WA: Q&A Can a strata company invalidate my proxy vote for unpaid utility bills?

We have been asked a question from a WA lot owner – can a strata company invalidate my proxy vote for unpaid utility bills?

Question: We have recently been informed that four of our proxies have been rendered invalid due to outstanding utility bills. Can a strata company invalidate my proxy vote for unpaid utility bills?

Answer: By-laws can designate additional costs, such as utility bills or debt recovery fees, as recoverable.

Under the Strata Titles Act 1985, a lot owner’s voting rights at strata company meetings can be restricted if they owe certain amounts to the strata company. Owners are entitled to vote either in person or by proxy, but Section 120(2) of the Act specifies that an owner may be prevented from voting on resolutions (except for certain resolutions such as unanimous resolutions and resolutions without dissent) if they have outstanding amounts that are legally recoverable by the strata company.

Typically, “recoverable amounts” include unpaid levies and any related interest, as permitted by the Act. However, by-laws can designate additional costs, such as utility bills or debt recovery fees, as recoverable.

If your proxies were invalidated due to overdue utility charges, this would only be valid if your by-laws specifically designate these charges as recoverable amounts owed to the strata company.

To resolve this, consider reviewing your scheme’s by-laws or seeking clarification if the invalidation seems inconsistent with what is outlined in the by-laws.

Courtney Butters-Kerr
B Strata
E: operations@bstratawa.com.au
P: 9382 7700

This post appears in the December 2024 edition of The WA Strata Magazine.

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