We’ve had a response from the Minister’s office to the effect that anything that looks a deliberately dodgy as this scenario could be effectively challenged at NCAT under Section 232, the magic bullet of strata complaints that allows the Tribunal to revoke and rescind anything that seems to be against the letter or intent of the Act.
On the question of a committee “stacked” with company nominees, and where there are declared or undeclared conflicts of interest, while the decisions it makes are not automatically rendered invalid, the circumstances of the decision-making could lead to them being rescinded.
“Whilst any contravention of the disclosure requirements does not invalidate a resolution, such a contravention may assist NCAT in relation to invalidating a resolution or removing a member of the strata committee for such a contravention,” the Minister’s media officer told us.
So, once again, it’s a question of going to the culprits and asking them if they would like to withdraw or be taken to NCAT where their grubby games will be publicly exposed and then they may be kicked off the committee anyway.
This was the response from the Minister’s office.
The complainant raises the issue of the executive of the strata committee of a strata scheme attempting to control the election of members of the strata committee through the provisions of the Strata Schemes Management Act 2015.
s.232 of the Act allows NCAT to make orders for disputes relating to a strata scheme, including disallowing resolutions and removing members of the strata committee.
{Flat Chat} is … correct in its advice to the complainant that the requirements in the Act for disclosure of pecuniary interests by members of the strata committee would tend to act against the interests of the secretary in controlling the day-to-day operation of the strata scheme.
Whilst any contravention of the disclosure requirements does not invalidate a resolution, such a contravention may assist NCAT in relation to invalidating a resolution or removing a member of the strata committee for such a contravention.
It is important to note that the owners’ corporation is the paramount decision-making body of any strata scheme. It can continue to make decisions about any matter, even though it has been delegated to the strata committee or a strata managing agent. An owners’ corporation may, in a general meeting, continue to exercise all or any of the functions conferred on it by the Act or the by-laws, even though a strata committee or managing agent holds office.
The complainant should be made aware of the provisions of s.36 of the Act. Whilst a decision of a strata committee is taken to be the decision of the owners’ corporation, in the event of a disagreement between the owners’ corporation and the strata committee, the decision of the owners’ corporation prevails.
The strata committee cannot make a decision that is required by or under any Act to be made by the owners’ corporation by unanimous resolution, special resolution or in general meeting. It also cannot make a decision on any matter or type of matter that the owners’ corporation has determined in general meeting is to be decided only by the owners’ corporation in general meeting.