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Does an EC have to elect office bearers? We never have, but it’s on the agenda to happen at the EC meeting following our next AGM. This has never been on the agenda before, and the SM has filled the roles.
We have a fairly recent owner who would love to be chairman, but would be totally unsuitable. Most of us don’t want to elect office bearers. It has worked well for the past 15 years without them. Have the rules changed?
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To respond to your last question first, NO the rules haven’t changed, it’s just that your Owners Corporation hasn’t been following them.
The “rules”, specifically Schedule 2 Clause 34 of the NSW Strata Schemes Management Act (1996), states that compulsory Motions on the Agenda for Annual General Meetings (AGM) MUST include one for the Owners Corporation (O/C) to elect the Members of its Executive Committee (E/C) and to decide the number of those – which may not exceed nine(9).
The positions of Chairman, Secretary, and Treasurer are then decided on the basis of a vote by the elected Members, usually at an E/C Meeting convened immediately after the AGM, and it’s then that any nominations (including self-nominations) may be voted down if that’s the majority view of those in attendance.
In circumstances such as those at your Plan where it appears that an active E/C is not desired by a majority of Owners, then the functions (but not the positions) of Chairman, Secretary, and Treasurer may be delegated to your Strata Manager, but only under a term of a Strata Management Agency Agreement that they’re required to hold with the O/C.
That’s a really good/detailed response from Whale. I can just add a reference to Section 18 of the SSMA:
- (1) The members of an executive committee must, at the first meeting of the executive committee after they assume office as members, appoint a chairperson, secretary and treasurer of the executive committee.
It doesn’t matter how things have been run the last 15 years, this is what the law says.
AJP – the fact that your resident bully may be elected Chairman is of little consequence, as the holder of that position has no more authority than any other Member of the Executive Committee; no casting vote or any other privilege.
Furthermore, the Legislation requires that an Agenda be produced and distributed to all Owners at least 72 hours in advance of each Executive Committee Meeting, so Owners who regard any Motion/s as contentious may themselves attend the Meeting or >30% of them (by unit entitlement) can veto such Motion/s before they’re even discussed at a Meeting.
There are sufficient safeguards provided by the Legislation to stifle the activities of Executive Committee bullies – what’s that saying about all that is necessary for the triumph of evil is that good men do nothing? Perhaps you need to enlist the support of some good men (and women) in your Plan, and have them ready to do something whenever the bully is at work!
AJP some Strata managers simply have no idea of the Strata Act or Regulations and/or are too lazy to follow the laws. Even though you can delegate all the functions of the Executive Committee office bearers to the Strata Manager, you should always elect the office bearers even if they technically don’t perform those functions on a day to day basis. There are many reasons for this, one important one is if the committee need to take over the management of the scheme, you will need the office bearers to be able to carry out their roles.
Time to stand up to the ‘resident bully’. If he is elected chair it will just encourage him and give apparent legitimacy and endorsement. Find someone else who can be press-ganged to do it. Reassure them that they are unlikely to have to do anything because the manager has all the functions delegated so they are really only there as insurance against the bully. Also remember, even when all functions are delegated to a manager it is still possible for the EC to exercise any of those functions when it wants to. Obviously communicate well with the manager but you can exercise the powers of the EC anytime if you feel you need to.
I think the other thing you will need to do as an EC is to look after each other, especially the person being chair. Knowledge is power and make sure you have an informed, reasoned case for anything you want to do. Communication with the manager is important too. Set up a clear channel for that. The manager won’t like someone who arrogantly tells them their job and you will get support if you are respectful to the manager.
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