In April we discussed strata committee meetings. This month we discuss general meetings held by the Owners Corporation (OC) at which lot owners are entitled to (and should) attend and are allowed to be heard and vote. There are a few if’s and but’s about these rights which we deal with in the article.
Reference Points Once again, your point of reference is the Strata Schemes Management Act 2015 (SSMA) – see Part 2. For the full copies of the sections and schedules we provide links. Schedule 1 of the SSMA is your go-to reference for meeting procedures. We refer to some of the provisions of Schedule 1 in this article but not all, so it is worthwhile reading it yourself, so you have a basic knowledge. Also, we do not deal in this article with all matters relating to meetings, just some salient points. We will continue with subjects we have not dealt with in further articles. There is only so much one can digest on this complex subject in one article. First Annual General Meeting Statutory Obligations We have said it before and repeat it here… knowledge is power especially when it comes to probably ones most significant asset. As an owner in a Scheme – whether it is your home, office, shop, factory etc. – you have an interest both in your lot and in the common property and because of these dual interests you should be interested in participating in meetings. Your statutory obligations do not go away if you don’t live in the scheme but have investments, even if you delegate responsibility to others such as real estate agents. A wise investor takes a direct interest in their investments. Annual General Meetings (AGM) and General Meetings (GM) A GM, as opposed to an AGM, may be convened by your strata committee at any time. See section 19. We are often asked by lot owners or groups of lot owners if they can request a GM? The answer is yes provided the lot owner or group of lot owners comply with section 19(3). The request for a GM is known as a qualified request see section 19 (4). If the OC receives a proper qualified request a GM must be convened as soon as practicable and no later than 14 days after receiving that request. What can you do if you make a request, but the OC fails to convene a meeting? You may make an application to the NSW Civil and Administrative Tribunal (NCAT) see section 20. Agendas There are certain matters that must be contained in an Agenda calling for either an AGM or GM see Schedule 1 of the SSMA. What if the Agenda has already been issued and an owner wants to include an item in the Agenda for the next GM or AGM? Timing is important. For the answer see Schedule 1 Part 2 clause 4. Is an owner entitled to seek the inclusion of a motion even if that owner cannot vote at the meeting because they are unfinancial? For the answer see Schedule 1 Part 2 clause 4 Schedule 1 also makes provisions for the nomination and election of members of the strata committee. Agendas must be served at least 7 clear days before the meeting. Presiding over an AGM or GM Right to have an Agenda Item read Quorum Where there is no quorum, a chairperson may adjourn the meeting for not less than 7 days. If within half an hour after the time for commencement at the adjourned meeting there is still no quorum, the chairperson may determine those present in person or by proxy and eligible to vote constitute a quorum. An alternative to adjourning the meeting is that if no quorum is present within the next half-hour after the meeting commencement time, a chairperson may declare that those persons present in person or by proxy constitute a quorum. This has been designed to rectify problems that occurred under the old legislation when there was not a quorum and is another way to move the business of the owners corporation forward and not be bogged down by administrative delays. Majority Vote and a Poll Special resolutions and Unanimous Resolutions |
You can only amend or revoke a special resolution by the same kind of resolution, not by simple majority. However, a unanimous resolution dealing with common property may be amended or revoked by a special resolution – see section 21.
Executors, mortgagees or trustees in bankruptcy must provide a strata interest notice if they wish to vote – see section 22.
As we mentioned at the start of this article there is more to digest. We will continue in our June article to deal with matters associated with, or arising out of, meetings not dealt with here.
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