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  • #8393
    den19dy
    Flatchatter

      Hi,

       

      On the agenda for our next AGM is a motion to create a by-law that seeks to allow the Owners Corporation to serve notices electronically. If passed this by-law would contradict s236 outlines how notices should be served. I am aware that s49 does not state that by-laws need to be consistent with the act.

      It does not seem logical that by-laws can overide the act does anyone know if this is possible.

    Viewing 12 replies - 1 through 12 (of 12 total)
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    • #16525
      Jimmy-T
      Keymaster

        Notices can be sent electronically but I think they require both a by-law allowing the EC to do so and for the owners to ‘opt-in’.

        This is what the Act says about EC notices:

        Part 2 Provisions relating to meetings of executive committee

        6   Notice of executive committee meetings

        (1)  An executive committee of a large strata scheme must give notice of its intention to hold a meeting at least 72 hours before the time fixed for the meeting:

        (a)  by giving written notice (which may be done by electronic means) to each owner and executive committee member, and

        (b)  if the owners corporation is required by the by-laws to maintain a notice board, by displaying the notice on the notice board.

        (2)  An executive committee of a strata scheme that is not a large strata scheme must give notice of its intention to hold a meeting at least 72 hours before the time fixed for the meeting:

        (a)  by displaying the notice on the notice board, or

        (b)  if the owners corporation is not required by the by-laws to maintain a notice board, by giving written notice (which may be done by electronic means) to each owner and executive committee member.

        (3)  The notice must specify when and where the meeting is to be held and contain a detailed agenda for the meeting.

        (4)  A notice may be given to a person by electronic means only if the person has given the owners corporation an e-mail address for the service of notices under this Act and the notice is sent to that address.

        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.
        #16526
        alley cat
        Flatchatter

          Our OC put these by-laws in place at an AGM nearly as soon as we could. Realistically the agenda for an AGM / EGM is still sent out by mail. The advantage of the electronic process has made the biggest difference to our EC meetings. Agenda’s are still posted in our notice boards, but are also distributed via email to owners who have provided an email contact.

          It also means that we don’t have to have face to face only EC meetings, we have on a couple of occassions had to pass a motion without a face to face meeting, still with an agenda / minutes. We also have an EC member who is overseas and joins us via Skype, this is something that would not be possible if this by-law was not in place.

          The use of technology allows greater inclusion of all owners, as it means that all owners are able to contribute and it is not just left to those who are owner occupiers, this is the reason we were so keen to put these by-laws in place.

           

          Alley cat

          #16560
          den19dy
          Flatchatter
          Chat-starter

            Thanks Jimmy,

             

            Yes I was aware os the requirements for EC meeting my concern is that the motion on the agenda is designed to allow the strata manager to serve notices for general meetings which are currently served in accordance with s236. The question is can a by-law overide the need to serve notices in accordance the act

            #16551
            kiwipaul
            Flatchatter

              @den19dy said:
              Thanks Jimmy,

              The question is can a by-law overide the need to serve notices in accordance the act

              The act allows for emails to be used provided the owner supplies their email add, so I don’t see why a bylaw is required.

              Those people who don’t supply an email must have the documents sent by regular mail (a bylaw I don’t believe would be able to change this).

              Receiving documents by email is so much more convenient and you can distribute much more information and have a discussion without even meeting.The downside is that those not on email miss out but as 90% of people now use email I believe the 10% not on email have to accept they are going to be disadvantaged unless they embrace the new technology.

              #16556
              Whale
              Flatchatter

                This is becoming quite confusing (to me at least).

                With regard to the NSW Strata Schemes Management Act (1996):

                Cl 236 relates to legal “proceedings” and the service of documents in those circumstances, not otherwise such as for Meetings.

                Schedule 2 merely requires that Notices of Meetings be “served”

                Cl 43 states that “a by-law has no force or effect to the extent that it is inconsistent with this or any other Act or law”.

                So in response to den19dy …..

                1) A By-Law is not necessary to permit the electronic serving of Notices of General Meetings and for Levy Contributions, but individual Proprietors need to supply an e-mail address for that purpose. No e-mail address, and these Notices have to be sent as hard-copies personally, or by post, or by courier etc.

                2) Notices of Proceedings need to be served in accordance with the Act, and no By-Law can override those Provisions.

                Now that’s clearer (to me at least).

                Our O/C placed a Motion regarding the Electronic Service of Notices on an AGM Agenda a few years ago, and included a Form to permit Proprietors to opt-in. The Motion was agreed to, and the Resolution worded to permit the electronic serving of General Correspondence, Meeting Agendas, Minutes, Levy Contributions, Payment Reminders, and “any other documents deemed appropriate from time-to-time by the E/C” to all Proprietors who supplied an e-mail address for that purpose.

                I think its about 3 years down the track as of now, and I currently send only ≈30% of Notices by snail-mail, and receive ≈10% of Levy Payments by that means (as cheques).

                #16542
                den19dy
                Flatchatter
                Chat-starter

                  Not sure about that s236 states:

                  (1) Application of section This section applies to service of a notice or other document required or authorised by this Act or the by-laws to be served by the Director-General, an Adjudicator, the Tribunal, an owners corporation, the lessor of a leasehold strata scheme, an executive committee or the secretary of an executive committee and is subject to the other provisions of this Act.

                  If you read this carefully you will see that it does relate to an owners corporation and under schedule 2 clause 27 it states:

                  27 Persons to whom notice of general meeting must be given

                   

                  (1) Notice of the meeting must, at least 14 days before the meeting, be served on each owner and each first mortgagee and covenant chargee shown on the strata roll.

                  (2) Nothing in this clause requires an original owner to serve on himself or herself a notice of the meeting.

                  You will not that s236 states any notice or document served under the act and by the OC.

                  Any other views? I also think there are advantages to electronic service of documents but the risk is that some people do not have email and they can get caught in filters etc.

                  More importantly if the act says they must be served (cl27) and it prescribes a process for service then notices for the meeting that do not comply may risk being invalid.

                  My question remains however, can the motion overide the act ? I do not think so because they are subordinate to the act in accordance with general legal principles but does anyone else know if this is right?

                  #16543
                  den19dy
                  Flatchatter
                  Chat-starter

                    Sorry I put the clause for the first general meeting (cl27) when I should have put cl32 which is for subsequent meetings as per below. Either way the notice must be served.

                     

                    32 Persons to whom notice of general meeting must be given

                     

                    (1) Notice of a general meeting of an owners corporation must, at least 7 days before the meeting, be served on each owner.

                    (2) Notice of a general meeting of an owners corporation must also be served, within that 7-day period, on each first mortgagee and covenant chargee shown on the strata roll if an item on the agenda for the meeting requires a special or unanimous resolution of the owners corporation or relates to insurance, budgeting or the fixing of a levy that will require expenditure above the prescribed amount referred to in the definition of “priority vote” in clause 7 (1).

                    (3) If a member of the executive committee other than the secretary receives a requisition to convene an extraordinary general meeting of the owners corporation in accordance with this Schedule, the member may serve the notice on behalf of the executive committee.

                    (4) Nothing in this clause requires an owner to serve on himself or herself a notice of a general meeting

                    #16544
                    den19dy
                    Flatchatter
                    Chat-starter

                      Ok I should read more carefully because s236 4(e) states:

                      in any manner authorised by the by-laws for the service of notices on owners.

                      I am still a bit worried about whale thinking you do not need a by law.

                      #16533
                      Whale
                      Flatchatter

                        Can I apply my well known “test of logic”?

                        With the exception of Exclusive Use By Laws By-Laws, I can’t think of any that don’t apply to all Residents of the Plan, so unless the intention is to require all Proprietors to accept the electronic delivery of Notices (agendas, minutes, levies etc), and that’s unlikely given that some may not have e-mail addresses or merely don’t want to, why would you want to or need to Register a By Law for that purpose.

                        Gees Louise, let’s not make administration any harder that the Act already makes it!

                        No more from me on this; no matter what !!! 

                        #16534
                        den19dy
                        Flatchatter
                        Chat-starter

                          I am not sure if you are suggesting that we just stick with the methods for service prescribed in s236 or make a by- law that can override (s236 4e) that section  of the act and allow an alternative form of service. If, however, no by-law is passed then you can not rely on electronic service alone with risking the meeting being invalid in my view.

                           

                          Any other views on this?

                          #16535
                          Jimmy-T
                          Keymaster

                            The non-service of General Meeting notices is such a serious issue that the creation of a by-law to allow agendas by email may jst be a belt and braces approach, just in case, for instance, someone changes their email address and hasn’t told the Strata Manager or secretary.

                            I do know however that sending out great wodges of paperwork that most people aren’t even going to read is incredibly wasteful.  Not only that, electronic notices are easily searchable for years after the original paper notices have gone to recycling.

                            That said, I think our strata manager sends out the agenda on hard copy, just to be on the safe side.  There are people who will claim they didn’t get proper notice of meetings and until such time as there is an automatic system for notifying the receipt of General Meeting notice, I think you will get both.

                            And I don’t think the by-law over-rides the law – it sits alongside it.  It would only appear tooverride the law if it said that’s what it intended to do.  And then, of course, it would be invalid because no by-law can override any other law on the statute books.

                            I think this particular horse has been beaten to expiration. There is nothing to be gained from going round in these circles.  Unless someone has a definitive statement that will put this to bed, let’s consider the matter closed.

                            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.
                            #16566
                            pmo

                              Not putting the issue below to bed but adding an aside. In the submission I am currently preparing for the review into the strata legislation I have suggested that it is time that any owner with internet access be REQUIRED to provide an email address for the service of documents. 

                              People whinge and complain about environmental issues, like the destruction of forests, yet take no action to initiate change.

                              If a user thinks that giving out their email address will result in spam, all they have to do is create a Gmail or Hotmail account just for the service of notices.

                              The other, perhaps more democratic alternative, is to charge a substantial “processing fee” for manual service of documents, the same way many businesses do these days. (eg. 50c per page). Watch people come running with their email addresses then. An exemption would be made for people such as the elderly who genuinely do not have ready access to the internet. No excuse though for those who have half a dozen iPhones and several PC’s at their disposal.

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