285. Who is entitled to chair a meeting? | the “CPM” | investing funds
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Reena and I enjoy our very first in-person podcast chat, covering:
- the authority of a strata manager to chair meetings
- the Common Property Memorandum: a help or a hindrance?
- the successful resolution of a BMC dispute, and
- investment opportunities for surplus OC funds.
Links mentioned:
- Get the transcript here!
- Section 52 – Owners corporation may delegate functions to strata managing agent – Strata Schemes Management Act 2015 (NSW)
- Section 54 – Functions of officers and strata committee may be given to strata managing agent – Strata Schemes Management Act 2015 (NSW)
- Clause 12 – Schedule 1 – Chairing of meetings – Strata Schemes Management act 2015 (NSW)
- Common Property Memorandum
- Episode 218. Expired agency agreements | OCs investing money | new COVID regulations
I disagree that a strata manager can preside at a meeting by the authority of a delegation under section 52.
Under section 52 “An owners corporation” may delegate one or more of “its functions”.
Under par 12 of Schedule 1, the function of presiding at meetings is, a function of the Chairman. In his/her absence from the meeting, the function may be exercised by “a person present and entitlled to vote” who elected by that group.
The OC can only delegate one or more of “its functions”. Clearly an OC cannot preside at meetings of itself. In my view, Section 52 does not authorise the OC to delegate the functions of the Chairman, the Secretary or the Treasurer which are, of their nature, not “its” functions.
I also do not agree that a lot owner does not own land. Land extends “usque ad coelum et ad inferos” and can be subdivided in strata or in stratum. In my opinion, the space within the external boundaries of the lot is “land”.
Hi Richard, thanks for this insight. See comment from David below. He points to s 54 of the SSMA as being the relevant section by which the OC can delegate the role of the chair to the strata manager. I agree, though this particular section was not mentioned in the podcast.
In relation to lot property being “land” for the purpose of the Dividing Fences Act…food for thought, thank you. To be digested on another podcast episode!
Amanda.
Perhaps Section 54 is the one to cite re chair’s functions.
Thanks David, yes I think you’re right. I will add that link to the notes. See credit to you in my reply to Richard above also 🙂
Is there a CPM for Class B strata schemes?
Hi Lyn, your reference to “Class B” tells me you’re in the ACT? Yes?
I am not aware of the ACT having the CPM at all. In the podcast, I was referring to NSW.
I went to NCAT recently and they said I was not authorised to chair a general meeting. Even though we had the delegated authority in the agreement and I asked and was given owner consent at the start of that meeting. We still won the NCAT case but clearly NCAT is not 100% convinced .
Hi David, I’d love to see NCAT’s reasons for decision…if you were given any.
amanda@yourstrataproperty.com.au
Amanda.
Thanks Amanda and Reena!!
I have a question in 2015 it was decided by the OC that the owner of a car space was relocating the car space so the fence line was going to be painted on the chosen location.
Now it seems like the Strata Manager did not bother to do the work properly but we paid for the lawyer’s work.
Hope that you and others make strata living with less holes where we need to spend a great amount of money making the System Fair.
Thanks again!!
Hi Amanda,
Very interesting discussion with practical ramifications for OC’s…
Interested to understand how you achieve a non owner lawyer chairing a meeting ( possibly a real need)…does the chairperson need to be absent and the lawyer hold a proxy from an owner to qualify ?
You got it, John.