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What do we do if the strata committee is not acting appropriately?

Posted 08 November 2024

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Given the power a strata committee has and the decisions it can make on behalf of the owners corporation without consulting other owners, if you think that the strata committee is acting improperly, there are number of things you can do as an owner:

  • Block the strata committee from making decisions by putting the strata committee on notice that the lot owners who signed the notice (with unit entitlements that exceed one-third of the aggregate unit entitlement) oppose the making of that decision. This notice must be signed by all opposing owners and given to the strata committee before the making of the decision.
  • Remove members from the strata committee by ordinary resolution at a general meeting.
  • Elect another person to be on the strata committee at the next annual general meeting.
  • Convene an extraordinary general meeting to appoint a new strata committee.
  • If you have concern about a particular decision that has been made by the strata committee, you can seek to override it by a general meeting resolution if it is not too late. If the Strata Committee passes a resolution, the decision by the owners corporation in a general meeting will overrule the decision made by the strata committee, but it could be too late if a contract is already entered into. An urgent interim order can be sought in some instances to restrain the committee from taking further action where a decision is being challenged.
  • A claim for damages may be available against one or more strata committee members, where they have not complied with their duties (see FAQ 12 above for details).
  • The Tribunal has power to make the following orders:
  • an order removing a person from a strata committee;
  • an order prohibiting a strata committee from determining a specified matter and requiring the matter to be determined by resolution of the owners corporation; and
  • an order removing one or more of the office bearer of an owners corporation from office and from the strata committee. In determining the removal of a strata committee, the Tribunal will need to satisfy that the person has:

a. failed to comply with the SSMA or the by-laws of the strata scheme; or

b. failed to exercise due care and diligence, or engaged in serious misconduct, while holding the office.

  • A strata manager could be appointed by an order under section 237 of the Strata Schemes Management Act 2015 to have control of all decision making of the scheme, which will have the effect of suspending all voting rights of the committee.
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This is an extract from our Strata Committee Manual.

To access more information, please fill in the below form to download our Strata Committee Manual for free.

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