QLD: New Rules for Lot Owners Submitting Motions to the Committee

This article is about lot owners submitting motions to the committee after the new strata QLD legislation changes.

Table of Contents:

• QUESTION: Can the committee email owners recommending they vote no to an owner motion?
• QUESTION: Our committee wants to paint the building next year. We need to raise a special levy. Can I suggest we hold off painting until 2026 so we all have more time to save?
• QUESTION: At the AGM, the treasurer hadn’t read the audit report and was unaware of overspends. Can I submit a motion to ‘encourage’ the treasurer to report financials regularly?
• QUESTION: Can I put a motion to the body corporate suggesting we have quarterly body corporate meetings?
• QUESTION: Our agenda never includes an item for ‘any other business’. We feel the committee does not allow an avenue for lot owners to share their views. Why is this not part of the meeting?
• QUESTION: Can an owner submit a motion to the AGM proposing a sinking fund be used to reduce a strata loan balance for repairing and repainting the external facade?
• QUESTION: This question is made up of a variety of queries around the changes to lot owners submitting motions to the committee
• QUESTION: A Meeting of the Minds – Submitting a Motion to the Committee

RECEIVE OUR REGULAR STRATA NEWSLETTER

Question: Can the committee email owners recommending they vote no to an owner motion?

I have submitted a motion for our upcoming AGM. I received an email from the chair stating they will “send out a recommendation to all owners to vote no for this one motion” before the AGM.

Is the chair or any committee member entitled to tell owners how to vote on motions at the upcoming AGM?

Answer: The chair is not telling owners how to vote but lobbying for a particular outcome, which they are entitled to do.

Todd Garsden, Mahoneys:

The chairperson is not telling owners how to vote but lobbying for a particular outcome, which they are entitled to do. You are equally entitled to lobby in favour of the motion.

William Marquand, Tower Body Corporate:

The committee are allowed to send this kind of message, and many owners may want or expect some direction from them as they are probably the best placed to provide an overview. However, the committee should be judicious in its response, providing reasonable information to owners so that owners can understand the situation and vote accordingly.

Todd Garsden
Mahoneys
E: tgarsden@mahoneys.com.au
P: 07 3007 3753

William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924

This post appears in the September 2024 edition of The QLD Strata Magazine.

Question: Our committee wants to paint the building next year. We need to raise a special levy. Can I suggest we hold off painting until 2026 so we all have more time to save?

Our committee has proposed we paint the building in 2025. We do not have enough in the sinking fund. As the proposed painting is only 12 months away, each owner must pay a special levy of $4000 – $6000. I can’t pay this amount by 2025.

To give owners an extra year to come up with the required funds, can I put a motion to the committee proposing the painting be done in 2026?

Answer: Motions are just proposals. Owners can vote on them as they see fit.

Motions are just proposals. Owners can vote on them as they see fit. If you have a valid proposal, you should submit your motion to the committee so it can be considered.

The committee is within its rights to put forward a proposal and you can vote no to that if you want. You can also put forward a counter proposal. That’s the democratic process at work.

You need to be conscious that if the committee’s motion passes and there is a special levy, you are obligated to pay that levy. That can be hard, but owners must factor this possibility into their calculations.

The committee might need to think about how many owners may be in a similar position as you. If a maintenance proposal will cause many owners financial strain, perhaps they could raise the money through a loan or across a couple of years.

Regarding sinking funds, I often ask owners to do a simple calculation. Divide the amount in the sinking fund by the number of owners in the scheme to get an average amount the body corporate holds in reserve for each owner. Ask yourself if you are comfortable with that amount as the reserve for your lot. You probably don’t have enough in your sinking fund if the answer is no.

If a 100 lot scheme had $150,000 in its sinking fund, many owners might think that was a good amount. However, divide that per lot, and it’s only $1500 for each. If you had your own house, would you be happy to have $1500 in your account as backup for something going wrong?

It’s not an exact calculation of how body corporate expenditure works, but if you want to get a snapshot of where you stand, it’s a good one to make. And if you think the number is low, it may not be a disaster, but the likelihood is that higher levies and special levies are in your future.

William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924

This post appears in the July 2024 edition of The QLD Strata Magazine.

Question: At the AGM, the treasurer hadn’t read the audit report and was unaware of overspends. Can I submit a motion to ‘encourage’ the treasurer to report financials regularly?

At the AGM, the treasurer admitted they hadn’t read the report and were unaware of some significant overspending issues raised by the auditor. Finding out about this stuff at the end of the year is too late.

Can I submit an owner motion for the next general meeting stating that the committee/treasurer is required, or at least encouraged, to provide quarterly YTD financial reports to the owners regarding the YTD financial statement, including, but not limited to, exception reporting where YTD expenditure exceeds the budget. Similarly, an annual financial report by the committee/treasurer for the AGM, especially re overspends etc.

It this a valid motion? Is there a way to submit this motion without being ruled out of order by the chair at the general meeting under section 88 of the Accommodation Module.

Answer: The treasurer will want to do it, or they won’t.

What I would say to this is more pragmatic than legal.

‘ Encouraged to’ is not an obligation. It is a suggestion only, so it is not binding. The treasurer will want to do it, or they won’t. If they don’t, it won’t happen, so it is pointless. Whether the committee can be forced to by the body corporate is something that should be the subject of formal legal advice.

The real answer (as brutal as this is) is to get involved, participate and do the work you are asking the committee to do. If you don’t want to do that, why should they? I would also observe that quarterly cash flow movements might be very different from the annual budget, so a quarterly reconciliation might not show anything realistic either.

Frank Higginson
Hynes Legal
E: frank.higginson@hyneslegal.com.au
P: 07 3193 0500

This post appears in the June 2024 edition of The QLD Strata Magazine.

Question: Can I put a motion to the body corporate suggesting we have quarterly body corporate meetings?

I understand the legislation in QLD only requires the committee to hold one meeting a year, the AGM. Can I put a motion to the body corporate at the next AGM suggesting we have quarterly body corporate meetings with financial and project reporting or does that contravene legislation? Would the motion be considered out of order?

Answer: Consider joining the committee and changing the way things run from the inside.

You could present something along these lines as a valid motion, but even if the motion passes, does it get you where you want to go?

We don’t know all the circumstances here, but there are many different types of body corporate and different ways of running them. Committee meetings are a formal structure around which the operation of the body corporate can take place and, if well organised, are an effective means of management. However, if you are forcing people to have them, do you think those meetings will produce positive outcomes? Whatever the motivation behind your inquiry, I guess they won’t, so you might want to think of an alternative strategy. As a starting point, you might look at joining the committee and changing the way things run from the inside.

In terms of the financials, it is important they are recorded in meeting documents. If you have a good body corporate manager, the financials should be available to you anytime through an online portal or quickly by request. If these aren’t transparent, that might be a sign of a bigger problem within your community.

William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924

This post appears in the June 2023 edition of The QLD Strata Magazine.

Question: Our agenda never includes an item for ‘any other business’. We feel the committee does not allow an avenue for lot owners to share their views. Why is this not part of the meeting?

Our upcoming AGM has only the following agenda;

1. Attendance record and apologies
2. Admittance of proxies and voting papers
3. Consideration of motions
4. Election of committee members (must be the last item of business)

As you see, agenda item 4 ‘must be the last item of business’. Is this acceptable? Shouldn’t we have any other business questions from the floor? We feel this is a way of silencing owners and avoiding scrutiny.

Answer: ‘Any other business’ is not necessary or recommended if we consider the true purpose of meetings. However, there may be room for a little Q&A.

There is a common misconception that general meetings must include an agenda item called ‘any other business.’ However, this is not necessary or recommended if we consider the true purpose of meetings. The primary objective of meetings is to provide owners with information regarding body corporate issues, allowing them to deliberate and vote collectively as a unified body corporate. By their nature, motions and the information necessary to vote on them must be presented to all owners as part of the notice. Any other business matters don’t meet this criteria – the information is only presented informally and doesn’t reach all owners – so they can’t be part of a meeting.

As such, if you want an issue considered by the body corporate, you should submit a valid motion and have it voted on as part of the formal agenda. That is how the committee can hear the voice of owners, and owners can scrutinise the actions of the body corporate.

This doesn’t mean additional business is never considered. Meetings are an opportunity for owners to discuss directly with each other. Concluding the official business, tidying up some minor items is not unusual. Managers will often record any discussions along these lines under a notes section at the end of the minutes. This discussion and any decisions made from it are informal only, but depending on the circumstances, they can be helpful to move body corporate issues forward.

It is up to each scheme to determine how they manage this. Some schemes may prefer to keep things straight down the line and allow no additional discussion beyond the agenda items. At other sites, a little Q&A at the end may provide some wider benefit. Speak to your committee and manager and see what they think.

William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924

This post appears in the June 2023 edition of The QLD Strata Magazine.

Question: Can an owner submit a motion to the AGM proposing a sinking fund be used to reduce a strata loan balance for repairing and repainting the external facade?

Our body corporate has taken out a $500k strata loan to repair and repaint the external facade.

Our sinking fund has a balance of around $380k. The committee are reluctant to use any of these funds towards the project. Is this financially responsible? As an owner, can I submit a motion to the AGM stating that some of the funds from the sinking fund are to be put towards the works thereby reducing our loan balance and levy payments?

If this is possible, can you please suggest some wording for the motion?

Answer: If you want a matter to be considered by the body corporate, submitting a motion is the best way to have your issue heard.

Can an owner submit a motion?

Can you submit a motion? Yes, of course. If you want a matter to be considered by the body corporate this is the best way to have your issue heard.

Unfortunately we can’t provide the wording for you. This is a general advice website and can’t deal with an issue as specific as this. You should contact your body corporate manager and ask them for some assistance. Alternatively, you can contact a strata solicitor who could provide you with a motion. Note that it is a requirement that motions must:

• be in writing
• include any necessary quotes and other documents
• be clear
• be enforceable

So you need to put forward a concrete proposal that allows owners to vote on a definitive outcome if you want your motion to proceed.

The BCCM website has some good advice on how to draft a motion: Queensland Government: Drafting motions

William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924

This post appears in Strata News #635.

Question: This question is made up of a variety of queries around the changes to lot owners submitting motions to the committee.

Pursuant to s.50 of the Accommodation Module 2020, members of a body corporate (owners) may submit a motion for consideration by the committee.

1. As the committee is required to consider the motion at a committee meeting:
   
   1. Must this be an (ordinary) committee meeting which all owners may attend or can the motion be considered at a VOCM in lieu of an ordinary meeting?
   2. Must the motion be shown on the Agenda of the committee meeting?
   3. if the committee requires more time to decide the motion, must the reason the committee requires more time be recorded and published in the meeting minutes and copied to all owners?
   4. if the committee decides not to decide a motion because subsection (3)(a) or (b) applies, must the reason why the motion was not decided, be recorded and published in the meeting minutes and copied to all owners?
   5. If the committee decides in favour of an owner motion, is it under any obligation to implement the motion?
2. Does a motion submitted by an owner need to be accompanied by an explanatory note not longer than 300 words (as in s.80)

Answer: One of the responses about submitting motions: The motion must be included on the agenda of a committee meeting only if it is decided on at the meeting. Find out more below:

1. 1. When a motion is submitted to the committee, the committee can decide the motion at either a committee meeting or a VOCM.
   2. The motion must be included on the agenda of a committee meeting only if it is decided on at the meeting. If the committee does not choose to address the motion at the meeting (and chooses to address it at a later meeting or VOCM) it does not need to appear on the agenda.
   3. Yes – the definition of full and accurate minutes in section 63(6)(d)(iv) of the Accommodation Module extends to this.
   4. No – the definition of full and accurate minutes in section 63 of the Accommodation Module does not extend to this and there is no decision needed to have been made. Such reasons only need to be included if the motion was not decided because it was invalid or a restricted issue.
   5. Yes – section 101(2) of the BCCMA provides that the committee must put into effect the lawful decisions of the body corporate.
2. No – there is no need for an explanatory note to be submitted (even if for a general meeting motion).

This answer applies to both standard and accommodation modules.

Todd Garsden
Mahoneys
E: tgarsden@mahoneys.com.au
P: 07 3007 3753

This post appears in Strata News #466.

A Meeting of the Minds – Submitting Motions to the Committee

The relationship between Committees and lot owners is set to shift as new legislation better defines how issues raised by owners can be resolved.

What’s Changing: New Strata QLD Legislation

From March 1, under the standard module regulation, any owner who wants the Body Corporate Committee to make a decision on an issue they are concerned about must submit a motion for this via the secretary by email, post or in person.

Once received, the Committee will then have six weeks from the date of submission to make a decision on that motion at a Committee Meeting or a VOC. If more time is required, the Committee will need to give the owner written notice within the six week ‘decision period’ including reasons why and a time frame for resolution.

The implication here is that requests from owners have to receive due process of consideration and ideally a vote of determination – not something that has always happened in the past. Committees cannot allow matters to drift or go unanswered. Through the meeting notices and minutes, lot owners can clearly see that their issue has been presented and that a decision has been made. The official records will help define both sides’ position at the time of the decision and for posterity. As ever, if an owner is unhappy with the outcome of a decision, they then have the choice of pursuing further resolution through the courts.

The change may be perceived as broadly advantageous for individual owners, especially those who deal with inactive committees or who live in schemes where there is a lack of transparency. However, the regulations come with a number of caveats that should help active committees focus on management on practical matters that are beneficial for the scheme.

Which Motions Will Committees be able to Make Decisions About?

Under the new rules, committees will not be able to make a decision about a motion if it is:

• A restricted issue for the Committee i.e. outside of a spending limit or required to go to a general meeting.
• A restricted issue for the Committee i.e. outside of a spending limit or required to go to a general meeting.
• In conflict with, the Act or regulations, by-laws, a motion already voted on at the meeting.
• Unlawful or unenforceable.

What Does that Mean for the Lot Owner?

The emphasis will be on the lot owner to ensure these conditions are met and Committees don’t have to worry too much about half-baked ideas or impractical propositions. If owners want something done, they have to put some work towards presenting a credible proposal make it happen rather than leaving the legwork to unpaid volunteers. Nuisance applications can be dismissed as time-wasting.

Can Committee Decisons be Revisted?

Further, Committees will not have to decide on a motion if, in the previous 12 months, the owner has submitted a motion about the same issue or submitted six or more motions. In other words, once an issue has been decided, there is no need to revisit that decision for at least a year. And, owners who regularly have issues they want the Committee to consider, the need to be judicious in determining their priorities.

What are the Timeframes to Receive a Response to Your Submission?

One additional wrinkle is that if a motion is submitted and the Committee makes no decision or provides no response within the six-week decision period that motion is then considered ‘not passed’.

How this plays out in practice will be interesting. For lot owners who want to take the matter further, they now have a definitive date after which they can lodge a QCAT application with demonstrable evidence that they have made reasonable attempts to bring an issue to the Committee.

Equally, some Committees might see this as an opportunity to play double jeopardy – forcing an owner to take matters to court if they are willing to go that far. No one wants to see body corporate management fall into a pit of tit for tat legal action, but the changes here do open the greater possibility for that to happen.

William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924

This post appears in Strata News #446.

Have a question about submitting a motion to the committee or something to add to the article? Leave a comment below.

Embed

This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.

In March 2021, Todd Garsden from Mahoneys joined us for a QLD Webinar covering the New Regulation Modules. You can watch the webinar in full here: QLD Strata Webinars. Todd Garsden produced a handy, free one page list of new motions that you can do download here: New Motions For A Body Corporate.

Read next:

• QLD: Q&A AGMs, Motions in Strata and the Obligation to Act
• QLD: Standard Module regulation changes – committee membership
• QLD: Removing an Elected Body Corporate Committee Member

Visit Strata Committee Concerns, Strata Law Reform OR Strata Legislation QLD

Looking for strata information concerning your state? For state-specific strata information, try here.

After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.