Fastest Committee Meeting Possible

If urgent instructions are required and/or an urgent decision is required to be made by the
strata committee, the following sets out the steps that should be followed:

Alternative 1 - Formal Path

Step 1: Ensure the decision is capable of being made by the strata committee

Pursuant to section 36(3) of the Strata Schemes Management Act 2015 (NSW) (SSMA):

(3) The following decisions cannot be made by the strata committee--

(a) a decision that is required by or under any Act to be made by the owners
corporation by unanimous resolution or special resolution or in general
meeting,

(b) a decision on any matter or type of matter that the owners corporation has
determined in general meeting is to be decided only by the owners
corporation in general meeting.

Step 2: Prepare a motion to be voted on

Carefully consider the motion (or motions) that are required to be considered by the strata
committee to ensure all aspects of the decision required to be made or instructions required
to be provided are covered.

Step 3: Give notice of the meeting

Clause 9(2) of Schedule 2 allows the strata committee to hold a paper based meeting (i.e.
no physical meeting is held), this should be specified on the notice.

As required by Part 2 of Schedule 2 of the SSMA, notice requires the Secretary to give
notice of the meeting to each member of the strata committee and each owner at least 3
days before the meeting. For large strata schemes (over 100 lots), the notice is also to be
given to the tenant member.

For large strata schemes notice can be given by displaying it on the notice board (if any)
maintained by the owners corporation and in accordance with section 263 of the SSMA.

For small strata schemes notice can be given by displaying it on the notice board (if any)
maintained by the owners corporation or in accordance with section 263 of the SSMA.

Further, the notice “must include a detailed agenda for the meeting.”

Step 4: Request members to urgently cast votes on motion

Clause 9(2) of Schedule 2 of the SSMA states that a “motion proposed to be put to a
meeting is taken to have been validly passed even if the meeting was not held if—

(a) notice was given of the meeting in accordance with this Schedule, and

(b) a copy of the motion was given to each member of the strata committee, and
 (c) the motion was approved in writing by a majority of the members of the
committee (other than the tenant member).”

As a result of the above, so long as the requirements in schedule 2 are otherwise met, upon
a majority returning a vote in favour of a given motion, that motion is passed even if the
proposed date for the meeting has not yet occurred.

With respect to quorum, clause 12(3) of Schedule 2 of the SSMA, relevantly states that a
“person who has voted, or intends to vote, on a motion or at an election at a meeting by a
permitted means other than a vote in person is taken to be present for the purposes of
determining whether there is a quorum.”

Accordingly, the quickest way possible for a committee decision to be made is by:

1. Giving notice of the meeting, either by

a. For a large scheme, placing it on the notice board and serving it pursuant to
section 263 of the SSMA; or

b. For a small scheme, placing it on the notice board or serving it pursuant to

section 263 of the SSMA; and

2. A majority of committee members return their voting slips to the Secretary.

Step 5: Prepare minutes of meeting

Prepare draft of the minutes of the meeting and provide it to the Secretary or strata manager
to finalise. These minutes will provide confirmation of the committee’s decision.

Alternative 2 - Informal Path

The informal path is less preferred but may assist when the matter is very urgent. It should
still be documented, and as a minimum requires a majority of the committee to vote in
favour.

In accordance with the decision of The Owners Strata Plan No 57164 v Yau [2017] NSWCA
341 at [116] and [117], an informal decision is likely sufficient in tight timeframes:

[116] However, the case with which this appeal was concerned did not involve non-
compliance with the Owners Corporation’s constitution. Rather, this case
involved non-compliance with a statutory provision relating to the giving of
notice of a meeting. The question for the primary judge, therefore, was
whether, as a matter of statutory construction, non-compliance with the
particular provision resulted in the meeting or any decision made at it, being
invalid. In my opinion, for the reasons his Honour gave and, as I have
explained above, non-compliance with the time required for the giving of
notice specified by Sch 3, cl 6 did not result in invalidity of the meeting and
any resolutions passed at it.
 [117] It follows, in my opinion, that his Honour was correct in finding, as a matter of
statutory construction, that the failure to give notice as specified in cl 6 did not
invalidate the decision that was made at the meeting on 13 August 2013.

The decision in Yau has been recently applied in Trigas v The Owners – Strata Plan No.
10579 [2019] NSWDC 473 to apply in relation to non-urgent matters concerning repairs to
be undertaken where the committee informally decided the matter. In that case, the
committee did not issue a notice or agenda and did not prepare minutes but due to the fact
that its powers had not been limited by resolution at a general meeting it was held to be a
decision of the owners corporation, even though not urgent.

For the abundance of caution, the committee should ratify any informal decision made at a
paper based committee meeting.