Get a decision made?

How to get a decision made?

The process of approving strata works can be simple but on the other hand it can become extraordinarily complicated and protracted in the event of a serious dispute arising. A range of approval processes apply to all strata works which are ignored at your peril. Many of the processes are stated in the Act, some are implied, and some follow good management practices.

Strata approvals and the scheme of the Act

The fundamental strata approval process consists of the process of drafting and placing a motion on the agenda of a meeting, waiting for the meeting to occur, voting and then formalising the decision in a set of minutes. 
The scheme of the Act is that there are five decision making levels which are as follows:

  1. Resolution of the executive committee.
  2. Resolution at a general meeting.
  3. Bylaw at a general meeting / special resolution.
  4. Order by an Adjudicator.
  5. Order by the Tribunal.

A decision made at a meeting is a decision by the owners corporation.  Any decision can however generally be over-turned by the same or alternately a higher decision making authority, for example a resolution made by the executive committee can be overturned the following meeting, or alternately the decision can be overturned by a resolution made at a general meeting or annual general meeting.

The power of the executive committee to approve works

The executive committee is the primary decision making authority for most repair works, acting under delegated authority from the owners corporation.
It is quote normal for the committee to be delegated all power, without any limitation. With a complete delegation the committee is empowered to make any decision with respect to repairs, maintenance or cosmetic repair works etc which can be construed to include significant improvement works of a capital nature paid from the sinking fund. Unless disputed, an executive committee should be able to approve and manage to completion all repair works without needing to refer the matter to a general meeting.
However an executive committee cannot make bylaws or any other decision that is required by or under any Act to be made by the owners corporation by unanimous or special resolution or in a general meeting. For example to make a Bylaws it is necessary to pass a special resolution at a general meeting of the owners corporation. It would therefore be wrong of an executive committee to approve any works that could be categorised as improvement or exclusive use works (see above) because these type of works require a special resolution and bylaw.
Following the same logic, it would be incorrect for an executive committee to approve improvement or exclusive use works. Rather the executive committee should inform the lot owner that the matter will be considered at a general meeting and inform the Lot owner how to place the motion on the agenda of the next meeting.

The power of the owners corporation to approve works at a general meeting

The owners corporation is the authority for all works (with very few exceptions) and can consider (indeed has a duty to consider) all motions placed on the agenda of a general meeting.
When motions are placed on the agenda of a general meeting or annual general meeting, the motion should state what type of decision is required, ie:

  • An ordinary resolution requiring more than 50% of the vote at the meeting which is required for repair works;
  • A special resolution requiring 75% of the vote at the meeting which is required for bylaws, additions, alternations, improvements or enhancements to the common property; or
  • A unanimous resolution requiring that no vote be made against the resolution.

Generally, a motion should be placed on the agenda of the meeting and distributed to all persons entitled to vote

Responsibility to draft motions

It is not the responsibility of the owners corporation to draft appropriate motions, rather it is the responsibility

Retrospective approvals

Many strata experts consider that the power of an owners corporation does not extend to granting retrospective approval for works, be it repair or other works and that all retrospective approvals should at the very least be presented to the owners corporation at a general meeting. Some experts believe that the only authority that can grant retrospective approval of anything is an Adjudicator following a s140 application, noting that s140 of the Act specifically gives an adjudicator the power to grant retrospective approval of works undertaken.

Other approvals

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•    technical (eg engineering)
•    council (eg DA, CC or complying development)
•    other (eg heritage, precinct, foreshore authority, statutory or regulatory authority etc)
•    PCA

Staged approvals

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Renovations

approvals for repair works
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approvals for improvement works
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approvals for exclusive use works
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Seeking council approval
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