Selecting Your Strata Committee
Your strata committee serves a number of important functions.
Representing owners or owners’ nominees, as well as responsible for the day-to-day running of the strata scheme, it’s important the right people are placed in the right roles for a well-functioning strata committee.
We share the top 10 considerations when selecting your strata committee.
1. Strata Committee Members
Strata committees range from 1-9 members, depending on the size of the strata scheme. The number of strata committee members is decided at each annual general meeting (AGM).
In a two-lot scheme, both lot owners must be members of the strata committee and in larger schemes, a minimum of three members are required to hold the three office-bearer positions. These are:
2. Who Can Be Elected
According to NSW Fair Trading, an individual is eligible for election to the strata committee if they are:
- An owner,
- A company nominee of a corporation that is an owner, or
- A person who is not an owner but is nominated by an owner who is not standing for election.
3. Who Cannot Be Elected
The following individuals are ineligible for election to the strata committee:
- Building managers
- Strata managers
- Property managers
- Financiers connected to the strata scheme
- Unfinancial members of the owners’ corporation
4. Disclosure Requirements
Before nomination, all individuals must disclose any financial, business or family connections to the developer or building manager.
Following nomination, all individuals must disclose any direct or indirect financial interest or possible conflict of interest in any matter being discussed.
The individual may be excluded from decision-making unless decided otherwise by the strata committee.
5. Strata Committee Meetings
There is no legislation that governs how often strata committees should meet. However, the following legal requirements do apply to strata committees:
- The Secretary has the authority to organise a meeting at any time.
- One-third of members can compel the Secretary to call a meeting.
- If the Secretary is absent, any other member can be asked.
Votes cast by the Treasurer and Secretary are counted, whereas votes cast by the Chairperson are not. All decisions made by the strata committee must be made collectively and not by a single person.
Any decision made by the strata committee is treated as a decision of the owners’ corporation. Should a dispute arise between the owners’ corporation and its committee, the owners’ corporation has more authority.
An owners’ corporation can also restrict the powers of its committee.
One of the major restrictions on strata committees relates to obtaining legal services. Strata committees must have approval from the owners’ corporation except in the following circumstances:
- The cost is no more than $15,000 for urgent action.
- The cost is no more than $3,000 for non-urgent action.
9. Removing Members
In NSW, there are two avenues to remove a strata committee member:
- A member may be terminated by a special resolution requiring a 75% vote in favour at a general meeting.
- A member may be removed by order of the Tribunal if they have failed to comply with the Act or engaged in serious misconduct.
Should a vacancy arise, the strata committee may ask the owners’ corporation for nominations at the next general meeting.
Vacancies don’t need to be filled if there are three or more existing members to fill the office-bearer positions.
For more information please visit the NSW Fair Trading website