Representative of tenants at meetings of an Owners Corporation

February 14, 2017

The new Strata Schemes Management Act permits tenants to be represented at the meetings of the Owners Corporation.  A representative of the tenants can only be appointed if at least 50% of the lots in the Strata Scheme are tenanted and the representative is appointed by the tenants.
If more than 50% of the Scheme is tenanted then the Strata Scheme must call a meeting of eligible tenants for the purpose of nominating a tenant’s representative.  There is a requisite notice period. 

Section 33(3) of the Act provides that the tenant representative cannot vote on decisions of the committee or to put a motion or nominate a person for office and cannot be taken into consideration when determining whether a quorum exists.
It seems that a tenant’s representative can observe what happens at meetings but has no voting rights.   The representative of the tenant can be asked to leave a meeting of the Owners Corporation which is dealing with financial statements and auditors reports, the levying of contributions, the recovery of unpaid contributions, a strata renewal proposal or any other financial matter specified by the regulations.

The concept of having tenants represented at a meeting is a big step forward for tenants.  It seems that the tenant is entitled to know what is happening in the scheme without the ability for any great input. 

Previous post:

Next post: