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For some time now our executive committee (EC) at its first meeting after the AGM delegates all of its functions to the Chair – with obvious outcomes.
What can be done at the AGM to restrict such a delegation to urgent matters only?
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Gosh that’s an interesting Executive Committee!! Have you thought of getting some new members?
As a side issue – how does the EC meet the procedural requirements for meetings and making decisions if they have delegated their powers in that way. For example – if the EC were considering something that required a decision of the EC, they would have to issue a notice of meeting setting out any proposed resolutions 72 hours prior to the meeting. This gives owners who may have an objection the opportunity to give notice that they object, and if they meet the required number/percentage of owners the decision can’t proceed.
Yes you can limit what the Executive Committee can determine/do. At each AGM there is a compulsory motion under Schedule 2 34(g) of the Act which allows the owners to decide if any matter or type of matter can be determined only by the owners – that is, the owners in a general meeting.
Using that motion you can limit the EC’s powers to a monetary amount, e.g. a few thousand dollars, and/or only certain types of matters such as emergencies (you would be well advised to set out what constitutes an emergency). In any resolution the OC could say that the EC could not make any decisions relating to capital works etc. Note that the legislation also sets out specific things that cannot be decided by the EC, which includes taking legal action above the specified amount, and improving/enhancing common property.
@PJ said:
For some time now our executive committee (EC) at its first meeting after the AGM delegates all of its functions to the Chair – with obvious outcomes.If by “delegates all of its functions” you mean that the committee no longer meets and the chair decides everything, then your EC has basically ceased to function and any decision purportedly made by it could easily be challenged.
The Act only specifically allows all the functions of a committee to be delegated to a strata manager and it also says that functions can only be delegated to individuals specified in the Act.
As Scottie explains above, you have to give notice of meetings and other owners have to be given the chance to respond and/or attend.
If one person is making the decisions, there is no meeting because that would require a quorum of half the members before he or she could even accept proxy votes.
This would give you problems with, for instance, Notices To Comply which, if pursed at at Tribunal, have to show the minutes of the meeting at which it was decided to issue the NTC. It could also present problems over disputed contracts and work orders.
In that scenario, you could put a motion to the AGM that the committee operates in accordance with the Strata Schemes Management Act, issues agendas and minutes and observes the quorum rule.
In proposing that, you might also argue that anyone who doesn’t want to attend meetings shouldn’t be standing for the committee.
If the committee declines, then you could propose that the meeting reduces the size of the committee to one, which would at least reflect the facts of your situation.
If by “delegates all of its functions” you mean that the chair also acts as secretary and treasurer, this is not unheard of but it’s far from ideal. You could put a motion to the AGM that at least two of those functions be held by different people.
In my book, this would be a perfectly acceptable rule change that, while it has no legal standing, would allow owners to express a preference and question why their wishes are not being observed.
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.
Regarding issuing notices to comply,
Under subsection 4 of Section 146 of the new SSMA 2015 there appears to be a provision for the strata manager to issue notices for by-law breaches without a resolution needing to be passed at a meeting (there was also something similar in the old Act). Our previous EC had at a previous meeting resolved to delegate its authority to issue notices to the strata manager.
Unfortunately many of our residents including half of the current EC own more than one vehicle and continually park on the grass, as do their visitors. The EC certainly arn’t interested in having meetings to resolve to issue anyone let alone themselves notices.
The strata manager has asked for and been provided with date stamped photos that clearly show the vehicles parked on the lawns. He has also written warning letters to the offenders. While no notices have been issued to date as the strata manager said he was waiting for the new Regulations to come in on 30 November, I do live in hope. It would be nice to look out and see lovely lawns rather than a car park!
I ‘ve copied the relevant part of the Act below
146 Notice by owners corporation to owner or occupier
(3) A notice must not be given unless a resolution approving the issue of the notice, or the issue of notices for the type of contravention concerned, has first been passed by the owners corporation at a general meeting or by the strata committee of the owners corporation.
(4) Subsection (3) does not apply to the giving of a notice by a strata managing agent if that function has been delegated to the strata managing agent in accordance with this Act.
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