This question about the cost of holding a special general meeting has been answered by Christopher Kerin, Kerin Benson Lawyers.
Question: A number our lot owners have requested a special General meeting be held to discuss issues of concern to all owners. Our Strata Manager has said that all costs for holding a special general meeting will be charged to those owners who requested the meeting.
A number of owners of our Owners Corporation have requested that a special General meeting be held to discuss issues of concern to all owners, one being the security of the complex.
Our Strata Manager has said that all costs for holding a special general meeting (hire of room, cost of Strata staff to attend, mail out of Agenda etc) will be charged to those owners who requested the meeting (9 Owners out of 28 in the Owners Corporation).
There is no mention of this condition in the Managers’ Agreement, nor is it specified in the Legislation as far as I can see.
Is this a fair and reasonable reaction by the Strata Manager, and is this legal?
Answer: There is nothing in the Unit Titles (Management) Act 2011 or the accompanying regulation which enables the cost of a meeting to be charged to those owners who requested the meeting.
There is nothing in the Unit Titles (Management) Act 2011 or the accompanying regulation which enables the cost of a meeting to be charged to those owners who requested the meeting.
Section 3.5 of Schedule 3 is the relevant section which enables people who are entitled to vote to make a meeting request (see below).
3.5 General meetings other than annual general meetings
- The executive committee of an owners corporation may call a general meeting, by notice under section 3.6, whenever it considers appropriate.
- Subsection (3) applies if the executive committee of an owners corporation receives a written request (a meeting request), stating the matters to be considered at the meeting, from people who are entitled to vote on all motions for units whose combined unit entitlement is at least 1/4 of the total unit entitlement in the units plan.
- The executive committee must hold a general meeting, by notice under section 3.6, within 28 days after the day it receives the meeting request.
Finally, section 31 of the UTMA, which enables expenses incurred by an owners corporation to be recovered from lot owners, only applies where an expense has arisen due to a willful or negligent act or omission of a lot owner or a breach of the rules by a lot owner.
A meeting request is not a wilful or negligent act or omission of a lot owner or a breach of the rules.
Christopher Kerin
Kerin Benson Lawyers
P: 02 8706 7060
E: [email protected]
This post appears in Strata News #182.
Read next:
- ACT: Q&A Rules Around How to Chair a General Meeting. Can this be done by an Independent person?
- ACT: Q&A Calling a Special General Meeting – What do I need to do?
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
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The answers to your questions are: Yes. Yes. See Part 2.1 of Schedule 2 of the Unit Titles (Management) Act which sets out various requirements regarding minutes of executive committee meetings. This would preclude the execution of a confidentiality agreement.
1.Can a Strata Committee book a small room in a nearby club to hold its Strata Committee meetings for about 6 meetings a year.? We have a 9 SC membership. Is the cost to book a small room for SC meetings a reasonable cost, especially as the Strata building does not have an appropriate common property room or area to hold the SC meetings?
2.Some SC members want all SC members to sign a confidentiality agreement in respect to SC meetings. This is being requested to prevent SC members from discussing with other lot owners what was discussed at the the SC, especially if one or more SC members disagree with a SC majority decision. I consider that this is unenforceable and completely unnecessary as all SC meetings are open to all lot owner to attend and observe the SC discussions. Additionally, as all relevant discussions and decisions of the SC meeting must be recorded in the SC minutes and those minutes are available to all lot owners, there is no legal basis for a confidentiality Agreement
Your comments on both matters is appreciated.
Sounds like you need a new strata manager!