The NSW Government announced further reforms to the Strata Schemes Management Regulation 2016 (NSW) (“Strata Management Regulation”) and Community Land Management Regulation 2018 (NSW) (“Community Land Management Regulation”).
On 12 May 2021, the Strata Schemes Management Amendment (COVID-19) Regulation 2021 (“SSM Regulation 2021″) and Community Land Management Amendment (COVID-19) Regulation 2021 (“CLM Regulation 2021″) were published by the NSW Government – both of which repealed and replaced their predecessors.
The major changes prescribed by the SSM Regulation 2021 and CLM Regulation 2021 are as follows:
- Electronic voting – Moving forward, the required resolutions must be passed before voting at a meeting undertaken by electronic means. Previously, as a temporary measure, the SSM Regulation 2020 and CLM Regulation 2020 enabled voting at a meeting to be undertaken by electronic means even if an owners corporation/strata committee or association had not, by resolution, adopted those means of voting.
- The first annual general meeting – The first annual general meeting of an owners corporation or association must be convened and held within 2 months of the expiry of the initial period. Previously, the SSM Regulation 2020 and CLM Regulation 2020 afforded up to 6 months to hold first annual general meeting.
- Reimbursed moneys – An owners corporation must determine the amount to be levied (to reimburse the amounts paid from the administrative fund or the capital works funds) no later than 3 months after paying the amount. Similarly, an association is required to estimate how much money it will need to credit to its administrative fund or sinking fund within 3 months after the transfer or payment. Previously, the SSM Regulation 2020 and CLM Regulation 2020 granted an owners corporation or association the ability to repay the borrowed amounts within 6 months.
Notwithstanding the above changes, the SSM Regulation 2021 and CLM Regulation 2021 extended some the measures introduced by its predecessors (until 12 November 2021):
- Notice of a meeting – Notice, or another document in relation to, a strata or association meeting may be given to a person by email to an email address specified by the person for the service of documents.
- Affixing the common seal – An instrument or document can continue to be signed and witnessed electronically instead of having to affix the seal of an owners corporation or association.
Strata Schemes Management Amendment (COVID-19) Regulation 2020 (NSW) (“SSM Regulation 2020″); Community Land Management Amendment (COVID-19) Regulation 2020 (NSW) (“CLM Regulation 2020″).
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
