SA: Q&A No Officers of the Strata Corporation at our Small Scheme

This question about officers of the Strata Corporation and what happens if no-one is able to fill the positions has been answered by Tony Johnson, Stratarama.

Question: Our Strata Corporation positions of secretary, presiding officer and treasurer have been held by the same lot owner. They have now resigned and no-one else is able to fill the roles.

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Just recently a member of our 3 units complex resigned from the position of secretary, presiding officer and treasurer. This position was self-imposed and they were never elected to these positions.

During their time many false, dishonest and cheating was gained for this person and their property during their time in these positions.

Now that this person has resigned, in our small complex we don’t have anyone else able to fill these office roles. We don’t have a Strata manager. Where do we go from here?

Also, can the other members of the body corporate receive any compensation for the wrongs done by this person in the past?

Answer: The Strata Titles Act 1988 requires the group to have these three office bearer positions filled by a unit owner.

There are several issues here which the writer poses. First step by step:

The Strata Titles Act 1988 requires that the group to have these three office bearer positions filled by a unit owner. These positions cannot be vacant for more than 6 months. The group is responsible now for arranging a meeting of the Owners and at that meeting, appointing an Owner to these positions.
Below is an extract from the ACT.

23—Officers of strata corporation
1. A strata corporation must have the following officers:
1. (a) Unless all of the units comprised in the strata scheme consist of non-residential premises, the officers of a strata corporation must be unit holders.
2. Any two or more of the above offices may be held simultaneously by the same person.
3. Until the first appointments are made to the above offices, they will be held by the original proprietor (or, if the original proprietor is a body corporate, by its nominee or in the absence of a nominee, by its secretary).
4. Appointments to the above offices must be made by the strata corporation at a general meeting of the corporation.
5. A strata corporation must not allow any of the above offices to remain vacant for more than six months.
If you have concerns that the group may be being handled inappropriately, then perhaps a Strata Manager is someone the group might consider employing to ensure that the group follow the Strata legislation and other relevant pieces of legislation. Note though, that a Manager is not a replacement for the above Office Bearers positions, and that these must still be filled in accordance with the Act. The Manager is there to assist the group, offer general guidance, and take direction from the group, to follow through the wishes of the group’s Members.

In regards to any previous improprieties taken by previous Office bearers. These matters would need to be discussed amongst Members, and should the group wish to do so, action could be taken through the Magistrates Court (and/ or mediation through this system). It would not be appropriate for me to comment further with limited knowledge of the specific history.

This post appears in Strata News #185.

Comments

Nikki Jovicic says

September 18, 2018 at 1:55 pm

We have received the following question about this post via email:

I am a proxy at a small block of units in SA. One of the units in the block has multiple joint owners. And one of these owners held the positions of secretary, treasurer and presiding officer. This person that has held all these roles recently resigned. But she was also doing the job of Strata manager without the appointment to any of these positions. She self-appointed herself and used bullying tactics, intimidation & our ignorance to do these roles.

Now we as a body corp are seeking a New Strata Manager as the previous person miss managed records, minutes and other body corp issues with breaches of the strata laws abused these roles of gaining for her self-interests.

This same person wants one of the other joint owners of her unit to be the Strata manager. I am very concerned as this would continue to give an unfair preference to this unit.

Can the person who resigned still stand for treasurer, secretary or the presiding officer position? Can 2 lots Owners from the same unit take on positions, one being on the committee and the other being Strata Manager?

We have received the following reply back from Tony Johnson, Horner Management:

The role of Presiding Officer/ Secretary/ Treasurer can be held all by the one Owner in accordance with the Strata Titles Act 1988.

The group sounds like it is self -managed, so the term Strata Manager doesn’t really fit here. A Strata Manager would be a person who is employed by the group and has received a delegation by the groups Authority to Act on their behalf (in accordance with the Act). In any group (with or without a Manager) there is a legal requirement to have an Owner (or Owners) fill the three Office Bearers roles. These positions should be filled at a properly convened meeting.

From here the group will need to have a meeting to sort through any concerns, and then appoint an Owner or a combination of Owners into these positions.

As I do not know the precise circumstances I am not able to comment on this group specifically as to what has occurred to date. The answer to the post above which is a similar situation may be of further assistance. Please refer to Section 23 of the Strata Titles Act 1988 quoted in the above post in relation to the Office Bearers Positions.