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04/05/2018 at 7:46 pm #9312
I am the secretary of our Owners Corp and wish to introduce a new by-law allowing the EC to approve exclusive use of the roof and other areas for solar panels etc.
We are almost due to hold our AGM. Can I add an AGM agenda item to the notice of meeting seeking a special resolution to amend the by-laws or does it have to go to an Executive Committee meeting first?
I have the draft by-law ready to go and would like the process to be a straightforward as possible. Thanks in advance for any assistance or advice.
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04/05/2018 at 10:03 pm #20684
Does the owners corporation require a by-law to install something on its own property?
I think you may be setting the bar a little high for yourself there as a by-law requires a 75 per cent vote but a simple resolution only needs a simple majority.
Just put it in as an agenda item that the committee investigates the options, with a due date for reporting back (or it may well be stalled).
If you get your motion in on time, then it has to be discussed and voted on 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.
04/05/2018 at 11:42 pm #20685Just to confirm, are you doing this so the owners corp can put solar on the roof or so that individual owners can do it?
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.
05/05/2018 at 8:11 am #20686The plan (which is generally supported by all four owners) is to install five separate PV solar systems. One for the common area power which would not require any change in by-laws and up to four for as many owners wish to install their own. The latter group require a by-law change which will allow the EC to approve the allocation of parts of the roof space (and other areas if batteries are added) for individual lot owners’ use.
My question is about process. Is it necessary for the EC to propose a change in by-laws or can the Secretary (or any other owner) put forward a draft resolution to be added to the next AGM agenda?
And if this is OK, what is the notice period for having a draft resolution included in the AGM agenda?
Once it is on the agenda, I am confident, given the general support for the solar proposal, that it will achieve 100% backing.
05/05/2018 at 8:35 am #20673If you haven’t already done so, you need to look at sections 142 -144 of the Act which, among other things, require the owners who are the beneficiaries of common property rights by-laws to agree in writing to their creation.
You should also take a close look at the responsibilities for repair and maintenance of the solar panels and the roof where they are installed. For instance, you might want the owners corp to retain responsibility for the roof but the individual owners to have responsibility for their solar panels.
Or you could have the OC install the entire array and find a way of charging owners for electricity they use.
To be honest, I think you should be presenting a motion that empowers you to go ahead and draw up the by-laws, once you have established what the majority of owners want, then present them at an EGM held at a later date specifically for that purpose.
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.
05/05/2018 at 11:13 am #20675Geez, JimmyT. This question is not about solar systems or even the draft by-law which is essentially the one that was suggested by this forum two years ago and does, indeed include making individual owners responsible for their own panels.
It is simply whether a new by-law can be proposed at an AGM without having been first recommended by an Executive Committee.
I haven’t read sections 142-144 of the Act but if it requires the owners who are the beneficiaries of common property rights by-laws to agree in writing to their creation, then surely that is satisfied by the unanimous carriage of a motion at an AGM which is then properly recorded in the minutes circulated to all owners?
So, once again:
Is it necessary for the EC to propose a change in by-laws or can the Secretary (or any other owner) put forward a draft resolution to be added to the next AGM agenda?
And if this is OK, what is the notice period for having a draft resolution included in the AGM agenda?
05/05/2018 at 11:50 am #20716
@Casuarina said:
Geez, JimmyT. This question is not about solar systems … it is simply whether a new by-law can be proposed at an AGM without having been first recommended by an Executive Committee.The opening line of your first post:
“I am the secretary of our Owners Corp and wish to introduce a new by-law allowing the EC to approve exclusive use of the roof and other areas for solar panels etc.”I haven’t read sections 142-144 of the Act but … surely that is satisfied by the unanimous carriage of a motion at an AGM which is then properly recorded in the minutes circulated to all owners?
Why would you think that without reading the Act? I can’t make it any easier for you. Just click on the link provided in my previous post Oh, and your assumption is wrong. The owners affected have to agree to the by-laws in writing.
So, once again: Is it necessary for the EC to propose a change in by-laws or can the Secretary (or any other owner) put forward a draft resolution to be added to the next AGM agenda?
And if this is OK, what is the notice period for having a draft resolution included in the AGM agenda?
Anyone can propose anything at an AGM. The law only requires you to have to have the motions in before the agenda is issued. Common sense dictates that you would allow five working days for the agenda and other papers to be complied for 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.
05/05/2018 at 12:39 pm #20410OK. Thanks JimmyT. I am suitably chastened. With only four owners it should be easy to get each one to confirm in writing their agreement to the proposed new common property rights by-law prior to the AGM.
I am confident that the draft we have fulfills the other requirements of the Act.
Thanks for answering my question about process too. That will at least save me one step.
05/05/2018 at 12:47 pm #20411@JimmyT said:
You should also take a close look at the responsibilities for repair and maintenance of the solar panels and the roof where they are installed. For instance, you might want the owners corp to retain responsibility for the roof but the individual owners to have responsibility for their solar panels.
Or you could have the OC install the entire array and find a way of charging owners for electricity they use.
With reference to the second option, there has been press coverage recently in the Sydney Morning Herald that caught my interest: https://www.domain.com.au/news/here-comes-the-sun-threestorey-apartment-block-installed-solar-panels-now-pays-half-the-energy-bills-20180427-h0z5iw/
It describes an installation at ‘Stucco’, a small 8 unit co-operative housing block in Sydney which converted the building into an “embedded network” whereby the building has a single grid connection and manages the metering and billing of units internally. The SMH article also refers to this as a ‘micro grid’. There is some better technical description at https://theconversation.com/get-in-on-the-ground-floor-how-apartments-can-join-the-solar-boom-79172
However, after following this up with the principal of SunTenants, the group responsible for this scheme, I learned that what doesn’t come out clearly in the press coverage is that the legal work required to get an exemption from the regulator and draft agreements for all of the parties participating in the scheme was horrendously expensive at $130,000. For them, as a pilot scheme this was covered by Gilbert and Tobin as pro bono work and by Sydney City Council with a special grant. And next time, one could expect it to be cheaper now that the precedent has been set.
But the clear advice from SunTenants was to keep it simple and continue down the path that we are on of separate, individual systems for our four apartments and another for the common area.
05/05/2018 at 1:06 pm #20276@JimmyT said:
If you haven’t already done so, you need to look at sections 142 -144 of the Act which, among other things, require the owners who are the beneficiaries of common property rights by-laws to agree in writing to their creation.You should also take a close look at the responsibilities for repair and maintenance of the solar panels and the roof where they are installed. For instance, you might want the owners corp to retain responsibility for the roof but the individual owners to have responsibility for their solar panels.
For completeness, and for the general information of other users of the forum, here is the text of the proposed common property rights by-law:
Special By‐Law: Equipment located on Common Property
Where a proprietor of a Lot desires to place equipment such as hot water, solar systems or air conditioning systems on the common property,
1) The proprietor(s) of the Lot concerned must apply for the works and be granted written consent by the Owners Corporation, and at its absolute discretion, prior to the commencement of any works.
2) All works must be completed by suitably qualified, licensed, and insured trades persons where required.
3) All works to be at the cost of the proprietor of the Lot concerned.
4) Where an air conditioning or hot water system is used it must be located in a position directed by the Executive Committee. The system must not interfere with the use of the common property by any other Lot owner or resident.
5) All pipework must be lagged and insulated in order to avoid any possibility of burning.
6) Where solar systems are used:
- a) the costs of any works within the common property meter room and/or to the common property electrical distribution system as are required under any electrical regulation or standard are the absolute responsibility of the Proprietor/s concerned, and
- b) all frames and solar panels used must be securely fastened to the common property and in the position approved by the Executive Committee, and
- c) where required in that approval, the ability of the common property to support the load must be certified by an appropriately qualified person.
7) All pipework, wiring and electrical conduits must be installed/positioned and fastened neatly on the common property, and where any components of the installation such as but not limited to the equipment, pipework, and electrical conduit has, by necessity, to be placed in a position that is visible on the front façade of the property, those components must be suitably screened or concealed from view in the terms given in the Executive Committee’s approval.
8) Any damage to common property caused by the installation or ongoing use of the equipment must be rectified within 14 days of occurrence by the proprietor of the Lot concerned. Where the proprietor of the Lot/s concerned fails to rectify any damage the Owners Corporation shall be authorised by this Special By‐Law to have the work completed and charge any and all costs to the proprietor(s) concerned.
9) All costs of maintaining and/or replacing any and all components of any equipment including hot water, solar systems or air conditioning systems placed on common property under the provisions of this Special By‐Law are forever the absolute responsibility of the Proprietor/s concerned.
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