What happens if a Committee member refuses to step down after being removed?

Once a valid resolution to remove a Committee member has passed at a general meeting, the person no longer holds that position. If the individual disputes the decision or continues to act as a Committee member, the matter may need to be addressed through the owners corporation’s internal dispute resolution process or escalated to VCAT for determination.

Can a removed Committee member run again in the next election?

Yes. A person who has been removed from the Committee can usually nominate again at a future election unless they are ineligible under the Owners Corporations Act 2006 or the rules of the owners corporation. Ultimately, lot owners decide whether that person is re-elected to the Committee.

Can a Committee member resign instead of being removed?

Yes. A Committee member may resign at any time by notifying the secretary or the owners corporation in writing. When this happens, the position becomes a casual vacancy and the Committee may appoint another eligible person to fill the role until the next Annual General Meeting.

Can You Remove a Body Corporate Member from the Committee?

Key Takeaways:

A committee member can be removed by majority vote or for breaching the Code of Conduct. Each path has different steps and requirements.
If a breach is claimed, a formal notice and response process must be followed. The final decision is made at a general meeting.
Members can be removed without giving a reason. All it takes is a simple majority vote from owners.

A well-known OC lawyer used to like to say that “there is no OC rule to make an unreasonable person reasonable” – and this can as true for lot owners as for elected Committee Members.

Across Victoria, there are good OC Committees and the not-so-good OC Committees.

Good OC Committees operate under a paradigm of maintaining trust, transparency, and effective governance within the body corporate / owners corporations.

Conversely, sometimes the need arises to remove Committee Members for reasons such as misconduct, conflicts of interest, incompetence, or failure to fulfil duties.

Committees and Committee Members are elected to represent the Owners Corporation. Under the Owners Corporation Act 2006, Committee Members are suppose to be acting honestly, in good faith, with due care and diligence, and in the best interests of the owners corporation:

Duties of members of committees and sub-committees

We heard of one Committee Member trying to enforce the OC Manager to adopt ASX accounting standards for an Owners Corporation (a non-profit entity) of ~30 lots that collected ~$120,000 per annum in operating/administrative levies…

The interests of the greater OC collective doesn’t always win – sometimes because of Committee Members trying to over-complicate things, because of ego, or a lack of understanding of how an OC should operate.

On this last point – Deryck Walker from the Strata Management Training Institute runs the following online short courses that might be helpful for Committee Members:

What does the Owners Corporations Act 2006 say about Committee members?

In Victoria, the procedural and legislative requirements for electing Committee Members include:

An Owners Corporation Committee is to have between 3 to 7 Committee Members unless resolved otherwise (up to a maximum of 12).
Committee Members must be lot owners or be a proxy holder on behalf of a lot owner.
One lot (i.e. if owned by a husband and wife) can only nominate one person to the Committee for that lot.
Nominating for the Committee can be done in writing before the AGM or orally at the AGM.
If a lot is in arrears for any mount of fees then that lot or the proxy for that lot is not eligible to be elected to the Committee, and is suspended if on the Committee until the amount is paid to the Owners Corporation.
Committee Members hold office until a new Committee is elected.
All Committee Members have an equal vote on the Committee except for the Chair who has a casting vote in the event of a split vote.

The following is an overview of the relevant legislation, OC Rules, and regulations governing the removal of Committee Members.

The Owners Corporation can only remove, or replace a Committee Member at an Annual General Meeting, or Special General Meeting.

This does make a bit challenging for Owners Corporations dealing with rogue or difficult Committee Members because they either have to go through the trouble of convening a SGM or wait until the next AGM.

Interesting if the Committee Member that is rogue or difficult is the Chair of your OC Committee then the Committee amongst themselves to re-elect a different Committee Member to the Chair.

Strata Management Consultants banner encouraging building owners to switch strata managers with guidance from Melbourne strata experts and a “Speak to a Consultant” call-to-action.

Can a Committee member be removed for missing meetings?

On 1 December 2021, the Owners Corporations and Other Acts Amendment Act 2021 came into effect and in doing so also updated the Owners Corporations Regulations 2018 (which accompanies the Act).

How do you start the process to remove a Committee member?

Firstly, it can sometimes important to adhere to procedural fairness by providing the accused Committee Member(s) with an opportunity to respond to allegations.

Should it come to initiating the removal of a Committee Member then:

Understand when the AGM is due and when it is next expected to be held, motions be ideally included on the Notice of AGM, and it has a matter of understanding the voting lines at the AGM.
The removal of a Committee Member can also be achieved via a SGM, which requires convening by the secretary, the OCM on authority of the Committee, or a nomination of at least 25% of lot entitlements of the OC.

At this stage, it’s common for Committees to want management support that makes the process clear and compliant.

When that support isn’t there and the process still feels difficult to navigate, adding a strata specialist in the picture can help guide a transition to management that works alongside you and makes these steps easier to manage.

How is a Committee member formally removed?

Describe the voting procedures for removing committee members, including quorum requirements and voting thresholds.
Discuss the role of general meetings or extraordinary meetings in making decisions regarding committee member removal.

What happens after a Committee member is removed?

The potential consequences of removing Committee Members, such as vacancies on the committee (covered by Section 104 of the Act), or legal challenges if the process wasn’t duly conducted.

The removal of Committee Members can sometimes give rise to challenges or resentment as some Committee Members can get attached to their roles in having control of the building.

Consideration also be given to ensure there isn’t any decision making vacuum as a result of the removal of Committee Members. New Committee Members should be nominated and ready to assume the roles and responsibilities to ensure the continued smooth function of decision making processes.

Need help resolving Committee issues in your owners corporation?

In summary, once Committee Members are elected and in place it can really be a process of remove them. When it comes to electing or removing Committee Members, importance should be placed on following legal procedures, maintaining transparency, and upholding the interests of all stakeholders. This helps in ensuring effective governance within the body corporate / owners corporation and also to minimise disputes later on.