The current NSW Strata Schemes Management Act 1996 will shortly be replaced by new legislation which has introduced a novel concept of a “tenant representative” who will sit on the Executive Committee of the Owners Corporation.


 Personally, I find the concept of a tenant representative somewhat bizarre. What real say do they have when they have no vote and can be excluded from attending the key Committee meetings?

The procedure works like this:

  1. The person who convenes an AGM of an Owners Corporation that has tenants for at least half of the number of lots in the scheme must also convene a meeting of eligible tenants for the purpose of nominating a person for the position of tenant representative on the Committee;

  2. This person must give written notice of the meeting to each eligible tenant at least 21 days before the General Meeting and a tenants’ meeting must be held not less than seven days before the AGM;

  3. The convenor of the meeting is to chair the tenants’ meeting;

  4. An eligible tenant may nominate for, or nominate another eligible tenant for, nomination as the tenant representative at the AGM;
  5. To be an “eligible tenant”, the tenant must be a tenant notified in a Tenancy Notice given in accordance with the Act. A tenant representative will cease to be a tenant representative if the person ceases to be a tenant of a lot in the strata scheme.

However, the tenant representative on a Committee is, in that capacity:

  1. not entitled to vote on decisions of the Committee or to put a motion or nominate a person for office, and
  2. not entitled to act as an officer of the Owners Corporation for Committee purposes, and
  3. not entitled to be counted in determining whether there is a quorum of the Committee.

 
In addition, the Committee may determinate that a tenant representative is not entitled to be present when the following matters are being discussed and determined:

  1. financial statements and auditors’ reports;
  2. levying of contributions;
  3. recovery of unpaid contributions;
  4. a strata renewal proposal;
  5. any other financial matter specified by the Committee.

 
Personally, I find the concept of a tenant representative somewhat bizarre. What real say do they have when they have no vote and can be excluded from attending the key Committee meetings? Looks to me like a Government pandering to a part of the electorate but really giving them nothing!
 

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Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

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