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Hi, I’m on the committee of our Owners Corporation in Victoria. Our OC Manager is completely useless who refuses to have any communication with the committee, fails to do even the most basic tasks (sending Fee Notices), allowed one lot owner to go 17 quarters in arrears, and is in total collusion with the Chairperson of the Committee.
The Chairperson has owned two apartments since the building was built over 15 years ago and she acts like she is the Queen of the block! During this time there have been many issues with the apartments – some of which have been solved and many that have not. She has presided over everything. Of late several model owners have sold up due to the lack of progress to repairs and the grief that she causes on the Committee. There is absolutely no communication from her or the OC Manager. She goes around getting quotes and organising building serveys, which is surely the task of the OC Manager.
Last year a number of new owners joined the Committee in an effort to see some change. Alas nothing has happened and a committee meeting was called 2 weeks ago. An agenda was submitted by the Chairperson, and I requested that additional items were added, including a vote of no-confidence in the Chairperson which if successful would result in a new Chairperson.
The meeting was extremely heated but resulted in her being removed and me becoming Chairperson. Of course she opposed this and claimed that it was not legal. We gave her 7 days to come back to the Committee with proof that the correct process had not been followed. She failed to respond in the allotted time frame.
Now she has responded and claims that she is still the Chairperson and that she has authorised the OC Manager to carry out certain repairs. The OC Manager is still uncontactable and ignores all calls and emails.
I guess I’m after any views on whether we have followed the correct process, can she refuse to stop being the Chairperson, how can we make the OC Manager respond to the rest of the committee, complaints process through Consumer Affairs etc.
And if we bring in a new OC Management company, do we have to pay out the current OC Manager’s contract?
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You have my sympathy. A coup is never pleasant and resentments can simmer for decades, but congratulations for being prepared to take this on rather than sitting back.
I am not familiar with the Victorian legislation but I expect it is similar to the ACT legislation. Here, the legislation just says “The committee must elect a chairperson.” without any further comment on process. I would say that if the committee has now elected you to be chairperson that automatically means that the person previously elected to be chairperson is no longer the chair.
I think you were right to offer the 7 days to provide evidence that you had not acted properly. Make sure the committee has minuted the decision to offer that with the date and at the next meeting minute that no evidence was presented. If you have the rest of the committee at least a solid majority behind you, you should be OK. Just be prepared for a lot of bluff and bluster from the deposed.
Does the managing agent have a boss or head office who could be phoned? Does the managing agent work out of an office somewhere? You could just show up and ask to see someone in charge if your manager does not appear.
What about the treasurer and secretary? Are they on side?
As for the matter of getting quotes etc. I don’t think it is necessarily wrong that your previous chair was getting quotes or researching particular matters. My experience on an executive committee has been that often it is quicker and easier for some matters to just organise some quotes myself on one matter while some other committee member might research and chase up quotes for some other matter. By the time you explain what it is about to the manager and they get someone to visit who needs to talk to someone on the ground anyway, often it would have been less work to have done it yourself. What is not good is if the chair was making unilateral decisions and not keeping the rest of the committee informed and involved.
Just winding this back a little, the Victorian legislation allows the owners corporation to delegate its basic powers to the committee (which is standard practice in NSW too) and it allows the committee to delegate its powers to an individual (see sections 11, 101 and 102 below). This does not include any decisions that require special resolution or unanimous votes.
If the owners corp or committee has at any point delegated powers to the chair, and this has been officially minuted, then these powers would pass to the current chair. Right now, that would be you. I hasten to add, however, that this would have to be done “by instrument” and that means it would have to have been voted on and formalised on a specific form (available here), and stamped with the Owners Corp seal. The absence of any such “instrument” makes the delegation invalid.
If, however, the former chair has been legally given delegated powers “by instrument” as a named individual, they can be “un-delegated” via a simple vote at a strata committee or general meeting, depending on which body issued the original delegation.
Otherwise, the general rule is that if there is a committee it elects the chair and the old committee ceases to have any power when the new committee is elected.
Regarding the manager, I suggest you look at Section 6 of the Owners Corporation Act to see if the current manager is in breach of the law or of their contract. If they are in breach, you shouldn’t have to pay them out.
Have a look at this Consumer Affairs Page and click on the link to Owners Corporation Complaints, download the form and fill it in, also go to this VCAT Tribunal page for official complaints about owners corp strata managers
I also suggest you contact Rob Beck of Strata Community Australia (Victoria)(info.vic@stratacommunity.org.au), tell him we sent you, and ask for his help in replacing your current deadbeat strata manager with one who knows what what he should be doing and does it.
The OC manager and the chair are doubtless covering each others backs because they know they will both be out when normal service is restored. But hang in there. You are just a couple of steps away from restoring order.
11. Power to delegate
An owners corporation may by instrument delegate any power or function of the owners corporation (other than a power or function that requires a unanimous resolution or a special resolution or this power of delegation) to— (a) the committee of the owners corporation;
(b) the manager of the owners corporation;
(c) a lot owner;
(d) the chairperson of the owners corporation;
(e) the secretary of the owners corporation;
(f) an employee of the owners corporation.101. Functions and powers of committee
(1) Subject to this section and the rules of the owners corporation, a committee has all the powers and functions that may be delegated by the owners corporation under section 11. Note: Powers and functions that require a unanimous resolution or a special resolution of the owners corporation cannot be delegated under section 11.
(2) Sub-section (1) does not apply to a matter or type of matter that the owners corporation has determined may be determined only by ordinary resolution of the owners corporation at a general meeting. Note: See section 82.
102. Delegation by committee
(1) A committee may by instrument delegate any of its powers and functions to— (a) the manager; or (b) a lot owner.
(2) A committee may by instrument sub-delegate a power or function delegated to the committee to a member of the committee.
103. Membership of committees
(5) Subject to this Act and the regulations, the members of the committee hold office from their election until a new committee is elected.
(6) The owners corporation may at an annual general meeting or special general meeting resolve to add or remove a committee member or replace or remove a committee.
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