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Our AGM was held in May, the previous committee consisted of 6 members. Four resigned leaving the secretary (M1) and (M2). It was determined that the committee would be five members and (M3), (M4) and (M5) were elected.
There were congratulations all round especially to (M4) and (M5), a husband-and-wife team that saw many jaws drop especially “the oligarchy” did not know that that could be done (M4 is not on the title and was nominated by an owner). The oligarchy has had control of our building for at least 15 years.
First meeting was heled on 20th May and a second Meeting was to be scheduled for Thursday 24th June 2021.
A week after the first meeting (20th May 2021) (M3) declares that he has decided to put his apartment on the market and that he is resigning. The Chair said that she was “happy to have him stay on until he sells even though he is moving to Brisbane.” We are on the NSW/QLD border.
Approaching the second meeting and the Secretary was having trouble getting the agenda out, saying she was stressed and not well and the meeting was postponed to July 5. A few days later it was changed to the 6th.
Then on June 30th M4 and M5 get a phone call from an owner wanting to know what this EGM is all about, (M4) who took the call, “I have known idea what you are talking about …”.
The day before the rescheduled #2 meeting (M1), (M2) and (M3 now living in Bris.) had a meeting and were all to resign and to go to an EGM and declare the committee disbanded.
The three had called a Strata Committee Meeting on the 23rd of June 2021, members (M4 and M5) were never notified of the meeting, there was no Agenda, and the meeting was not posed on the Noticeboard.
All documents have now been issued to the owners, (M4 and M5) have contacted the strata management and they say that nothing can be done now no matter what. The Secretary has ordered the EGM.
What can be done? Can the EGM be called invalid and (M4 and M5) appoint 3 new members? Our building has been in the dark ages for many, many years and (M4 and M5) have an agenda to bring the building into the 21st century including Stratabox. They say they will not nominate again.
The EGM is scheduled for 14th July.
[NB: This post has been edited to make it more comprehensible. I can only hope I read it correctly -JT.]
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The first thing that occurs is whether or not both M4 and M5 should be on the committee since Section 31 (4) of the Act states: “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).” FYI, Subsection 5 allows two members of the same household both to be members if they own two separate lots in the scheme.
If both M4 and M5 are owners listed on the title of the apartment (but not on the strata roll) then they may have breached this rule.
But assuming they are both eligible, the EGM can’t kill off the committee unless it’s by a special resolution, as that would effectively mean removing committee members.
However, the simple resignation of the other three members would render the committee inoperable as it wouldn’t be able to achieve a quorum, which it would need to hold meetings and co-opt new members.
If the “oligarchy’ can muster the 75 per cent of votes at the EGM, you could be in trouble. Otherwise you could wait until the dust settled then apply to NCAT (under section 48 of the Act) as surviving members of the committee, to establish a new chair of the strata scheme with the authority to convene a new meeting, establish the numbers for a committee and elect new members.
Your comment about M4 and M5 saying “they will not nominate again” seems at odds with your question. Is that what you meant to say?
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.
Just to clarify:
- The member who has moved to Brisbane continues to be a member until such times as he has sold his apartment. Even after that, he can be validly nominated for re-election to the committee by another owner (provided they are not nominating themselves) but they can’t simply roll on with their membership. See Section 35 of the Act which says “An elected member of a strata committee vacates office as a member … if the person was eligible to be a member at the time of election and the person ceases to be so eligible …”
- The secretary can call a general meeting at any time (Section 19)
- In the past, the Tribunal has declined to overturn the decisions made at a technically invalid meeting where the technical error wouldn’t have made any difference to the outcome. This is different from the majority making a decision that it’s not entitled to make.
Getting back to the committee members asking owners to dissolve the committee, this would only happen if they could get enough votes to pass a special resolution to sack all the members of the committee and it sounds like they don’t have that.
If they resign, rendering the committee permanently inquorate, just be ready to apply to NCAT to become temporary secretary with a view to holding new elections ASAP.
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.
I wonder if it would be possible to get a motion added to the EGM to provide for the election/appointment of replacement Strata Committee members? Or even a new Strata Committee? Would the Strata managing Agent cooperate in a sufficiently timely fashion that the requisite notice could be given for the motion?
Would this work?
Until the agenda for the EGM has been issued, you can add anything to it. After that, it would have to be an amendment to the motions that are on there.
For instance, if the motion on the agenda is to disband the committee (which would actually be an invalid motion unless it is signposted as a special resolution) you could at the meeting propose an amendment to the motion that the meeting elects new members to fill the vacancies created by the resignations of the “oligarchy” as you call them.
As long as the amendment is a variation of the original motion – and not some entirely different thing – then it should stand.
You might also do well to follow the format for strata committee elections as set out in Section 9 of the Regulations, which is to call for nominations, then decide on the number of members you want on the committee, then conduct a poll by providing voting owners with blank sheets of paper on which they should write the names of the nominees they want to vote for.
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.
Until the agenda for the EGM has been issued, you can add anything to it. After that, it would have to be an amendment to the motions that are on there, which you would propose at the actual meeting.
For instance, if the motion on the agenda is to disband the committee (which would actually be an invalid motion unless it is signposted as a special resolution) you could at the meeting propose an amendment to the motion that the meeting elects new members to fill the vacancies created by the resignations of the “oligarchy” as you call them.
As long as the amendment is a variation of the original motion – and not some entirely different thing – then it should stand.
You might also do well to follow the format for strata committee elections as set out in Section 9 of the Regulations, which is to call for nominations, then decide on the number of members you want on the committee, then conduct a poll by providing voting owners with blank sheets of paper on which they should write the names of the nominees they want to vote for.
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.
Our Strata management let it happen. They are involved in this too and they are running scared.
A quiet word with the strata manager explaining that they shouldn’t tie themselves too closely to the fates of a doomed regime might help.
If someone tried that voting stunt at an AGM I was at I would stand up and declare the vote illegal and tell them it would be challenged at NCAT regardless of the outcome unless the followed the law.
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.
For owners who are facing dilemmas of poorly performing strata committees and incompetent strata managers, my advice is that you need to be prepared for the long fight.
If you are , even rightly, agitating against the SM and the committee, you are likely to be seen as the crazy one.
Remember that the contract for the SM is reviewed every three years. Propose your own preferred strata manager prior to the meeting where a renewal is tabled.
In the mean time gently bring up where the committee and SM are not complying with the act. Don’t make a big deal of it, because this tactic is to establish your credentials with other owners.
Talk to other owners and gain their confidence. If you can garner enough support you will be able to direct the voting at general meetings.
The long view can be two or more years.
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