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Topic
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Section 76 of the Strata Schemes Management Act 2015 essentially states you can’t move money between the administration fund and the capital fund, other than a loan which must be paid back within 90 days. I was just wondering can a special resolution be passed that allows for a surplus in the Administration Fund be transferred permanently into the Capital Works fund?
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I think that this can be done as a simple budgetary measure at your AGM. If the Admin fund has spare cash, change the budget so that more money from your levies goes into the capital works fund and less into the admin fund, drawing down on the admin fund for expenses, until such times as the amounts are where you want them to be.
If the money is required urgently, remember that 76 (2) only says the OC must decide on how the money will be repaid in 30 days – not necessarily to repay the money in 30 days (although experts are divided on this).
Whatever you decide, no one will be going to jail over this; there are no StrataKops.
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There is another way which I have used.
convene a general meeting.
first motion is to raise a special levy of $x for say the capital works fund payable in 30 days
second motion says if motion 1 is approved, $x from the admin fund is returned to the owners in 30 days.
second motion cancels out first. No money changes hands and one fund balance decreases and the other increases
second motion says if motion 1 is approved, $x from the admin fund is returned to the owners in 30 days.
This only works (in NSW) if the vote to “repay” the money is unanimous (section 77 of the Act). Under the Act, “unanimous” means that no vote is cast against the motion at a properly constituted general meeting.
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Jimmy
thats why the order of the motions is important.
if owners vote for motion 1 and nor 2, then they are saddled with stumping up some money.
And why would someone not vote to return money to them, though I guess you could find some crazy souls out there.
It worked in my case because all owners were aware of what we were doing, and the reasons why.
And why would someone not vote to return money to them, though I guess you could find some crazy souls out there.
All I can say is, I’ve seen it done, for reasons from not wanting to go along with the committeee or chair to simple envy because the person with the lowest unit entitlements was going to get less that the owner with the highest. It only takes one “no” vote. And in my experience, some people from all walks of life, who only have the power to say no, use it at every opportunity.
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Jimmy
i agree
Sometimes there are just nutters out there.
Thats the price we pay for strata living
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