Lack of Agendas for SC Meetings

As a starting point, any “decisions” made at those meetings are not invalid.  However, certain decisions can be challenged.  There are a few steps you need to consider.  Note you haven’t said what the size of your scheme is, as the requirements are slightly different.

You have mentioned the Chair, Treasurer and Strata Manager but not the Secretary who is responsible for notices of meetings, have you told the Secretary that they are breaching the Act?

1. A notice of a Strata Committee meeting must be given to each Committee member and owner at least 3 days before the meeting.  The notice must include a detailed agenda, which would include any proposed decisions.

If the scheme is more than 100 lots, then the notice can be placed on the notice board.

2. If owners have an objection to a proposed decision on the agenda, one third of them by unit entitlement can give written notice of that objection to the secretary before the meeting, and any decision will have no force or effect.

3. Going to the actual decisions that might be made at a Committee meeting, the type of decision can vary.  So the Committee might make a decision about something relatively minor or routine, such as doing a regular pest inspection.  Or they may resolve to enter into a contract to do major works that cost a lot of money.

The latter type of decision is one that could be challenged, if the owners were concerned that proper processes were not followed.  In the case of a Committee decision to proceed with major works, the owners could seek an order to stop those works proceeding, or call an EGM to reverse the decision, refer below.

4. Another factor is the scope of matters that can be decided by the Committee. If you are concerned that the Committee is going to continue in this way, then the owners can restrict the types of decisions they make, including the type of decision and an amount.  So you would include a motion on the agenda at the AGM to that effect.  

5. Another option if the Committee made a decision that was of concern to the owners is to call an EGM to reverse the decision.

Note that if the Committee had entered into a contract pursuant to a decision, and the owners wanted to reverse that decision, this could create legal difficulties.  The other party to the contract is entitled to rely on the validity of the decision and the authority of the Committee to enter into the contract, in the absence of notice to the contrary.

These are the decisions a Committee can’t make:

– improvements or enhancements to the common property – this requires a special resolution of the owners in a general meeting

– setting levy contributions

– spending more than 10% over the budgeted amount for an item, unless the owners have removed that restriction by resolution at a general meeting

– starting legal action or getting legal advice, other than where the expected costs are $1K x the number of lots, or $12,500, whichever is the lesser – this requires an ordinary resolution of owners in a GM

– for large schemes – not obtaining two quotes where the costs are more than $30K for one item/matter

– approval of by-laws

– termination of a strata manager.

Stratademocrat – Your problem might be arising from a lack of clarity with your preferred method of receiving notices. These details are contained within the strata roll. See [s178] of SSMA 2015 which I have included below.

Your address for services of notices on the strata roll can be either a postal address or an email address. Perhaps you should contact your SM and advise them that your address for service of notices is now your email address rather than your postal address and that all notices, including committee meeting notices, are to be emailed to you rather than posted to you. See [s263(3)] of the Act. 

Your postal address will still be noted on the roll however your primary contact will be via your email address. 

Although you seem to be largely concerned with committee meeting agendas it may be appropriate for your OC to change the way general meetings are held and voting papers are issued by passing a resolution motion about this issue at your next general meeting. The Act allows for:

• voting by means of teleconference, video-conferencing, email or other electronic means while participating in a meeting from a remote location,
• voting by means of email or other electronic means before the meeting at which the matter (not being an election) is to be determined by the corporation or committee (pre-meeting electronic voting).

178 Content of strata roll

(1) Information about lots The following information must be recorded in the strata roll in relation to a particular lot in the strata scheme:

(a) the name of the holder of the estate in fee simple in the lot (in the case of a freehold strata scheme) or the holder of the leasehold estate in the lot (in the case of a leasehold strata scheme),

(b) an address for service of notices,

(c) an Australian postal address, and an email address if the holder has one, if not provided as the address for service,

(d) the name of the holder’s agent (if any) appointed in accordance with this Act and the agent’s address for service of notices,

(e) information provided under a strata interest notice,

(f) information provided under a tenancy notice.

Hi Stratademocrat

Our scheme recently went through a similar process where we complained to NSW Fair Trading about a lack of  ‘due process’ – that is, not receiving meeting notices.

In mediation, it was agreed that the notices would be emailed within the proper time frame. It was also agreed that the next agenda would include motions to that effect – that is the committee/SM agreed to ensure that all owners received notices in a timely manner.

As it turned out, the first meeting went swimmingly, but the second one reverted back. So, I politely reminded the committee/SM that I did not have to go back to Fair Trading again, but rather had the option to apply to NCAT for the SM to be replaced.

Of course, whether I would have won that is another matter but at least we are back on track again.

Now, I am the least favourite person in our community. Sigh!

Strademocrat – If your SM has a history of ‘clerical errors’ then that may be a good reason for searching for and selecting another SM at your next General Meeting. In addition, if your Committee is also complicit then perhaps they should be replaced too.