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Topic
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Hi all
I am in an OC in Melbourne suburbs comprising 22 units. Last year the Committee presented Financial Statements and a budget that was not compliant with accounting standards. Further the Maintenance Plan (set up some years ago even thought not required) had not been updated for 8 years. 18 owners were present at the AGM.
No vote was taken and the Committee and Strata managed promised to up date financial statements, do a new maintenance survey and represent financial statements, maintenance plan and budget early in the new year (2024). Several of us asked for updates and advice on when SGM would be held. We asked in Jan, Feb, Mar & Apr. Then in May we get advice from the Strata manager the the Committee has approved the budget.
This seems completely outrageous. I have looked at the duties of the Committee, regulatory requirement for them to propose a budget at the AGM but can find nothing suggesting that they have the power to unilaterally approve the budget. To my reading such power cannot be delegated to the Committee and never was.
My questions:
Can someone point me to the law or regs that gives explicit power to for a Committee to propose and approve a budget without it being referred to Lot Owners?
Anyone have advice on how to deal with the issue (beyond replacing the Committee which will be difficult)?
Many thanks
OzCondo
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Replies
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Hello OzCondo
I am not familiar with the “Owners Corporation Act 2006” which is the law for Victorians. I suggest you google that string and read the Act yourself. Those are the laws or regs you are seeking.
I had a quick look and noticed these two numbered sections:
Section 11 is titled “Management of owners corporation and powers to delegate”
Section 71 is titled “Agenda for annual general meeting”Paragraph 3 of Section 11 says that the owners corporation cannot delegate something which requires an unanimous, special or resolution at a general meeting. Section 71 says that the approval of the budget should be an item on the agenda of a general meeting.
I strongly urge you to read through the Act and put some questions about this to the committee and your strata manager.
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