The Strata Committee: Role and Responsibilities

Every strata scheme in NSW must have a strata committee.
If you own or live in a strata property, it’s good to know what the committee does and how it works.

What is the strata committee?

All property in a strata scheme is owned by the owners corporation (also called the body corporate). Every owner is part of the owners corporation. Every member has a say in how the strata operates

But it’s not practical to involve every owner in every decision. Instead, the owners corporation elects a strata committee to manage day-to-day matters.

The committee has two main responsibilities:

1. Maintain common property
   Common property covers shared areas like gardens and stairwells, as well as structural elements (the roof, or plumbing).
2. Enforce strata by-laws
   The bylaws are rules covering behaviour in the strata complex. For example, parking, noise, use of shared spaces etc.

Who can be on the strata committee?

Committee members are usually owners, but not always. Members can also be:

1. A representative of a company which owns property in the strata
2. Someone nominated by an owner (for example, a relative or tenant representative)

A strata committee has between 2 and 9 members.

How are members elected?

If you own a property, you can nominate one person for the committee. This could be yourself or someone else.
If you own two properties, you can nominate two people.

You cannot be on the committee if your strata levies are unpaid.

Elections take place at the Annual General Meeting (AGM). The term is one year but the same person can be re-elected many times.

If someone resigns mid-year, the remaining committee members usually find a replacement.

Conflicts of interest

Committee members must act in the best interests of the owners corporation. Sometimes, a conflict of interest can arise. For example:

1. A member (or their family) owns a business working for the strata
2. A member has a connection to the developer

If this happens, the member must:

1. Disclose the conflict
2. Not vote on the issue
3. Usually leave the meeting during discussion

The meeting minutes include a record of this.

If a member fails to disclose a conflict of interest, they can be removed from the committee.

How the strata committee operates

Key roles

The committee includes general members, plus three key roles:

Chairperson

1. Leads committee meetings, general meetings and AGMs

Secretary

1. Organises meeting dates
2. Sends notices and agendas
3. Prepares and distributes minutes
4. Maintains records and the strata roll

Treasurer

1. Manages finances
2. Oversees levies and payments
3. Prepares budgets and financial reports

Strata committee meetings

The committee meets regularly to manage day-to-day issues, such as:

1. Overdue levies
2. Minor renovation requests
3. Routine maintenance
4. Enforcement of by-laws
5. Service contracts (cleaning, gardening, etc.)

Meeting details must be shared with owners at least 3 days in advance.

At least half the committee must attend for decisions to be valid.

Owners can attend meetings but may only speak with permission. Tenants cannot attend, except for the tenant representative.

Each committee member has one vote.

Meeting minutes must be shared with owners within 7 days.

Implementing decisions

Strata committee members are not paid. They may have limited time to spend on strata issues. They often appoint a strata manager to support them.

Decisions the strata committee cannot make

Some decisions must be made by the full owners corporation, not the committee. These include:

1. Special levies
2. Changes to by-laws
3. Changes to lot or common property boundaries
4. Buying or selling common property
5. Appointing or renewing a strata or building manager
6. Major spending decisions

These decisions are usually made at the AGM.
Urgent matters may be handled at a special general meeting.

A general meeting can be called by the secretary, the committee, the strata manager, or by owners with 25% or more of the voting power.

Challenges for strata committees

Most committees are made up of volunteers. They manage property worth millions of dollars, and have to comply with all details of strata law.

Your strata committee may struggle with

1. A shortage of time to deal with all the issues which arise
2. Limited knowledge or experience
3. Poor communication between members
4. Different opinions about spending priorities
5. Cash flow if there are unpaid levies
6. Personality clashes

This is where a good strata manager can make all the difference

How a strata manager supports the committee

A strata manager:

1. Has experience managing strata schemes
2. Understands strata laws and requirements
3. Has dedicated time to handle tasks

A good strata manager can keep the strata running smoothly, with less work and less stress for the committee.

At Strata Master, we aim to support your strata committee in exactly this way.

To find out how we can help, please get in touch.