WA: Q&A Owners can challenge EGMs that exclude owner motions or fail to follow proper procedure

This article discusses owners’ rights to challenge EGMs that fail to follow proper meeting procedures or offer a convenient location under the Strata Titles Act 1985.

Question: Can a council of owners call two EGMs that exclude owner motions and are at an inconvenient location for most owners?

The council of owners recently emailed all owners with links to two agenda notices for two EGMs scheduled for the same night. One EGM involves approving a budget exceeding $125,000, supported by only one quote. The strata manager was not involved, so the agenda notices and documents were not filed in the strata company’s official records, and owner-submitted motions were omitted.

Both EGMs are held at a location that is difficult for most owners but convenient for the chair. Do owners have options to challenge these procedural issues?

Answer: If a lot owner gives a member of council written notice of an item of business for a general meeting, that item must be included on the agenda.

Section 128 of the Strata Titles Act 1985 (STA1985) sets out the requirements for an Extraordinary General Meeting (EGM) of the strata company. 128 (2)(a) states that an EGM “may be convened by the council of the strata company as the council thinks fit…” It seems unnecessary to convene two separate EGMs on the same night. However, if the council provides proper notice, there is nothing within the legislation that prevents two meetings from being held on the same date.

You mention that “one EGM involves approving a budget exceeding $125,000”, so I assume a motion to amend the budget was approved at your last AGM. If a quote was obtained for the purpose of budgeting, I consider it reasonable that only one quote has been obtained. The reason I form this opinion is that the council of owners may not want to waste the time, cost and effort of contractors quoting a general meeting approving expenditure. Your council may intend to obtain a further quote post EGM.

It is considered good practice to obtain more than one quote for works where the likely expenditure warrants due diligence. It would also be good practice to ensure due process on larger projects such as:

1. Clearly defining the purpose of the project.
2. Ensuring that relevant expert advice is obtained.
3. Having a scope of works developed.
4. Undertaking a quote or tender process
   

   1. Analysing the quotes obtained to ensure that they are comparable in scope, terms and conditions and inclusions.
   2. Checking the capability of those providing the quotation.
   3. Obtaining references where necessary
5. Understanding any permits or license requirements for the project.
6. Considering communication requirements and management of health and safety
7. Considering who will manage the project and if necessary, engagement with a project manager.
8. Contract review process and if a lawyer should be engaged in this process.

Section 137 of the STA1985 sets out the responsibilities of the council of a strata company. One of those requirements is exercising a degree of care and diligence in performing their functions. I am of the opinion that this includes ensuring more than one quote is obtained, where possible and practical. There are circumstances and times, even on larger projects, when it may be reasonable to only have one quote. We would need to assess the individual circumstances of your strata company’s project to consider.

Regarding agenda items, if a lot owner gives a member of council written notice of an item of business for a general meeting, that item must be included on the agenda in accordance with section 129(4) of the STA1985.

Luke Downie
Realmark
E: ldownie@realmark.com.au
P: 08 9328 0999

This post appears in the November 2025 edition of The WA Strata Magazine.

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Read next:

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• WA: Q&A Strata Council: Roles and Responsibilities

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