This page explains the different meetings and committees that owners and residents can attend or form to make decisions about their village.
Annual management meetings
The village operator must hold an annual management meeting with the residents within 4 months after the end of each financial year.
Residents must be notified of the meeting at least 14 days in advance and be given a copy of the meeting agenda.
A resident can lodge written questions with the operator at least 7 days before the meeting or ask questions at the meeting.
Items that must be on the agenda:
- a report on any major variations between items in the previous year’s budget expenditure
- any changes to the proposed annual budget that do not require the residents’ consent
- any proposals to undertake capital works that were not in the annual budget
- future plans for the village, including any proposed improvements or maintenance
- asset management plan for the village and reports on the residents’ comments on the proposed plan
- management of the village, including any proposed change to management arrangements
- any safety issues
- any proposed changes to services provided to residents, and
- time for residents’ questions.
The operator doesn’t have to answer questions about:
- their personal affairs, or those of their employees or contractors
- a matter that is not related to the operation of the village
- matters relating to individual sales or contracts unless they are already public information.
Annual contract 'check up' meetings
Residents have the right to meet with their village operator once a year to discuss their contract and get a better understanding of the process involved when leaving the village, including any fees and charges payable.
Family, friends or advisors may attend the meeting with the resident to give them support or assistance. Residents may also nominate one or more people to represent them at the meeting if they cannot attend.
At the meeting, operators need to provide a verbal and written summary of all costs incurred if the resident were to leave the village, based on the terms and conditions of the resident’s contract. This tailored information will help residents better understand what’s involved when exiting the village and allow any concerns or questions to be addressed.
The following information must be provided at the meeting:
- a resident’s rights and obligations in relation to leaving the village
- estimated departure fee (if applicable)
- estimated fees and charges involved with selling the unit
- estimated sale price or estimated ingoing contribution of the next resident, as applicable to the resident’s contract
- estimates of any other fees or charges that apply when leaving the village (including an estimate of any capital gain shared with the operator)
- how long recurrent charges may be payable after leaving the village
- estimate of the final monies a resident would receive upon leaving the village, after they have paid all fees and charges.
For registered interest holders who receive more than 50 per cent of the capital gain upon sale of the premises, the additional following information must also be provided:
- for residents who are a registered interest holders and receive 50 per cent or more of the capital gain, their liability to pay recurrent charges for 42-days after permanent vacation (section 152 (e));
- a summary of processes and estimates for residents eligible for aged care daily accommodation payments (section 182AG);
- a summary of processes and estimates for those who are entitled to early access to exit entitlements (section 182AC).
Operators should also consider providing residents with information regarding the engagement of an external selling agent and whether this is likely to result in any additional costs.
Any cost and other estimates provided by the operator at the meeting must be reasonable. They must take into consideration factors that may influence the estimate, such as the features and characteristics of the resident’s unit. A reasonable estimate will ultimately depend on the circumstances of each resident.
Significant penalties can apply for operators who provide unreasonable estimates.
Further information can be found in the village contract information meetings guideline.
Residents’ meetings
You have the right to arrange and attend meetings to discuss the operation and management of your village, other topics of interest or vote on matters where resident consent is required.
If the village has a residents committee, it can arrange a residents’ meeting. If your village does not have a residents committee you can ask the operator to arrange a meeting.
Generally, the only people that can attend meetings are:
- residents under a village contract, or their appointed proxy
- a person with power of attorney or who is officially appointed as guardian or trustee for a resident
- any other people that the residents have consented to attending (eg. tenants, friends or relatives)
Attendance is not compulsory so if you do not want to attend a meeting you do not have to.
If the operator is attending, they must leave when residents are voting.
Residents' consent
There are two types of consent:
1. General consent
This is where more than 50 percent of the residents who vote either in person or by proxy agree to the proposal being voted on.
The vote can be by show of hands, proxy or ballot vote.
Some matters that require ‘general consent’ from residents include:
- establishing a residents committee
- allowing people other than residents (eg family / friends) to attend residents' meetings
- changes to the recurrent charges (other than by a fixed formula and the change exceeds the Consumer Price Index change)
- approving the proposed annual budget, or amending one (in some cases consent is not required)
- consenting to not being supplied with a proposed annual budget, or having accounts audited or receiving quarterly accounts (in small villages)
- the appointment of a new auditor (if the audit fees are to be paid by the residents)
- dealing with a surplus in the annual accounts.
Proxy votes
A resident can appoint a proxy to represent them at a meeting if they use a prescribed proxy appointment form (talk to your operator to get one). No more than two proxies can be held by any one person.
A resident who appoints a proxy can revoke the appointment by giving the person written notice. Otherwise, a proxy automatically expires after the first meeting at which it is used or, if not used, after six months of being given. The same person may then be reappointed as proxy.
The village operator cannot be appointed as a proxy.
2. Special resolution
A special resolution must be done by written ballot. Residents must be given at least 21 days written notice of the meeting. The notice must:
- set out the resolution
- specify that the matter requires a special resolution
- specify that the residents may submit their vote in writing before the meeting (and explain how to do so), and
- be accompanied by a ballot paper initialed by the returning officer.
The returning officer is a resident (who is not a member of the residents committee or standing for election to the residents committee) selected by a show of hands at a residents meeting.
For a special resolution to be carried, at least 75 percent of the residents who vote (in person or by proxy or postal vote) must agree on the proposal.
Matters that require consent by special resolution by residents are:
- a proposed change to the village rules
- asking the operator to arrange for a village emergency system
- changing the village services or facilities
- in some circumstances – use of money from the capital works fund.
Residents committee
A residents committee is a group of residents, elected by their fellow residents, to represent their interests and carry out certain functions.
These include:
- calling meetings of residents to vote on matters requiring residents’ consent or to discuss the management and operation of the village
- reporting residents’ decisions to the operator regarding matters that need residents’ consent
- applying to the NSW Civil and Administrative Tribunal (the Tribunal) on behalf of some or all residents
- requesting information from the operator about proposed changes to recurrent charges
- receiving certain financial accounts from the operator
- forming sub-committees
- proposing changes to the village rules or the village services and facilities
- acting as a contact point for prospective residents and meeting with the operator when required
- receiving a copy of the annual safety inspection report from the operator
- putting forward a proposal for a surplus in the annual accounts or excess money in the capital works fund to be distributed to residents.
Residents committees cannot make decisions on behalf of residents on matters that require residents’ consent.
Forming a residents committee
A residents committee can be established with the consent of the residents of the retirement village.
For residents to consent:
- a general meeting to where all residents are invited needs to be held, and
- more than 50 percent of the residents who vote (in person or by proxy or postal vote) must give consent.
Residents should then discuss and agree on how many members the committee should have and how often it should meet.
Nominations for members should be called and an election held.
All the above steps can be taken at the same meeting, or at a later meeting.
Membership
Any resident can stand for election to a residents committee. Non-residents cannot be members.
There is no restriction on the number of committee members.
Attendance
Unless otherwise invited, only committee members should attend a residents committee meeting.
Procedures
There are procedures set out in the retirement village laws relating to general residents’ meetings and consent of residents. Residents committee members need to be familiar with these.
A residents committee doesn’t need to have a formal constitution or written rules, but these may help. We have developed a set of model rules that residents committees can use if they wish. The model rules can be used as they are or changed to suit the committee’s needs.
A residents committee can form sub-committees and decide their procedures.
Office holders
There is no requirement to appoint office holders but it’s a good idea to choose a member to keep records or to chair meetings. Many villages choose to appoint residents to act as chairperson, secretary or treasurer. Residents may choose to have other office bearers, for example, a deputy chairperson and returning officers.
If office holders are appointed, a person can hold the same position for more than three years where there are no other people standing for election or residents agree by special resolution.
However, office holder positions should be shared amongst the residents where possible.
Where a residents wishes to continue serving on the committee, they may wish to do so by taking up another position. For example, after 3 years the resident could be nominated for another role, such as chairperson.
The role of the chairperson is to:
- chair meetings of the committee and meetings of residents
- advise the operator of all decisions made by residents about matters requiring consent under the Act
- rule on any procedural matters raised at meetings of the committee or meetings of residents or queries as to the meaning of these rules
- represent the committee in meetings with the operator
- seek clarification, where necessary, from NSW Fair Trading about the rights and obligations of residents under the Act and Regulation
- make or defend applications before the NSW Civil & Administrative Tribunal (with the Tribunal’s consent) on behalf of a resident, a group of residents, or all residents of the village if the committee agrees it is appropriate to do so.
The role of the secretary is to:
- keep a register of office bearers of the committee
- keep a written record of decisions made at meetings of the committee or meetings of residents, in particular the votes on matters requiring the consent of residents under the Act
- notify committee members of the date, time and venue for meetings of the committee and all residents of any general meeting of residents
- keep the noticeboard in the village updated with relevant information
- conduct and receive correspondence on behalf of the committee and table copies at each meeting of the committee
- liaise with the operator regarding the provision of administrative assistance to the committee
- chair meetings of the committee and meetings of residents required under the Act in the absence of the chairperson
- welcome new residents into the village
- update the model rules when amended in accordance with rule 14.
The role of the Treasurer is to:
- make sure that money due to the committee is collected and receipted and that payments authorised by the committee are made
- make payments through a petty cash system or by cheque signed in conjunction with such other signatory or signatories as authorised by the committee
- submit a report at each meeting of the committee and meeting of residents that details all receipts and payments made since the previous report, accompanied by a list of unpaid accounts and monies outstanding up to and including the day of the meeting.
Operator responsibilities
The operator should provide administrative assistance to the committee.
The operator is not allowed to obstruct a committee from exercising its functions, and should meet with the residents committee, or a representative of the committee on request.
The operator can also request a meeting with the committee.
Returning officer
The returning officer is a resident (who is not a member of the residents committee or standing for election to the residents committee) selected by a show of hands at a residents meeting. The returning officer works with the operator and the staff of the village to prepare for meetings of the residents.
- A notice of a special resolution must be accompanied by a ballot paper initialled by the returning officer.
- At the meeting in respect of a special resolution, each postal vote must be accounted for against a current list of residents and be handed to the returning officer.
- If a vote is to be taken by means of a written ballot (including a vote on a special resolution), the returning officer must ensure enough ballot papers are prepared so that a ballot paper can be given to each qualified voter.
- The ballot paper must contain details of the measure or action requiring a vote and directions as to the manner in which a vote is to be recorded (for example question to be answered followed by a yes box and a no box) and returned to the returning officer.
- The returning officer must provide to each qualified voter (or if the qualified voter has a proxy, to the voter’s proxy) at the meeting a ballot paper initialled by the returning officer
- The result of a vote is to be ascertained by the returning officer as soon as is practicable.
- The returning officer is to count the votes (whether by written ballot or show of hands) and any postal votes received (in respect of a special resolution) to ascertain the result of the vote.
- If the returning officer is permitted or required to make a decision on any matter under this Schedule, the decision of the returning officer on that matter is final.
- When he or she first ascertains the result of the vote, the returning officer is to announce the result and is then to prepare a written report of the result.
- Copies of the report are to be given to the Residents Committee (if there is one) and placed on a notice board in a common area of the retirement village.
Strata and community scheme village meetings
Owners' meetings and village meetings can be held on separate days or one after the other, but not at the same time.
Owners
If you’re an owner in a strata or community scheme retirement village, you’ll be invited to the owners corporation or community association meetings.
As a minimum, at least once a year the owners corporation must hold an annual general meeting. At this meeting, owners vote on:
- the annual administrative and capital works budgets
- election of the executive committee
- appointment of a managing agent or building manager
- changes to by-laws
- any other matters relating to management of the strata or community scheme.
In these meetings, there is one vote for each lot. Non-residents can vote if they own a lot or are nominated by the owner, or if they hold a proxy for an owner. In certain cases a vote's value is based on the lot's unit entitlement.