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deesee2304 – What do you hope to achieve from the audit? I am not sure what the audit of your strata scheme books will achieve. If you are searching for the profit margin of the PM in the Audit then in my opinion the profit will not show up there.
From where I sit you have a couple of options – none will have a rapid resolution and all require a vote at a General Meeting with obvious uncertain outcomes:
(1) You propose a Motion to have the OC take over the responsibility of the gas supply for NO PROFIT. This may appeal to all owners as this will lessen the costs to each and every owner. If you have evidence of a comparison of costs with and without the PMs profit added then this should be a powerful argument. The PM will no doubt fight you on this and will send out messages to all of his holiday accommodation owners to affect the vote his/her way. The timing of this option depends upon the Terms of the Contract – and may only be possible towards the end of the expiry date of the Contract.
(2) You have a by-law created that separates your gas supply from the scheme gas supply.
(3) You take this matter to NCAT based on all that you have revealed in your previous comments. There could be a Conflict of Interest between the PM being on the EC and voting on any matters that concern his business or his profits. The PM should not vote on any matter relating to the gas supply at your scheme.
As part of any NCAT submission: Has the PM revealed their direct or indirect pecuniary interest as per SSMA 2015 Section 71 or are they refusing to do so?
STRATA SCHEMES MANAGEMENT ACT 2015 – SECT 71
Interests must be disclosed by potential strata managing agents or building managers
71 Interests must be disclosed by potential strata managing agents or building managers
(1) A person appointed as the strata managing agent or building manager for a strata scheme who has an interest that must be disclosed under this section must disclose the interest to the owners corporation before the appointment of the person.
Maximum penalty: 50 penalty units.
(2) The following are interests that must be disclosed to the owners corporation by a person:
(a) that the person is connected with the original owner,
(b) any direct or indirect pecuniary interest in the strata scheme (other than an interest arising only from the prospective appointment).
The Tribunal can vary or terminate the Building Manager Contract but only on application from the OC, not an individual owner.
72 Strata managing agent and building manager agreements may be terminated or varied by Tribunal
(1) The Tribunal may, on application by an owners corporation for a strata scheme, make any of the following orders in respect of an agreement for the appointment of a strata managing agent or building manager for the scheme:
(a) an order terminating the agreement,
(b) an order requiring the payment of compensation to a party to the agreement,
(c) an order varying the term, or varying or declaring void any of the conditions, of the agreement,
(d) an order that a party to the agreement take any action or not take any action under the agreement,
(e) an order dismissing the application.
(2) If the Tribunal makes an order terminating the agreement, the Tribunal may also order the strata managing agent or building manager to return to the owners corporation, within the period specified in the order, any documents or other records relating to the strata scheme that are in the possession of the agent or manager.
(3) The Tribunal may make an order under this section on any of the following grounds:
(a) that the strata managing agent or building manager has refused or failed to perform the agreement or has performed it unsatisfactorily,
(b) that charges payable by the owners corporation under the agreement are unfair,
(c) that the strata managing agent has contravened section 58 (2),
(d) that the strata managing agent has failed to disclose commissions or training services (including estimated commissions or value of training services or variations and explanations for variations) in accordance with section 60 or has failed to make the disclosures in good faith,
(e) that the strata managing agent or building manager has failed to disclose an interest under section 71,
(f) that the agreement is, in the circumstances of the case, otherwise harsh, oppressive, unconscionable or unreasonable.
NB: I have owned a property (a town house) in a strata scheme in which each owner had their own gas cylinder and was responsible for their own gas supply. Depending on the physical layout of your scheme is it possible for your scheme to do this?