› Forums › The Professionals › Strata Manager not following instructions › Current Page
We are still finding it difficult to obtain a coherent answer from our SM. I decided to have a look at our agreement with the SM and was very surprised to find that whilst clause 7 “Point of Contact” details that the nominated representatives of the EC may provide instructions to the SM, subclause 7.5 goes on to state “This clause 7 is for convenience only and does not place any obligation on the agent to accept the instructions of the representative and substitute representative”.
Subclause 7.6 goes on to state “The owners corporation acknowledges that all agreed services subject to any limitation, have been delegated to the agent under section 28 of the Act, and the agent has authority to carry out the agreed services regardless of the instructions of the representative and substitute representative.”
Additionally on referring to Schedule A1 the SM has “FULL AUTHORITY WITH NO LIMITATIONS” on “Undertaking the financial management of funds and books of account” and “Managing the sinking fund and the administrative fund”
To my reading this means that the SM can choose to totally ignore the EC and do what they like; only a General Meeting of the OC can effectively instruct the SM.
Can someone provide guidance on this?