The governance of strata schemes in New South Wales is subject to strict regulations aimed at ensuring transparency and accountability. Recent legal updates have established new protocols for removing strata committee members. These changes are intended to enhance governance efficiency and uphold the integrity of strata management. This guide examines the circumstances permitting committee member removal, the procedural guidelines set by the NSW Civil and Administrative Tribunal (NCAT), and potential alternatives to consider before pursuing removal.
Can Strata Committee Members Be Removed from an Owners Corporation?
Yes, strata committee members can be removed under specific conditions:
Annual Re-election: At each Annual General Meeting (AGM), a new strata committee is elected. Existing members may stand for re-election or step down, ending their term.
Owners Corporation Decision: The owners corporation can vote to remove committee members through a general resolution at a general meeting.
NCAT Intervention: The NSW Civil and Administrative Tribunal has the power to remove individual members or the entire committee under certain circumstances:
- Non-compliance with NSW strata laws
- Lack of due care or diligence in performing duties
- Engaging in serious misconduct
These provisions ensure that underperforming or non-compliant committee members can be replaced to maintain effective strata scheme management.
Removing Strata Committee Members at General Meetings
The 2024 amendments to strata laws have simplified the process for removing strata committee members:
- The owners corporation can now remove a committee member through an ordinary resolution at a general meeting, replacing the previous requirement for a special resolution.
- Once removed, the member is ineligible for appointment or election to the strata committee for 12 months from the resolution date.
This change streamlines the removal process and introduces a clear consequence, preventing immediate re-election. It allows the owners corporation to more easily refresh or correct strata scheme governance when necessary.
Seeking NCAT Intervention for Strata Committee Member Removal
Section 238 of the Strata Schemes Management Act 2015 grants NCAT the authority to remove strata committee members. This provision aims to maintain proper governance by addressing non-compliance or misconduct.
Removal Criteria
NCAT may remove committee members who:
- Violate the Strata Schemes Management Act, its regulations, or scheme by-laws
- Fail to exercise due care and diligence in their roles
- Engage in serious misconduct affecting their duties
The Vojkovic v Savva case clarified that these criteria are not exhaustive. NCAT may consider additional factors to protect committee integrity.
Evidence Requirements
NCAT decisions require substantial evidence, not mere dissatisfaction. Cases like McDaid v The Owners Strata Plan No. 60346 and Lockrey v Rosewall emphasise the need for significant justification before NCAT intervenes.
Removal Process
- Mediation: Mandatory session through NSW Fair Trading to resolve disputes amicably.
- NCAT Application: If mediation fails, submit an application clearly stating removal reasons with robust evidence.
- NCAT Hearing: Prepare thoroughly, including document submission and case presentation. Legal advice may be beneficial.
Lot owners and strata managers should approach committee member removal with a clear understanding of legal requirements and potential impacts on strata governance. This ensures justified, procedurally correct actions that serve the strata community’s best interests.
Alternatives to Removing a Strata Committee Member
Before pursuing committee member removal, consider these less divisive alternatives:
Open Dialogue: Address concerns through direct communication. A frank discussion can often resolve misunderstandings or provide necessary feedback on roles and responsibilities.
Mediation: Engage a neutral third party to facilitate conflict resolution. Many organisational rules require mediation before escalation, often leading to mutually agreeable solutions.
Term Completion: If the member’s term is ending soon and issues aren’t severely impacting operations, waiting for the next election may be practical.
Voting Process: Instead of formal removal, the association could opt not to re-elect the member at the next election cycle. This avoids confrontation while allowing for change.
Legal Consultation: For situations with potential legal implications, consult a strata lawyer to understand the rights of all parties and ensure any actions taken are legally sound.
These alternatives offer ways to address issues while minimising conflict. Prioritise fair and justified actions that align with your association’s governing rules to maintain organisational health and effectiveness.
Key Points to Remember When Considering Strata Committee Member Removal
Removing a strata committee member is a significant decision with potential legal and community impacts. Consider these important factors:
- Approach the process with due care and a thorough understanding of legal requirements.
- Evaluate all options, including removal at an AGM, NCAT intervention, or alternative dispute resolution.
- Prioritise fairness and community harmony in your approach.
- Each method has specific procedures and implications that must be carefully considered.
- When in doubt about the process or considering member removal, seek professional advice from a strata managing agent or lawyer to ensure proper handling of the situation.
- Remember that the day-to-day running of the strata scheme may be affected during this process.
- Consider the impact on capital works and the strata roll when making decisions about committee member removal.
