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@Billen Ben, good point. In THAT case if the vacancy is valid, the empty seat is filled by the following ways:-
1. OC in a general meeting passes an ordinary resolution to appoint the person: cl 4(2), Sch3.
2. EC passes a resolution to appoint a person provided a general meeting has not removed this power from the committee: cl4(2),Sch3. The EC has authority to do this based on s21(1) and cl17, Sch3.
3. The strata managing agent records a decision in the OC's minute book appointing a replacement, and only if the managing agent if the managing agent has been expressly or impliedly delegated the power in the agency agreement or resolution of appointment.
The detailed procedures of nomination and election, detailed in regs 17,18, don't need to be followed in options 2 and 3 above.
Source: pages 102-3 of Alex Ilkin's book, NSW Strata & Community Management & the Law (4th).