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!
 

Liability limited by a scheme approved under Professional Standards Legislation
Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

.

 

 

THE MBA PARTNERSHIP ACCOUNTANTS

Management Rights Accountant

PAUL GAFFNEY | MANAGEMENT RIGHTS

The MBA Partnership is one of the most experienced firms of management rights accountants in Australia. Many of their clients are new to the management rights industry, and with over 30 years experience in management rights they have the expertise to help you set up correctly from the beginning. From due diligence, accounting, taxation and auditing Paul and his team can guide you through the entire process.

Phone: +61 7 5557 8700

LEVEL 3 "PIVOTAL POINT"' 50 MARINE PARADE SOUTHPORT QLD  4215

pgaffney@mbapartnership.com.au | managementrightsaustralia.net 


 

Management Rights & Motel Finance P/L

Mark Ryall

 Mark Ryall | MANAGEMENT RIGHTS

Management Rights and Motel Finance Pty Ltd is an industry leader in providing specialist finance needs to companies and individuals embarking on the purchase of a Management Rights business. Mark and his team is dedicated to helping you with all your management rights and motel finance needs! We work around the clock to make sure you receive the best deals.

Suite 4, Level 2 / 247 Bayview St Hollywell QLD 4216

Phone: 07 55641100 | 0419 640 215
Fax:     07 30140108

mark@mrmfinance.com.au | www.mrmfinance.com.au

Australian Credit Licence No: 378366


 

Management Rights Articles

  • THE DEEP END OF POOLED LETTING POOLS

    We regularly review a variety of letting appointments (the agreement between the building manager acting as letting agent and the owners of the investment units used in a letting pool) and we often find that there is a noticeable gap between what the appointments state versus how they are interpreted.

    For the most part the gap can be attributed to overly simplified clauses that do not adequately state the practices that the majority of the industry operates under. In general, these inadequacies are rarely the subject of a legal dispute (when business is good) and so fixing them is often left on the “do it tomorrow” pile.

SMALL MYERS HUGHES LAWYERS

COL MYERS | MANAGEMENT RIGHTS

SMH Lawyers handles all aspects of a Management Rights transaction from establishing, purchasing and selling Management Rights to advising bodies corporate on strata related issues and disputes. Col Myers and his team of experts is constantly exposed to all aspects of the management rights industry which means they can proactively advise when and how to best handle management rights to work effectively for individual scenarios.

Phone: +61 7 5552 6604 | Mobile: +61 417 620 516

Level 2, 17 Welch St Southport Qld, 4215

info@smh.net.au | www.smh.net.au  


 

Management Rights Brokers

 

 

 

 

 

Narelle Filmer | Linda & Wayne Stoll

Think Management Rights’ is a division of the nationally recognised First National Real Estate franchise. This team of specialist brokers operate throughout the state of Queensland. With over 15 years as owners, managers and sales agents in Management Rights industry, this team has a great deal of knowledge and experience to bring to the MRA seminars.

Wayne and Linda Stoll | Listings: Sunshine Coast / Gold Coast Region
Phone: 0452 181 505
wayne@thinkmanagementrights.com.au | linda@thinkmanagementrights.com.au 

Narelle Filmer | Listings: Gold Coast / Brisbane Region
Phone: 0459 229 744
Email: narelle@thinkmanagementrihgts.com.au  

www.thinkmanagementrights.com.au 


 

Visit Us

Contact Us

Newsletter Sign Up

GOLD COAST SEMINAR