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One of the NSW government’s reforms of strata laws, published 12/2023 was that
Committee members are prevented from participating or voting on a matter where they have a financial interest (excluding the strata renewal process).In one SC I am involved in, a committee member informed the SC by email that some common property needs to be serviced.
He went on to offer his services for the repair and stated his hourly rate. Yes, forumsters, you guessed right! The number of hours to be spent on the work is not revealed and the amount of hours are totally under his control.He is dead against a qualified serviceman attending to the problem. I already found one whose rates are reasonable.
I objected to the SC member’s proposal on the grounds of (a) it violates the reforms; (b) it breaches s. 46 SSM Act and (c) he is not qualified/licensed/experienced to make such repairs. He did not deny (c).
He explained to the SC that he cannot vote, as per the recent reforms.
I indicated to him that as I understood the reforms, specifically he (a) as a SC member, cannot vote and (b) he cannot participate in discussing the matter. But discuss, he already has done by virtue of telling the SC there is a problem (which nobody else saw or knew) and offered his solution.
He told me that if the SC vote is tied, he will ask all the owners to vote (by a show of hands, not a meeting) and not rely on the vote of the SC. He will respect the outcome of a vote of the OC.
The SC vote was indeed tied, I was opposed to his engagement.
(1) Surely the reforms are to stop SC members using the strata as an ATM? No?
(2) Can a SC member circumvent the reform by getting the OC instead to vote? I ask because if the OC voted, he would be successful in gaining a majority (as most owners know even less about the obligations of an SC than most SC members); and
(3) What are my options?
History: he already did work months ago for the OC without quotes and was paid $1,500. Thereafter I told him of s. 46 SSM Act (restriction on paying SC members) and the reforms. He either forgot what I sent him or like some SC members, believes the law does not apply to them).
Thank you.
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