Virtual Or In-Person A Guide To Post-Pandemic NSW Strata Meetings

Introduction

The COVID-19 pandemic prompted a significant shift in how strata meetings were conducted across NSW, moving them from in-person gatherings to virtual platforms. What began as a temporary solution has now been solidified into law through permanent changes, offering strata schemes a lasting choice between traditional and digital meeting formats.

As a result, owners corporations and strata committees must now navigate the legal and practical implications of these options. This guide offers essential information to help your strata community understand the current legislative framework, weigh the advantages and potential challenges of each format, and implement best practices for conducting effective and compliant meetings.

The Legal Framework for Your Strata Meetings

Understanding the Current Legislation for Strata Meetings

In New South Wales, the legal framework for strata meetings has been updated to permanently accommodate modern communication methods. Under Regulation 14 of the Strata Schemes Management Regulation 2016 (NSW), owners corporations and strata committees are permitted to hold meetings using various electronic means, including:

• Teleconference
• Video conferencing

These provisions were solidified by the COVID-19 and Other Legislation Amendment (Regulatory Reforms) Act 2022 (NSW), which introduced permanent changes effective from 30 September 2022. This legislation confirms that strata meetings can be held and votes can be cast electronically, provided the specific method is outlined in the meeting notice.

A key requirement under these laws is that the secretary of the owners corporation or the strata managing agent must take reasonable steps to ensure every person entitled to vote can participate. This ensures that the move to electronic formats does not exclude any members of the strata community.

When a Prior Resolution is Required for Your Strata

While electronic participation in strata meetings is now a default option, a distinction exists for certain voting methods.

• For voting that occurs electronically during a live meeting, such as via video conference or teleconference, no prior approval is necessary.
• However, if a strata scheme wishes to implement pre-meeting electronic voting, it must first pass a resolution to authorise this specific method.

According to Section 14 of the regulations, this applies to both general meetings of the association and meetings of the strata committee. An ordinary resolution is required before votes can be cast and collected electronically before the scheduled meeting takes place.

How Electronic Voting Works in a Virtual Strata Meeting

Methods for Casting Your Vote in a Strata Meeting

In a virtual strata meeting, votes can be cast using several electronic methods to ensure all owners have an opportunity to participate. The specific methods available must be outlined in the notice for the meeting.

During a live meeting held via teleconference or video conference, members can vote in real-time. Common ways to cast a vote include:

• Verbally: Owners can state their vote (“yes,” “no,” or “abstain”) when called upon by the chairperson.
• Visually: A show of hands can be used in video meetings, just as it would be in an in-person setting.
• Using Platform Tools: Many video conferencing platforms have built-in features like polls or chat functions that can be used to formally record votes on motions.

For owners who cannot attend the meeting, pre-meeting electronic voting is an option. This allows votes to be submitted by email or another approved electronic method before the meeting takes place.

It is important to note that for a strata scheme to use pre-meeting electronic voting, the owners corporation must first pass an ordinary resolution to authorise it.

The Process for Electing a Strata Committee Online

The election of a strata committee during a virtual meeting follows the procedure detailed in Regulation 9 of the Strata Schemes Management Regulations 2016 (NSW). All steps can be managed through verbal, visual, or written communication within the virtual environment.

The process unfolds in a specific order:

1. The chairperson begins by announcing the names of candidates who were nominated in writing before the meeting.
2. A call is then made for any oral nominations from eligible individuals present at the meeting.
3. Any nomination requires the consent of the nominee, given either in writing if they are absent or orally if they are present.
4. Once nominations are closed, the owners corporation decides on the number of members for the strata committee.
5. If the number of candidates is equal to or less than the decided number of positions, they are declared elected. If there are more candidates than positions, a ballot must be held.

Navigating the Challenges of Digital Ballots

Conducting a formal ballot electronically presents unique logistical challenges that must be carefully managed to ensure validity. The procedure for a ballot is governed by Regulation 10 of the Strata Schemes Management Regulations 2016 (NSW), which creates specific hurdles in a virtual context.

One key challenge is the requirement to provide each eligible voter with a ballot paper. This can be achieved by:

• Emailing the ballot paper to attendees
• Providing a link to a secure online form

Another significant difficulty is satisfying the requirement that the ballot paper be signed by the voter. An electronic form or document must have the functionality to capture a valid signature.

If these requirements for distribution and signing are not met, the ballot papers could be considered invalid. To overcome these issues, a strata scheme can use a properly designed digital ballot paper that is specifically created to meet all legal requirements for validity.

Key Advantages of Virtual Strata Meetings

Boosting Participation & Accessibility

Virtual meetings offer greater accessibility for strata owners, allowing them to attend from any location with an internet connection. This flexibility significantly boosts attendance, especially for individuals with busy schedules or those who live interstate or overseas.

By removing geographical barriers, more owners can participate in the decision-making processes affecting their property. This enhanced participation makes it easier for the strata scheme to achieve a quorum, which is essential for making legally binding decisions and avoiding meeting delays.

Improving Efficiency & Reducing Costs

Holding strata meetings online eliminates the need for participants to travel to a physical location. This provides considerable convenience and time savings, allowing owners and committee members to join meetings from their homes or offices.

This is particularly beneficial for:

• Frequent committee meetings
• Short committee meetings

Moreover, this efficiency translates into direct financial benefits for the owners corporation. Virtual meetings remove the expense of renting physical venues and can lower administrative costs by reducing the need to reschedule meetings that fail to achieve a quorum.

Enhancing Communication & Record-Keeping

Digital platforms offer tools that can significantly improve the clarity of communication during a strata meeting. Features like screen sharing allow for the clear presentation of important documents, such as:

• Agendas
• Financial budgets
• Proposals

These tools ensure all participants are well-informed.

Furthermore, virtual meetings can be recorded with the consent of all attendees. These recordings can be shared through a secure online portal, providing a valuable resource for owners who were unable to attend and serving as an accurate record of discussions and resolutions.

Addressing Common Concerns with Virtual Strata Meetings

Balancing Transparency & Privacy with Meeting Recordings

Recording virtual strata meetings can enhance transparency, but it also raises significant privacy issues that need careful management. While some owners may favour recordings for accountability, others may worry about how the information will be used. The knowledge that a meeting is being recorded can also lead to self-censorship, where committee members may feel less comfortable engaging in open and candid debate.

It is essential to establish clear rules regarding the ownership and accessibility of any recordings. Key considerations include:

• Consent: You must obtain consent from all participants before recording a meeting. It is a legal requirement to inform everyone that the session will be recorded.
• Sensitive Information: Discussions involving sensitive topics, such as legal advice or personal strata disputes, must be handled with care. The committee may decide to stop recording during these segments to protect confidentiality.
• Access Rights: Determine who has the right to access the recordings. In some jurisdictions, recordings are considered part of the strata records, which is governed by rules around strata communication, privacy, and records access.

To strike a balance, some strata committees choose to record only specific parts of the meeting. For instance, recording only the formal motions, decisions, and vote counts can maintain a record of official actions while still allowing for open discussion on other matters.

Overcoming Technological & Accessibility Hurdles

Technological challenges can disrupt virtual meetings and exclude some members of the strata community. Not all participants may have reliable internet access or be proficient with the necessary technology, which can create barriers to participation, particularly for older or less tech-savvy individuals.

Common hurdles include:

• Technical Glitches: Poor connectivity or difficulties navigating the virtual platform can interrupt the flow of the meeting and frustrate participants.
• Digital Divide: Some owners may lack the necessary devices or skills to join an online meeting, limiting their ability to contribute.
• Time Zone Differences: For strata schemes with international owners, coordinating a meeting time that is convenient for everyone across different time zones can be a significant challenge.

Ensuring the Validity of Proxies & Resolutions

Maintaining the legal integrity of decisions made virtually is crucial. Challenges include:

• Verifying Proxies: Confirming that individuals voting on behalf of owners are genuinely authorised can be more difficult online.
• Validating Resolutions: Ensuring that resolutions passed in a virtual meeting strictly adhere to all procedural requirements outlined in the relevant legislation.

A robust system for digitally collecting and validating proxy forms is necessary to prevent potential fraud. Furthermore, to guarantee all decisions are legally binding, the strata meeting must follow every procedural rule without deviation—otherwise, resolutions could be challenged at a later date.

Practical Steps for Effective Virtual Strata Meetings

Planning & Preparation for Your Strata Meeting

Thorough preparation is essential for a smooth and compliant virtual strata meeting. While a specific by-law is not legally required to hold virtual meetings, it is good practice to review your strata by-laws to ensure no outdated rules conflict with modern meeting procedures.

Key preparation steps include:

• Distributing a detailed agenda well in advance: under the Strata Legislation Amendment Act 2023 (NSW), the minimum notice period for Annual General Meetings (AGMs) is now 14 days, giving owners sufficient time to prepare.
• Conducting a trial run of the chosen virtual platform: familiarise participants with its features and resolve any technical issues before the meeting.

Ensuring Fair Participation & Voting for All Owners

Under the COVID-19 and Other Legislation Amendment (Regulatory Reforms) Act 2022 (NSW), the secretary of the owners corporation or the strata managing agent must take reasonable steps to ensure every person entitled to vote can participate. This legal duty is central to maintaining fairness and inclusivity in a virtual setting.

To meet this requirement, strata schemes should consider practical measures that bridge the digital divide and accommodate varying levels of technological proficiency among owners. Examples of these reasonable steps include:

• Providing clear instructions: offer simple, accessible guidance on how to join the meeting and cast a vote electronically.
• Offering multiple access methods: allow participation via video conference or teleconference, ensuring those without internet access or who prefer audio-only can still join.
• Using accessible technology: choose user-friendly platforms that do not impose unreasonable expenses on participants.

Post-Meeting Actions & Legal Compliance for Your Strata

After the meeting concludes, several actions are necessary to ensure legal compliance:

• Storing records securely in electronic form: as mandated by the Strata Legislation Amendment Act 2023 (NSW) (effective 11 June 2024), the strata roll and other key records—including minutes—must be maintained digitally.
• Preparing detailed minutes: accurately record attendance, motions, key discussion points and voting outcomes.
• Following up on decisions or actions: keep all participants informed of progress on resolutions and tasks.

How to Propose Virtual Meetings for Your Strata Scheme

Submitting a Motion for Video Conference Attendance

If your strata committee is resistant to holding meetings online, you can take formal steps by submitting a motion to the secretary of the owners corporation. Under Schedule 2, Clause 4 of the Strata Schemes Management Act 2015 (NSW), this motion must be included in the agenda for the next general meeting.

When drafting your motion, include:

• A formal request that the owners corporation agree to allow attendance at future meetings via video conference
• A citation of Schedule 2, Clause 4 to ensure compliance with the Act

While the chairperson has the authority to rule a motion out of order if it conflicts with legislation, many owners corporations are open to adopting modern and more inclusive meeting practices. If the motion passes, the strata committee is expected to adhere to the decision.

Drafting a By-Law for Permanent Hybrid Options

For a more permanent solution, propose a motion requiring the strata scheme to create a new strata by-law. This by-law would legally mandate that a virtual attendance option must always be offered, creating a lasting policy that future committees cannot easily reverse.

This approach typically involves:

• A motion for the owners corporation to seek legal advice to draft the by-law correctly
• Embedding the requirement for hybrid options into the strata scheme’s official rules

By embedding this requirement in the official rules, you ensure long-term accessibility and participation for all owners, regardless of their location.

Conclusion

The shift to virtual strata meetings in NSW is now a permanent and legally supported option, offering significant benefits like increased participation, cost savings, and enhanced accessibility. Successfully implementing these modern meeting formats requires careful planning to manage technology, address privacy concerns, and ensure all procedural rules are followed for legal compliance.

To navigate the legal intricacies of virtual engagements and fortify the governance of your strata scheme, contact our expert strata lawyers at PBL Law Group. Our owners corporations strata lawyers provide specialised guidance and support tailored to your community’s needs in Sydney and across NSW.

Frequently Asked Questions (FAQ)