In Morgan-Jones & Ufert v The Owners Strata Plan No 15599 [2019] NSWCATAP 187, the applicants, who owned a lot in the scheme, sought to challenge two of the scheme’s by-laws under section 150 of the Strata Schemes Management Act 2015 while the scheme was under compulsory management.

The tribunal at first instance dismissed the application on the grounds that the lot owners did not have standing to bring the application while the scheme was under compulsory management and the compulsory strata manager had full powers of governance of the owners corporation and the strata committee. Those full governance powers were the terms on which the appellants had successfully obtained the appointment of the compulsory strata manager for a defined term in earlier proceedings.

The primary member stated that such broad powers removed the power of lot owners to vote on a by-law because there was no requirement for the compulsory strata manager to put a proposal to such a vote of lot owners, and section 150 of the Strata Schemes Management Act 2015 gave standing only to those entitled to vote on the challenged by-law.

The appeal panel agreed with the findings of the primary member that the appellants had no standing to bring an application to challenge two of the scheme’s by-laws under section 150 of the Strata Schemes Management Act 2015 while the scheme was under compulsory management with the powers of the owners corporation and the strata committee.

Article by Jasmin H. Singh and Allison Benson.