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At a recent AGM, we had to vote on untaking a renovation of the common bathrooms. The SM confirmed in writing that the vote was just around authorising the works to be carried out but not the actual expediture. This again was confirmed verbally during the AGM.
However, the minutes state the below.
Renovation of 1st Floor Bathrooms
That pursuant section 108 of the Strata Schemes Management Act 2015, the Owners – Strata Plan No. XXX
SPECIALLY RESOLVED to renovate the bathrooms on the 1st floor.
Further that the Owners Corporation RESOLVED to delegate authority to the Strata Committee and the Strata
Managing agent to:
• Liaise with contractors
• Approve quotes
• Execute contracts and affix common seal (if required)
Total Unit Entitlements (UE’s) eligible to vote: XXX
Total UE’s voted for: XXX
Total UE’s voted against: XXX
Total UE’s abstained from voting: XXX
Therefore the motion was specially resolved.No information about budget or costs were shared. What ultimately happened after the AGM is the SC got 2-3 quotes and they just voted themselves to approve the works from one vendor. The OC had no say in the expediture as we were led to believe.
We are a large scheme so thought that the SC/SM would need to share the costs in advance for us to vote on? And then vote again, should the work be 10% more than originally discussed at the AGM?
- This topic was modified 1 week, 5 days ago by .
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From my experience as an observer at meetings, two things come to mind:
(1) The minutes must relate directly to the agenda item. Look at the wording in the agenda. Is there mention of the committee seeking authority to manage this issue? Is there mention of quotes to be obtained and the number of quotes to be obtained? Is there a cost ceiling mentioned? If the minutes diverge from the agenda item, a key question is whether the agenda item (the motion) was amended at the meeting prior to a vote taking place that takes into account the points listed in the minutes; and
(2) Often cunning committees at meetings seek a broad right from the OC to manage a forthcoming issue eg refurbishing common toilets, with the “details” (eg cost, colour scheme, bulding materials etc) to be “sorted out later by the committee”. The committee may seek input from the OC, but often the motion and minutes will not require such consultation.
What was written on the agenda? The agenda item should say something like “that the Owners Corporation resolves by special resolution / ordinary resolution to <insert activity here>”.
The exact wording from the agenda should be copy / pasted into the minutes. At the time of the meeting, you could re-write the motion to say something else. You can only do this if you are not taking pre-votes from members not attending the meeting in person. Everyone has to be voting on the same decision.
I suggest:
- Read the agenda and compare that motion with what is shown in the minutes.
- Find out if anyone voted before the meeting. If yes, the wording of the motion must NOT change.
Meeting procedures are documented in the Strata Schemes Management Act 2015 (NSW). Scroll down to the bottom to “Schedule 1 Meeting procedures of owners corporations”.
Find out if anyone voted before the meeting. If yes, the wording of the motion must NOT change.
A motion can be amended provided the main intent of the motion is not changed and I don’t think the existence of pre-meeting votes changes that. In fact, section 14A of the regulations states that an amendment could render pre-meeting votes redundant.
However, if the entire vote was conducted by pre-meeting votes, the motion can’t be amended.
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.
Remember that any decision of the committee must be made at z committee meeting. None of this voting by email.
And all committee meetings and agendas need to be sent to Owners prior to the meetings.
Thirdly owners always override the decision of a committee with sufficient numbers.
So if you can organise enough owners they can overule the committee.
Failing getting the decision thrown out at the committee meetings, if you get 25% of lot ownersto petition the secretary, you can call a general meeting where you out your motion to reverse the committee decision.
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