If you can provide documentation showing that a costs by-law has already been rejected by the Tribunal, you might send a letter to the chairman, copied to the strata manager and the rest for the committee along these lines:
I call on the chair to rule motion xx out of order under the powers granted to them by Section 19 of Schedule 1 of the Strata Schemes Management Act which says:
“The chairperson at a meeting may rule a motion out of order if … the chairperson considers that the motion, if carried, would conflict with this Act or the by-laws of the strata scheme or would otherwise be unlawful or unenforceable.”
Attempts to pre-assign costs have already been proved to be invalid by NCAT which reserves the right to apportion costs, and then only under very specific circumstances.
As a result, this by-law would have no “force or effect” and to pass it would be a waste of owners corporation funds in registering the by-law then having to defend it at the Tribunal where it would inevitably be challenged and in all likelihood rescinded.
The chairman and strata manager should advise the owners accordingly or explain, on the record, why they are prepared to allow this waste of time and money to proceed.
If the Chairman feels unable to remove the by-law, please add this submission to the record of this meeting when the by-law is debated.