Summary:

Once the STAA 2018 comes into effect later this year, there are changes which will affect the Council of Owners.

The Chairperson
It will no longer be possible for all Councillors to be simply be Council Members. A Chairperson must be appointed. Section 135 (4) now states that one of the members of the Council must hold the office as chairperson of the strata company. The word Chairman has now been replaced by Chairperson.

Council of Owner Elections
One of the major changes is the way the Council is now elected, previously, if an election was called the votes were counted by number (show of hands). Under the new section 135 (3)(a) it states that a person who is entitled to vote may demand that the votes in the election be counted by unit entitlement of lots. This means that those who have a higher unit entitlement will have a higher voting capacity.

Excerpt From Act

STAA 2018 Division 4 (Section 135)

Division 4 — Councils
135. Functions and constitution of councils
 

(1) The functions of a strata company, subject to this Act and to any
restriction imposed or direction given by ordinary resolution,
are to be performed by the council of the strata company.
 

(2) The council of a strata company must be constituted and
perform its functions in accordance with this Act and the
scheme by-laws.
 

(3) On an election of the council at a general meeting of the strata
company —
(a) a person who is entitled to vote in the election and who is present in person or by proxy at the meeting may demand that the votes in the election be counted by unit entitlement of the lots; and
(b) if no such demand is made, the votes in the election are
to be counted by number.
 

(4) 1 of the members of the council of a strata company must hold
office as the chairperson of the strata company.

Example Case:

Tim and Anne were the only 2 owners who came to their AGM, however they held a proxy (link : what is a proxy?) for their neighbour John. They really wanted him to make up the third council member, and he reluctantly accepted, however he soon resigned. This created a 'casual vacancy' and gave the remaining members the opportunity to ask another owner to take his position - which he accepted. 

This enabled the formation of a Council at the AGM but without the year long commitment for one owner. If John had not accepted, it would not be possible to elect another member to the Council of Owners until the following AGM. 

For that year, all owners would have had to form the Council, which makes it difficult to achieve outcomes.