Flat Chat Strata Forum Strata Committees Elections Current Page

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  • #58202
    AJP
    Flatchatter

      Due to lockdown, our upcoming AGM will be by Zoom. If it is necessary to hold an election to determine Strata Committee membership, how does that happen on Zoom? i.e. the strata manager can’t hand out blank pieces of paper for voting.

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    • #58211
      Jimmy-T
      Keymaster

        Currently the law allows any strata scheme in NSW to hold meetings online and voting can be conducted either directly, by pre-meeting votes or directly by proxy.  However, pre-meeting electronic votes are not permitted in the case of elections.

        The reason the law calls for  the blank sheet of paper is so that owners corps can’t issue default lists of their preferred candidates (although many still do) to the exclusion of those they don’t want.

        There are off-the-peg programs available (like StrataVote) that may accommodate this, but I would think a simple solution would be for the secretary to issue blank emails with just the words “Strata Scheme No. XXXX Committee Election” in the subject line and – during the Zoom meeting and not before – invite owners to fill in the names themselves and hit return.  Each email would have a time stamp and identify the owner by default which would get around multiple votes.  And the owners could return ballots as proxies on the same basis.

        There may be  a more elegant or simpler solution out there – if so, let’s hear it.  One suggestion is to delay the election until after the lockdowns are over, as the existing committee can stay in office until a new one is elected.  But I can think of a couple of strata schemes where that would not go down well at all.

        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.
        #60375
        PJ
        Flatchatter

          I would like feedback about how our recent AGM by Zoom was conducted as it seems very odd and perhaps illegal.

          We had 15 of 24 owners sign in and 3 owners held proxies…so 18 voting owners. The size of the committee was previously 9 but a vote by owners decided to reduce to 7 this year. There were initially 13 committee nominations ( 2 later withdrew) so total of 11 nominations for 7 positions. The Strata Manager then stated without any discussion with owners , that the election of committee would be conducted by voting papers to be submitted by owners to SM with a deadline of 6 days later.

          Is it legal to not complete the election of a strata committee at an AGM?
          The Strata Manager informed all owners they must vote for 7 committee members…is this right. Can owners vote for a lesser number of their choice and not have their voting paper declared invalid by the SM?
          Is there a conflict of interest if a Strata Manager and Secretary are long term best friends? Should this be declared to owners as a possible conflict of interest?

          I have on 3 occasions requested a copy of the Strata Roll from the secretary and SM and been denied x 3 / ignored x2 and told the secretary did not have access to same. Is this legal and accurate?

          #60377
          Jimmy-T
          Keymaster

            On reflection, the rules for strata committee elections are so specific I don’t think it is possible to hold an election electronically without breaching  one aspect of strata law or another.

            I will raise this with Fair Trading and get back to you all.

            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.
            #60542
            AJP
            Flatchatter
            Chat-starter

              It would be interesting to hear FT’s response. We ended up being told by the SM that we all had to vote for 5 people over zoom, so that everyone heard who everyone else voted for. Awkward. And we weren’t allowed to vote for less than 5, even though I questioned that.

              #60545
              Jimmy-T
              Keymaster

                Hi, the response I got from a Fair Trading officer at the seminar last week was that an email with a list of nominees that you could check off was valid. The verbal vote you experienced seems to contradict just about everything in the Act and I would question its validity.  The SM certainly can’t require you to vote for five people.  I got into an argument with the FT guy about the lack of clear guidance on this on their website. I have contacted them again for further clarification. Expecting a call back today.

                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.
                #60559
                Jimmy-T
                Keymaster

                  Here is the definitive response from Fair Trading.  NB, it says: “Clause 10 of the Strata Schemes Management Regulation 2016 (the Regulation) provides that ballot papers for strata committees must be used to collect certain information to ensure a valid vote is cast.” So your verbal vote was definitely not OK. Here’s the advice from Fair Trading.

                  Meetings and voting via Zoom is valid

                  Zoom can be used by owners corporations to conduct meetings and as a means of voting at meetings of the owners corporation. Elections for the committee can also be conducted by electronic means, including by Zoom. The outcome of resolutions approved at those meetings and of elections conducted via Zoom and otherwise notified and held in accordance with the law would be valid.

                  The use of Zoom can be enabled through a resolution under clause 14(1)(a) of the Strata Schemes Management Regulation 2016. However, use of Zoom can now also occur without a resolution due to the COVID-19 provisions under clause 70.

                  Pre-meeting electronic voting cannot be used for elections

                  Clause 10 of the Strata Schemes Management Regulation 2016 (the Regulation) provides that ballot papers for strata committees must be used to collect certain information to ensure a valid vote is cast. The Strata Schemes Management Act 2015 and the Regulation allow for electronic voting to be used on any matter to be voted on at a meeting of the owners corporation and this includes the election of committees, so the ‘ballot paper’ referred to in the law could take an electronic form.

                  It will be valid so long as the owners corporation collects the information required by clause 10(3) of the Regulation for the contents of ballot papers, which includes:

                  • the name of the candidates being voted for,
                  • the capacity in which the voter is exercising their right to vote (lot owner, by proxy etc), and
                  • if the vote is cast by proxy – the name and capacity of the person who gave the proxy.

                  However, the Regulation does not allow pre-meeting electronic voting to be used for the purposes of electing a committee.

                  Reasonable steps must be taken to ensure lot owners can participate in and vote at electronic meetings

                  The COVID-19 temporary measures contained in clause 70 of the Regulation allow owners corporations to use electronic voting even if a resolution authorising its use has not been passed. In using this power the secretary of the owners corporation, or the managing agent, must take reasonable steps necessary to ensure that each lot owner can participate in and vote at the meeting.

                  Statutory review recommends permanent adoption of electronic voting

                  A report on the statutory review of the strata laws was tabled in Parliament on 29 November 2021. The review recommends the use of electronic voting become generally available without a prior resolution of the owners corporation being required, but that pre-meeting electronic voting would still require a resolution of the owners corporation before being used. The review also recommends that meeting procedures set out in the strata laws be revised to ensure they are clear, including on the use of electronic means of meeting and voting.

                  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.
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