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General Meetings – A Forum for all Owners

General Meetings - A Forum for all Owners

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
The SSMA deals with general meetings in a logical sequence starting from the First Annual General Meeting which is held 2 months after the initial period, which commences when the OC is constituted and ending when new owners consist of at least two thirds of the aggregate unit entitlement. Knowledge of these meetings is relevant if you have moved into a new scheme where the original owner of the scheme remains, to one extent or another, involved.

Statutory Obligations
Whether it is freehold or leasehold, an OC has a statutory obligation for the proper management of the strata scheme. This obligation makes knowledge of the relevant SSMA provisions imperative. Ignorance of the law is no excuse. This obligation distinguishes living in a Strata Scheme from a house.

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)
Assuming the First AGM has been lawfully held and your strata committee has been formed and office bearers appointed, the OC must hold an AGM once in each succeeding financial year of the corporation.

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
Before either the AGM or a GM is held it must be called by serving an Agenda on every lot owner. An Agenda is an important document and needs to be prepared with care. Vagaries in Agendas are means for dispute.

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
Part 3 of Schedule 1 specifies that the chairperson will preside over the meeting. If the chairperson is absent, a person from those present at the meeting and who are financial may fulfil that function. Though in reality a chairperson does have influence on decisions to be made, they have no casting vote and are themselves entitled to vote. It is the task of the chairperson to announce the result of votes on any motion.

Right to have an Agenda Item read
If required to do so by a person present at the meeting and entitled to vote, the chairperson must, before submitting a motion to the meeting or holding of the election of members of the strata committee, announce the names of the persons entitled to vote on that motion or election.

Quorum
There must be a quorum at the commencement of a meeting. A quorum consists of 25% of persons entitled to vote being present either in person or by proxy. A quorum is also present if not less than 25% of the aggregate of the unit entitlement is represented by persons either present or by proxy. In each of these cases the lot owner either present or by proxy needs to be eligible to vote i.e. financial.

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
Simple majority vote generally applies. If a poll is demanded the motion is decided according to the value of the votes cast for and against the motion and the value of a vote cast by an owner is equal to the unit entitlement of that lot. A poll may be demanded immediately before or after a vote decided by a majority in number has been taken. The demand for a poll may be withdrawn by the person who demanded it.

Special resolutions and Unanimous Resolutions
Section 5 of SSMA sets out what constitutes a special resolution and unanimous resolution. For a special resolution to be passed it requires not less than 25% of the value of the votes cast to be against it. Unanimous resolution means there are no votes cast against the motion.

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.

 

 

A Walk on the Wild Side

There are some great walks in the Eastern Suburbs where you can experience the lifestyle of the rich and famous.

Today I am talking about the Hermitage Foreshore Walk.  It costs nothing and includes exercise with amazing views. You are in the wild in the middle of your city. I suggest rug up if it’s a little chilly, bring a bottle of water and do yourself a lifestyle favour. It’s a wonderful time of year to do it. Think of starting from Nielsen Park and walking back to Rose Bay. Don’t drive to Nielsen Park, catch the 325 bus from Edgecliff Station and get off at Neilsen Park. As you walk through Neilsen Park by its wonderful beach, maybe take a swim – even in chilly weather it is refreshing. Walk up the stairs at the city end of the beach into the Sydney Harbour National Park.  At the top you look straight down the harbour. Then follow the trail to Milk Beach and continue from one harbour beach to another.

It is heaven on a stick.

You walk along about 3kms of bushland and beaches with wonderful views and a backyard view of some of the most expensive real estate in Sydney, if not the world. Remember I am saying start at the end and finish at the beginning. Walk up to New South Head Road then down into Rose Bay past Kambala School to the Rose Bay shops where you find a great number of cafes and restaurants.  You can stop for lunch or a coffee. If you prefer, keep walking until you reach Lyne Park, Rose Bay.

There you will find three cafes in the park Sugar & Spoon, Ministry of Coffee and Empire Lounge – which is my personal favourite – not to mention the famous Catalina Restaurant if you want to splurge.

For those who want to keep walking and have some Japanese there is Hachi-Bei Tapas Bistro, Jewel on the Bay for Indian or Regatta for modern Australian.

We live in one of the best cities in the world and there is so much we can enjoy if we choose to explore.

 

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