OK, I may have been guilty of over simplification (again!).
According to Section 1 of the Act, an owner may only nominate one person to the committee (Section 31.3) and a candidate who is not an owner can’t be nominated by someone who is standing for election themselves (Section 31 [d]), which covers precisely the scenario outlined in the story.
Re-reading all the other whys and wherefors in the NSW strata Act, it seems it may be possible for two owners, for instance, to cross-nominate each other, but you have to ask why they would when they could just as easily self-nominate.
And since the rule is you can only nominate one person, then neither of the cross-nominees would be able to nominate a third party, and neither would they if they self-nominated.
But one thing is clear, an owner standing for election can’t nominate a tenant or outside party and they can’t nominate more than one person, so if they self-nominate, then they’re done
SSMA Section 31 Persons who are eligible to be appointed or elected to strata committee
(1) The following persons are eligible for appointment or election to the strata committee of an owners corporation—
(a) an individual who is a sole owner of a lot in the strata scheme,
(b) a company nominee of a corporation that is a sole owner of a lot in the strata scheme,
(c) an individual who is a co-owner of a lot or a company nominee of a corporation that is a co-owner of a lot in the strata scheme, if the person is nominated for election by an owner who is not a co-owner of the lot or by a co-owner of the lot who is not a candidate for election as a member,
(d) an individual who is not an owner of a lot in the strata scheme, if the person is nominated for election by an owner of a lot who is not a member, or is not seeking election as a member, of the strata committee.
(2) To avoid doubt, an individual who is a sole owner of a lot may nominate himself or herself, and an owner that is a corporation may nominate the corporation’s company nominee, for election as a member of the strata committee.
(3) A sole owner of a lot in a strata scheme may not nominate more than one person for election as a member of the strata committee, except as provided by subsection (5).
(4) Only one co-owner (including a company nominee of a co-owner) of the same lot may be a member of a strata committee at the same time, except as provided by subsection (5).
(5) A person who is an owner of more than one lot in the strata scheme may nominate one person for election as a member of the strata committee for each lot for which the person is an owner.
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.