The Court held that failure to comply with the 72-hour notice requirement for executive committee meetings under Sch 3, cl 6 of the Strata Schemes Management Act 1996 (NSW) does not invalidate the meeting or its decisions, as the provision regulates the exercise of power rather than being a precondition to its existence. The executive committee's decision to authorise counsel to settle litigation on terms including undertakings to pass special resolutions and obligations to carry out common property works did not fall within the s 21(2) restrictions on executive committee decision-making, because authorising an agent to enter such an agreement is distinct from the actual passing of special resolutions. Even if authority had been lacking, the owners corporation's conduct in performing the settlement agreement over several months without disavowal constituted ratification, and the Court confirmed that ratification in this context need not occur by resolution in general meeting.
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