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Topic
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NSW Strata
At a recent 3 hour AGM in a function area of a licenced hotel, the majority of owners were drinking alcohol prior to the AGM in a public area, drinking alcohol during the AGM, leaving the AGM to purchase more drinks and then returning to the AGM.
The acting Strata Manager made no comment. (The Strata Management Company is a large company with branches in NSW.)
My understanding is that financial decisions cannot be made under the influence of alcohol. Is that correct?
Is there a law/regulations concerning decision making at Strata AGMs when owners are under the influence of alcohol?
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Isn’t this ridiculous? My mob hit the turps during every monthly committee meeting also (and knowing some of the personalities involved, I can understand the drive to do so!) You’d think people would have the respect for the owners they represent to remain sober prior to any meeting deliberations, and not to risk the quality of decision making, and recall for action or minutes thereafter, let alone any challenge to decisions made because of their altered minds while doing so. Afterwards: go your hardest, but not before or during when considering issues relating to one of many owner’s most important assets. I also think it’s a poor precedent and you can bet sooner or later someone with a drinking problem will find their way onto the committee and the disruption and poor outcomes resulting less than ideal and hard then to curtail.
When I looked into it with the Commissioner’s Office in Qld, apparently there is no rule against it so long as they will be considered to have acted reasonably.
When I raised this issue myself here in Flat Chat some time back Jimmy drafted a potential motion about staying dry until all the formal business of the meeting had been concluded. I was ready to put it up but withheld doing so on the advice of others in my block who thought that presenting it would also kybosh my other motion for the same AGM. But I’m still keen to do so at some point as I find the notion just disrespectful and annoying.
Anyways, I hope that offers you some thoughts and lets you know you are not the only one frustrated by this issue.
All the best, Cheers, C.
When I raised this issue myself here in Flat Chat some time back Jimmy drafted a potential motion about staying dry until all the formal business of the meeting had been concluded.
I remember that. The problem is that the OP’s meetings take place in a licensed premises – you can’t stop people drinking outside the meeting.
Perhaps the solution would be to impose a “lock-out” so that anyone who leaves the meeting after it’s started can’t get back in. But that wouldn’t take into account late-comers and weak bladders.
A polite request backed up by the chair’s iron fist might do the trick. Standing orders, enshrined in a by-law, allowing inebriated members to be “named” in minutes might deter the tipplers too.
But I don’t think the idea that decisions made under the influence of alcohol are legally suspect is real – otherwise half the wedding engagements, business lunch agreements and Acts of parliament would be in doubt.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
I think you can have some sway even though the AGM venue is a licensed premises. I’d put your concerns to the committee well before the next meeting setting out your reasons and suggesting a better approach and then putting this in a committee motion, if it’s dismissed by them I would consider then putting it in again but this time as a AGM motion for inclusion at the next AGM to be considered by all owners, not just committee folk. Obviously, you can’t stop folks drinking at the venue but you certainly would be in your rights to ask that due to the serious nature of the meeting and the things to be considered and discussed that folk do not drink alcohol until after the formal business of the AGM has concluded, and then they can go ahead get smashed and break stuff to their hearts content. If it annoys you enough to raise it here, it’s obviously something you feel you’d like addressed, and this is what I’d certainly do.
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