Forums Strata Committees Consequences of inaction Current Page

#16220
Anonymous

    Hi Struggler,

    Sometimes I get negative feed back when I mention going to the CTTT but if what you have been posting is only half true which I am sure it is, then the only hope you may have is seeking the compulsory appointment of an administrator for your scheme.

    Here are some pointers;-

    1) To be able to have the CTTT consider orders to appoint an Administrator (Compulsory Strata Manager) you need to convince the Adjudicator that the OC is dysfunctional, which in your case should be reasonably easy.

    2) Whoever makes the application, gets to choose the Strata Management Company and the Strata Manager, so make sure you ask around and interview one or two and choose one that can sort things out

    3) Get a solicitor to help with the application as in doing so you can define what authority will be given to the Administrator (Compulsory Strata Manager) and the issues to be addressed.

    The only down side is you need to be aware that you and the other owners may well lose all control of the OC. Appointments are normally for 12 months with the aim of the CTTT to see the Administrator (compulsory SM) to have any maintenance work to the scheme carried out (section 62), insurance etc in place required under the SSM Act and generally get the OC back on its feet. If the Administrator can do this sooner than 12 months they will normally hold an EGM and hand the scheme back to the owners (normally the Administrator will offer to stay on as the SM) if they can’t get the OC in order within 12 months they can seek an extension.

    We have worked under many CTTT appointed Administrators and if you take time to find an experienced one it can result in the OC being put in a better position for all Owners.

    A last word of warning to all, consider carefully before making an application to the CTTT to appoint an Administrator (Compulsory Strata Manager) As sometimes what you wish for can come back and bite you, as you may well lose any control. I can’t suggest strongly enough that you seek some legal advice first, the better the application is detailed in my opinion the better the outcome will be.

    Hope this helps.

    PS Just a word on EC members having the attitude that they are Bullet Proof as the Office Holders have insurance coverage, let me tell you that they are in for a big surprise. The Insurance coverage is to cover those EC officers who carry out or attempt to carry out their honorary position with due diligence and meeting their duty of care. We see far too often where insurers are able to get out of coverage because the committee has not met Duty of care etc which leaves the OC to meet any cost and/or with the committee members facing litigation with no Insurance coverage. The point is if you get on an EC you have a responsibility to manage the scheme in compliance with the SSM Act and others and in line with a reasonable duty of care.