Deleted: Schedule 1, by-law 11: ‘General meetings of strata company’

This by-law set out how frequently annual general meetings are to be held, how special meetings can be requested

by the strata owners (the STA as it was before 1 May 2020 refers to this as the ‘requisition’ of a meeting), and that

items given to the secretary are to be included on the agenda. The strata reforms removed this by-law because these

matters were too fundamental to the fair and proper running of the strata company to remain as a by-law, which can

be changed by the strata company. Instead these matters were included in the STA, so all strata companies must

follow them. These matters can be found in the following sections of the STA:

• 127 in relation to the timing of annual general meetings of the strata company

• 128(2)(b) and 128(3), the process for owners to call for a special meeting

• 129(4) an owner may give an agenda item to a member of the council, for inclusion on the agenda.

If a strata company has by-laws which deal with these matters, they will be invalid if they are not consistent with the

above provisions of the STA. This means they can be removed as part of the consolidation process.

Deleted: Schedule 1, by-law 12: ‘Proceedings at general meetings’

This by-law set out what a quorum is for a meeting, that a chairperson can adjourn a meeting, and a strata owner

can only move a motion or nominate a candidate for council if they are ‘entitled to vote’ – that is, they have paid

their levies. These matters were too important to leave as by-laws, and are now included in the STA, instead, at the

following sections:

• 130 sets out what a quorum is

• 132(1) sets out that the chair may adjourn a meeting

• 120(2) sets out that an owner cannot vote on a proposed resolution if they owe any money to the strata

company (except in some circumstances where the vote is on a very important matter. The STA sets out that

if it is a unanimous resolution, a resolution without dissent, a vote to postpone the expiry day for a leasehold

scheme or a termination resolution, then even if the owner owes money, they can still vote.)

• 132(2), which restricts a ‘non-financial’ owner from nominating a council member.

If the strata company has any by-laws, which are inconsistent with the above provisions in the STA, they will be

invalid – this means, for example, that SAT cannot enforce them. These invalid by-laws can be removed as part of the

consolidation process.

Deleted: Schedule 1, by-law 13: ‘Restriction on moving motion or nominating candidate’

This by-law was another one which restricted voting for people who owed money to the strata company. This is dealt

with in section 120(2) of the STA, which sets out owners cannot usually vote when they owe money to the strata

company. This is a good example of where the strata reforms aimed to make the STA easier to understand: rather than

listing every single occasion when a ‘non-financial’ owner cannot vote, it summarised this in one statement at 120(2). If

the strata company has a by-law like this, it can be removed.

Deleted: Schedule 1, by-law 14: ‘Votes of proprietors’

This by-law set out that each lot owner gets one vote, and on a ‘poll’, their vote is as per their unit entitlement. There

are some subclauses dealing with how proxies can be appointed, that non-financial owners cannot vote and who

gets to vote when there is more than one owner of a particular lot. These matters were removed from the by-laws and

placed into the STA, at section 120. The voting power of each strata owner is too important to leave in the by-laws

where it can be changed. If the strata company does have a by-law like this, it should be removed.

Deleted Schedule 1, by-law 15: ‘Common seal’

This by-law set out how the common seal of the strata company was to be used, which is how the strata company

properly executes documents. This by-law was deleted, because it was quite restrictive and limited the ability of the

strata company to conduct its affairs electronically. The use of the common seal is now set out in the body of the

STA in section 118, ‘Common seal and execution of documents’. This section now allows the strata company much

greater flexibility in how it authorises the execution of documents. Any by-law inconsistent with section 118 is invalid

and can be deleted.

Deleted: Schedule 2, by-law 5: ‘Children playing upon common property in building’

This by-law set out that no child could play on the common property unless accompanied by an adult exercising

effective control. In the context of the strata reforms setting out that a by-law is invalid if it is unfairly prejudicial,

discriminatory, oppressive or unreasonable, it was felt this by-law should not remain. For example, a scheme could

have a playground specifically put in to attract families to the scheme. It does not seem reasonable to have a blanket

ban on a well-behaved child being on the common property or walking across the driveway to get to their place of

residence, unless supervised by an adult.

It is a different matter to have a by-law prohibiting children from dangerous areas, prohibiting excessive noise from

certain areas or setting out evening hours as ‘quiet times’. Such by-laws would be perfectly reasonable. If a strata

company has a by-law which is substantially the same as the old Schedule 2 by-law 5, the by-law should be removed

as part of the consolidation.

Moved: Schedule 1, by-law 1(2): Behaviour standards of owners, occupiers and visitors

Schedule 1, by-law 1(2) set out that an owner, occupier or other resident of a lot is not to use the common property

in a way that interferes with the use and enjoyment of others, or use their lot in such a way as to cause a nuisance to

others in the scheme. They must also ensure their visitors follow the same rules, as well as the rules for parking in the

scheme.

The strata reforms moved this by-law from Schedule 1, and put it in Schedule 2 - Conduct, because it relates to the

behaviour of people in the scheme. If a person consolidating their strata company’s by-laws finds a by-law relating to

the conduct of owners in Schedule 1, they can move it to Schedule 2.

Moved: Schedule 1, by-law 2: ‘Power of proprietor to decorate etc.’

This by-law set out that a strata owner can decorate their own lot. The strata reforms removed this from Schedule 1 –

Governance and put it in Schedule 2 - Conduct. This was done because it related to the conduct of a strata owner ,

rather than the governance of the scheme.

If a strata company finds that they have a similar by-law, which is in Schedule 1, in the consolidation process they can

move it to Schedule 2 – Conduct.