FACT SHEET: CONSTITUTION OF EXECUTIVE COMMITTEE OF THE OWNERS CORPORATION AND MEETINGS OF THE EXECUTIVE COMMITTEE
PART 1: CONSTITUTION OF EXECUTIVE COMMITTEES FOR STRATA SCHEMES WITH MORE THAN 2 LOTS
1. This Part applies to an owners corporation for a strata scheme comprising more than 2 lots.
2. The executive committee is to consist of such number of members, being not more than 9, as the owners corporation may determine.
3. The members of an executive committee must be elected at each annual general meeting of the owners corporation.
4. A person is not eligible for election as a member of an executive committee unless the person is:
(a) an individual who is an owner,
(b) a company nominee of a corporation that is an owner, or
(c) an individual who is not an owner but who is nominated for election by an owner who is not a candidate for election.
5. A person who is co-owner of a lot may not be a candidate for election as a member of the executive committee unless the person is nominated for office:
(a) by an owner who is not a co-owner of the lot, or
(b) by a co-owner of the lot who is not a candidate for election as a member.
6. An owner of a lot who is not a co-owner of the lot may nominate himself or herself for election as a member of the executive committee.
PART 2: ACTING MEMBERS OF THE EXECUTIVE COMMITTEE
1. A member of the executive committee may, with the consent of the executive committee, appoint an owner or company nominee of a corporation which is an owner to act in his or her place as a member at any meeting of the executive committee.
2. The owner or company nominee so appointed is, while so acting as a member, taken to be a member.
3. An owner or company nominee of a corporation may be so appointed whether or not he or she is a member of the executive committee already.
4. If a person so appointed is a member of the executive committee the person may, at any meeting of the executive committee, separately vote in the person’s capacity as such a member and on behalf of the member in whose place the person has been appointed to act.
PART 3: VACATION OF OFFICE OF MEMBER OF EXECUTIVE COMMITTEE
1. A person elected as a member of an executive committee vacates office as a member:
(a) if the person was an owner at the time of election and the person ceases to be an owner, or
(b) if the person was not an owner at the time of election or was a company nominee and the individual who nominated the person for election or the corporation for which the person is a company nominee ceases to be an owner or notifies the owners corporation in writing that the person’s office is vacated, or
(c) on the receipt by the owners corporation from the person of notice in writing of the person’s resignation as a member, or
(d) at the end of the next meeting at which a new executive committee is elected by the owners corporation, or
(e) if the owners corporation, in accordance with a special resolution, determines that the person’s office as a member is vacated.
2. When a vacancy occurs in the office of a member of an executive committee (otherwise than by reason of subclause (1) (d) above), the owners corporation must appoint a person eligible for election as a member to fill the vacancy. Any person so appointed holds office, subject to this clause, for the balance of his or her predecessor’s term of office.
3. For the avoidance of doubt, a special resolution referred to in subclause (1) (e) may relate to more than one member of an executive committee or to all members of an executive committee.
PART 4: APPOINTMENT OF CHAIRPERSON, SECRETARY AND TREASURER OF EXECUTIVE COMMITTEE
1. A person must not be appointed as chairperson, secretary or treasurer unless the person is a member of the executive committee.
2. A person may be appointed to one or more of the offices of chairperson, secretary and treasurer.
3. A person appointed as chairperson, secretary or treasurer holds office as such until:
(a) the person ceases to be a member of the executive committee, or
(b) the receipt by the owners corporation from the person of notice in writing of the person’s resignation from that office, or
(c) another person is appointed by the executive committee to hold that office,
(d) whichever first happens.
PART 5: NOTICE OF EXECUTIVE COMMITTEE MEETINGS
1. An executive committee of a large strata scheme must give notice of its intention to hold a meeting at least 72 hours before the time fixed for the meeting:
(a) by giving written notice (which may be done by electronic means) to each owner and executive committee member, and
(b) if the owners corporation is required by the by-laws to maintain a notice board, by displaying the notice on the notice board.
2. An executive committee of a strata scheme that is not a large strata scheme must give notice of its intention to hold a meeting at least 72 hours before the time fixed for the meeting:
(a) by displaying the notice on the notice board, or
(b) if the owners corporation is not required by the by-laws to maintain a notice board, by giving
written notice (which may be done by electronic means) to each owner and executive committee member.
3. The notice must specify when and where the meeting is to be held and contain a detailed agenda for the meeting.
4. A notice may be given to a person by electronic means only if the person has given the owners corporation an e-mail address for the service of notices under this Act and the notice is sent to that address.
PART 6: EXECUTIVE COMMITTEE MEETINGS MAY BE REQUIRED TO BE CONVENED
1. The secretary of an owners corporation or, in the secretary’s absence, any member of the executive committee must convene a meeting of the executive committee if requested to do so by not less than one-third of the members of the executive committee, within the period of time, if any, specified in the request.
2. If a member of the executive committee other than the secretary is requested to convene a meeting of the executive committee under this clause, the member may give, on behalf of the executive committee, the notice required to be given under Part 5, clause 1 above.
PART 7: CHAIRPERSON TO PRESIDE AT MEETINGS
1. The chairperson presides at all meetings of the executive committee at which the chairperson is present and, if absent from any such meeting, the members of the executive committee present at that meeting must appoint one of their number to preside at that meeting during the absence of the chairperson.
2. The chairperson does not have a casting vote in relation to any motion but may vote in his or her own right as a member of the executive committee.
PART 8: QUORUM FOR EXECUTIVE COMMITTEE MEETINGS
1. A motion submitted at a meeting of an executive committee must not be considered unless there is a quorum present to consider and vote on the motion or on the election.
2. The quorum for considering and voting on a motion submitted at a meeting of an executive committee is one if there is only one member of the executive committee.
3. The quorum for considering and voting on a motion submitted at a meeting of an executive committee that has 2 or more members is at least one-half of the members.
4. If 2 executive committee meetings are held at the same time, both meetings are invalid.
5. The quorum for meetings of the executive committee are to be calculated on the basis of the number of members last determined by the owners corporation to be elected to the executive committee.
PART 9: VOTING IN WRITING BY MEMBERS OF EXECUTIVE COMMITTEE
1. A resolution is taken to have been validly passed even though the meeting at which the motion for the resolution was proposed to be submitted was not held if:
(a) notice was given in accordance with Part 7 of the intended meeting, and
(b) a copy of the motion for the resolution was served on each member of the executive committee, and
(c) the resolution was approved in writing by a majority of members of the executive committee.
This clause is subject to clause 2 of Part 10 below.
PART 10: DECISIONS OF EXECUTIVE COMMITTEE
1. Subject to the Strata Schemes Management Act 1996, the decision on any matter, where there is only one member of the executive committee, of that member or, if there are 2 or more members of an executive committee, of the majority of the members voting on that matter is the decision of the executive committee at any meeting of an executive committee at which a quorum is present.
2. A decision of an executive committee has no force or effect if, before that decision is made, notice in writing is given to the secretary of the executive committee by one or more owners, the sum of whose unit entitlements exceeds one-third of the aggregate unit entitlement, that the making of the decision is opposed by those owners.
PART 11: RECORDS AND MINUTES TO BE KEPT
An executive committee must cause to be kept a record of its decisions and of any notices given to its secretary under clause 2 of Part 10 and full and accurate minutes of its meetings.
PART 12: ADJOURNMENT OF MEETINGS
1. A meeting of the executive committee may be adjourned for any reason if a motion is passed at the meeting for the adjournment.
2. Notice of when and where the adjourned meeting is to take place must be displayed on the notice board or, if the owners corporation is not required by the by-laws to maintain a notice board, must be given in writing to each owner at least 1 day prior to the meeting.
PART 13: OWNERS’ ATTENDANCE AT EXECUTIVE COMMITTEE MEETINGS
An owner or, where that person is a corporation, any company nominee of the corporation is entitled to attend a meeting of the executive committee but may not address the meeting unless authorised by resolution of the executive committee.
PART 14: MINUTE OF CERTAIN RESOLUTIONS TO BE INCLUDED IN EXECUTIVE COMMITTEE’S MINUTES
The executive committee must cause to be included in its minutes a minute of all resolutions passed in accordance with this Fact Sheet.
PART 15: DISPLAY OF MINUTES
1. Within 7 days after a meeting of the executive committee of a large strata scheme, the executive committee must:
(a) give each owner and executive committee member a copy of the minutes of the meeting, and
(b) if the owners corporation is required by the by-laws to maintain a notice board, cause a copy of the minutes of the meeting to be displayed on the notice board.
2. Within 7 days after the executive committee of a large strata scheme passes a resolution in accordance with this Schedule, the executive committee must:
(a) give each owner and executive committee member a copy of the minute of the resolution, and
(b) if the owners corporation is required by the by-laws to maintain a notice board, cause a copy of the minute of the resolution to be displayed on the notice board.
3. Within 7 days after a meeting of the executive committee of a strata scheme that is not a large strata scheme, the executive committee must:
(a) cause a copy of the minutes of the meeting to be displayed on the notice board, or
(b) if the owners corporation is not required by the by-laws to maintain a notice board, give each owner and executive committee member a copy of the minutes of the meeting.
4. Within 7 days after the executive committee of a strata scheme that is not a large strata scheme passes a resolution in accordance with this Schedule, the executive committee must:
(a) cause a copy of the minute of the resolution to be displayed on the notice board, or
(b) if the owners corporation is not required by the by-laws to maintain a notice board, give each owner and executive committee member a copy of the minute of the resolution.
5. A copy of a minute or minutes required to be displayed on a notice board under this clause must be kept displayed on the notice board for a period of not less than 14 days.
PART 16: ACTS AND PROCEEDINGS OF EXECUTIVE COMMITTEE VALID DESPITE CERTAIN CIRCUMSTANCES
Any act or proceeding of an executive committee done in good faith is, even though at the time when the act or proceeding was done, taken or commenced there was:
(a) a vacancy in the office of a member of the executive committee, or
(b) any defect in the appointment, or any disqualification of a member of the executive committee,
as valid as if the vacancy, defect or disqualification did not exist and the executive committee were fully and properly constituted.
This document ls not legal advice. You should seek legal advice regarding any of the provisions referred to.
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