Faqs

A strata committee is a group of people that the owners corporation elects to help it make decisions for the scheme. A strata committee helps the owners corporation make decisions about the strata scheme. The owners corporation chooses exactly what the strata committee can decide on. The owners corporation can also overrule any decisions the strata committee makes. 

 

Most schemes give their strata committee the power to make decisions for things like: 

 

– spending for the day-to-day running of the scheme (e.g. hiring repairers, arranging insurance) 

– approving applications under a by-law of the scheme (e.g. approving renovation applications) 

– issuing a notice to comply with a by-law. 

 

A strata committee can be helped in these jobs by a  strata manager. 

Good and efficient Strata Committees work with the Strata Manager and Building Manager (if the Scheme has one) to make day-to-day decisions that usually involve engagement of contractors, compliance (by-laws and behaviour) and approvals (pets and minor renovations).   As opposed to day-to-day decisions, major decisions are made by owners at a General Meeting. 

The owners corporation elects the strata committee at each annual general meeting (AGM) and decides the total number of members, which cannot be more than nine. Previous strata committee members may stand for re-election at subsequent AGMs. If a committee member resigns, the committee may choose someone to fill the vacancy until the next AGM.  

 

Two-lot schemes require at least two members (one from each property).   Schemes of more than 100 lots, must have at least three members.  

Owners can nominate one person for election for each property they own in the scheme.  As an owner of a lot you may nominate yourself, another owner or someone who doesn’t own a property. This might be a tenant or the tenant representative.  

 

The following are not eligible to serve on a strata committee:  

– the building manager   

– an agent who leases any property in the strata scheme to tenants  

– someone connected to the original owner (developer) or building manager of the scheme, unless you disclose this in writing before election  

– an owner who owes money to the scheme at the time of the AGM.  

The committee selects the office bearers namely the chairperson, secretary, and treasurer.  

 

Chairperson: runs meetings and oversees administration  

 

Secretary: arranges meetings, prepares and gives out meeting agendas and minutes, updates the strata roll, issues notices, and does other administration including correspondence  

 

Treasurer: keeps accounting records and issues levy notices  

The owners corporation can remove one or more members of the strata committee at a general meeting.  

Another way a committee member may be removed is through the NSW Civil and Administrative Tribunal (NCAT) if it is established the member:  

– didn’t follow NSW strata laws  

– didn’t exercise due care or diligence, or  

– engaged in serious misconduct.  

The type of decisions that a Strata Committee would normally make include:  

 

 – Appointing contractors such as cleaners & gardeners  

– Approval of minor renovations (those that don’t require a General Meeting approval)  

– Accepting quotes for work to the building  

– Accepting quotes for insurance  

– Reviewing the budget and making recommendations to the owners for future Strata levies  

– Review of the Financial Statements prepared by the Strata Manager  

– Compliance matters such as by-law breaches and Office of Fair Trading mediation  

– Reviewing requests from Owners and the suitability of each request  

– Investment of surplus funds into Term Deposits 

 

If a strata committee member can’t attend a meeting, subject to the approval of the committee they can choose an ‘acting’ committee member or owner to attend in their place.  

 

The Strata Committee may make any decision of the Strata Scheme except for decisions that the SSMA says it cannot make. The decisions that the Committee cannot make are called “restricted matters”. This means that the Committee can do anything that is otherwise within the power of the strata scheme, except for the following matters that can only be decided at a general meeting:  

 

– Striking levies or special levies.  In most instances, the Strata Committee should understand and agree (as a majority) to the proposed budget  

– Changing the by-laws  

– Major renovations including all bathroom renovations that impact the waterproofing  

– Appointing a Building Manager  

– Appointing a Strata Manager  

– Borrowing money on behalf of the Strata Scheme  

– Altering common property  

– Agreeing to a License or Lease over common property  

– Restricted Matters that the Strata Scheme at general meeting has determined may only be considered at a general meeting  

– Any matters set out in the Act as requiring an ordinary resolution, a special resolution or a unanimous resolution  

– Legal action costing over $13,000   

– Payments to a member of the Strata Committee (honorarium)