Can the size of the EC be changed between AGMs?

2011-04-09T20:45:45+10:00

Clause 34(f) of Schedule 2 of the SSMA states the AGM notice must include a form of motion to decide the number of members of the executive committee.The motion is compulsory. BUT: The Act also states in section 16(2) an OC can appoint an EC prior to the First AGM (FAGM). This would need to be at an EGM as the Act does not recognize any other form of meeting at that point in time. Therefore in section 16(2) the EGM (prior to FAGM) is determining the number of EC members and electing this number. A motion must be within the scope and authority of the meeting. The process of election of the EC is to call for nominations before the number of members is determined. Refer to clause 17 of the Strata Schemes Management Regulations 2010 (SSMR). So at an EGM prior to an EC ever existing, i.e. prior to FAGM, the process of cl 17 of the SSMR makes sense at an EGM but after the FAGM the process makes no sense at an EGM because the AGM has already determined the matter. To go to an EGM and call for nominations for positions that do not exist is a nonsense. What potentially could have been done. I'm not sure this can be done but it seems within the framework of the Act. Go to an EGM that has a special resolution motion to remove the whole EC and a motion to rescind the AGM decision as to how many members are on the EC. If the motions fail then the status quo stays. If the motions pass then there is no EC and no current resolution on how many EC members there are to be. Call for nominations for the EC and resolve a new motion on how many EC members there are to be (this will need to be on the agenda) and elect the new EC, by ballot if needed. As is set out in clause 17 of the SSMR for electing the EC. Put simply: Changing the number of EC members at an EGM and then filing the vacancies seems contrary to the process of clause 17 of the SSMR 2010.

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08/04/2011 at 10:21 am #7320
Anonymous
An EGM was called to increase the size of the executive committee. The proposed increase is between AGMs, ie within the life of a duly-elected committe? Leo, from Fair Trading told me there was no provision in SSMA to allow for this. I advised our strata manager of this and they phoned Fair Trading and received contrary advice from a person who “they forgot to ask their name”, but still proceeded with the EGM.

Can the number of members of the executive committee be changed at an EGM?

If not how can I obtain documentary support to present to our strata manager?

To me this is the equivalent of forcing a government back to the
electorate – which you can't do on a whim, there have to be grounds.
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09/04/2011 at 8:45 pm #12644
Anonymous
Clause 34(f) of Schedule 2 of the SSMA states the AGM notice must include a form of motion to decide the number of members of the executive committee.The motion is compulsory.

BUT: The Act also states in section 16(2) an OC can appoint an EC prior to
the First AGM (FAGM). This would need to be at an EGM as the Act does not recognize any other form of meeting at that point in time.

Therefore in section 16(2) the EGM (prior to FAGM) is determining the number of EC members and electing this number.

A motion must be within the scope and authority of the meeting.

The process of election of the EC is to call for nominations before the number of members is determined. Refer to clause 17 of the Strata Schemes Management Regulations 2010 (SSMR).

So at an EGM prior to an EC ever existing, i.e. prior to FAGM, the process of cl 17 of the SSMR makes sense at an EGM but after the FAGM the process makes no sense at an EGM because the AGM has already determined the matter.

To go to an EGM and call for nominations for positions that do not exist is a nonsense.

What potentially could have been done. I'm not sure this can be done but it seems within the framework of the Act.
Go to an EGM that has a special resolution motion to remove the whole EC and a motion to rescind the AGM decision as to how many members are on the EC. If the motions fail then the status quo stays.
If the motions pass then there is no EC and no current resolution on how many EC members there are to be. Call for nominations for the EC and resolve a new motion on how many EC members there are to be (this will need to be on the agenda) and elect the new EC, by ballot if needed. As is set out in clause 17 of the SSMR for electing the EC.

Put simply:
Changing the number of EC members at an EGM and then filing the vacancies seems contrary to the process of clause 17 of the SSMR 2010.
22/05/2011 at 1:53 am #12816
T
Yes you can add more seats to the executive committee during an extraordinary general meeting held before the next annual general meeting.

My textbook says this is done by the following procedure: a special resolution must first be passed by the owners corporation to terminate the office of all executive committee members (Clause 4(3) of Schedule 3 of the Strata Schemes Management Act).

During that same meeting, a new motion is included in the agenda to elect the number of members of a new executive committee and who will be elected. The executive committee then decides on its own who act as the office bearer(s).

It seems unduly complicated for first terminate everyone and then re-appoint them just to add one more person, but that's all I have for now.
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