What is a Strata Committee?
As of 30 November 2016, an Executive Committee is now known as a Strata Committee. It has the ability to make decisions on behalf of the owners corporation. Its powers to do so may be restricted by the owners corporation at general meeting.
Who is ineligible to be a Strata Committee Member?
Generally, lot owners are eligible for appointment to the Strata Committee and they may nominate non-lot owners for appointment providing they are financial and entitled to vote at the meeting where the election is held. Section 61 of the Strata Schemes Management Act 2016 sets out the specific criteria.
Section 32 of the Strata Schemes Management Act 2015 sets out categories of people who are not eligible for election or appointment to the Strata Committee (or able to be acting members). These are:
(a) the scheme’s building manager,
(b) an agent who leases a lot or lots in the scheme to tenants,
(c) a person connected with the original owner of the scheme or the building manager for the scheme, unless they disclose the connection at the meeting at which the election is held and before the election is held or before they are appointed to act as a member,
(d) an owner of a lot in a strata scheme who was an unfinancial owner at the date notice was given of the meeting at which the election of a strata committee was to be held and did become financial prior to the meeting.
What happens if you are no longer eligible to be a Strata Committee member?
Although there is a general presumption against retrospectivity in law, sections 32(3) and 35 of the Strata Schemes Management Act 2016 makes it clear that if a Committee member was previously eligible to be a Committee member but became ineligible to be appointed or elected after 30 November 2016 due to the requirements of section 32(1) they:
– must disclose their ineligibility as soon as possible after they become aware that they are ineligible; and
– have vacated their office as a Strata Committee member (note this does not apply if the only reason the Member became ineligible was because they were unfinancial).
Any further questions about strata or community titles law?
Call Kerin Benson Lawyers on 02 8706 7060 or email email@example.com or firstname.lastname@example.org