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STRATA SCHEMES MANAGEMENT ACT 2015 - SCHEDULE 1

SCHEDULE 1 – Meeting procedures of owners corporation

(Section 23)

Part 1 - Preliminary

1 Meetings to which Schedule applies

This Schedule applies to annual general meetings and other general meetings of an owners corporation for a strata scheme.

2 Application to large strata schemes

The provisions of this Schedule are subject to the regulations, but only to the extent that the regulations relate to large strata schemes.

3 Interpretation

(1) In this Schedule:

"owner" means an owner of a lot in the strata scheme for which a meeting is held or proposed to be held.

"priority vote" --see clause 24 (1).
(2) In this Schedule, a reference to a
"person entitled to vote" at a meeting is a reference to a person entitled to vote on a motion other than a motion requiring a unanimous resolution.

Part 2 - Agendas, nominations and notices

4 Inclusion of matters on agenda

(1) Any owner, or any person entitled to vote at a general meeting of an owners corporation, may require a motion to be included in the agenda of the next general meeting of the owners corporation.
(2) The requirement is to be made by written notice given to the secretary of the owners corporation that:
(a) sets out the required motion, and
(b) states the name of the person making the requirement, and
(c) includes an explanation of the motion of not more than 300 words in length.
(3) The secretary must give effect to the requirement.
(4) However, if the requirement is made after notice has been given of the meeting, the secretary must include the motion in the agenda for the next subsequent meeting.
(5) An owner or a person may make a requirement even if the owner or person cannot vote because the owner is an unfinancial owner.

5 Nomination of candidates for election prior to meeting

(1) The written notice of an annual general meeting is to include a call for nominations for members of the strata committee at least 7 days before the annual general meeting of an owners corporation.
(2) Any owner, or any person entitled to vote at a general meeting of an owners corporation, may nominate a person for election as a member of the strata committee.
(3) The nomination is to be made by written notice given to the secretary of the owners corporation or, in the case of the first annual general meeting, to the convenor of the meeting, that states the name of:
(a) the person nominated, and
(b) the person making the nomination and that the person nominated consents to the nomination.
(4) The secretary must include the nomination in the notice of the meeting at which the election is to take place. Notice of any subsequent nomination is to be given by the secretary at the meeting.
(5) A nomination may be made at any time before the election is held and may be made at the meeting.
(6) An owner or a person may make a nomination even if the owner or person cannot vote because the owner is an unfinancial owner.

6 Required items of agenda for AGM

The agenda for each annual general meeting must include the following items:

(a) an item to decide if any matter or type of matter is to be determined only by the owners corporation in general meeting,
(b) an item to prepare or review the 10-year plan for the capital works fund,
(c) an item to consider the annual fire safety statement (if one is required for the building) under the Environmental Planning and Assessment Act 1979 and arrangements for obtaining the next annual fire safety statement,
(d) until the end of warranty periods for applicable statutory warranties under the Home Building Act 1989 for buildings of the strata scheme, an item to consider building defects and rectification.

7 Notice of general meetings other than first AGM

(1) This clause applies to general meetings other than the first annual general meeting of an owners corporation.
(2) Written notice of a meeting must, at least 7 days before the meeting, be given to each owner.
(3) Notice of a meeting must also be given, at least 7 days before the meeting, to each first mortgagee or covenant chargee on the strata roll if an item on the agenda is one in which the mortgagee or covenant chargee may cast a priority vote.
Note : A priority vote may be cast in the circumstances set out in clause 24.
(4) Nothing in this Part requires an owner to give notice of a meeting to himself or herself.

8 Matters that must be included in notice of general meetings

(1) The following matters must be included in, or accompany, the notice given of all general meetings:
(a) a form of motion to confirm the minutes of the last general meeting of any kind,
(b) a form of motion for the election of the strata committee, if the meeting is for that purpose,
(c) a form of motion for each other motion to be considered at the meeting,
(d) whether a motion requires a special resolution or a unanimous resolution to be passed,
(e) a statement that a vote by an owner does not count if a priority vote is cast for the lot in relation to the same matter,
(f) a statement that an unfinancial owner, mortgagee or covenant chargee cannot vote at a meeting on a motion (other than a motion requiring a unanimous resolution) unless payment has been made before the meeting of all contributions levied on the owner, and any other amounts recoverable from the owner, in relation to the lot,
(g) a statement that voting or other rights may be exercised in person (if the addressee is an individual) or by a company nominee (if the addressee is a corporation), or by a proxy appointed by the addressee,
(h) the provisions of this Act for determining a quorum at meetings.
(2) A copy of the minutes of the previous general meeting must be given to an owner with notice of a meeting if the owner has not previously been given a copy of the minutes or has requested but not received a copy before the notice is given.

9 Additional matters to be included in notice of AGM

The following matters must also be included in, or accompany, the notice given of annual general meetings:

(a) a copy of the last statements of key financial information for the administrative fund, the capital works fund and any other fund prepared by the owners corporation and any relevant auditor's report,
(b) a form of motion for adoption of the financial statements,
(c) a form of motion to consider the appointment of an auditor and the taking out of insurance of the kind referred to in section 165 (2), if insurance of that kind has not already been taken out,
(d) particulars of each insurance policy taken out by the owners corporation (as required to be specified in the strata roll),
(e) a form of motion to decide the number of members of the strata committee,
(f) a form of motion for the election of the strata committee, including the names of any persons nominated for election before the notice is given,
(g) if there is a strata managing agent, a form of motion to consider the report by the agent as to whether, and what, commissions or training services have been provided or paid for or are likely to be so provided to or paid for the agent for the following 12 months,
(h) a form of motion to decide how to deal with any overdue contributions payable to the owners corporation,
(i) a form of motion to decide if any matter or type of matter is to be determined by the owners corporation in general meeting.

10 Financial statements to be provided on request

(1) The owners corporation must, at the request of an owner or a mortgagee or covenant chargee of a lot, give to the owner, mortgagee or covenant chargee a copy of the last financial statements prepared for the administrative fund, the capital works fund and any other fund of the owners corporation by the owners corporation at least 2 days before the meeting at which the statements are to be presented.
(2) This Schedule does not prevent the owners corporation from determining that a copy of the last financial statements prepared for the administrative fund, the capital works fund or other fund is to be included in, or to accompany, the notice of an annual general meeting.

11 Notice to be given to tenants

(1) A copy of the agenda for a meeting must, at least 7 days before the meeting is held:
(a) be given to each tenant, who has been notified to the owners corporation in accordance with this Act as a tenant of the lot, or
(b) be prominently displayed on any notice board required to be maintained by or under the by-laws on some part of the common property.
(2) Copies of other documents relating to a meeting may be given to each tenant of a lot if the owners corporation so decides.

Part 3 - General meeting procedure

12 Chairing of meetings

(1) Chairperson to preside The chairperson of the owners corporation is to preside at any meeting at which the chairperson is present.
(2) Presiding member where chairperson absent In the chairperson's absence from a meeting, the persons present at that meeting and entitled to vote on motions submitted at that meeting (other than unfinancial owners) may elect one of their number to preside at that meeting and the person so elected is, while so presiding, taken to be the chairperson of the owners corporation.
(3) Chairperson does not have casting vote The chairperson does not have a casting vote in relation to any motion but may vote in his or her own right if otherwise entitled.
(4) Chairperson may be only person present A meeting is, subject to the provisions of this Schedule relating to the quorum, validly held even though the only person present at the meeting is the chairperson of the owners corporation.

13 Chairperson to announce names of persons entitled to vote

If requested to do so by a person present and entitled to vote at a meeting, the chairperson must, before submitting a motion to the meeting or the holding of the election of members of the strata committee, announce the names of the persons who are entitled to vote on that motion or at that election.

14 Decisions at meetings

(1) Simple majority vote to generally apply A motion put to a meeting, or an election of officers of the owners corporation or members of the strata committee, is to be decided according to a majority in number of the votes cast for and against the motion with each person having one vote for each lot in respect of which the person is entitled to vote.
(2) Vote of original owner who owns more than half of lots to be reduced For the purposes of determining an election for officers of the owners corporation or members of the strata committee or appointing a strata managing agent (other than in the case of a poll), if the total unit entitlement of lots of the original owner is not less than half of the aggregate unit entitlement, the value of the vote in respect of the lots held by the original owner is taken to be reduced by two-thirds (ignoring any fraction).
(3) Value of votes to apply for poll If a poll is demanded by a person present and entitled to vote on a motion or for the election of officers of the owners corporation or members of the strata committee at the meeting, the motion is to be decided according to the value of the votes cast for and against the motion and the value of a vote cast by a person entitled to vote in respect of a lot is equal to the unit entitlement of that lot. However, the value of the vote of an original owner is to be calculated in the same way as for a special resolution.
Note : Section 5 sets out the manner in which a special resolution is determined.
(4) Polls A poll may be demanded immediately before or after a vote decided by a majority in number has been taken. The demand for a poll may be withdrawn by the person who made it.

15 Developer or lessor excluded from votes relating to building defects

The developer or lessor of a leasehold strata scheme is not entitled to vote, or exercise a proxy vote, on a matter concerning building defects in, or the rectification of building defects in, building work to which Part 11 of this Act applies.

16 Chairperson's declaration of vote

(1) The chairperson must declare the result of the voting on any motion at a meeting or an election at a meeting at the meeting if it is possible to do so.
(2) The declaration of the chairperson of the result of the voting on any motion at a meeting, otherwise than on a poll, is conclusive without proof of the votes recorded for and against the motion.

17 Quorum

(1) Quorum required for motion or election A motion submitted at a meeting must not be considered, and an election must not be held at a meeting, unless there is a quorum present to consider and vote on the motion or on the election.
(2) When quorum exists A quorum is present at a meeting only in the following circumstances:
(a) if not less than one-quarter of the persons entitled to vote on the motion or election are present either personally or by duly appointed proxy,
(b) if not less than one-quarter of the aggregate unit entitlement of the strata scheme is represented by the persons who are present either personally or by duly appointed proxy and who are entitled to vote on the motion or election,
(c) if there are 2 persons who are present either personally or by duly appointed proxy and who are entitled to vote on the motion or election, in a case where there is more than one owner in the strata scheme and the quorum otherwise calculated under this subclause would be less than 2 persons.
(3) A person who has voted, or intends to vote, on a motion or at an election at a meeting by a permitted means other than a vote in person is taken to be present for the purposes of determining whether there is a quorum.
(4) Procedure if no quorum If no quorum is present within the next half-hour after the relevant motion or business arises for consideration at the meeting, the chairperson must:
(a) adjourn the meeting for at least 7 days, or
(b) declare that the persons present either personally or by duly appointed proxy and who are entitled to vote on the motion or election constitute a quorum for considering that motion or business and any subsequent motion or business at the meeting.
(5) Quorum for adjourned meeting If a quorum is not present within the next half-hour after the time fixed for the adjourned meeting, the persons who are present either personally or by duly appointed proxy and who are entitled to vote on the motion or election constitute a quorum for considering that motion or business and any subsequent motion or business at the meeting.

18 Motions require notice

A motion must not be submitted at a general meeting if any requirement of this Act to include the form of the motion in the notice of the meeting has not been complied with, unless the motion is a motion to amend a motion of which notice has been so given.

19 Chairperson may rule certain motions out of order

The chairperson at a meeting may rule a motion out of order if:

(a) the chairperson considers that the motion, if carried, would conflict with this Act or the by-laws of the strata scheme or would otherwise be unlawful or unenforceable, or
(b) any requirement of this Act to include the form of the motion in the notice of the meeting has not been complied with.

20 Adjournments

(1) A meeting may be adjourned for any reason if a motion is passed at the meeting for the adjournment.
(2) The time and place at which a meeting adjourned under this Part is to be resumed must be fixed by the person who was presiding at the meeting or, if the meeting was adjourned because of a lack of a quorum, by the person who would have presided at the meeting but for the lack of the quorum.
(3) The secretary of the owners corporation must give to the members of the owners corporation, at least 1 day before the resumed meeting, a written notice specifying:
(a) the time and place of the meeting, and
(b) the provisions of this Act for determining the quorum at a meeting.

21 Tenants at meetings

(1) A tenant who has been notified in accordance with this Act to the owners corporation as a tenant of a lot in the strata scheme is entitled to attend a meeting but is not entitled to vote at a meeting unless the tenant is the holder of a duly appointed proxy.
(2) A tenant is not entitled to address a meeting unless authorised to do so by a resolution of the owners corporation.
(3) The owners corporation may, at any meeting or for the purpose of all meetings, determine that tenants (other than tenants who hold duly appointed proxies) are not entitled to be present when the following matters are being discussed or determined:
(a) financial statements and auditor's reports,
(b) levying of contributions,
(c) recovery of unpaid contributions,
(d) a strata renewal proposal under Part 10 of the Strata Schemes Development Act 2015 or any related matter,
(e) any other financial matter specified by the regulations for the purposes of this clause.

22 Minutes

(1) Records to be kept The owners corporation must keep full and accurate minutes of its meetings that include minutes of all motions passed at its meetings.
(2) Distribution of minutes and records of motions Within 14 days after a meeting, the owners corporation must provide copies of the minutes of the meeting in the following manner:
(a) by giving each member of the strata committee a copy,
(b) by giving each owner a copy, if the strata scheme is not a large strata scheme,
(c) by giving an owner a copy, if the strata scheme is a large strata scheme and the owner requests a copy within the period of 14 days.
Maximum penalty: 5 penalty units.

Part 4 - Voting rights and voting procedures

Division 1 - General rights to vote

23 Persons entitled to vote at general meetings

(1) Persons who have right to vote Each owner, and each person entitled to a priority vote, has voting rights that may be exercised at a general meeting of the owners corporation, but only if the owner or person is shown on the strata roll and, in the case of a corporation, the company nominee is shown on the strata roll.
(2) Exercise of voting rights by joint first mortgagees or joint covenant chargees Voting rights may be exercised at the meeting by joint first mortgagees or joint covenant chargees only by proxy (who may be one of them) duly appointed by all of them jointly.
(3) Exercise of voting rights by owner, first mortgagee or covenant chargee The voting rights of an owner or first mortgagee or covenant chargee of a lot (other than a co-owner, mortgagee or covenant chargee) may be exercised:
(a) unless the owner, mortgagee or covenant chargee is a corporation--in person or by proxy, or
(b) if the owner, mortgagee or covenant chargee is a corporation--by the company nominee in person, or by proxy appointed by the corporation.
(4) Exercise of voting rights by co-owners to be by proxy The voting rights of co-owners of a lot may not be exercised by them individually but may be exercised:
(a) by a proxy (who may be one of them), or
(b) as provided by subclause (5).
(5) Other circumstances in which co-owners may exercise voting rights If, on a vote at a general meeting, the rights of co-owners of a lot are not exercised by a proxy as referred to in subclause (4), one of them may act as such a proxy:
(a) if the other co-owners are absent or those who are present give their consent, or
(b) if paragraph (a) does not apply--if he or she is the owner first named on the strata roll as one of the co-owners.
(6) Exercise of voting rights by owners of successive estates in lot If there are owners of successive estates in a lot, only the owner of the first estate may vote at a general meeting.
(7) Exercise of voting rights where owner holds lot as trustee If the owner of a lot holds it as trustee, a person beneficially entitled may not vote at a general meeting.
(8) Voting rights cannot be exercised if contributions not paid A vote at a general meeting (other than a vote on a motion requiring a unanimous resolution) by an owner of a lot or a person with a priority vote in respect of the lot does not count if the owner of the lot was an unfinancial owner at the date notice of the meeting was given and did not pay the amounts owing before the meeting.
(9) Effect of failure to give strata interest notice This clause does not confer a right to vote on a person deprived of the right by failing to comply with the requirement to give a strata interest notice.

24 Priority votes

(1) A
"priority vote" is a vote cast on a motion by a person whose vote has priority under this clause.
(2) A priority vote may be cast on any of the following motions:
(a) a motion that relates to insurance, budgeting or the fixing of a levy,
(b) a motion that will require expenditure by the owners corporation of an amount that exceeds the amount prescribed by the regulations for the purposes of this clause,
(c) a motion that requires a special resolution or unanimous resolution.
(3) If a priority vote is cast in relation to a lot, a vote on the same matter by the owner of the lot does not count. However, a priority vote has no effect unless at least 2 days written notice of intention to exercise the priority vote at the particular meeting has been given to the owner of the lot.
(4) A priority vote may be cast in respect of a lot by:
(a) the mortgagee of the lot under a mortgage shown on the strata roll as having priority over any other mortgage, and over any covenant charge, shown on the strata roll in relation to the lot, or
(b) the covenant chargee of the lot under a covenant charge shown on the strata roll as having priority over any mortgage shown on the roll in relation to the lot, or
(c) the covenant chargee of the lot under a covenant charge shown on the strata roll without any mortgage being shown on the roll in relation to the lot.
Note : Clause 28 allows a vote to be cast in person or by other means.

25 Rights of proxies and limits on votes by proxies

(1) Proxy may demand poll A duly appointed proxy may vote on a show of hands or demand a poll.
(2) Powers of proxies A person duly appointed as a proxy:
(a) if entitled to vote otherwise than as a proxy--may also vote in the person's own right, and
(b) if appointed as proxy for more than one person--may vote separately as a proxy in each case.
(3) Proxy cannot vote if person appointing proxy votes A proxy cannot exercise a vote in relation to a matter if the person who appointed the proxy is exercising personally a power to vote on that matter.
(4) Proxy limited by instrument of appointment If the instrument appointing a proxy limits the manner in which the proxy may vote at a meeting, a vote by the proxy that does not observe the limitation is invalid.
(5) No proxy vote pursuant to contract for sale by original owner An original owner or a person connected with the original owner cannot cast a vote by means of a proxy or power of attorney given by another owner of a lot in the strata scheme if the proxy or power of attorney was given pursuant to a term of the sale contract for the lot or pursuant to another contract or arrangement that is ancillary or related to the sale contract.
(6) Subclause (5) does not apply to a proxy or power of attorney given by a person to another person connected with him or her.
(7) Limits on exercise of proxy by building manager, on-site residential property manager or strata managing agent A vote by a proxy who is a building manager, an on-site residential property manager or a strata managing agent is invalid if it would obtain or assist in obtaining a pecuniary interest for, or confer or assist in conferring any other material benefit on, the proxy.
(8) For the purposes of subclause (7),
"material benefit" includes, but is not limited to, the following:
(a) an extension of the term or an additional term of appointment of the proxy as building manager, on-site residential property manager or strata managing agent,
(b) an increase in the remuneration of the proxy,
(c) a decision of the owners corporation not to proceed with, to withdraw, to delay, to compromise or to settle litigation or other legal proceedings relating to the proxy,
(d) any other decision of the owners corporation that affects litigation or other legal proceedings relating to the proxy.

Division 2 - Appointment of proxies

26 Appointment of proxies

(1) Duly appointed proxy A person is a
"duly appointed proxy" for the purposes of this Part if the person is appointed as a proxy by an instrument in the form prescribed by the regulations and the form is signed by the person appointing the proxy or executed in any other manner permitted by the regulations.
(2) Form of proxy The prescribed form is to make provision for the giving of instructions on:
(a) whether the person appointing the proxy intends the proxy to be able to vote on all matters and, if not, the matters on which the proxy will be able to vote, and
(b) how the person appointing the proxy wants the proxy's vote to be exercised on a motion for the appointment or continuation in office of a strata managing agent.
(3) Proxy to be given to secretary of owners corporation The instrument is ineffective unless it contains the date on which it was made and it is given to the secretary of the owners corporation at least 24 hours before the first meeting in relation to which the instrument is to operate (in the case of a large corporation) or at or before the first meeting in relation to which the instrument is to operate (in any other case).
(4) Period for which proxy effective An instrument appointing a proxy has effect for the period commencing with the day on which it takes effect and ending with the later of the first anniversary of that day and the conclusion of the second annual general meeting held after that day, unless it is sooner revoked or a shorter period is provided by the instrument.
(5) Proxy cannot vote if person appointing proxy votes A proxy cannot exercise a vote in relation to a matter if the person who appointed the proxy is exercising personally a power to vote on that matter.
(6) Effect of subsequent proxy An instrument made by a person appointing a proxy has no effect if the person makes a later instrument appointing a proxy and delivers it to the secretary of the owners corporation in accordance with subclause (3).
(7) Limit on number of proxies that may be held The total number of proxies that may be held by a person (other than proxies held by the person as the co-owner of a lot) voting on a resolution are as follows:
(a) if the strata scheme has 20 lots or less, one,
(b) if the strata scheme has more than 20 lots, a number that is equal to not more than 5% of the total number of lots.

27 Certain provisions unenforceable

A provision of a contract for the sale of a lot in a strata scheme, or of any ancillary or related contract or arrangement, is void and unenforceable to the extent that it:

(a) requires the purchaser of a lot, or any other person, to cast a vote at a meeting of the owners corporation at the direction of another person, or
(b) requires the purchaser to give a proxy at the direction of another person for the purpose of voting at a meeting of the owners corporation.

Division 3 - Manner of voting

28 Manner of voting

(1) A vote at a meeting by a person entitled to vote or by a proxy must be cast in person unless the owners corporation, by resolution passed at a general meeting, determines that a vote may be cast by some other specified means.
(2) The regulations may make provision for or with respect to the following:
(a) the means of voting (other than in person) that may be adopted by an owners corporation,
(b) without limiting paragraph (a), procedures for voting by those means,
(c) prohibiting or requiring the use of specified means of voting.

29 Secret ballots

(1) Voting on a motion or for an election at a meeting may be carried out by a secret ballot if:
(a) the strata committee determines that the motion or matter is to be so determined, or
(b) at least one-quarter of the persons entitled to vote on the motion or election agree that the motion or matter is to be so determined.
(2) The regulations may make provision for or with respect to the procedures for a secret ballot.



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