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[JonH]

Lady Penelope

Thank you for your advice. 

ANSWERS TO YOUR QUERIES

1. Authorisation to seek legal Advice. It didn’t go to an EGM as they split up the legal advice into sub-topics so no costs would be over $3,000 so alleviating the need for a general meeting. 
2. By-law changes. They are proposed by-laws and will, I assume, be put up for approval at the same EGM as our renovation by-law. Question:  If we obtain approval of our by-law at the same meeting as the general by-law changes are approved are we bound by the old by-law or the new? 

 CLAUSE RE COST IN OUR PROPOSED BY-LAW

Due to the ongoing saga of our renovations we have had to alter our by-law and the new by-law has this amended clause that we are wary of and would like your opinion. 

This clause is common to all the special by-laws for the building but our wording is more stringent and onerous.

“The Owner must bear and pay the owners corporation’s costs, charges and expenses of and in relation to the preparation, adoption and registration of this by-law, including without limitation the costs of the strata managing agent, the costs of convening a general meeting, legal costs in advising the owners corporation and the costs of the provision to the owners corporation of the advice of a consulting engineer.”

As background, we were advised to use the OC’s lawyers “as they know what the OC’s requirements are in relation to by-laws”.  Is the above clause leaving us vulnerable to open-ended charges that we have no knowledge of?  You are correct that there is an element of vindictiveness and we feel we are being set up for big costs.  In the OC”s lawyer’s covering communication accompanying our proposed by-law it was stated  “As you know, I have prepared this by-law in my capacity as solicitor for the owners corporation.”  In other words our by-law has been prepared by someone who is batting for the other side and the above clause seems to suggest we cover the cost of them advising the OC against us!

We are concerned that by accepting this clause we may be compromising our ability in relation to challenging/contesting any costs that are put upon us.

RENOVATION TIME LIMIT CLAUSE

In the first draft of our by-law the 5 months time limit to complete works was not mentioned.  The new draft includes it.  Are we within our rights to ask for it to be removed on the basis that it is part of the general by-laws we are required to comply with anyway.  The new general by-law states that the five months can only be exceeded with the approval of the OC.  We are concerned that by including this clause we are compromising our ability to challenge the reasonableness of this clause at NCAT and/or apply for an extension.

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