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Thank you in advance for your assistance, I need help – this is a bit of a long story.
At our first AGM (Jan ’14 in NSW) there was supposedly enough votes via proxy to form a quorom. In the minutes of the first AGM there was no mention of the proxies, only that there were 14 lot owners were present (and/or represented).The amount of people at the meeting did not meet enough to form a quorom (only half a dozen votes).
When I asked about where the information about the proxy votes was, the SM said that people there did have proxies but didn’t want to disclose them. I have since contacted these people (I am now on the EC as a member) and all of them have said they had nothing to do with proxies until after the meeting, where one of them was approached by the SM and said that he was going to be proxy for 5 votes.
Once I have the statements from the people that were supposedly proxy holders (I am also obtaining records of the proxies by conducting a inspection of the records to check further validity), can the first AGM be considered as invalid, due to not enough lot owners were present in order to form a quorom, and therefore the SM management agreement is also invalid, as the EC was never elected properly and the OC was never represented properly?
This is difficult because its all after-the-fact. If the EC learns that this AGM is invalid, is there legislation to dictate that we must hold a new “first” AGM and re-elect the SM and EC? This is particularly important. If there is, can you please reference it.
Separate issue: Using this information about the first AGM, if we wish to proceed with kicking out the SM as the original management agreement is invalid, what steps can I expect if they fight it? Mediation/Adjudicator/NCAT? The SM has that we will pay them out if we terminate the agreement, so I can see them attempting to take us to court if this ends up happening and they want to play hard ball.
I would appreciate any assistance/previous similar situations/legislation that can be quoted (and referenced please). Also if we do end up down the track of litigation, are there solicitors that specialise in these areas and has anyone used them?