ADDER HOLDINGS PTY LTD and THE OWNERS OF HARBOUR PINES STRATA PLAN 23297

Adder Holdings Pty Ltd brought an action against the Owners of Harbour Pines Strata Plan 23297 in the Western Australian Civil and Administrative Tribunal (WACA Tribunal) concerning a dispute related to a strata scheme. The central issue was the validity of resolutions passed during an extraordinary general meeting (EGM) and a subsequent annual general meeting (AGM) of the strata scheme participants. Adder Holdings alleged that the EGM and AGM resolutions were invalid due to procedural irregularities, including improper notice and voting procedures. The dispute also involved the termination of a strata management contract and the appointment of an administrator to manage the strata scheme.

The WACA Tribunal was required to determine whether the resolutions passed at the EGM and AGM were valid under the Strata Titles Act 1985 (WA). This involved examining the notice requirements for general meetings, the voting procedures employed, and whether the resolutions had the intended legal effect. The Tribunal also needed to consider the appropriate remedy, including whether declaratory relief should be granted and if an administrator should be appointed to manage the strata scheme.

The Tribunal found that the EGM resolutions were invalid due to procedural defects, such as inadequate notice and improper voting. It was noted that the applicant had a real interest in seeking declaratory relief as it continued to bear the financial burden of strata expenses after the EGM. The resolutions made at the 2022 AGM did not validate the EGM resolutions. Consequently, the Tribunal declared both the EGM resolutions and the AGM resolutions invalid. While the Tribunal acknowledged the authority to appoint an administrator, it determined that such a remedy should be a last resort and was not warranted in this case. The Tribunal exercised its discretion not to appoint an administrator.

The Tribunal made orders declaring the EGM resolutions and the AGM resolutions invalid. It refrained from appointing an administrator, given the circumstances of the case. The Tribunal's decision provided clarity on the procedural requirements for strata scheme meetings and reinforced the principle that an administrator should be appointed as a remedy of last resort.