NSW legislation update: Committee meetings
Issue #2 of 6: Committee meetings
Significant decisions about the management of your property are made by committee members. To assist in better coordinating this, there are new requirements which include disclosure of conflicts of interest and the need for committee members to be up-to-date with levies at each meeting.
The new Strata Schemes Management Act 2015 will come into effect from 30 November 2016.
Here are some of the key legislation changes to note:
- The “executive committee” will be renamed “strata committee”.
- Strata committees for large schemes (greater than 100 lots, excluding utility lots e.g. car or storage spaces) must have a minimum of three committee members.
- A strata managing agent, building manager, leasing agent or a person with an undisclosed connection with the original owner (developer), will not be eligible for election to the strata committee unless they are an owner in the strata scheme.
- In circumstances where at least 50% of the lots have notified tenants on the strata roll, a scheme must hold a separate meeting before the AGM to elect a tenant representative.
- The tenant representative member of the strata committee can attend strata committee meetings, however they are not entitled to vote.
- Committee members, all owners and a tenant representative (if elected) must receive a copy of the notice of strata committee meetings, at least three days (instead of 72 hours) prior to the meeting. You therefore may need to consider an allowance for postal service delivery. Detailed attachments can be excluded for tenant representatives.
- Each strata committee member needs to disclose any direct or indirect conflict of interest on a matter being considered by the committee, and this should be recorded in the meeting minutes.
- Committee members must have paid all of their levies and any associated costs owing in order to vote at meetings.
- The quorum for committee meetings will be affected if a committee member is unfinancial at the date of the meeting.
- Minutes of committee meetings will be issued to all owners in schemes of 100 lots or less. They are issued to large scheme owners only if a request is made within seven days of the meeting.
- The strata committee may approve other means of voting at their meetings, including voting via email or tele/video conference from remote locations.
Click here for previous communications on the NSW legislation changes.