Adapting NSW Strata Meetings in a Post-COVID-19 World: Holding Strata Meetings Electronically

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9 min read

The global pandemic reshaped our daily routines, pushing many activities online. Strata communities in NSW were no exception, adopting virtual meetings out of necessity. As we emerge from this period, we face a choice: revert to traditional methods or embrace the digital approach that COVID-19 accelerated.

This article examines the practicalities of electronic voting, highlights the advantages of virtual meetings, and addresses potential concerns about this modern approach.

NSW Strata Committee Meetings: Legal and Practical Considerations for Meeting Electronically

Strata meetings can indeed be conducted virtually in NSW. The Strata Schemes Management Act 2015 allows owners corporations and strata committees to use various electronic voting methods, including:

  • Teleconference
  • Video conferencing
  • Email
  • Other electronic means

This provision enables both general meetings and strata committee meetings to be held electronically.

Recent changes to strata and community scheme laws, effective from 30 September 2022, have further expanded these options. Meetings and voting can now occur in person or through electronic means specified in the meeting notice. This can be done without requiring a prior resolution, with one exception:

  • Pre-meeting electronic voting still necessitates a prior resolution

These updates provide greater flexibility in how strata meetings are conducted, adapting to modern communication preferences and needs.

Implementing Electronic Voting in Online Meetings

Virtual strata meetings can utilise various voting methods to ensure all eligible voters can participate effectively. Based on current regulations, here’s how electronic voting can be conducted:

Voting at the Meeting

The Strata Schemes Management Regulation 2016 outlines several approved voting approaches:

(A) Real-Time Voting:

  • Video or Teleconference: Participants can vote during live discussions via:
    • Verbal indications
    • Integrated digital voting tools
    • Live polls or surveys
  • No Prior Approval Required: For in-person or electronic voting methods specified in the meeting notice, no prior resolution is needed.

(B) Pre-Meeting Electronic Voting:

  • Email or Other Platforms: Members can submit votes electronically before the meeting.
  • Useful for Absentees: Ideal for those unable to attend the live virtual meeting.
  • Prior Resolution Required: This method still needs approval before implementation.

These options provide flexibility to accommodate various participant needs and preferences in virtual strata meetings.

Facilitating Participation and Voting Rights

Regulations require reasonable measures to ensure all eligible voters can participate and vote:

  • Provide clear instructions for joining virtual meetings and using voting tools
  • Distribute essential materials (agendas, proposals, previous minutes) in advance
  • Offer technical support for the virtual platform and voting process

Practical Voting Scenarios

1. Teleconference Voting:

  • Chairperson calls for votes on a proposal
  • Members verbally indicate their choice (yes, no, abstain)
  • Designated person tallies votes and announces results

2. Video Conference with Integrated Polls:

  • Chairperson introduces the voting matter
  • Poll feature activated with relevant options
  • Members select choices; results instantly calculated and displayed

3. Pre-Meeting Email Voting:

  • Proposal emailed with clear instructions and voting deadline
  • Members reply with their decision (approve, reject, abstain)
  • Votes collected, verified, and results shared during the meeting

Effective virtual strata meetings require clear procedures and appropriate technology. By implementing necessary resolutions, using suitable voting methods, and ensuring accessibility, owners corporations and strata committees can efficiently manage affairs remotely. Recent NSW Fair Trading updates have further enhanced the flexibility and inclusivity of virtual voting processes.

Benefits of Virtual Strata Meetings Post-Pandemic

The shift to online strata meetings during COVID-19 revealed several advantages worth retaining. Here are key reasons to continue with virtual meetings:

Enhanced Participation

  • Accessibility: Owners can join from anywhere, increasing attendance, especially for those with busy schedules or living remotely.
  • Quorum Achievement: Higher participation rates help meet quorum requirements more consistently, ensuring legally binding decisions.

Time Savings

  • No Travel Required: Participants join from home or office, eliminating commute time.
  • Efficient Scheduling: Easier integration of meetings into daily routines, particularly beneficial for frequent committee meetings.

Cost Reduction

  • Venue Savings: Eliminates need for rented meeting spaces, potentially significant for larger strata schemes.
  • Reduced Administrative Expenses: Fewer rescheduled meetings due to quorum issues, cutting costs for document reprinting and additional venue bookings.

Improved Communication

  • Meeting Archives: With consent, meetings can be recorded and securely stored online for later review.
  • Visual Aids: Screen sharing facilitates clear presentation of agendas, budgets, and other crucial documents.

These benefits demonstrate how virtual meetings can enhance efficiency, accessibility, and communication in strata management beyond the pandemic era.

Enhanced Flexibility and Inclusivity

  • Diverse Participation Options: Members can join via video, phone, or pre-meeting electronic voting, accommodating various preferences and needs.
  • Modern Lifestyle Compatibility: Aligns with remote work trends, allowing participation from any location.

Better Understanding of Complex Issues

  • Expert Access: Virtual format makes it easier to include specialists for technical topics like defect claims or major renovations.
  • Recorded Discussions: Allows owners to review decision-making processes at their convenience.

Environmental Advantages

  • Reduced Carbon Footprint: Eliminating travel for meetings promotes eco-friendly practices within the strata community.

These additional benefits highlight how virtual meetings can create a more inclusive, informed, and environmentally conscious strata management approach.

Addressing Common Concerns About Virtual Strata Meetings

Recording Considerations

  • Open Discussion Impact: Committee members may self-censor, potentially limiting candid debate due to recording awareness.
  • Ownership and Access Issues:
    • Clarity needed on recording ownership and access rights
    • Some regions classify recordings as body corporate records, potentially granting inspection rights to lot owners and stakeholders
    • Exceptions may apply to protect sensitive information
  • Sensitive Content Management: Careful handling required for recordings containing legal advice or dispute discussions to restrict access to authorised individuals only.
  • Recording Consent:
    • Participants must be informed and agree to be recorded
    • Legal requirements mandate consent from all parties
  • Recording Prohibition:
    • Committees may opt to ban recordings to encourage open dialogue
    • This decision could lead to conflicts with lot owners who prefer recordings for transparency

These concerns highlight the need for clear policies and communication regarding virtual meeting recordings in strata communities.

Balancing Transparency and Privacy

  • Conflicting Interests: Some owners advocate for recordings to ensure transparency, while others worry about privacy issues.
  • Partial Recording Solution: Recording only key meeting segments (motions, decisions, votes) can balance transparency and privacy needs, promoting open discussion while maintaining accountability.

Technology-Related Issues

  • Technical Difficulties: Participants may face connectivity problems or struggle with virtual platforms, potentially disrupting meetings.
  • Adoption Challenges: Some strata managers and committee members might resist or struggle to adapt to new technologies, leading to inefficiencies.

Legislative Considerations

  • Outdated Laws: Existing strata legislation often focuses on in-person meetings, potentially failing to address all aspects of virtual meeting conduct adequately.
  • By-law Requirements: Many strata communities need to establish specific by-laws or pass general meeting resolutions to permit electronic meetings, rather than having it as a default option.

These concerns underscore the need for clear policies, technological support, and potential legislative updates to fully integrate virtual meetings into strata management practices.

Proxy Verification Challenges

  • Identity Confirmation: Authenticating proxies in virtual settings is complex, requiring robust systems to verify authorised representatives.
  • Digital Documentation: Implementing secure methods for collecting and validating digital proxy forms is crucial to ensure accuracy and prevent fraud.

Accessibility Issues

  • Tech Proficiency Gap: Some members, particularly older or less tech-savvy individuals, may struggle with required technology, potentially limiting participation.
  • Time Zone Coordination: Scheduling meetings across multiple time zones for international participants can be challenging.

Legal Considerations

  • Legislative Compliance: Ensuring virtual meetings adhere to existing strata laws can be complex, as current regulations may not fully address electronic meeting nuances.
  • Resolution Validity: Concerns may arise about the legal standing of decisions made in virtual meetings, especially if procedures don’t strictly follow legislative requirements.

These additional concerns highlight the need for careful planning, clear communication, and potentially updated legislation to address the unique aspects of virtual meetings for strata and community schemes.

Types of Meetings and Effective Virtual Strata Meeting Implementation

Annual General Meeting (AGM)

The owners corporation must hold an AGM at least once every year. This meeting covers essential business such as:

  • Electing the strata committee
  • Reviewing financial statements
  • Deciding on insurance policies
  • Setting levies for the upcoming year

Extraordinary General Meetings

These are held as needed to address specific issues that arise between AGMs. They follow similar procedures to AGMs but focus on particular matters requiring immediate attention.

Strata Committee Meetings

These more frequent meetings allow the elected committee to manage day-to-day operations of the strata scheme. The strata committee must:

  • Meet at least once every year
  • Give notice to all lot owners before the meeting
  • Allow lot owners to attend (but not vote unless they are committee members)

Preparation

  • By-law Updates: Modify by-laws to explicitly permit virtual meetings and outline procedures for proxies and electronic voting.
  • Comprehensive Meeting Agenda: Distribute detailed agendas and relevant documents at least seven days before the meeting for thorough review.
  • Technology Testing: Conduct platform trials to familiarise participants with features and identify potential access issues.

Proxy Verification

  • Digital Authentication: Implement secure digital signatures for proxy document verification.
  • Advance Submission: Require proxy documentation before meetings for pre-verification.
  • Identity Confirmation: Use tools like two-factor authentication to verify proxies during meetings.

Accessibility Measures

  • Tech Support: Offer assistance and training on virtual meeting platforms.
  • Diverse Participation Options: Provide multiple joining methods (video, phone, online voting) to accommodate various needs.
  • Meeting Archives: Record sessions for later viewing to ensure participation for those unable to attend live.

These practical steps can help strata communities conduct effective, inclusive, and legally compliant virtual meetings.

Meeting Execution

  • Opening Instructions: Begin with clear guidelines on participation, audio control, and voting procedures.
  • Dedicated Moderator: Assign a moderator to manage meeting flow, address technical issues, and ensure equitable speaking opportunities.
  • Selective Recording: Document only essential elements like motion readings, resolutions, and vote tallies. Avoid recording discussions to promote open dialogue.

Privacy and Legal Safeguards

  • Recording Consent: Inform all participants about recording practices and obtain consent. Clearly explain recording purposes and usage.
  • Sensitive Content Management: Handle recordings of confidential discussions with care. Consider pausing recordings during sensitive topics to maintain privacy.
  • Legal Compliance: Consult legal professionals to ensure adherence to relevant privacy, data protection, and technology laws.

These measures help balance transparency, privacy, and legal compliance in virtual strata meetings, fostering effective and secure digital governance.

Post-Meeting Procedures

  • Comprehensive Minutes: Promptly create and distribute detailed meeting records, including attendance, motions, discussions, and voting outcomes.
  • Action Tracking: Monitor progress on meeting decisions and keep participants updated.
  • Secure Record-Keeping: Implement secure storage for recordings and minutes, restricting access to authorised individuals.

Ongoing Optimization

  • Participant Input: Gather feedback after meetings to identify improvement areas.
  • Process Refinement: Regularly update practices and technologies to enhance virtual meeting efficiency.

Key Takeaways

Virtual strata meetings offer significant benefits, including improved attendance, cost reduction, and increased accessibility. Implementing these strategies aligns with modern communication trends and strengthens strata scheme governance.

Effective virtual meetings require careful planning, clear communication, and ongoing adaptation. By addressing technical, legal, and privacy considerations, strata communities can create inclusive, transparent, and efficient virtual governance processes.

As the landscape of strata management continues to evolve, staying informed about best practices and legal requirements for virtual meetings is crucial. Consider seeking professional guidance to navigate the complexities of digital strata governance and optimise your community’s meeting practices.

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