Can an AGM in a two-lot scheme proceed without one or both owners?
If you live in a strata scheme, you know all too well how hard it can be to find the right answers to strata-related issues like these. There are so many rules and regulations to wade through, and legislation is often updated and amended. This can make it difficult to understand which rules apply and how they apply to your specific situation.
Tim Sara, our Licensee in Charge, is no stranger to these types of enquiries. With over a decade of experience delivering excellent strata management services and a reputation across the industry as a thought leader and an expert in all things strata, he’s able to provide clarity for those struggling with tough questions. Here’s what he had to say in response to a question regarding AGM procedures in two-lot schemes in a recent Q&A with LookUpStrata.
Q: Can an AGM in a two-lot scheme proceed if one or both owners are absent?
In a two-lot scheme, can an AGM proceed if neither owner nor their representative attends? Can the meeting go ahead if only one owner is present? The NSW Fair Trading website states that, for two-lot schemes, both parties must be present.
A: For schemes with only two lots, both owners (or their proxies) must be present to form a quorum.
In a two-lot strata scheme, the quorum rules are strict and are set out in Schedule 1 of the Strata Schemes Management Act 2015 (NSW). Clause 17(2) of Schedule 1 states that a quorum for a meeting is achieved if “persons entitled to vote representing not less than one-quarter of the aggregate unit entitlements” are present. However, for schemes with only two lots, this effectively means both owners (or their proxies) must be present to form a quorum, unless the scheme has adopted other quorum arrangements under clause 17(2)(b).
If neither owner (or their appointed proxies) attends, there is no quorum and the meeting cannot proceed. The law does not allow an AGM to be held in their absence, as there is no one present to vote on motions. The only options in this scenario are:
- Adjournment: The meeting must be adjourned and reconvened at a later time. At the reconvened meeting, those present (even if just one lot owner or their proxy) will form a quorum under clause 17(4) of Schedule 1.
- Pre-meeting voting or written resolutions: The owners could consider using pre-meeting electronic voting or passing resolutions in writing (by unanimous agreement), but this still requires active participation from both owners.
The NSW Fair Trading guidance for two-lot schemes reflects these requirements by stating that both parties must be present (or represented) for the meeting to be valid.
Key point: An AGM cannot validly proceed with no attendance at all. The meeting must either be adjourned or rescheduled, or the owners must use alternative resolution methods that comply with the Act.
Our Strata Management Team prides themselves on their attention to detail and knowledge of strata legislation, which allows them to achieve the best possible outcomes for their clients. They are committed to remaining at the forefront of the industry, building their expertise, and finding new ways to add value to the communities they manage.
If you want your strata scheme managed by an effective and responsive team that specialises in creating thriving communities, contact us today for your FREE quote.