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[rhea]

Hi this is NSW question. This is the first time I am doing this. How can one amend a motion in AGM?

I received a notice of AGM. The Treasurer and the Strata manager prepared the AGM agenda without consulting the EC regarding agenda items.

The agenda items are in relation to large levy imposed for variation works that require further assessments, since they are not part of the existing contract. I spoke to Strata Manager who suggested writing an amendment of motion and distributing it to EC for consideration. (Not sure if this is the correct way of saying it). 

AGM Agenda:

Item 1. That quotations (expected to be tabled at the AGM) from contractor for the following be accepted, where not already agreed.

1. 4x variations agreed by the EC= 16k
2. 2x variations given go ahead from the consultants= 6k
3. 5x variations for owners to approve= 65k (Out of Scope)
4. 5x variations estimate for owners to consider=75k approx. (Out of Scope)

Item 2. That a Special Levy contribution be raised to the Administrative Fund, pursuant to Section 76 (4) of the Strata Schemes Management Act (1996), based on Units of Entitlement such levy to be for an amount of $162,000 + GST, to be raise in one instalment due and payable on 1 January 2017, for the specific purpose of funding the balcony works and window replacement project.

I would like that Item 1c and 1d be removed because they are not part of current contract and need further assessment. Also I would like item 2 to reflect the levy amount after deduction of Item 1c and 1d.   How can I amend parts of Item 1 and Item 2?

Thanks in advance.

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[Lady Penelope]

Hi Rhea

Your issues are quite complex. I would personally advise that you seek assistance from a specialist strata lawyer. Not just any lawyer, you need  a strata lawyer. You will need to do it quickly i.e. before the AGM. They should be able to advise you what to do at the AGM regarding the 2 Motions.

I would also ask a lawyer about how to apply to NCAT for an Order varying the way the levies are raised should you not achieve the outcome that you desire at the AGM (as Jimmy T said this is Section 87 in the new Act, and Section 149 in the old Act).

To clarify the levy amounts, are you being asked to contribute 1/12th of the total levy i.e. 1/12 of $178,200 = $14,850?

Would that be in addition to the 1/12 of $600,000 you were required to pay in 2015?

In my opinion the Motions dealing with the quotes for the repair on the balcony and the balustrades should be separate from the Motions dealing with the quotes for the replacement of the single glazed windows with double glazed windows. As such I believe that both AGM Motions could be Out of Order due to them being in breach of the SSMA.

The repair of the balcony and balustrades falls within Section 62 of the SSMA (where there is a strict duty to maintain and repair) whereas the replacement of the single glazed windows with double glazed windows falls within Section 65A (which deals with Improvements to common property) because the windows are not being replaced with like for like. In my opinion both should be treated as being separate.

If these 2 Motions are not in breach then they at least should be amended.

As well as Section 62 and Section 65A motions being separated, Item 1 matters should be dealt with in 4 separate Motions rather then being bundled into one Motion. This is particularly so if each item contains a mix of Section 62 and 65A issues.

The Committee are only permitted to vote on matters with a 10% variance of an original quotation. Any variance greater than that should be resolved at a General Meeting. If the Committee have made a mistake and resolved matters with a greater variance than 10% outside a General Meeting then they should be asked to explain why they did so.

Anyone who is entitled to vote at a general meeting can ask for a motion to be put on the agenda for a general meeting. Written notice must be given to the secretary. The secretary must put the motion on the agenda for the next general meeting [Schedule 2, Part 2, Clause 36]. Your building has a Strata Manager so your Motions will need to be addressed to the Secretary via your Strata Manger at the Strata Manager’s address or email address.

Only motions on the agenda for that meeting can be voted on.  You have a right to request assistance from your Body Corporate manager to get the wording correct, both on a Motion and on an Amendment to a Motion. NB: An incorrectly worded Motion, or one that may be in contravention of the legislation, runs the risk of being ruled out of order at the meeting by the Chairman and not put to the meeting.

If you have run out of time to put a Motion on the Agenda then you may amend a Motion at the actual meeting itself. Only motions on the agenda may be amended at the meeting. Anyone who is entitled to vote at the meeting may ask the chairperson for a motion to be amended [Schedule 2, Part 2, Clause 35 (3)]. Ask the Strata Manager when and how to do this.

I don’t think we have enough information on this complex issue to fully assist you and that is why I would recommend seeking help from the Strata Manager in wording Motions and Amendments, or seek professional help if you can.

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[rhea]

Hi proudsceptic,

Thank you heaps for your response. The Strata Manager has kindly agreed to provide his comments regarding amending a motion:-) 

I have also added my response in bold. 

I would also ask a lawyer about how to apply to NCAT for an Order varying the way the levies are raised should you not achieve the outcome that you desire at the AGM (as Jimmy T said this is Section 87 in the new Act, and Section 149 in the old Act). (In case we do not reach an agreement at AGM, I will go through NCAT. Knowing all the relevant sections of Act helps a lot.)

To clarify the levy amounts, are you being asked to contribute 1/12th of the total levy i.e. 1/12 of $178,200 = $14,850? (YES, this is current estimated amount. The Strata Manager and the Treasurer are waiting for more quotes. Therefore the levy could be more than $14,850; if approved by the majority of owners at the AGM next week)

Would that be in addition to the 1/12 of $600,000 you were required to pay in 2015? (YES, I paid 50k as 1 instalment in Oct 2015. $14,850 to be paid as 1 instalment before Jan 2016)

In my opinion the Motions dealing with the quotes for the repair on the balcony and the balustrades should be separate from the Motions dealing with the quotes for the replacement of the single glazed windows with double glazed windows. As such I believe that both AGM Motions could be Out of Order due to them being in breach of the SSMA.

The repair of the balcony and balustrades falls within Section 62 of the SSMA (where there is a strict duty to maintain and repair) whereas the replacement of the single glazed windows with double glazed windows falls within Section 65A (which deals with Improvements to common property) because the windows are not being replaced with like for like. In my opinion both should be treated as being separate. (95% balcony and balustrades work has been completed.)

If these 2 Motions are not in breach then they at least should be amended.

As well as Section 62 and Section 65A motions being separated, Item 1 matters should be dealt with in 4 separate Motions rather then being bundled into one Motion. This is particularly so if each item contains a mix of Section 62 and 65A issues.

(80% windows have been installed. I think it is too late to discuss this point at the AGM. I wish I had come to Flat-chat last year. You guys are a wealth of information about Strata! )

The Committee are only permitted to vote on matters with a 10% variance of an original quotation. Any variance greater than that should be resolved at a General Meeting. If the Committee have made a mistake and resolved matters with a greater variance than 10% outside a General Meeting then they should be asked to explain why they did so. (I will raise this at the AGM)

Anyone who is entitled to vote at a general meeting can ask for a motion to be put on the agenda for a general meeting. Written notice must be given to the secretary. The secretary must put the motion on the agenda for the next general meeting [Schedule 2, Part 2, Clause 36]. Your building has a Strata Manager so your Motions will need to be addressed to the Secretary via your Strata Manger at the Strata Manager’s address or email address. (Spoke to Strata Manager earlier and he has agreed to provide his comments)

Only motions on the agenda for that meeting can be voted on.  You have a right to request assistance from your Body Corporate manager to get the wording correct, both on a Motion and on an Amendment to a Motion. NB: An incorrectly worded Motion, or one that may be in contravention of the legislation, runs the risk of being ruled out of order at the meeting by the Chairman and not put to the meeting.

If you have run out of time to put a Motion on the Agenda then you may amend a Motion at the actual meeting itself. Only motions on the agenda may be amended at the meeting. Anyone who is entitled to vote at the meeting may ask the chairperson for a motion to be amended [Schedule 2, Part 2, Clause 35 (3)]. Ask the Strata Manager when and how to do this. (Strata Manager has agreed to provide his comments on the motion)

I don’t think we have enough information on this complex issue to fully assist you and that is why I would recommend seeking help from the Strata Manager in wording Motions and Amendments, or seek professional help if you can. (I believe better planning and timely guidance from Strata Manager would have simplified the situation. Currently the show is run by the treasurer, chairman and investors put together who have the majority votes.)

 

Thank you heaps. Really appreciate all your help in the matter.

Rhea

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