FAQs: Urgently Filing of NCAT or Court Proceedings

Question: Can the majority of a strata committee provide urgent informal instructions by email before the usual notice and minutes procedures?
Answer: Yes. However:
  1. It needs be within the committee’s limit of authority; and
  2. Bannermans requires as a condition of acceptance of instructions, that the committee within (14) days provide the relevant formal notice and minutes evidencing approving in substance the motions supplied in its retainer.
Question: What are the committee’s limits of authority?
Answer: $15,000 or a limit set by the general meeting decision limiting the committee below that amount or restricting that type of decision.
Question: Do we really need to formalise these instructions by a subsequent formal notice and minutes?
Answer: Subject to the limitations on the committee, all committee decisions, not just these ones, need to be formalised in the usual way by formal notice and minutes.  The failure to do so, means that it is not a decision of the owners corporation, leaving the proceedings exposed to dismissal with adverse costs orders against the committee members personally.
Question: Do we need to follow the Strata Committee Meeting up with a general meeting of the owners corporation?
Answer: If the proceedings are beyond the limit of authority of the committee, Bannermans requires that as a condition of acceptance of instructions,  that the owners corporation provide within (1) one month, a copy of the relevant formal notice and minutes approving in substance the motions supplied in its retainer.

We have considerable experience with these issues and can assist if you are having difficulties with them.

 

***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.

 

Prepared by Bannermans Lawyers

2 May 2018

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For more information on this topic or any legal enquiries please contact your Strata Team.

 

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