The Tenant Representative

23 May 16

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.

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:

  • (a) not entitled to vote on decisions of the Committee or to put a motion or nominate a person for office, and
  • (b) not entitled to act as an officer of the Owners Corporation for Committee purposes, and
  • (c) 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:

  • (a) financial statements and auditors’ reports;
  • (b) levying of contributions;
  • (c) recovery of unpaid contributions;
  • (d) a strata renewal proposal;
  • (e) 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.

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