Introduction

Significant updates to NSW strata law, effective from 1 July 2025, will introduce new, formal rules of conduct for the chairperson at strata meetings. These changes to the Strata Schemes Management Act 2015 are designed to formalise what has largely been considered best practice, providing the chairperson with clear legal authority to manage meeting proceedings effectively. This legal backing is crucial for ensuring that committee meetings are structured, productive, and fair for all members of the owners corporation.

For any chairperson or strata committee member, understanding these new responsibilities is essential for maintaining order and facilitating constructive decision-making. This guide provides a detailed overview of the new conduct rules, offering practical insights to help your owners corporation navigate these important strata law changes and ensure your meetings are both compliant and efficient.

The Chairperson’s Established Role in Strata Meetings

Presiding Over General & Strata Committee Meetings

Under the Strata Schemes Management Act 2015, the chairperson of the owners corporation has the fundamental responsibility of presiding over all general and strata committee meetings they attend. This important role involves:

• Guiding the proceedings effectively
• Ensuring the meeting is conducted in an orderly manner
• Encouraging fair, constructive, and open discussion among owners and strata committee members

According to Schedule 1, Clause 12 of the Strata Schemes Management Act 2015, if the elected chairperson is absent from a meeting, those present and entitled to vote have the right to elect another person from their number to preside over that specific meeting.

It is also important to note that the chairperson does not have a casting vote; they may only vote if they are otherwise entitled to do so, for instance, as a lot owner.

Ruling Motions Out of Order

A key authority of the chairperson is the power to rule a motion out of order. This power helps maintain procedural correctness and ensures decisions comply with NSW strata law. Indeed, this is a critical function for preventing unlawful or unenforceable resolutions from being passed at strata meetings.

As outlined in Schedule 1, Clause 19 of the Strata Schemes Management Act 2015, a chairperson may rule a motion out of order if:

Basis for Ruling a Motion Out of Order	Description
Conflict with Law or By-laws	The chairperson believes the motion, if passed, would conflict with the Strata Schemes Management Act 2015 or the strata scheme’s by-laws.
Unlawful or Unenforceable	The motion is considered to be otherwise unlawful or unenforceable in nature.
Improper Notice	The proper notice requirements for including the motion in the meeting agenda have not been met.

The New Formal Conduct Rules from 1 July 2025

Making Determinations on Quorums & Procedural Matters

Under the strata law changes effective from 1 July 2025, the chairperson’s role in NSW strata meetings is formally defined with new legal duties. The Strata Schemes Legislation Amendment Bill 2025 amends Section 42 of the Strata Schemes Management Act 2015 to codify these responsibilities.

One of the key new duties for a chairperson is to make official determinations on procedural matters. This includes the crucial task of deciding whether a quorum is present, which is the minimum number of eligible voters required for the meeting to proceed legally.

This change provides clear legal backing for the chairperson to manage the formal commencement and running of strata meetings.

Ensuring the Agenda is Followed & Maintaining Order

The updated NSW strata law now includes a formal responsibility for the chairperson to ensure the meeting agenda is followed. This legal requirement helps prevent discussions from deviating into unrelated topics, keeping the committee meeting focused and productive.

Furthermore, the chairperson is legally tasked with maintaining order during strata meetings. This authority is crucial for:

• Managing potentially contentious discussions
• Ensuring that all committee members can participate in a respectful environment
• Guiding the conversation back to the items listed for consideration

These rules transform best practices into clear legal duties, strengthening the chairperson’s ability to run an efficient meeting, an important skill for managing and preventing common strata disputes.

Facilitating Fair Discussion & Encouraging Participation

The new rules also formalise the chairperson’s role in fostering a positive and inclusive meeting environment. They are now legally required to:

• Facilitate discussions that are fair, constructive, and open
• Ensure all viewpoints can be heard
• Actively encourage participation from all attendees

This dual responsibility aims to strike a balance between open dialogue and effective decision-making. The goal is to ensure that while everyone is encouraged to contribute, the discussions remain constructive and aligned with the meeting’s purpose, preventing the forum from becoming unstructured.

Why These New Rules Are Important for Your Owners Corporation

Providing Clear Legal Backing & Authority to the Chairperson

The new conduct rules under the NSW strata law changes, effective from 1 July 2025, formalise what was previously considered best practice for a chairperson. This significant development provides clear legal backing to the chairperson’s role and authority during strata meetings.

By codifying these duties, the legislation reinforces that meetings are formal, structured platforms for decision-making. This important shift prevents meetings from deteriorating into unstructured “town-hall” scenarios, giving the chairperson explicit authority to:

• Run proceedings effectively
• Maintain order during discussions
• Ensure proper meeting protocols are followed

The formalisation of these responsibilities ultimately benefits the entire owners corporation by creating a more structured governance framework.

Promoting Efficient & Constructive Decision-Making at Meetings

These formalised rules are crucial for promoting more efficient and constructive meetings. A key responsibility of the chairperson is to ensure that discussions remain focused on the motions listed on the meeting agenda rather than becoming derailed by unrelated topics.

This focused approach helps both the strata committee and all attendees concentrate on productive and effective decision-making. The benefits of this structured approach include:

• More productive use of everyone’s time
• Clearer pathways to resolution on important issues
• Reduced potential for conflict during meetings
• Prompt consideration and resolution of motions

By empowering the chairperson to maintain order and guide conversations, the new strata law ensures that meetings achieve their intended purpose – making decisions that benefit the entire owners corporation in a timely and efficient manner.

Practical Tips for an Effective Strata Committee Chairperson

Sticking Firmly to the Meeting’s Motions & Agenda

A common reason strata meetings become inefficient is when discussions stray from the agenda. The chairperson plays a crucial role in maintaining order and ensuring conversations remain focused on the specific motion being considered.

When speakers begin to discuss unrelated personal issues, productive decision-making can quickly be derailed. To prevent this, the chairperson must:

• Call the meeting to order when necessary
• Redirect discussions back to the agenda items
• Ensure each motion receives proper attention

To maintain focus, motions must be drafted with clarity and precision. Vaguely worded motions often lead to confusion and lengthy, unproductive debates. If a motion requisitioned by a lot owner lacks clarity, the chairperson should invite that owner to briefly explain its intended purpose, which helps keep subsequent discussion on track.

Setting Procedural Rules & Time Limits for Speakers

An effective strategy for running an orderly meeting is to establish clear procedural rules at the outset. The chairperson should:

• Propose these rules to all attendees
• Explain that their purpose is to ensure an efficient, enjoyable, and effective meeting
• Gain majority support for these procedures, which provides strong backing from the floor

Key procedural rules can include:

Procedural Rule Example	Implementation
Pre-submitted Questions	Announce that owners were invited to submit questions in writing before the meeting. Simple queries can be addressed, but complex questions not previously submitted may not be answered on the spot due to time constraints.
Time Limits for Speakers	Propose a specific time limit (e.g., 60 seconds) for individuals speaking to a motion. This ensures all attendees have a fair chance to be heard without one person dominating the discussion.

Confidently Controlling the Meeting & Responding to Challenges

During a meeting, a chairperson’s decision or authority may be challenged. It’s important to view this not as a personal attack but rather as an opportunity to ensure correct procedure is followed.

When faced with a challenge, the chairperson should:

• Ask the person to state the legal basis for their objection
• Proceed with the meeting if the person cannot provide a precise reason and the chairperson is confident in their position
• Defer the motion if unsure about the correct procedure

If a motion needs to be deferred, the matter can be referred for legal advice and placed on the agenda for a future meeting. This approach ensures any decision made complies with all recent updates to NSW strata law.

Confidence in this role is key and develops through experience and a solid understanding of the Strata Schemes Management Act 2015.

Conclusion

The NSW strata law changes effective from 1 July 2025 introduce formal conduct rules that provide clear legal authority to the chairperson’s role in strata meetings. These new responsibilities, covering everything from maintaining order to facilitating fair discussion, are designed to ensure strata committee meetings are structured, compliant, and productive for the entire owners corporation.

Understanding these updates to NSW strata law is crucial for any chairperson or committee member. For trusted expertise and specialised guidance on how these strata law changes affect your owners corporation, contact the strata law firm experts at PBL Law Group in Sydney & NSW today to ensure your strata meetings are both compliant and efficient.

Frequently Asked Questions