What happens when a member of the Council resigns?

Some Council members resign, sell up, or could be removed mid term. What happens next?

Summary

At each AGM, there will be a motion relating to the constitution of the Council of the strata company and a vote to elect individuals who will form the Council for the next 12 months. It is usual that a council will consist of 3, 5 or 7 members as this makes a majority vote easy to achieve - but the Council of the strata company can be made up of any number between 3 and 7. 


What happens if a vacancy arises during mid-term?

The Council can continue to function with a vacancy so long as they can still form a quorum. In the table below, the quorum figures are set out. 

Note: The quorum continues as per the positions resolved at the previous Meeting until a future General Meeting.

Number of Positions resolved at AGM Quorum
3 2
4 2
5 3
6 3
7 4

Example

A Strata Scheme has a Council of 3, and 1 member resigns, the Council can continue to perform all functions with the remaining 2 members as they still achieve a quorum. They can also seek to fill the vacancy with another eligible owner of their choosing. In the event that the council member who resigned was performing the Chairperson role, they must nominate a new member to fill the Chairperson role for the remainder of the term. If no other owners step up, the remaining 2 Council members can continue as normal until the next AGM. 

In the same example, where the Council constituted 3 members and 2 Councillors resigned, this no longer constitutes the minimum requirement for a quorum. The remaining member may only act for the purpose of increasing the number of members of the Council or convening a general meeting of the strata company, but for no other purpose. 

Delete

How can the remaining Councilors seek to fill a vacancy or vacancies?

The remaining Council members can ask other owners or put out a communication advising of a vacancy/vacancies. If owners nominate themselves, it is up to the remaining Council members who they wish to appoint. That person will fill the vacancy for the remainder of the term. There is no need to call a meeting or have a vote outside of a meeting, it is a decision for the Council members to make.

Delete

What if we have more than one nominee, can we accept both if we will still have less than 7 members?

If the motion at the last general meeting of the strata company was passed stated that the council will consist of 3 members (for example), then later if one member resigns, even if 2 others nominate themselves only 1 person can fill the vacant position as numbers cannot be increased above what was approved at the last general meeting. 

Delete

How can a Council member be removed from office?

A council member can be removed from office under the standard bylaws (if they apply to the Strata Scheme) as follows:
Governance Bylaws - Schedule 1, Bylaw 4. Constitution of Council

(8) Except if the council consists of all the owners of lots in the scheme, the strata company may by special resolution remove any member of the council before the expiration of the member’s term of office.

(9) A member of the council vacates office as a member of the council — 

(a) if the member dies or ceases to be an owner or co-owner of a lot; or
(b) on receipt by the strata company of a written notice of the member’s resignation from the office of member; or
(c) at the conclusion of an annual general meeting of the strata company at which an election of members of the council takes place and at which the member is not elected or re-elected; or
(d) in a case where the member is a member of the council by reason of there being not more than 3 owners of lots in the scheme, on an election of members of the council (as a result of there being an increase in the number of owners to more than 3) at which the member is not elected; or
(e) if the member is removed from office under sub-bylaw (8); or
(f) if the Tribunal orders that the member’s appointment is revoked and the member is removed from office.


If this occurs, the remaining members of the Council can continue if they still achieve a quorum or they can seek to appoint a member for the remainder of the term. 

Delete

What happens if there is no Council?

This situation may occur where the entire Council have resigned mid-term of no one volunteered at the AGM to be a Councillor. In this circumstance, owners may either wait until the next AGM or if this is deemed to be too far away, then it is possible to call an EGM to install a new Council.

This can be done where 25% of owners in the scheme come together and an formally request an EGM to be called. Where an owner has the 25% support, the next step is to contact ESM Strata giving the names and lot numbers of those people who form the 25%. We can then verify this information and proceed to issue a Notice and Agenda for an EGM.

Delete


More information

Governance By-laws.pdf