What is a Strata Committee?

What is a Strata Committee?

A committee is a group of owners elected at each annual general meeting to represent owners and administer in the day to day running of the owners corporation by making decisions on behalf of the owners corporation.

Is there an obligation to appoint a committee?

An owners corporation affecting 10 or more lots is required to appoint a committee at each annual general meeting.  An owners corporation affecting less than 10 lots may appoint a committee and it is recommended it does so.

Who may be a member?

A member of the committee may be a lot owner or the proxy of a lot owner if the appointing member has consented to their nomination.

How may a person nominate for election to the committee?

A lot owner or the proxy may nominate:

  • verbally if present at the meeting; or
  • in writing if not present at the meeting; or
  • in the manner prescribed by the rules of the owners corporation if such a rule has been made.

Is there an eligibility requirement?

An owner who has fees and charges owing to the owners corporation at the date of the meeting, or their proxy if one has been authorised, is not eligible to nominate for the committee. 

A member with fees and charges owing to the owners corporation cannot represent another owner on the committee as their proxy.

What is the size of a committee?

A committee consists of not less than three (3) and not more than seven (7) members unless the owners corporation resolves by ordinary resolution to have a larger committee which may be a maximum of 12 members.

Can joint owners of a lot be on a committee?

There can only be one committee member from a lot.  For lot with joint owners, only one may nominate for the committee.

How is the committee elected?

A committee is appointed by ordinary resolution which requires a majority of members participating at the meeting vote in favor of the proposed members. 

Are there officeholders?

A committee is required to appoint one of its members as the chairperson of the committee who is also be the chairperson of the owners corporation. The chairperson is usually the point of contact with the manager conveying committee instructions where required.  The chairperson may also be contacted for urgent matters.

A committee is required to appoint one of the members as secretary and that person is also the secretary of the owners corporation. The secretary is the administrative officer of the owners corporation.

What are the powers of the committee?

A committee has all powers which may be exercised by an ordinary resolution unless in appointing the committee, the owners corporation has limited the committee authority.  An example is a limit on unbudgeted expenditure.

Subject to any restriction in place, the committee may determine the need for, and approve, works, authorise levies, consider request by owners, respond to complaints and any other matter arising which is within its power.

How long does a committee remain in office?

The members the committee hold office until a new committee is elected which usually occurs at the next annual general meeting.

How does the committee conduct its activities?

A committee may conduct the activities as it sees fit. Committees in a small owner corporations may deal with matters by email interchange with the chairman providing the decision to the manager.  A larger owners corporation may have more formal processes including regular meetings.  If there is a committee meeting it requires:

  • at least three days written notice given to all members unless the owners corporation has determined some other period;
  • the notice sets out the date, time and place of the meeting and with the agenda attached;
  • the minutes of the previous meeting are attached to the notice;
  • a statement that a committee member who is a lot owner is entitled appoint a proxy for the meeting.

At a committee meeting:

  • the quorum is at least half of the members of the committee;
  • each participating member has one vote.  A member holding a proxy for another committee member will have his or her own vote and that of any proxy or proxies appointing the member.

It is usual the chairperson of the committee chairs a committee meeting and has control of the business.  Resolutions are by majority of members attending.  If there is a tied vote, the chairperson has a casting vote.  If that vote is not exercised the resolution is not passed.

A committee may also pass decisions by ballot which are required to be open for at least 14 days from issue.  It requires at least half of the members of the committee vote in favor to pass a committee resolution.

A resolution of the committee is a resolution of the owners corporation.

The secretary is required to keep minutes of the meeting and these may be inspected by members.

What happens if a committee member falls into arrears?

A committee member who has fees and charges owing to the owners corporation is suspended from the committee until those arrears are discharged in full. Once the arrears have been paid, the membership of the committee is reinstated.

What are the duties of a committee member? 

In the performance of the member’s functions, a committee member must:

  • act honestly and in good faith;
  • exercise due care and diligence;
  • act in the interests of the owners corporation;
  • not make improper use of the members position to gain directly or indirectly an advantage for the member or any other person.

What happens if a committee member sells their lot?

If a committee member sells their lot, their membership of the committee ceases as a requirement for membership is to be a lot owner or proxy. This is termed a casual vacancy which may also arise by resignation or death of the member.

The remaining members the committee may co-opt another lot owner or proxy of a lot owner to fill the casual vacancy. If the committee would have at least three (3) members after the casual vacancy, the remaining members may proceed without filling that vacancy if they wish.

Can a committee add a member?

An additional member can only be added to the committee by a resolution of the owners corporation and not by the committee itself.  This would require a special general meeting to approve the appointment of an additional member.

Can a committee remove a member?

A committee cannot remove a member unless the member has failed to attend at least 25% of meetings held in any six month period without having provided reasonable excuse. To remove a member for any other reason requires a general meeting to approve the removal.

What happens if a committee is not appointed?

If the owners corporation does not appoint a committee, it is required to appoint a lot owner is the chairperson of the owners corporation. That person may be delegated powers and functions to act on behalf of the owners corporation.