Strata Meetings, Voting & Decision-Making (NSW)

This guide explains how strata meetings, voting rights, and formal decision-making must operate under NSW strata legislation, with a specific focus on the risks faced by self-managed strata schemes.

Errors in meeting procedure, voting thresholds, proxy handling, and record-keeping are among the most common reasons strata decisions are overturned at NCAT. In many cases, committees believe they have passed valid resolutions — only to discover they are legally unenforceable.

This guide explains:

How meetings actually work in practice
How voting thresholds are applied
When proxies are valid or invalid
What happens when quorum fails
How resolutions can be challenged
Where committees most often make costly mistakes

1. Types of Strata Meetings in NSW

NSW strata schemes operate through three main meeting types:

Annual General Meetings (AGMs)

The AGM is the primary decision-making meeting of the year. Every scheme must hold one at least once every 12 months.

AGMs typically cover:

Financial statements
Levy contributions
Capital works planning
Election of the strata committee
Insurance confirmation
Appointment of auditors (if required)

If an AGM is not held correctly, the committee can lose authority to:

Issue valid levy notices
Enforce financial decisions
Formally elect committee members
Maintain insurance compliance

In serious failures, NCAT may appoint a compulsory managing agent.

Extraordinary General Meetings (EGMs)

EGMs are used when decisions cannot wait until the next AGM, including:

Special levies
By-law changes
Urgent capital works
Legal proceedings
Insurance issues
High-value spending

EGMs require proper notice, correct resolution types, accurate voting entitlements, and valid proxies. Improper EGMs are one of the most common causes of legal challenges in self-managed schemes.

Strata Committee Meetings

Strata committee meetings deal with day-to-day operational decisions, such as:

Contractor engagement
Maintenance approvals
Invoice authorisations
Quote approvals
Compliance actions

While less formal than AGMs or EGMs, committee decisions are still legally binding and must be:

Properly minuted
Within the committee’s delegated authority
Consistent with by-laws and legislation

2. Notice Periods and Why They Matter

Meetings must be properly notified to owners. Incorrect notice is one of the fastest ways for decisions to be ruled invalid.

Notice requirements include:

Minimum notice days
AGMs and EGMs require at least 7 clear days’ notice; committee meetings require at least 3 days’ notice unless a resolution sets a different period.
Approved delivery methods
Notices must be sent by an accepted method such as post, email (if consented), hand delivery, or other legislatively permitted means. Delivery must allow owners enough time to receive the notice.
Supporting motion documentation
All motions must include explanatory notes so owners understand what they are voting on. Levies, budgets, by-laws, and major expenditure require clear detail.
Financial disclosures
AGM notices must include financial statements, proposed levies, budget details, insurance information, and any other documents required for informed decision-making.

If notice is defective:

Motions may be ruled invalid
Levies may become unenforceable
Owners can challenge decisions at NCAT, potentially overturning the entire meeting

3. Quorum – When a Meeting Is Legally Valid

A quorum means enough owners are present or represented for the meeting to be legally valid.

Quorum requirements (AGMs and EGMs):
A quorum is achieved when at least 25% of the total unit entitlements are represented or owners of at least one-third of the lots are present (in person or by proxy).
The meeting cannot transact business until one of these thresholds is met.

If quorum is not achieved:

The meeting must wait 30 minutes to see if quorum is reached.
After 30 minutes, the meeting may proceed under reduced quorum rules, but decisions must be made only by those present.
Certain high-impact decisions (e.g., by-laws, special resolutions) may be challenged if quorum was not properly satisfied.
Some matters may require re-notice if the chair determines that proceeding would be inappropriate or invalid.

Common quorum failure scenario
A 10-lot scheme holds its AGM but only two owners attend. This represents just 20% of lots and typically far below 25% of unit entitlements. Levies are approved without proper quorum. When an owner later disputes recovery, the levy becomes unenforceable because the meeting was not validly constituted.

4. Voting Rights and Unit Entitlements

Votes at general meetings are usually weighted by unit entitlements, not simply one owner, one vote. This means an owner with higher unit entitlement has proportionally greater voting power on most motions.

This affects:

Special resolutions
These require no more than 25% of the total unit entitlements cast against the motion. Incorrect unit entitlement calculations can invalidate by-laws, major works approvals, and significant decisions.
Unanimous resolutions
These require 100% of unit entitlements in the scheme to vote in favour. One incorrect calculation or missing vote can render the resolution invalid.
High-value expenditure
Motions involving significant spending rely on correct unit entitlement tallies to ensure decisions reflect the proportional ownership of the building.
By-law approvals
By-laws are passed by special resolution and are frequently challenged at NCAT when unit entitlement votes have been miscounted or proxies recorded incorrectly.

Why this matters
Incorrect vote calculations are one of the most common technical errors examined at NCAT. If unit entitlements are misapplied, resolutions can be overturned, levies may become unenforceable, and committees may face financial or legal consequences.

5. Resolution Types Explained

NSW legislation recognises three main types of resolutions, each with distinct legal thresholds and specific use cases.

Ordinary Resolutions
Used for routine, operational, and low-impact decisions. These require only a simple majority of votes cast.

Common situations requiring an ordinary resolution include:

Approving contractors for repairs and maintenance
Authorising day-to-day expenditure
Adopting standard meeting procedures
Approving minor administrative changes
Endorsing quotes within existing budget limits

Example: Approving a plumber to repair common property pipework.

Special Resolutions
Required for higher-impact decisions where owners’ rights or property interests may be affected. A special resolution fails if 25% or more of the unit entitlements voted are against the motion.

Special resolutions are required when:

Creating, repealing, or amending by-laws
Granting or removing exclusive-use or special-privilege rights
Approving significant upgrades or alterations to common property
Imposing certain types of usage restrictions (e.g., pets, short-term letting)
Levying on a different basis to unit entitlements (where permitted)

Example: Passing a new air-conditioning by-law that alters common property.

Unanimous Resolutions
Used only for rare, high-impact decisions where every owner must agree. A unanimous resolution requires 100% of unit entitlements in the scheme to vote in favour.

Unanimous resolutions are required for:

Transferring, selling, or disposing of part of the common property
Certain exclusive-use rights that fundamentally alter ownership interests
Some older legacy provisions requiring total owner consent
Decisions that fundamentally change the structure or ownership makeup of the scheme

Example: Transferring a section of garden common property to a lot owner’s private title.

6. Proxy Voting Explained

A proxy allows a lot owner to appoint another person to vote on their behalf at a meeting. Proxy voting in NSW is tightly regulated to prevent block-voting and ensure fair representation.

How many proxies one person can hold
NSW legislation sets strict limits on the number of proxies any one person may hold at a general meeting:

Schemes with 20 lots or fewer:
A person may hold no more than 1 proxy.
Schemes with more than 20 lots:
A person may hold proxies for up to 5% of the total number of lots in the scheme.
Example: In a 60-lot building, a person may hold up to 3 proxies.

These limits apply regardless of whether the proxy holder is an owner or a non-owner.

Restrictions on who can act as a proxy

Building managers and caretakers cannot act as proxies unless they are also a lot owner.
Individuals with a financial interest must disclose it to the meeting.
A proxy must not be forced or induced through incentives — doing so is unlawful.

How to submit a proxy correctly
To be valid, a proxy form must be:

Completed using the approved NSW Fair Trading proxy form
The form must clearly state:
- The lot owner giving the proxy
- The person receiving the proxy
- Whether the proxy is for one meeting or 12 months
- Whether it applies to all motions, specific motions, or committee elections
Signed and dated by the lot owner
Submitted before or at the meeting
The form must be delivered by:
- Email
- Post
- Hand delivery
- Direct submission to the chair or secretary at the meeting
It must be received before the vote is taken or before the meeting commences.
Checked for compliance
The chair must confirm:
- The proxy holder has not exceeded the legal limit
- The form is complete
- The authority (general or specific) is correctly stated

If any defect exists, the proxy must be ruled invalid.

Common proxy failure scenarios

One person holds more proxies than legally permitted
Proxies submitted after the meeting starts
Proxy forms missing signatures, dates, or instructions
Undisclosed conflicts of interest
Proxy forms altered or handwritten without clarity

Consequences of invalid proxies
If proxies are invalid or misused, the following outcomes may occur:

Motions being overturned due to incorrect vote counts
Committee elections collapsing because ineligible proxies were counted
Levies becoming unenforceable if passed with invalid votes
Tribunal orders requiring a reconvened meeting or a new election
Findings of procedural unfairness against the owners corporation

Invalid proxies are one of the most common and avoidable causes of meeting disputes at NCAT.

7. What Commonly Goes Wrong in Self-Managed Schemes

The most common failures include:

Incorrect notice periods
Meetings are called without the required minimum days’ notice, making all decisions vulnerable to challenge.
Invalid proxy handling
Proxies exceed legal limits, are submitted incorrectly, or contain missing information, resulting in invalid votes.
Using the wrong resolution type
Ordinary resolutions are used for matters requiring special or unanimous resolutions, invalidating decisions such as by-laws or major works.
Voting entitlements miscalculated
Unit entitlements are added incorrectly or owners not entitled to vote are counted, leading to flawed outcomes.
Committees acting outside their authority
Committees approve high-value expenditure or make decisions that legally require a general meeting.
Minutes missing key resolutions
Incomplete or unclear minutes create disputes about what was agreed and can undermine levy or by-law enforcement.
Levies issued without valid approval
Budgets or levies passed without a proper meeting or correct resolution type become unenforceable.

These failures often lead to:

Blocked levy recovery where owners dispute validity of contributions
Contractor disputes due to unclear or unauthorised approvals
Insurance complications if governance failures contributed to a loss
Tribunal intervention including orders to redo meetings or overturn decisions
Significant legal and compliance costs to rectify invalid resolutions or defend claims

8. How NCAT Challenges Typically Arise

Tribunal disputes commonly begin with:
- A dissatisfied lot owner
  Concerns about fairness, transparency, or decision-making often lead to requests for records, complaints, or a formal application to NCAT.
- A rejected levy
  Owners dispute levies where meetings were not validly convened, resolutions were incorrect, or financial information was incomplete or misleading.
- A disputed by-law
  Challenges arise when by-laws are improperly passed, unreasonable in effect, inconsistently enforced, or incorrectly registered.
- A proxy complaint
  Allegations that proxies were mishandled, exceeded legal limits, submitted late, or influenced improperly are one of the most common triggers for proceedings.
- A quorum challenge
  Owners claim the meeting did not satisfy quorum requirements, meaning all resolutions—including levies and by-laws—may be invalid.
Once before NCAT:
- Committees must prove compliance
  NCAT places the burden on the owners corporation to show that notices, voting, resolutions, and procedures complied with legislation.
- Notices, minutes, and voting records are examined
  The tribunal reviews whether meetings had adequate notice, accurate minutes, valid proxies, proper quorums, and correct vote calculations.
- Procedural errors can invalidate entire decisions
  Even a single defect—such as wrong notice periods, incorrect resolution type, or invalid proxies—can overturn levies, by-laws, committee elections, and major approvals.

9. When Committees Should Not DIY Meetings

Professional support should be strongly considered when:

Special or unanimous resolutions are required
These resolutions have strict voting thresholds and procedural requirements. Errors in notice, wording, or vote calculation can immediately invalidate the outcome.
Proxies are heavily relied upon
When attendance is low and proxies determine the vote, strict compliance with proxy limits, form validity, and submission timing is essential to avoid challenges.
Large levies are being raised
Significant financial decisions require correct budgeting, meeting procedure, and resolution types. Any defect can render the levy unenforceable.
New by-laws are being introduced
By-laws must be drafted correctly, passed by special resolution, and registered properly. Mistakes often lead to NCAT disputes or invalidation.
Insurance decisions are complex
Issues such as under-insurance, valuation updates, claim history, exclusions, and specialist cover require careful consideration to avoid gaps in protection.
Active legal disputes exist
When a matter is already in contention, compliance standards are higher. Every procedural step must be defensible if reviewed by NCAT or a court.

At this level, even minor procedural mistakes can trigger serious financial and legal consequences.
A single defect—such as an incorrect notice period, invalid proxy, or wrong resolution type—may overturn decisions, delay repairs, expose committee members to liability, or escalate disputes.

Strata On Demand Can Help

Strata On Demand provides 30+ pay-as-you-go strata support services for NSW self-managed schemes. All services are fixed-price with no contracts or retainers.

The most commonly used core services include:
• AGM & EGM Agenda Drafting
• AGM & EGM Minute-Taking
• AGM & EGM Chairing
• Budget Preparation
• Insurance Quote Coordination
• Work Order Management
• Tribunal Preparation
• Compliance Health Check
• plus more

Related Strata Services

Popular Services

Helpful Guides

Explore Other Strata Hubs

Ready to Become Self-Managed?

If your committee is planning to self-manage or needs help transitioning, Strata On Demand can support you at any stage, with clear pricing and no long-term commitments.