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[Willie]

A few queries regarding the new NSW legislation, am I correct;

1. A single Strata Committee member can convene an EGM?
2. Only 7 days’ notice is required?
3. In regard to a Special Resolution unless more than 25% of owners vote against the resolution it will be carried.

Assuming the above is correct does this not make it very easy for a Strata Committee dominated by one or two owners to push through changes that may not benefit all, particularly where most owners are not living onsite or involved in the Strata Committee? My concern is the 7 day notice makes it very difficult for an owner who did not agree with the proposed changes to put a case to owners not living onsite or involved in the Strata Committee

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[Jimmy-T]

@Willie said:
A few queries regarding the new NSW legislation, am I correct;

1. A single Strata Committee member can convene an EGM?

Only if that member is the secretary.  Otherwise it has to be a majority decision of the strata committee or at the request of 25 percent of owners.

Only 7 days’ notice is required?

Yes

In regard to a Special Resolution unless more than 25% of owners vote against the resolution it will be carried.

It’s all about the numbers (and unit entitlements) of people actually voting at the meeting either in person or by proxy.

Let’s say you have 20 units in the block.  10 people turn up for the meeting or provide proxies. A special resolution by-law vote is taken and three votes are cast against it – that means the by-law fails (provided their unit entitlements add up to more than 25 percent of those voting).

Two things to look out for are the UEs which must be calculated for special resolutions and by-laws. And whether or not owners are entitled to vote.  For instance, if they haven’t paid their levies, they can’t vote (see below). 

My concern is the 7 day notice makes it very difficult for an owner who did not agree with the proposed changes to put a case to owners not living onsite or involved in the Strata Committee.

Don’t forget that the new anti-proxy farming laws mean that each owner can only hold a maximum of 5 percent of the votes (or one vote in schemes less than 20 lots) as proxies.  

23 (8) Voting rights cannot be exercised if contributions not paid
A vote at a general meeting (other than a vote on a motion requiring a unanimous resolution) by an owner of a lot or a person with a priority vote in respect of the lot does not count if the owner of the lot was an unfinancial owner at the date notice of the meeting was given and did not pay the amounts owing before the meeting.

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[Sir Humphrey]

Also, ‘7 days’ notice in practice means two weeks since you have to allow time for postage. 

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[Author]

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