We had a similar problem recently with a well known agent from Liverpool.
The AGM was attended by a manager and a Director of the agency of whom neither said boo when one of their stooge owners (stooge 1) nominated themselves and also another stooge (stooge 2) for the SC.
Stooge 1 then sold her unit meaning she was no longer a SC member by virtue of s 35. Stooge 2 was never properly nominated in the first but was told repeatedly by the agent she was still a SC member, even though her nomination from stooge 1 was no longer from a person eligible to nominate her.
If a position is not vacated by virtue of one of the ‘conditions’ in s 35 then s 38 can in some cases be applicable.
“any defect in the appointment” is broad enough a statement to be interpretable as a defect in the nomination process.
The point of s 38 is not to validate a bogus election but to validate a good faith act or proceeding. So even if these bogusly appointed people voted at a SC meeting the decisions of the SC would still be good.
Somewhere in the AGM minutes it will note these people were elected and that is ‘evidence’ of the validity of their position until challenged even if others know the election was bogus.
Tell them they are not a SC member (and to take it up with NCAT if they have a problem). I like that call. That is what we did.
38 Acts and proceedings of strata committee valid despite vacancies or defects
(1) This section applies if, when any act or proceeding of a strata committee was done, taken or commenced there was—
(a) a vacancy in the office of an officer of the owners corporation or any other member of the strata committee, or
(b) any defect in the appointment, or any disqualification, of any such officer or member.
(2) Any act or proceeding of a strata committee done in good faith is as valid as if the vacancy, defect or disqualification did not exist and the strata committee were fully and properly constituted.