An owner is 'financial' if they have paid all outstanding amounts recoverable under the Strata Titles Act 1985 (including any penalty interest) at the time a vote is being cast on a resolution of the Strata Company.
During a general meeting of the strata company, only lot owners who are financial are able to vote on ordinary and special resolutions.
Owners who attend a meeting can vote on any motion if they are financial. An owner is financial when all outstanding payments owing to the Strata Company have been paid. That is, any levies and interest have been paid in full and the funds are in the strata company's bank account.
On the day of the meeting, the Strata Manager will check all levy positions to determine the number of owners who are financial and those that are not. Owners can be confident that all motions will be voted on in accordance with the Act and that the record keeping is impeccable.
What if I have a levy notice - but it's not yet due?
Where a new levy for the next quarter has been issued, but is not yet due (and has not been paid), then the owner will still be financial, if all other previous levies and interest have been paid to date.
Can I bring cash or a cheque to the AGM and be declared financial?
Whilst a Strata Company may need to accept different payment types, it is not a safe or reliable way to pay your levies, and there may not be anyone at a meeting willing to accept payment in this manner. If you need to pay your outstanding levies at the last minute, it is suggested, that you make an electronic payment, and then provide a receipt at the meeting as proof of payment. ESM Cannot accept cash or cheques at a meeting.
What happens if I am declared un-financial?
You are welcome to attend the meeting and join in any discussions, but you cannot vote on either ordinary or special resolutions or nominate yourself for a COO position (though you may be nominated by a financial voter). You can vote on a Resolution Without Dissent, or a Unanimous Resolution.
Janet attended the AGM of her Shenton Park unit. The owners were considering raising the budget to factor in funds to replace all the windows. The funds had been included in the proposed budget and Janet (an owner occupier) was keen to see the motion adopted.
One of the (investor) owners who attended was not current with her levies but she was unaware because her Property Manger handled all the finances and paid the levies from the rental income.
The investor owner did not want the budget to be accepted but she was unable to vote. The owner requested she make a bank transfer then and there but the vote was already being put to the meeting, and it was too late.
The investor owner was therefore unable to vote on any of the ordinary resolutions or special resolutions during that meeting.