STRATA REFORM NEWSLETTER #2:

WELCOME
In newsletter 1 issued in March 2019 we provided details of one of the changes occurring with the Strata Titles Reforms, being the establishment of a Reserve Fund and having a building maintenance plan for schemes with 10 units or more (or a specified replacement value yet to be confirmed by the regulations). This newsletter will give you another glimpse of several changes to come into effect with the Act.

DUTIES OF COUNCIL MEMBERS
With effect from the commencement date a Councillor must:-

At all times act honestly, with loyalty and in good faith in the performance of functions as a member of the Council

Must at all times exercise the degree of care and diligence in the performance of those functions that a reasonable person would reasonably be expected to exercise. Not make improper use of their position for their own or another’s gain, or to cause detriment to
the Strata Company; and

Inform the council in writing of direct or indirect pecuniary (monetary) or other interest that may conflict with the performance of a function as a member of the Council and must not vote on any matter to which they have such an interest.

The Strata Company or an Owner can apply to The State Administration Tribunal (SAT) for an order to remove a Council member who is in breach.

STATUTORY DUTIES ON DEVELOPERS
Developers who own a lot in a scheme cannot vote on resolutions relating to building defects Scheme Developers also have a duty to provide key documents to the Strata Company at the first Annual General Meeting. SAT can order a developer to pay money to the Strata Company to acquire any missing scheme documents.

Scheme Developers must disclose any remuneration or other benefits they have received or may receive from contracts for the provision of service or amenities to the Strata Company or members or that bind the Strata Company. They must also disclose any monetary interest (direct or indirect) that they, or an associate, has in any contract, lease or licence.

SAT can order the developer to pay to the Strata Company any commission received that was not disclosed.

MEETINGS
If a quorum is not present after 30 minutes has elapsed from the time appointed for a general meeting, the persons entitled to vote who are
present at the meeting are taken to constitute a quorum.

Owners will now have the ability to vote on resolutions without a general meeting. A person (including a proxy) may vote at a meeting of the Strata Company by telephone, video link, internet connection or similar means of remote connection (provided that provision of relevant facilities, does not place an unreasonable burden on the Strata Company). A person attending a meeting by remote communication is taken to be present at the meeting.

Recourse will be available at SAT for scheme disputes, including in respect of unreasonable or oppressive by-laws and resolutions.