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The following motion appeared at a recent AGM.
It uses mixed terms, i.e. licence, lease and exclusive use.
The confusing wording is not the issue.
The question is:
Absent any details about this ‘idea’, be it a licence, lease or exclusive use, is this motion sufficiently detailed that its resolution, and any subsequent action that followed, would be ‘legal’.
There was no instrument (no deed or lease or licence or by-law) before the meeting, all the detail will be determined by the SC at a later date. Is that really what the Act envisages?19. LEASE AGREEMENT ##### COFFEE CLUB
THAT by Special Resolution that the Owners Corporation grant ******* and *****, owner of lot **, use of the “Social Space” to continue the running and management of the “##### Coffee Club” under a licence agreement with all terms and conditions to be approved by the strata committee.
Explanation: The owners are seeking approval to exclusively use the “Social Space”.
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” …under a licence agreement with all terms and conditions to be approved by the strata committee.”
That’s a pretty broad condition unless you think there’s some jiggery-pokery afoot. If this is a commercial outfit, insist that a legal document protecting the strata scheme be drawn up by a lawyer at the coffee club’s expense.
If it’s a social group, make sure that the conditions can be revised annually at the AGM.
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.
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