Introduction

The Covid-19 pandemic catalysed rapid changes across all parts of our lives, forcing us to find ways to engage in our day-to-day activities on the cloud. For strata communities across NSW, conducting virtual meetings became essential. But as we move beyond the pandemic, we have a choice to go back to the pre-pandemic methods, or to embrace a modern approach necessitated by Covid-19. 

This guide discusses the practicalities of electronic voting, explores the myriads of benefits involving electronic meetings, and attempts to address common concerns that may arise. 

Can You Conduct Strata Committee Meetings and AGMs Virtually?

Yes, you can conduct strata meetings virtually. According to Regulation 14 of the Strata Schemes Management Regulation 2016 (NSW), owners corporations and strata committees may adopt means of voting such as teleconference, video conferencing, email, or other electronic means. This allows general meetings or strata committee meetings to be held electronically. Additionally, starting from 30 September 2022, new strata and community scheme laws allow for meetings and voting in person or by electronic means specified in the meeting notice without needing a prior resolution, except for pre-meeting electronic voting, which still requires a prior resolution.

How to Conduct Electronic Voting in an Online Meeting?

Voting in virtual strata meetings can be conducted through various methods, ensuring that all eligible voters can participate and cast their votes effectively. Here’s a detailed explanation of how voting works in virtual meetings based on the provided regulations and updates:

Methods of Voting

According to Regulation 14 (as mentioned above), the following methods can be adopted:

(A) Voting During the Meeting:

• Teleconference or Video Conferencing: Members can participate in real-time discussions and vote on matters during the meeting. Voting can be conducted through:
  • Verbal agreements or disagreements.
  • Digital voting tools integrated into the conferencing software.
  • Polls or surveys administered during the meeting.
• No Prior Resolution Needed: For meetings and voting in person or by electronic means specified in the meeting notice, no prior resolution is needed (except for pre-meeting electronic voting, which still requires a prior resolution).

(B) Pre-Meeting Electronic Voting:

• Email or Other Electronic Means: Members can cast their votes via email or other electronic platforms before the meeting where the matter will be decided. This method is specifically useful for members who cannot attend the live virtual meeting.

Ensuring Participation and Voting Rights

The regulations stipulate that reasonable steps must be taken to ensure that all eligible voters can participate and vote. This includes:

• Providing clear instructions on how to join the virtual meeting and use the voting tools.
• Ensuring that all necessary materials (e.g., agendas, proposals, and previous meeting minutes) are distributed in advance.
• Offering technical support to assist members in navigating the virtual meeting platform and casting their votes.

Example Voting Scenarios

Example 1: Teleconference Voting

• The chairperson calls for a vote on a proposal during a teleconference.
• Members verbally express their votes (yes, no, or abstain).
• The chairperson or a designated person tallies the votes and announces the results.

Example 2: Video Conferencing with Polls

• During a video conference, the chairperson introduces a voting matter.
• An integrated polling feature is used to create a poll with options.
• Members select their choices, and the results are instantly calculated and displayed.

Example 3: Pre-Meeting Email Voting

• A proposal is sent out via email with clear instructions and a deadline for voting.
• Members reply with their votes (e.g., approve, reject, or abstain) by the specified deadline.
• Votes are collected, verified, and the results are communicated during the meeting.

Voting in virtual strata meetings involves adopting clear procedures and leveraging technology to facilitate participation and decision-making. By passing the necessary resolutions, using appropriate voting methods, and ensuring accessibility, owners corporations and strata committees can effectively manage their affairs remotely. The updated regulations from NSW Fair Trading further enhance the flexibility and inclusivity of virtual voting processes.

Advantages of Conducting Strata Meetings Electronically After Covid-19 Pandemic 

The shift to virtual strata meetings during the COVID-19 pandemic has showcased several benefits that can continue to be advantageous post-pandemic. Below are the primary reasons to maintain virtual strata meetings:

Increased Participation

• Accessibility: Virtual meetings enable owners to attend from any location, resulting in higher attendance, particularly for those with tight schedules or who reside interstate or overseas.
• Meeting Quorum: Enhanced participation helps achieve quorum more consistently, which is crucial for making legally binding decisions.

Travel Time Elimination

• Convenience: Participants can join meetings from their homes or offices, eliminating the need for travel. This is especially advantageous for frequent, smaller committee meetings.
• Time Efficiency: Saving travel time allows participants to more easily integrate meetings into their schedules.

Cost Efficiency

• No Room Rentals: Virtual meetings remove the necessity of renting meeting spaces, potentially saving significant amounts of money depending on the size of the strata scheme.
• Lower Administrative Costs: Avoiding the need to reschedule meetings due to lack of quorum reduces costs related to document reprinting and additional room rentals.

Enhanced Communication and Documentation

• Meeting Recordings: With attendee consent, meetings can be recorded and uploaded to a secure online portal, enabling those unable to attend to review discussions and resolutions.
• Screen Sharing: The ability to share screens during virtual meetings ensures clear presentation of agendas, budgets, and other essential documents, keeping all participants informed.

Flexibility and Inclusivity

• Multiple Participation Methods: Participants can join via video-conference, teleconference, or pre-meeting electronic voting, catering to various preferences and needs for more inclusive participation.
• Alignment with Modern Lifestyles: With the rise of remote work, virtual meetings fit well into modern lifestyles, offering flexibility for participants to join from anywhere.

Improved Issue Understanding

• Expert Involvement: Virtual meetings facilitate the inclusion of experts who can provide insights on technical matters like defect claims or major works. Recorded discussions can help other owners understand the decision-making process.

Environmental Benefits

• Lower Carbon Footprint: By eliminating travel, virtual meetings contribute to a reduced carbon footprint, promoting environmentally friendly practices.

Common Concerns Regarding Virtual Strata Meetings

Recording Meetings

• Self-Censorship: Awareness of being recorded may lead committee members to censor their discussions, potentially limiting open and candid debate.
• Ownership and Access: Clarifying who owns the meeting recordings and who can access them is essential. In some regions, like Queensland, recordings are classified as body corporate records, meaning lot owners and other stakeholders might have the right to inspect or obtain copies, with certain exceptions.
• Sensitive Information: Recordings that cover sensitive topics, such as legal advice or disputes, must be carefully managed to ensure that only authorised individuals have access.
• Consent for Recording: Participants must be informed and provide consent for recordings. Legal requirements, such as those in the Invasion of Privacy Act 1971 (Qld), mandate consent from all involved parties.
• Prohibiting Recordings: Committees may choose to prohibit recordings to promote open discussions, but this could lead to conflicts with lot owners who favor recordings for transparency.

Transparency vs. Privacy

• Balancing Interests: While some lot owners advocate for recordings to ensure transparency, others worry about privacy and the misuse of recordings.
• Selective Recording: Recording only specific parts of the meeting, such as motions, decisions, and votes, can help balance the need for transparency with privacy concerns, fostering open discussion while maintaining accountability.

Technological Challenges

• Technical Issues: Participants might encounter problems with technology, including connectivity issues or difficulty navigating the virtual platform, which can disrupt meetings.
• Adaptation: Some strata managers and committee members may be slow to adopt new technology, resulting in resistance or inefficiencies.

Legislative Adaptation

• Outdated Legislation: Existing strata legislation was typically designed for in-person meetings. The swift transition to virtual meetings may not be fully anticipated, and current laws might not adequately address all aspects of virtual meeting conduct.
• Need for By-laws: Many strata communities need to establish a by-law or decide in a general meeting to permit electronic meetings, rather than having it as a default option.

Verification of Proxies

• Identity Verification: Ensuring the authenticity of proxies in a virtual setting can be challenging, making it crucial to verify that individuals attending and voting on behalf of lot owners are genuinely authorised.
• Documentation: A robust system is required to digitally collect and validate proxy forms, ensuring accuracy and preventing fraud.

Accessibility

• Technological Barriers: Not all participants may have access to or be proficient with the necessary technology, which can limit participation, especially for older or less tech-savvy members.
• Time Zones: Coordinating meeting times across different time zones for international participants can be difficult.

Legal Validity

• Compliance with Legislation: Ensuring virtual meetings comply with existing strata legislation can be complex, as current laws may not fully cover the nuances of electronic meetings.
• Validity of Resolutions: There may be concerns about the legal validity of resolutions passed in virtual meetings, particularly if meeting procedures do not strictly adhere to legislative requirements.

Practical Steps for Conducting Virtual Strata Meetings Effectively

Preparation and Planning

• Update By-laws: Amend by-laws to explicitly allow for virtual meetings and define procedures for conducting them, including the use of proxies and electronic voting.
• Clear Agenda: Distribute a detailed agenda well in advance, including all necessary documents and information for participants to review before the meeting.
• Test Technology: Conduct a trial run of the virtual meeting platform to ensure all participants are familiar with its features and can access it without issues.

Verification of Proxies

• Digital Signatures: Implement secure digital signatures to verify the authenticity of proxy documents.
• Pre-Submission: Require proxies to submit their documentation ahead of the meeting for verification.
• Authentication Tools: Use authentication tools, such as two-factor authentication, to confirm the identity of proxies during the virtual meeting.

Ensuring Accessibility

• Technical Support: Provide technical support and training sessions to help participants become familiar with the virtual meeting platform.
• Multiple Access Methods: Offer multiple ways to join the meeting, such as video conferencing, teleconferencing, and online voting, to accommodate different preferences and capabilities.
• Recording and Playback: Record meetings and make them available for later viewing to ensure those who cannot attend in real-time can still participate in the decision-making process.

Conducting the Meeting

• Clear Communication: Start the meeting with clear instructions on how to participate, mute/unmute, and vote.
• Moderation: Have a designated moderator to manage the flow of the meeting, handle technical issues, and ensure everyone has a chance to speak.
• Record Key Points: Record only the parts of the meeting where the motion is read out, what is resolved by the committee/body corporate, and the number of votes for and against the motion. Avoid recording discussions to encourage open and candid debate.

Privacy and Legal Considerations

• Consent for Recording: Ensure all participants are aware of and consent to the recording of meetings. Clearly communicate the purpose of the recording and how it will be used. If participants are not comfortable with recording the full meeting, you may record only the essential parts of the meeting to balance transparency and privacy.
• Sensitive Information: Handle recordings of discussions on sensitive matters carefully. Consider stopping the recording during such discussions to maintain privacy and confidentiality.
• Seek Legal Advice: In order to ensure that you are in compliance with the applicable privacy, data protection and technology laws, get in touch with a legal professional.

Post-Meeting Actions

• Detailed Minutes: Prepare detailed minutes of the meeting, including attendance, motions, discussions, and voting results. Distribute these minutes promptly to all participants.
• Follow-Up: Follow up on any actions or decisions made during the meeting and keep all participants informed of the progress.
• Secure Storage: Store recordings and minutes securely, ensuring that only authorised individuals have access to them.

Continuous Improvement

• Feedback: Collect feedback from participants after the meeting to identify any issues and areas for improvement.
• Adaptation: Continuously update practices and technologies to improve the efficiency and effectiveness of virtual meetings.

By following these practical steps, strata communities can conduct virtual meetings effectively, ensuring participation, transparency, and legal compliance while addressing the challenges associated with online meetings.

Key Takeaways

The advantages of virtual strata meetings are clear—from increased attendance and cost savings to enhanced accessibility. Implementing these strategies not only aligns with modern communication trends but also fortifies the governance of strata schemes against future challenges. For strata communities looking to refine their meeting practices or navigate the legal intricacies of virtual engagements, our law firm offers specialised guidance and support. Let’s talk!