LAYERED SCHEMES: GETTING VOTING DIRECTION RIGHT

When it comes to layered strata schemes in Queensland, decision-making can become more complex than in a standard community titles scheme. That’s because each subsidiary body corporate (SBC) not only manages its own scheme but also participates in the Principal Body Corporate (PBC), which governs shared facilities and expenses across the entire layered community.

To make sure decisions are compliant with the Body Corporate and Community Management Act 1997 (BCCM Act), committees must understand the difference between what decisions are within their authority and what requires approval from their owners via a general meeting voting direction.

The Role of Subsidiary Representatives

Each subsidiary scheme appoints a representative to be a member of the PBC and join the committee. This representative does not vote independently—they must act in accordance with their subsidiary’s instructions.

• If the matter is routine and within committee authority, the subsidiary committee may give direction.
• If the matter is a restricted issue for the SBC, the direction must come from a subsidiary general meeting resolution.
• No direction = no valid vote at the PBC meetings. This can lead to disputes and undermine decision-making.

Restricted Matters Requiring General Meeting Approval in Layered Schemes

Under the legislation, certain matters are restricted and cannot be decided at committee level. These require voting instructions from a general meeting of the subsidiary.

Here’s a quick reference guide:

Tip: The PBC spending limit is calculated across all subsidiary lots. If the amount is above this limit, subsidiary approval is required before the representative can vote.

Flow of Decision-Making in a Layered Scheme

Here’s a simplified flowchart to guide compliance:

Step 1: Identify the decision at PBC
↓
Step 2: Is it a restricted matter?

• No → Subsidiary committee can instruct rep.
• Yes → Subsidiary must hold a general meeting for direction.
  ↓
  Step 3: Subsidiary rep casts vote at PBC per resolution.

Common Pitfalls

• Committee overreach: Subsidiary committees acting on restricted matters without owner approval.
• Reps voting without instruction: Invalidating the vote and exposing the scheme to disputes.
• Poor meeting coordination: Not aligning subsidiary and PBC meeting agendas, causing budget or contract delays.

Key Takeaways

• Always confirm if a matter is restricted before instructing your representative.
• General meeting direction is mandatory for restricted matters.
• Work closely with your professional strata manager to ensure procedures and resolutions comply with the BCCM Act.

Getting decision-making right protects your committee, avoids disputes, and ensures your layered scheme runs smoothly.

Article Contributed by Rachel Blaxland Senior Strata Community Manager at Archers the Strata Professionals.