A strata committee is a small group elected by the owners corporation to help make decisions and oversee the day-to-day running of a strata scheme. It acts within authority given to it, but does not replace the owners corporation.
A strata committee is a small group elected by the owners corporation to help make decisions and oversee the day-to-day running of a strata scheme. In New South Wales, the strata committee was previously called the executive committee. It acts on behalf of the owners corporation within the authority given to it, but it does not replace the owners corporation or have unlimited decision-making power. The committee commonly deals with routine repairs, contractor quotes, building operations, resident requests, by-law compliance and communication with the strata manager. Major decisions that require all owners to vote must still go to a general meeting of the owners corporation.
What does a strata committee mean?
The owners corporation includes every lot owner in the strata scheme. Because it is not practical for all owners to handle every routine issue, the owners elect a smaller committee to act between general meetings.
In NSW, a valid decision of the strata committee is generally treated as a decision of the owners corporation. However, the owners corporation remains the higher decision-making body and can overrule the committee.
The committee should act within the Strata Schemes Management Act 2015, the scheme by-laws, resolutions passed by owners and any limits placed on it at a general meeting.
What does the strata committee do?
The committee usually focuses on practical and recurring matters needed to keep the property operating. Its exact authority depends on the scheme and decisions made by the owners corporation.
Review common property repair and maintenance requests.
Obtain and compare contractor quotes within approved budgets.
Approve routine expenditure for the day-to-day running of the scheme.
Monitor cleaning, gardening, lift servicing, security and other shared services.
Communicate with the strata manager, building manager and contractors.
Consider applications made under the by-laws, such as certain renovation or pet applications.
Issue or authorise notices to comply with by-laws where the legal requirements are met.
Respond to owner and resident enquiries and complaints.
Consider levy payment plan requests or interest-waiver requests where authorised.
Review insurance, maintenance, safety and compliance matters before making recommendations to owners.
Help prepare meeting agendas, budgets, maintenance priorities and motions for general meetings.
Monitor whether delegated tasks are being completed by the strata manager or other service providers.
The committee does not personally carry out every repair or administrative task. It normally makes decisions, gives instructions and monitors the people engaged to perform the work.
What can a strata committee decide?
In NSW, the committee may decide matters delegated to it or otherwise within its statutory authority. Examples commonly include:
Routine repairs and maintenance within an approved budget.
Selection of contractors for ordinary work.
Day-to-day building and common property issues.
Applications that the by-laws allow the committee to approve.
Notices to comply with by-laws.
Payment plans for overdue levies or requests to waive interest, where the legal process is followed.
Administrative instructions to the strata manager.
What can the strata committee not decide?
The committee cannot make decisions that legislation or the owners corporation reserves for a general meeting. In NSW, this includes matters such as:
Approving special levies.
Making, changing or repealing by-laws.
Decisions requiring a special resolution or unanimous resolution.
Authorising certain changes to common property or lot boundaries.
Approving the sale, purchase, transfer or disposal of common property where owner approval is required.
Appointing or renewing a strata managing agent or building manager when the decision must be made by the owners corporation.
Any issue that the owners corporation has resolved must only be decided at a general meeting.
When the owners corporation and committee disagree, the owners corporation decision prevails.
Owners corporation, strata committee and strata manager: what is the difference?
How is the strata committee elected?
In NSW, the owners corporation elects a new strata committee at each annual general meeting. Previous members may nominate again if they remain eligible.
The owners corporation also decides the number of committee members. A NSW committee generally has between one and nine members. A large strata scheme with more than 100 lots must have at least three members. A two-lot scheme has a specific membership structure based on the owners of the two lots.
Other states and territories have different committee sizes, eligibility rules and election processes, so the legislation applying to the property should always be checked.
Who can become a strata committee member?
In NSW, eligible candidates may include an owner, an eligible co-owner, a company nominee or a non-owner nominated by an owner who is not also seeking election. However, eligibility rules and exclusions apply.
An owner can nominate themselves where eligible.
An owner may nominate another eligible person.
Only one co-owner of the same lot can generally serve at the same time unless an exception applies.
An owner who owes unpaid amounts at the relevant time may be ineligible for election unless the debt is paid before the meeting.
A building manager or a real estate agent leasing lots in the scheme is generally ineligible unless they also own a lot.
A person connected with the original owner or building manager may need to disclose that connection before election.
A person removed by owners from the committee cannot serve again for 12 months from the removal resolution.
What are the chairperson, secretary and treasurer roles?
One person may hold more than one office. A strata manager may perform delegated administrative functions, but the elected office holders and owners corporation retain their legal responsibilities.
What duties do committee members have?
NSW law requires strata committee members to exercise their functions:
Honestly and fairly.
With due care and diligence.
For the benefit of the owners corporation as far as practicable.
In compliance with strata legislation and regulations.
Without misusing confidential or personal information obtained through the role.
Without unreasonably interfering with another person's lawful use or enjoyment of a lot or common property.
Committee members should base decisions on the interests of the scheme as a whole rather than personal preference, private disputes or the interests of one owner.
How are conflicts of interest handled?
A committee member may have a financial or personal interest in a contractor, transaction or decision being considered.
In NSW, a member with a pecuniary interest must disclose the nature of that interest as soon as possible at a committee meeting. The disclosure must be recorded. The member must generally leave the discussion and not vote on the matter unless the committee lawfully decides otherwise under the applicable rules.
Good governance also means disclosing relationships that could reasonably appear to influence a decision, even where the member is uncertain whether the legal definition of a conflict is met.
How do strata committee meetings work?
The secretary may call a committee meeting.
A meeting must also be called when at least one-third of committee members request it.
In NSW, owners and committee members must generally receive at least three days notice, including the meeting date, time, place and detailed agenda.
At least half of the committee members must be present for a quorum.
Committee members generally have one vote each, subject to eligibility and unpaid levy restrictions.
A motion is generally decided by a majority of votes cast.
The chairperson does not receive an additional casting vote.
Meetings and voting may be conducted in person, electronically or in writing when the legal requirements are met.
Minutes must record the motions, decisions and relevant meeting details.
Can other owners attend committee meetings?
In NSW, lot owners may attend strata committee meetings. They cannot automatically speak or vote at the meeting because voting belongs to elected committee members.
An owner who wants to address the committee should ask for permission before or at the meeting. The committee may allow the owner to speak about an agenda item.
Owners or a group of owners holding more than one-third of the unit entitlements may object in writing to a proposed committee decision before it is made. If the objection prevents the committee from deciding the matter, it can be placed on the agenda for a general meeting so all eligible owners can vote.
What is the tenant representative?
Key takeaways
The strata committee is a smaller group elected by the owners corporation.
It handles routine decisions and scheme oversight between general meetings.
The committee acts within powers given by legislation and the owners corporation.
The owners corporation can limit or overrule committee decisions.
Major matters requiring a special, unanimous or general-meeting resolution cannot be decided by the committee.
In NSW, a committee generally has one to nine members and is elected at each AGM.
Members must act honestly, fairly, carefully and for the benefit of the owners corporation.
Owners may attend NSW committee meetings but cannot automatically speak or vote.
Related questions
Is the strata committee the same as the owners corporation?
No. The owners corporation includes all lot owners. The strata committee is a smaller elected group that acts between general meetings.
Is the strata committee the same as the strata manager?
No. Committee members are elected representatives, while the strata manager is a professional appointed under a management agreement.
Can the committee make every decision?
No. It cannot decide matters reserved for a general meeting or requiring a special or unanimous resolution, and the owners corporation may limit or overrule it.
Who elects the committee?
The owners corporation elects the committee at the annual general meeting in NSW.
Can owners attend committee meetings?
In NSW, owners may attend but cannot automatically speak or vote. They can ask the committee for permission to speak.
How long does a committee serve?
In NSW, the committee generally serves until a new committee is elected at the next AGM, unless a member resigns, becomes ineligible or is removed earlier.
Is a strata committee compulsory?
In NSW, the owners corporation elects a strata committee at each AGM. Two-lot schemes have a specific committee structure. Requirements and exceptions differ across jurisdictions.
Can a tenant be on the strata committee?
A non-owner may sometimes be nominated for election by an eligible owner. Separately, NSW tenants may nominate a non-voting tenant representative where at least half the lots are tenanted and the legal requirements are met.
Does the strata committee set strata levies?
The committee may review budgets and make recommendations, but levies are generally determined by the owners corporation at a general meeting.