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Executive Committee Meetings

Once an executive committee is elected it is responsible for the day to day administration of the strata scheme. The executive is required to carry out a number of routine tasks, such as determining priorities for repairs and maintenance, recovering debts for levies, dealing with general correspondence and acting in the best interests of all lot owners.

The best way to manage these tasks and make decisions is to convene regular committee meetings.

The Strata Schemes Management Act does not specify how often an executive committee must meet. A meeting may be called by at least one third of the executive committee members requesting a meeting or by a previous resolution of the executive committee itself.

Required Notice Period for Committee Meetings

Notice period for general schemes: At least 72 hours notice must be given before an executive meeting can be convened. If there is no noticeboard within the scheme, the meeting notice must be given to each owner and executive member. The notice must have a detailed agenda.

Notice period for large schemes (Strata schemes with over 100 lots, not including parking, storage or other utility lots): In a large scheme the same format of the agenda is required, however the notice must:

be placed on the notice board if the by-laws require a notice board; and
a copy is to be given to each lot owner at least 72 hours before the meeting.

Executive Committee Paper Meetings (Voting in writing):
The provisions for the meeting about service of the notices, time and date requirements and motions for consideration at the meeting are the same as those required for executive committee meetings for general schemes and large schemes.

Quorum: At least 1/2 of the members.

Voting: Each member has 1 vote (no casting vote by the chairperson). Decision is made by a majority vote. If a vote is tied the motion is defeated.

Restrictions of executive committee decisions
There are a number of restricted matters that can only be considered at a general meeting of the owners corporation. The executive committee is restricted from making decisions regarding the following matters:

Decisions requiring a special or unanimous resolution,
Decisions dealing with the election of the executive committee,
Decisions relating to the raising of levy contributions,
Decisions where the owners corporation in general meeting has determined that only a general meeting can determine (i.e. engaging contractors for large building work),
Expenditure for legal matters if the expenditure is anticipated at more than $750 per lot or $10 000, whichever is lesser.

Large schemes: Other than in an emergency, a large scheme may not spend more than 10% over the budgeted amount for any item (unless the owners corporation in a general meeting has removed that restriction).

The owners corporation can by resolution further limit the powers of its executive committee if it so desires.

Objection to motions appearing on the Agenda:
More than one third of the total unit entitlements for the strata scheme must lodge a written objection opposing any motion(s) appearing on the agenda and the notice must be given to the Secretary before a decision on the motion is made.

Minutes of Executive Meetings

a copy can be given to each owner within 7 days of the meeting; or
a copy can be put on the noticeboard within 7 days and must stay there for at least 14 days. If there is no noticeboard the executive must give a copy of the minutes to each owner within 7 days.

Large schemes: In a large scheme, the minutes must be given to each lot owner within 7 days of the meeting.

Issues for Executive Committee

Repairs and maintenance
The executive must be mindful that its obligations under the Strata Schemes Management Act are to be strictly adhered too. In carrying out any repairs the executive should consider:

Using licensed, qualified and insured persons,
Entering into proper contractual relationships,
Having major works projects supervised,
Reviewing OH&S requirements,
Considering the funding of the works.

Building defects
Flowing from repairs and maintenance is building defects. The executive committee should notify any and all defective construction work to the builder and insurer (so that the rights under the legislation are kept in the case of Home Building Act complaints or civil rights where not residential lots).

Understanding ownership
One of the most difficult issues for an executive is to deal with ownership issues (lots and common property). Clear determinations are required so that repairs and maintenance and works by owners can be defined and responsibilities clearly set out.

By-law enforcement
A major challenge for executive committees is the by-law enforcement. Understanding the by-laws applicable to the scheme and how to enforce them is critical.

Owners works in lots
As an adjunct to the problems with determining lot and common property, when owners wish to undertake works there will be further challenges. In these instances:

Consider the work and its impact on common property
What type of consent is required (by-law 5 or special by-law)
What conditions are relevant
What warranties and indemnities are appropriate
What costs are involved (and who pays for it)
What experts are required

OH&S, Lift registration & Annual Fire Safety statements
In the life of the strata scheme different requirements will be placed on the owners corporation to deal with fire certification/registration, Annual fire safety statements, OH&S audits (or included in work schedules), or Council orders.

In all of these instances the owners corporation (and its executive) must carry out the task in compliance with the appropriate laws and at the proper times.

The best managed buildings are those with active committees, supported by interested owners working with a competent and dedicated managing agent.

The Strata Agency would welcome the opportunity to discuss the management of your scheme, or if you would like an obligation free management quotation please contact us.