How to run a strata meeting
Strata scheme decisions are made at strata meetings. There are set steps for running strata meetings, making sure every eligible person can have their say.
Key information
- Important decisions are made at strata meetings, especially the annual general meeting.
- Disputes can happen if owners feel they aren't being listened to, or the correct process is not followed.
- So it's important that meetings are run correctly and everyone gets a voice.
- The secretary must give minutes to all owners after the meeting.
- Strata committee meetings are run separately to general meetings.
Did you know?
Types of meetings
There are different strata meetings for the owners corporation and the strata committee.
Annual general meetings
The owners corporation must have at least one meeting every year, called an annual general meeting (AGM).
AGMs are planned yearly events, and are very important because these are where you discuss how your building or complex (the scheme) is running, and make decisions on how it's going to run over the year ahead.
AGMs are also when the owners corporation elect people to act on their behalf, including workers.
General meetings
General meetings are called when the owners need to come together to make a decision that can't wait for the next AGM. They are usually to address a single issue.
A general meeting must be held within 14 days of an owner or group of owners calling a general meeting. The owner/s must hold at least 25% of the total ‘unit entitlements’ in the scheme. To arrange a meeting, the owners must write to the secretary.
Strata committee meetings
Strata committee meetings are held by the strata committee to discuss and vote on day-to-day items. They are run in a similar way to AGMs, however there are some key differences.
How to call a meeting
Who can call a general meeting?
It is usually the strata committee secretary’s job to arrange and tell owners about upcoming general meetings.
If the scheme has a strata manager, they can be given the job to call meetings instead.
How to give notice
For a general meeting, you must give notice (in writing) all owners at least seven days before the meeting. For an AGM, you must give notice (in writing) to all owners at least 14 days before the meeting.
The notice must include:
- the planned meeting date, time and place
- the agenda
- an explanation of what the ‘quorum’ is for the meeting
- statements that:
- voting can be done by an owner, their nominee or ‘proxy’
- an owner behind on levies at the time of the meeting cannot vote, unless a motion requires approval by everyone
- an owner’s vote doesn’t count if a ‘priority vote’ has already been cast on the same issue
- any pre-meeting votes are cancelled out if the motion is changed at the meeting. For detail, go to 'How voting works' on this page.
The notice will also need to detail any electronic means for voting at the meeting. For more information, see Ways of voting below.
You can notify tenants by putting a copy of the agenda on the communal noticeboard, or by giving it to each tenant by email, hand or post. Copies of other documents may be given to tenants if the owners corporation decides.
Documents you will need include with the notice
The notice must include the following documents:
- a copy of the minutes from the last general meeting (if an owner has not previously been given a copy of the minutes)
- a copy of the key financial statements (these are prepared by the treasurer)
- any auditor’s report (if an audit was conducted)
- details of each insurance policy held by the owners corporation
- a copy of the 10-year capital works fund plan
- the strata manager or building manager’s contract (if a manager will be appointed at the meeting).
If requested by an owner, you must also give a copy of the full financial statements of the administrative fund, capital works fund and any other funds at least 2 days before the meeting.
How to give notice of the first AGM
Information on how first AGMs work, including notice requirements and key documents which must be provided, see the Buying a strata property page
Roles in strata
Learn more about the difference between the owners corporation and the strata committee, as well as the positions on the committee.
This will help your meeting run smoothly.
Meeting agendas
The secretary prepares the agenda for meetings. The agenda for an AGM must include set items and motions. You can also include others you would like to discuss.
What to include on an AGM agenda
Include these items and motions.
Attendance and minutes
- Item checking that the ‘quorum’ has been met for the meeting.
- A motion to accept the minutes of the last general meeting.
Strata committee
- A motion to decide what the owners corporation and what the strata committee will be responsible for in the year ahead.
- A motion to decide the number of strata committee members.
- A motion to elect the strata committee.
- An item to announce the elected tenant representative (if at least half the lots in the scheme are rented).
Utilities and repairs
- An item to report on the annual fire safety statement (if required, as some building types don't need these) and arrange for next year.
- An item to decide the electricity, gas and other utility providers.
- An item to discuss any building defects and how to fix them - this item is only needed until the end of the warranty periods for buildings in the scheme.
Other workers
- If there is a strata manager, a motion to discuss what commissions or training have been or might be given or paid for in the next 12 months.
- A motion to consider appointing an auditor.
On finances
- A motion to decide how to deal with unpaid or overdue levies.
- A motion to accept the financial statements for the past financial period.
- A motion to consider insurance policies that have not already been taken out.
- An item to prepare or review the 10-year capital works plan.
How to run a meeting
The chairperson on the strata committee runs meetings. The secretary takes minutes at the meeting. These jobs can be given to a strata manager.
Check everyone is there
Before a meeting starts, the chairperson should check which people at the meeting have the right to vote.
They then must check that the ‘quorum’ has been met. A quorum is the minimum number of owners that must be at meeting for it to go ahead.
At a general meeting, it is either:
- 25% or more of people that have the right to vote, or
- enough eligible owners to represent 25% or more of the scheme’s total unit entitlements
The quorum must be met within 30 minutes of the meeting start time.
If not, the meeting can either be postponed for seven days, or the chairperson can decide that the people there make up a quorum, and the meeting can go ahead.
Any postponed meeting automatically goes ahead after seven days, even if the quorum is not met again.
Tenants are allowed to attend a general meeting but are not allowed to speak or vote on any items or motions, unless they hold a ‘proxy vote’.
Tenants can be asked to leave when finances are being talked about.
Go through the agenda and take minutes
Follow the agenda to guide you through the meeting.
The secretary will need to take minutes that include the details of motions, items and resolutions that happen at the meeting.
If a pre-meeting vote gets cancelled out by a motion at the meeting, make sure to include this in the minutes and say that the secretary can call a follow-up meeting to re-consider the motion.
After the meeting
After the meeting, the secretary must give the minutes from the meeting to all owners within seven days.
You will also need to keep the meeting agenda, financial statements, minutes and insurance details on file for your records.
Owners can ask the secretary for a follow-up meeting in writing.
There must be enough owners to represent 25% or more of the scheme.
Restrictions on members serving
An owners corporation may remove a member from the committee through the passing of a majority resolution.
A member of the committee who has been removed in this way may not serve on the committee for the period of 12 months commencing on the day the resolution was passed.
How voting works
Who can vote
Owners automatically have the right to vote at strata meetings, as long as they don’t owe the scheme any unpaid levies.
If they can't attend a meeting in person or don’t want to go, owners can choose to use:
- a proxy vote
- a pre-meeting electronic vote (if they've been notified that pre-meeting voting will be allowed)
- online and other electronic voting (if the owners corporation has set up electronic voting).
Owners can only have their vote taken away in special circumstances. This is called a ‘priority vote’.
Further detail on ways of voting is set out below.
Ways of voting
Owners can meet and vote in person, or by using electronic means specified in a meeting notice.
However, owners need to pass a resolution approving the use of pre-meeting electronic voting. Pre-meeting electronic voting cannot be used for an election of the strata committee.
If any electronic voting will be used, the secretary, or the strata managing agent must take reasonable steps, such as, providing clear and accessible instructions and technologies so all entitled persons can take part in and vote at a meeting. Read more about these requirements.
A proxy is a person who represents a voter at a general meeting. An owner can make almost anyone their proxy, including a tenant or a member of the strata committee.
In schemes with 20 lots or less, the person an owner nominates cannot already hold a proxy vote for someone else.
For larger schemes, the person an owner nominates cannot already hold a proxy vote for more than 5% of the total number of properties.
If you want to get a proxy, you must give the secretary a proxy form (PDF 100.29KB) at least 24 hours before a meeting (for a scheme of 100 lots or more) or by the start of the meeting (for any other schemes).
A proxy has no effect if the person who gave the proxy attends the meeting and votes in person. A person given the proxy cannot transfer it to anyone else.
A proxy cannot be used by a building manager, strata agent or property manager for any benefit. For example, voting to increase their term of appointment.
If a strata scheme has passed a resolution approving the use of pre-meeting electronic voting, it can choose to hold a pre-meeting vote on one or more matters. This lets owners vote on these matters before the meeting.
However, pre-meeting electronic voting can’t be used to elect members of the strata committee.
If a matter only uses pre-meeting voting, the result is conclusive.
Or, a matter can be voted on using both pre-meeting voting and voting at the meeting:
- The result of voting is worked out by tallying up the votes before and during the meeting
- If the motion being voted on is amended at the meeting, then the minutes must state this. These must also state how an eligible voter can ask for a new meeting to revisit the matter. But – there are limits to amending a motion: it can’t change the subject matter being voted on. This would need to be put to a new meeting instead.
Any electronic means of voting to be used for a meeting, including pre-meeting electronic voting, must be stated in the meeting notice. The secretary or strata managing agent also need to take reasonable steps, such as, providing clear and accessible instructions and technologies, so all entitled persons can take part in and vote at a meeting.
A priority vote can be cast by a mortgagee. A mortgagee is a person or company (like a bank) who owns the mortgage on a property.
It is called a ‘priority’ vote because it get priority over the owner and discounts their vote.
Priority votes are limited to specific issues: insurance, budgeting, setting levies and any special or unanimous resolutions.
They can also be used for any payments that are bigger than $1,000 multiplied by the number of properties in a scheme. For example, $4,000 for a four property scheme or $10,000 for a ten property scheme.
Any voter can call for a “poll” before or just after a vote takes place.
Calling for a poll changes a vote by general resolution so that it uses unit entitlement, instead of one vote per lot.
In schemes with 20 lots or less, a company nominee or power of attorney (who is not a member of the owner’s family) cannot vote at meetings for more than one owner in a scheme.
For larger schemes, a company nominee or power of attorney (who is not a member of the owner’s family) cannot vote at meetings for more than 5% of the total number of owners.
How many votes to pass a motion?
Types of votes
The result of a vote can be worked out by adding the unit entitlements of the people voting for and against.
For a general resolution
Each owner has one vote per property they own. Over 50% of people must vote for the motion for it to pass.
These votes are also called a 'simple majority vote' and do not use unit entitlement.
For a special resolution
a special resolution is a vote by unit entitlement. For it to pass, no more than 25% of the votes can be against the proposal
For a sustainability infrastructure resolution
a sustainability infrastructure resolution means that votes against must be less than 50% for it to be approved. It is a vote by unit entitlement.
For a unanimous resolution
For a resolution to pass, no one must vote against it.
An owners corporation is holding a general meeting, at which they want to vote on getting new sustainable lights installed.
There are five owners at the meeting.
The secretary works out that owner A has a unit entitlement of four, owner B has a unit entitlement of three, while the remaining three owners have a unit entitlement of one. This gives a total of 10 unit entitlements of owners present at the meeting.
The secretary calls a motion on a sustainability infrastructure resolution. Owners A and B vote against the motion. The other three owners vote for the motion.
Even though more owners voted for the motion than against, the motion does not pass. This is because owners A and B hold 70% of the unit entitlements of people voting. Sustainability votes are decided by voters holding more than 50% of the unit entitlement.
Strata committee meetings
Strata committee meetings are held by the strata committee to discuss and vote on day-to-day topics. They are run slightly differently to general meetings.
How to call a strata committee meeting
A strata committee meeting can be called by the secretary, or if one-third of the strata committee members ask for one to be called.
To call a meeting, the secretary or strata agent must notify every owner at least 3 days beforehand that a meeting is going to happen. The tenant representative must also be notified, if your scheme has one.
The notice must include the planned meeting date, time and place and an agenda.
How to run a strata committee meeting
At least half of the strata committee must be at a meeting for it to go ahead.
The chairperson must attend all meetings, unless they are away. If that happens, they need to appoint another committee member to replace them for the meeting.
Follow the agenda to guide you through the meeting.
The secretary will need to take minutes that include the details of motions, items and resolutions that happen at the meeting.
Voting
Each committee member has one vote, unless they owe money to the scheme.
The tenant representative does not have a vote. The tenant representative is the only tenant that can attend strata committee meetings.
Voting power is based on a simple majority, so if more than 50% of strata committee members vote for a resolution, it will be passed.
Conflicts of interest
Strata committee members will sometimes have a financial interest in a matter considered by the committee. This can create a conflict of interest between their financial interests and the proper performance of their duties as a committee member.
Where this occurs, a member must as soon as possible disclose the nature of the financial interest they have at a meeting of the strata committee. The strata committee must also make a record of the details of the conflict of interest.
After a member has disclosed the conflict of interest, the member must not be present during any deliberation of the strata committee about the matter the member has a conflict for, or take part in any decision of the strata committee about that matter.
Ways of voting
Strata committees can choose to vote on issues in person, electronically or in writing. Proper notice must be given to all strata committee members.
Strata committees can meet and vote in person, or by using electronic means specified in the meeting notice. However, strata committees will need to pass a resolution approving the use of pre-meeting electronic voting. Pre-meeting electronic voting can’t be used to elect officers of the strata committee.
If any electronic voting will be used, the secretary, or the strata managing agent must take reasonable steps, such as, providing clear and accessible instructions and technologies so all entitled persons can take part in and vote at a meeting. Read more about these requirements.
Two-lot schemes
For voting on matters that need a special resolution, the original owner (usually the developer) maintains their full unit entitlement.
After the meeting
Meeting minutes must be given within seven days to all committee member and owners.
In large schemes, minutes only need to be given to owners who request a copy.
You will also need to keep the meeting agenda, financial statements, minutes and insurance details on file for your records.
Need more help?
Contact Fair Trading
If you have any further questions about strata, you can contact Fair Trading via phone or in-person at a Service NSW centre.
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