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The role of the strata committee

What is a strata committee - What is the role of the strata committee

What is a strata committee and what is the role of the strata committee?

The strata committee (also known as the SC) represents owners or owners’ nominees. The committee is responsible for the day-to-day running of the strata scheme and is elected at each annual general meeting (AGM).

Members of the strata committee

You’re eligible for election to the strata committee if you’re:

  • an owner
  • a company nominee of a corporation that is an owner
  • a person who is not an owner but is nominated by an owner who is not standing for election.

If a vacancy opens up during the term of the committee, the owners corporation can appoint a person to fill the spot until the next AGM.

Co-owners can only be nominated by:

  • an owner who is not a co-owner of that lot, or
  • a co-owner of that lot who is not a candidate for the election.

The owners corporation decide the number of strata committee members for the coming year at each AGM. It can have from 1–9 members. In a two-lot scheme both owners must be members and in a large scheme it must have at least three members on its committee. Once the strata committee is elected, the office-bearer positions – Chairperson, Secretary and Treasurer are decided.

The owners corporation can dismiss some or all of its strata committee. An owners corporation can also employ a strata managing agent and/or building manager to carry out some, or all, of the responsibilities of the strata committee.

Disclosure requirements

Before being nominated you must disclose any financial, business or family connections you have with the developer or building manager. You should disclose this information before the committee is elected.

After you are nominated, you must disclose any direct or indirect monetary interest in the matter being discussed or considered that could have a conflict of interest. This interest could include  that they are a member, partner or employee of a specified corporation or other body

After making a disclosure, you cannot be involved in the decision making on that matter unless the strata committee decides otherwise.

All disclosures must be recorded and be accessible.

Meetings

There is no legal requirement for how often meetings are held.

  • The Secretary can organise a meeting at any time.
  • One-third of the strata committee members can ask the Secretary to call a meeting.
  • If the Secretary is away, any other strata committee member can be asked.

Visit the meetings of the strata committee page for more information.

Effect of decisions

A decision made by the committee is treated as a decision of the owners corporation. No individual committee member can make a decision for the owners corporation. If there is a dispute between the owners corporation and its committee, the decision of the owners corporation prevails.

The committee cannot deal with some matters, for example levying contributions.

Restrictions

The owners corporation can limit the powers of its committee.

Restrictions of decisions

Before the strata committee can obtain legal services on behalf of the owners corporation, they must have approval. A strata committee can obtain legal services without approval if urgent action is needed to protect interest of the owners corporation and the cost is no more than $15000 or if the cost is under $3000 for non urgent.

Powers and duties of the Secretary

The powers and duties of the Secretary include:

  • preparing and giving minutes of meetings and putting a motion to confirm the previous minutes
  • giving notices for the owners corporation and its strata committee
  • keeping the strata roll
  • giving information to a person for the owners corporation under section 184
  • answering correspondence addressed to the owners corporation
  • convening meetings of the owners corporation and its strata committee (apart from its first AGM)
  • doing all administrative and secretarial duties for the owners corporation and the strata committee

Powers and duties of the Treasurer

The Treasurer must:

  • give owners notice of any levies
  • give receipts, do the banking and account for any money paid to the owners corporation
  • prepare any certificates under section 184
  • keep all accounting records and prepare the financial statements

Portions of this article may be subject to copyright.

© State of New South Wales (NSW Fair Trading). For current information go to fairtrading.nsw.gov.au 

 

This website does not give legal advice or any other professional advice. You should obtain legal advice before you take any action or otherwise rely upon the contents of this article.

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Strataville Editorial

Strataville Editorial

Strataville | the home of strata living. It's a hub of information, strata news and reviews to help improve your strata living lifestyle. Like to submit an article? Have a question? Please drop us an email here.

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