Owners Corporation & Strata Committee

The Owners Corporation is a term used to refer to the group of owners that collectively own the land on which their unit, apartment, or townhouse is situated. Since there is more than one property situated on a single piece of land (because it has been subdivided), each and every owner owns a portion of the land. All lot owners in a strata scheme are automatically part of the Owners Corporation. The Owners Corporation is usually responsible for the maintenance and repair of all common property.

The owners are responsible for managing the common property, insuring the strata scheme, and ensuring applicable laws and regulations are followed by all residents and tenants living in this development. The owners corporation, bound by laws and regulations, manages and maintains the common areas. It’s up to the owners corporation whether they want to hire a professional strata management service such as Bay Strata to manage the building or property on the owner’s behalf, or otherwise whether someone on the executive committee volunteers or is elected by other members to do the work.

What Does an Owners Corporation Do?

The owners corporation is made up of all the owners in the strata scheme. Each lot owner is automatically part of the owners corporation and has a right to participate in the decision making. The owners corporation comes into existence immediately after a strata plan is registered. At first it may only be made up of the developer, but as each person buys into the scheme, the owners corporation gains more members.

The owners corporation has responsibility for the overall management of the scheme which includes:

• record keeping
• the repair and maintenance of common property
• by-laws
• employment of a strata managing agent and/or building manager

The owners corporation can only make decisions at properly convened meetings. The annual general meeting (AGM) is held once a year.

General Meeting

Once every year the owners corporation must hold a general meeting, referred to as the annual general meeting. They can also hold additional general meetings (known as extraordinary general meetings) as necessary throughout the year. The purpose of these meetings is to decide and resolve the issues that matter which has been put on the agenda to be resolved. Matters not on the agenda may be discussed also, but would need to be put on the agenda and discussed at the next meeting.

The owners corporation also has an elected strata committee able to make certain decisions on its behalf. The strata committee is in place to enable quicker decision-making on many of the day-to-day decisions.

The strata committee members are obligated under the law to act with due care and diligence and must adhere to strict disclosure requirements.

Strata Committee Meetings

The executive committee of the owners corporation is a group which represents owners or owners’ nominees. It administers the day-to-day running of the strata scheme and is elected at each annual general meeting. The executive committee would usually meet more often than the owners corporation, as there would normally be a number of issues to deal with during the year. The committee is comprised of the elected representatives of the owners and is made up of the following members:

Office Bearers

Office bearers are members of the strata committee who are elected to specific roles to assist in the effective administration and governance of the owners corporation. These roles are appointed at each Annual General Meeting (AGM) and remain in place until the next AGM or until the position is otherwise vacated.

The primary office bearer positions are Chairperson, Secretary, and Treasurer. Each role carries distinct responsibilities, however all office bearers act collectively as part of the strata committee and must act in the best interests of the owners corporation.

Chairperson

The Chairperson presides over meetings of the owners corporation and the strata committee. Their role is to ensure meetings are conducted in an orderly, fair, and efficient manner and that all participants are given an opportunity to contribute.

Key responsibilities include:

• Chairing general meetings and strata committee meetings
• Ruling on procedural matters and ensuring meeting agendas are followed
• Exercising a casting vote where permitted
• Acting as a point of leadership for the strata committee

The Chairperson does not have authority to make unilateral decisions unless expressly delegated by the owners corporation or strata committee.

Secretary

The Secretary is responsible for the administrative functions of the owners corporation and ensuring compliance with statutory and record-keeping obligations. Where a strata managing agent is appointed, many of these functions are typically delegated under an agency agreement.

Key responsibilities include:

• Convening meetings and issuing meeting notices and agendas
• Maintaining records, correspondence, and the strata roll
• Keeping and distributing minutes of meetings
• Handling official correspondence on behalf of the owners corporation

The Secretary plays a key role in ensuring transparency, communication, and compliance with the Strata Schemes Management Act 2015 (NSW).

Treasurer

The Treasurer oversees the financial affairs of the owners corporation. This role focuses on ensuring the proper management of funds, budgets, and financial reporting.

Key responsibilities include:

• Monitoring the financial position of the scheme
• Overseeing levy contributions and fund balances
• Reviewing financial statements and budgets
• Ensuring payments are made in accordance with approvals

In practice, day‑to‑day financial administration is usually carried out by the appointed strata managing agent, with the Treasurer providing oversight and review.

Strata Managing Agents

The owners corporation can engage a strata managing agent such as Bay Strata to work on behalf of all owners to help manage the scheme. The owners corporation enters into an agreement with the agent, which outlines their duties and responsibilities. The owners corporation has the power to instruct the agent to do certain works and if necessary, they can overrule the agent.