LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

NSW Is Circular Resolution of Directors Applicable to Body Corporate?

Discussion in 'Commercial Law Forum' started by Romi, 24 July 2016.

  1. Romi

    Romi Member

    Joined:
    24 July 2016
    Messages:
    3
    Likes Received:
    0
    Circular Resolution of Directors under section 248A of the Corporations Act 2001 (Cth).

    Is this applicable to the Executive Committee members of a NSW Strata Body Corporate?

    Thank you
     
  2. Rod

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    2,171
    Likes Received:
    257
    Not sure if this the right section for a body corporate, however, circular motions for body corporate entities are allowed. I don't have the legal reference to hand.
     
  3. Romi

    Romi Member

    Joined:
    24 July 2016
    Messages:
    3
    Likes Received:
    0
    Thank you, Rod. Our previous Strata Managers employed "voting by post" for motions and we were not required to be present in a meeting. I forgot to ask as to its legality before we changed Strata Managers.

    I came across Circular Resolution of Directors while searching for an answer on the web and wondered if the principle can be applied to Body Corporates.
     
  4. Rod

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    2,171
    Likes Received:
    257
    Strata Schemes Management Act NSW Schedule 2, s 10.
     
  5. Romi

    Romi Member

    Joined:
    24 July 2016
    Messages:
    3
    Likes Received:
    0
    That's perfect!

    Thank you again, Rod.
     
  6. Sashburger

    Sashburger Active Member

    Joined:
    28 November 2016
    Messages:
    6
    Likes Received:
    0
    You mean, s 10 of Sch 3. That allows voting in writing, but only after an EC meeting has been properly called and sign-posted.
     
  7. Rod

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    2,171
    Likes Received:
    257
    Nope, quoted section still applies. Are you looking at the same Act?

    s10 of SCH 3 in the Act I read says:

    10 Contributions
    Any contributions levied under the former Act are taken to have been levied under this Act and this Act applies to the recovery and payment of any unpaid contributions.

    This is not applicable to the OP.
     
  8. Sashburger

    Sashburger Active Member

    Joined:
    28 November 2016
    Messages:
    6
    Likes Received:
    0
    I think that you are looking at the wrong act. The Strata Schemes Management Act 2015 (NSW), is not yet in force (part of it will commence at the end of the month, and other parts will commence next year) The current act is the Strata Schemes Management Act 1996 (NSW), and in that, all matters relating to the executive committtee are found in Schedule 3.
     
  9. Rod

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    2,171
    Likes Received:
    257
    Interesting. Strata Schemes Management Act 2015 No 50 was assented to on 5.11.2015

    Didn't see anything saying date of effect was different except for some minor provisions.
     
  10. Sashburger

    Sashburger Active Member

    Joined:
    28 November 2016
    Messages:
    6
    Likes Received:
    0
    Yes, but they have put off commencment to finalise the regs
     

Share This Page

Loading...