners even if not all agree?

Answer: The chairperson does not have the power to make decisions on behalf of the council of owners alone.

The chairperson of the council of owners is appointed at the first committee meeting held after the annual general meeting. Only a proprietor elected to the council can be elected to the position of chairperson, however, a member of the council of owners can be appointed to hold one or more of the positions of chairperson, secretary or treasurer.

The Council of Owners generally have the responsibility of performing the scheme functions as set out by the Strata Titles Act 1985 This responsibility is delegated under section 135 of the Strata Titles Act. Often the services of a Strata Manager are employed to take care of some of those functions on their behalf. The chairperson is to preside at all meetings of the council but, if the chairperson is unable to preside at a meeting, the members of the council present at that meeting can appoint 1 of their number to preside at that meeting during the absence of the chairperson.

Additional to the above all council members share the following statutory obligation under section 137 of the Strata Titles Act 1985:

Act Honestly, with loyalty and in good faith

Exercise a degree of care and diligence

Not make improper use of their position to gain advantage or cause detriment to the Strata Company.

Inform the council in writing of any direct or indirect conflicts of interest and reframe from voting under such circumstances

The chairperson does not have the power to make decisions on behalf of the council of owners alone. At meetings of the council, all matters must be determined by a simple majority vote.

Luke Downie Realmark E: ldownie@realmark.com.au P: 08 9328 0999

This post appears in the February 2022 edition of The WA Strata Magazine.

Question: Does the STA allow the strata manager to officiate at a Council Meeting as Chair or Facilitator? I would have thought that Schedule 1, Bylaw 6, (4) would rule that ‘illegal’.

Answer: We aren’t all gifted with the expert skills of meeting procedures and chairmanship.

You have referred to the correct Schedule 1 Governance by-law concerning who shall preside at the Council meetings.

Living in a strata scheme can become a daunting experience for a new owner. Just to get a Council elected some owners volunteer to help satisfy the minimum numbers for a quorum.

Then they are asked to fill a position on a Council. It has been my experience whilst previously living in a strata scheme for 27 years that most people have the best interests at heart but we aren’t all gifted with the expert skills of meeting procedures and chairmanship.

Some strata council’s do require some guidance and it is not uncommon for the strata manager to attend to offer guidance to the council on the limits of what they can or cannot do.

This may extend to guidance on budget expenditure and what was approved, acquiring quotes for any special projects and written notices for breach of by-laws.

I cannot comment on your particular strata scheme but in most cases where the strata manager attends a council meeting it is to ensure that the owners are properly briefed or to take instructions.

Shane White Strata Title Consult E: shane.white@stratatitleconsult.com.au

This post appears in Strata News #529.

Question: Please define the duties and obligations required of a strata company representative.

Answer: To understand the role, you would need to reference the definitions and terms and conditions contained within the specific contract.

This is depended on in what context you are referencing “representative”.

This reference appears most commonly in Strata Management Contracts and to understand the role, you would need to reference the definitions and terms and conditions contained within the specific contract.

In most cases, this person is a nominee of the council of the strata company who acts in delivering instruction from the council to the agent. The contract usually sets out that the agent can act on instruction from the representative as if it was instruction from the Council in full.

The title “Strata Company Representative” is not used within the Strata Titles Act 1985, however, if you are referencing a member of the council of owners, then this information is contained in Division 4, sections 135 to 137 of the ACT.

In brief, the council of owners are governed by the ACT itself and any directions imposed by a general meeting of the strata company, the council of owners can not overrule a decision of all owners made at a general meeting.

Section 137 tells us about the general duties of the council and how they must handle conflicts of interest and it states that a council member:

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 —
1. to gain, directly or indirectly, an advantage for the person or any other person; or
2. to cause detriment to the strata company.

Members of the council have an obligation to disclose in writing to the collective council any direct or indirect pecuniary or other interests that may conflict with the duties as a member of the council. In the event that such a conflict exists, it is also important that the member reframes from voting on any relevant decision to the conflict.

Luke Downie Realmark E: ldownie@realmark.com.au P: 08 9328 0999

This post appears in the November 2021 edition of The WA Strata Magazine.

Question: Can a Council of Owners consider and process a resolution without involving our Strata Management Company?

This question is in regard to a WA Survey Strata lot. Can a Council of Owners consider and process a ‘resolution’ without involving our Strata Management Company? We are looking to avoid additional charges from our strata manager for this service.

Answer: Generally there is no requirement to have the strata manager present at the council meeting but there is a requirement to keep minutes of the meetings and the outcomes of the decisions that were voted on.

Assuming that the strata scheme is operating under the standard by-laws.

The by-laws in the Strata Titles Act cover all strata schemes whether they are a Survey-Strata Scheme or Strata Scheme.

Some strata schemes may have customised by-laws that alter some of the standard provisions in the Schedule 1 and 2 (Governance or Conduct) by-laws.

It is interesting to note that the requirement specified in Schedule 1 BL8 (6) was deleted ?

(6) “The Council shall keep minutes of its proceedings”

Fear not; this just means that the requirement to keep minutes has been placed into the legislation.

See section 104. Records and correspondence.

Sec.104(1)(b) – make and keep for a period fixed by the regulations –

Minutes of its general meetings of its council; and

Records of its resolutions and decisions of its council;

Depending on the contract requirements agreed to by the strata company and the strata management company, there may not be a need to have the strata management company representative present at any council meeting.

Prudence would suggest that a strata manager who is well versed in the Strata Titles Act would be an asset at a Council meeting in case there are questions on procedural requirements and compliance with the Act.

Generally there is no requirement to have the strata manager present at the council meeting but there is a requirement to keep minutes of the meetings and the outcomes of the decisions that were voted on.

Shane White Strata Title Consult E: shane.white@stratatitleconsult.com.au

This post appears in the November 2021 edition of The WA Strata Magazine.

Question: We have just elected a council of owners but we have not yet appointed office bearers. What is the process for electing office bearers?

We have Strata Manager. We have just elected a council of owners but we have not yet appointed office bearers.

One of the members wants to convene a meeting in 5 days time without the strata manager being there. She wants to appoint office bearers then but there may be some contention between members. Is this meeting valid and allowed under the act? If decisions are made that affect the strata as a whole are these valid and can they be upheld?

Answer: After the election of the Council members, the newly elected Council is elected at the first Council Meeting.

After the election of the Council members, the newly elected Council is elected at the first Council Meeting.

It would probably be advisable that the strata manager attends for the first meeting to ensure that proper process has taken place.

There is no requirement for the strata manager to be there but you may wish to have someone with minute taking skills to be present to take the minutes.

Shane White Strata Title Consult E: shane.white@stratatitleconsult.com.au

This post appears in Strata News #503.

Question: What are the duties of a chairperson? The Act specifies the duties of the secretary and treasurer, but doesn’t really outline what the chairperson does.

Answer: Chairperson of a strata company means the member of the council of the strata company holding office as the chairperson of the strata company

The Chairperson for the Strata Company, in accordance with Schedule 1 bylaw 6 (4), has the duty to:

(4) The chairperson is to preside at all meetings of the council but, if the chairperson is absent from, or is unwilling or unable to preside at a meeting, the members of the council present at that meeting can appoint 1 of their number to preside at that meeting during the absence of the chairperson.

The definitions provide the following:

chairperson of a strata company means the member of the council of the strata company holding office as the chairperson of the strata company;

We also note that the Legislation now requires the Strata Company to appoint a Chairperson as per Section 135 (4):

(4) 1 of the members of the council of a strata company must hold office as the chairperson of the strata company.

The Chairperson appointed for the General Meeting of the Strata Company, which does not have to be the Chairperson of the Strata Company, also has several duties to be performed throughout the duration of the general meeting.

Shelley Fitzgerald Emerson Raine E: shelley@emersonraine.com.au P: 9330 3959

This post appears in Strata News #502.

Question: If an owner has an issue with the way the Strata Management company is dealing with a dispute, does the COO have to step in to try to resolve it when approached?

If an owner has an issue with the way the Strata Management company is dealing with a dispute does the COO have to step in to try to resolve it when approached? If so, what section in the Strata Titles act refers to this? Is it not the role of the COO to act in the interest of the owners?

We have members of our COO that refuse to communicate directly with owners and have adopted a communications policy at the recent meeting of the council which sets out that all communication to and from the council should occur through the office of the strata manager. So any matters you wish to raise for the attention of the council will be responded to as needed and as they meet they will then issue instructions to the strata manager.

As you can imagine if you have an issue with the Strata Management Company then this way of communicating is not appropriate.

Answer: The strata council is the entity that runs the strata company and the Strata Manager is an employee of the strata company.

The email is unclear as to what the dispute might be about?

Is there just cause for the complainant to be in dispute with the strata manager?

The strata council is the entity that runs the strata company and the Strata Manager is an employee of the strata company.

Is the strata manager doing as they are instructed by the strata council?

It is not unusual for a strata council to adopt a communications policy of this nature and in some instances reduces the effect of spurious communications of a frivolous nature.

The aggrieved party has it within their power to lodge an Application at the Tribunal to seek relief.

Refer to section 119 – Objectives

Refer to section 137 – Council Members: general duties and conflicts of interest

Shane White Strata Title Consult E: shane.white@stratatitleconsult.com.au

This post appears in Strata News #453.

Question: If a strata unit is owned by a Pty Ltd company, can a director of that company or part owner who is NOT a Director become a strata council member?

Answer: Individuals associated with the corporation, be they owners or directors of the corporation, cannot be elected to the council as an individual.

In the case of the title for the lot being held by a corporation, it is the corporation that can hold the position on the council of owners if duly elected. Individuals associated with the corporation, be they owners or directors of the corporation, cannot be elected to the council as an individual. The corporation can however authorise that individual to be its representative on the council should the corporation be duly elected.

When the corporation sits on the council it may authorise an individual to perform on its behalf its duties as a member of the council and may revoke such authorisation from time to time. Any actions performed by the individual it is taken to have been performed by the corporation.

Luke Downie Realmark E: ldownie@realmark.com.au P: 08 9328 0999

This post appears in Strata News #442.

Question: Who is responsible for ensuring that actions from AGM minutes are followed up on and actioned. Does the responsibility lie with the Secretary or Chairperson?

Answer: The Strata Titles Act of WA does not specifically delineate whose duty it is “for ensuring that actions from AGM minutes are followed up on and actioned”.

The Strata Titles Act of WA does not specifically delineate whose duty it is “for ensuring that actions from AGM minutes are followed up on and actioned”. The elected council of the strata company are equally responsible for ensuring that any action items from the general meetings are carried out. All items are a shared responsibility in whatever way the council sees fit, other than those explicitly detailed under the Schedule 1 Governance By-Laws.

Jordan Dinga Abode Strata E: abode@abodestrata.com.au P: 08 9368 2221

This post appears in the October 2020 edition of The WA Strata Magazine.

Question: Can one and the same person hold the position of Secretary and Chairperson on the strata council? From what I have read, this acceptable in QLD and possibly NSW, but is it permitted in WA?

Answer: Sure can!

Jordan Dinga Abode Strata E: abode@abodestrata.com.au P: 08 9368 2221

This post appears in Strata News #407.

Question: Although we have a Strata Manager appointed, we don’t know what they do. The Council doesn’t communicate what is going on or if there are any issues. Should we be informed about what is going on?

I am an owner of a survey strata lot of some 19 lots We have a Council of 3 members who are and have been since incorporated.

Although we have a Strata Manager appointed nothing has been disseminated as to what the Strata Manager does. They do not have a contract with the SM and we don’t know what the council has instructed the SM to do.

We also don’t know if there are any formal contracts with the people employed to carry out maintenance work on our common property or assets. The Council doesn’t communicate in any way what is either going on or if there are any issues.

Should we as lot owners be informed by way of a newsletter or some other means as to what?

Answer: You do have options but my overall advice is to get involved with the running and management of your strata.

This is an interesting question and I will deal with it in 4 parts.

You mention that the council of 3 have been there since day dot, not unusual but does indicate a lack of interest from other owners. With the reforms in place, the responsibilities now placed on owners and in particular council members this is an opportune time for owners to get involved. Council members are elected at every AGM it is a requirement under the act. Section 137 details the duties of a CoO member, they must act honestly, with loyalty and in good faith, also must at all times exercise a degree of care and diligence in the performance of their duties.

Concerning the strata manager, the reforms state clearly that a contract MUST be in place and their duties clearly defined. Section 143 defines that their functions need to be authorised and section 144 details education requirements, criminal record checks and contract responsibilities. The act also states that a signed contract MUST be in place by the 1st November 2020 and also must conform to the requirements of the act. No signed contract the strata manager will not be able to perform any functions on behalf of the strata company.

With maintenance work it is not unusual, i.e. for plumbing, electrical and general work not to have a contract, however, things like pool maintenance and other infrastructure that require regular servicing/maintenance it is a good idea and I would go further and say essential.

The fourth matter I will raise is to do with information on strata matters. Newsletters are an option but is dependent on the allocation of someone to that role, is it the strata manager, the CoO secretary. The act makes provision for the dissemination of information, the ideal is the AGM, owners can put motions on the agenda, they can ask questions and also under the act have the right to inspect the records.

Section 104 states that the strata must keep a copy of ALL contracts, in particular, the strata management contract. Also, section 107 allows for an owner to apply in writing for information under section 109 which relates to the records of the strata company. You do have options but my overall advice is get involved with the running and management of your strata.

Brian Rulyancich StrataTAC E: strata@stratatac.com.au P: 0428 970 067

This post appears in Strata News #395.

Question: As a strata unit owner can I attend the strata council meetings? This would not be seeking engagement in the meeting, but more on understanding the strata councils roles and responsibilities.

Answer: I would leave it up to the Council of Owners to decide whether they wish for anyone else to attend.

Please note: this response was provided prior to the proclamation of the new strata title amendments.

There is nothing within the Strata Titles Act of WA that either allows or prohibits this at this stage.

However, my personal opinion is that it would defeat the purpose of having a Strata Council. At the end of the day, I would leave it up to the Council of Owners to decide whether they wish for anyone else to attend.

Jordan Dinga Abode Strata E: abode@abodestrata.com.au P: 08 9368 2221

This post appears in Strata News #334.

Question: Are there rules which regulates the communication process between the Chairperson, the Secretary and the Treasurer on a strata council? What are the strata council roles and responsibilities around this?

Is there anything written about strata council roles and responsibilities that regulates the communication process between the Chairperson, the Secretary and the Treasurer on a strata council?

As a general rule, one would think that when a Secretary is given a certain task they would inform the other Office Bearers (copying in the Chairperson & the Treasurer) as part of the process whenever an official letter on behalf of Committee goes out. Ideally, it would be best to present outgoing correspondence before being sent out – but let this aside.

Say the Secretary has been given a certain task but does not provide copies of his correspondence to outside communications to the other Office Bearers. He sees himself more as a Project Manager who delivers results. Most ordinary Council Members may not be interested to be informed of every step of the process, I assume that many Office Bearers do.

Answer: The content of correspondence from the Strata Council, in the absence of Strata Management Delegation, should be discussed by all Council members not just the Office Bearers.

Please note: this response was provided prior to the proclamation of the new strata title amendments.

In the context of your Strata Complex, the Council of Owners or Council of Management or the Body Corporate or whatever name they go by, have complete power to act on behalf of the owners who nominated or voted them in, by ballot if required, at the last Annual General Meeting.

First, if you have strata management you may want to check your contract to see what duties are delegated to the strata manager (in the absence of other instruction), as this covers most of the secretarial and treasurers duties, as opposed to the strata council roles and responsibilities. If you are self-managed self-sufficiency is vital for good management regardless of what model you have.

Being such an important function of Strata, there are Schedule 1 by-laws covering most aspects of the election and running of the Council. Office Bearers is a term used in Company Law. One person can hold all three Office Bearer functions. Your Strata Insurance should have Office Bearers Liability cover. This is an industry standard but not a requirement. Office Bearers insurance will cover the Office Bearer or Bearers if a decision and or instruction turns out to be incorrect and is subject to a claim against the strata company. The Council, as long as they have acted in good faith, should be covered.

Jordan Dinga Abode Strata E: abode@abodestrata.com.au P: 08 9368 2221

Roles in strata ownership, management, strata council and committees.

Please note: this information was provided prior to the proclamation of the new strata title amendments.

There is frequent confusion about the division of roles and responsibilities in a strata community. We often hear owners asking: owners … the Strata Company … the Strata Council … the Strata Manager… who does what?

Here’s a breakdown of who should be doing what within your strata community.

Lot Owners

An owner is a person or people or company that purchases a strata lot and is registered on the Certificate of Title. Your ownership in some ways is similar to being a shareholder, with certain rights and responsibilities relating to this ownership. You must pay your levies and comply with the scheme’s by-laws, which can cover everything from renovations to pets. You have the right to contribute to decision making, to stand for a position on your committee and generally be heard. As an owner, you also have a share of unlimited liability for anything that goes wrong within the scheme, which is why strata insurance is compulsory in every state and territory.

The Strata Company

AKA Body Corporate, Owners’ Corporation, Strata Corporation, Strata Scheme.

The Strata Company consists of all owners collectively, who together form a legal entity. All owners are automatically members of the corporation, but tenants are not. The Strata Company has a legal responsibility to:

Maintain all common property including the structure of any buildings on the land;

Insure the whole of the property for the full replacement value;

Administer the finances and common funds of the group of owners;

Secretarial functions including the conduct of meetings of members, documentation of minutes, and dealing with correspondence; and

Resolve disputes involving members of the Strata Company and enforce its rules.

The Strata Council

AKA Owner’s Committee, Strata Committee, Body Corporate Committee, Executive Committee, Managing Committee, Committee of Management, the Committee or Council.

Generally, the administration of a Strata Council is undertaken on behalf of all the lot owners by a Committee. A committee is a group of owners elected at each Annual General Meeting to represent all the lot owners in the scheme. The Strata Council provides governance and makes decisions on all matters that arise for the Strata Company, including the control, maintenance and repair of common property (in the absence of a Strata Manager).

Governance involves setting and monitoring the strategic direction of the Company, including setting goals and the course for management to achieve those goals. Strategic direction is usually documented in a Strategic Plan, which may have Strata Management and Strata company input but which will ultimately be the responsibility of the Strata Council.

The Strata Committee has other duties and discretionary powers that, when properly carried out, will in ensure compliance with the legislative Act and protect your investment. The Committee is responsible for such things as:

Enforcement and making of by-laws.

Managing and maintaining the common property for the benefit of all owners.

Ensuring the strata company is sufficiently funded.

Effecting proper insurance cover.

Maintaining usual business records.

Convening the required General Meetings.

Appointing and supervising your Strata Company manager.

WA: How to handle a strata manager or council of owners who are not working in your interest

The Strata Manager

AKA Body Corporate Manager, Strata Managing Agent, Manager or Agent.

Strata Managers are engaged by the Strata Company or Council to assist the scheme’s Strata Council to manage the day-to-day affairs of the scheme. Strata Companies may make use of a Strata Manager to provide administration services, streamline processes and minimise conflict between owners; while others elect to self-manage. Many strata schemes are becoming larger and more complex, so owners find a Strata Manager manages the more time-consuming services and provide advice on:

Financial management

Maintenance of common areas as directed by the Strata Council

Insurance

Clerical and administrative support and follow up

Ad hoc maintenance and contract support

Implementation of the Strategic Plan

Ensure requirements of the relevant legislation are met

Advise on the legal requirements concerning the operation of the strata scheme

The role varies depending on the size and type of property and involves people management, requires someone who is organised and is able to handle difficult clients from time-to-time.

Hope that helps! If you’re still confused, you’re welcome to get in touch to ask questions.

Jordan Dinga Abode Strata E: abode@abodestrata.com.au P: 08 9368 2221

Have a question about providing information about strata council roles and responsibilities or something to add to the article about the different strata council roles and responsibilities for providing correspondence in your scheme? Leave a comment below.

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Note: this general information is an opinion only and suitable specialists in these areas should be sought for clarification and assistance on all points.

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