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  • #77724
    Smokeye
    Flatchatter

      Can a compulsory manager be appointed to address a range of issues?

      For example: pay a judgement debt AND send overdue levies to debt collection AND strike a special levy AND order the rectification of common property?

      My building has a range of issues and the OC is recalcitrant.

      I’m just trying to get a clear picture of what’s involved before I go down this path.

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    • #77727
      Jimmy-T
      Keymaster

        Yes.  I have heard of a case where the previous manager had acquired considerable power in the building by wrangling the votes of absentee investors and members of his own ethnic group to keep in with the developer by side-stepping defect rectifications. The unaligned owners just wanted to run the building according to the law, rather than to suit the strata manager, so they sought and obtained orders to give the compulsory manager effective oversight but not absolute power (unless the scheme went off the rails).

        Section 237 of the Act allows the Tribunal to, on its own motion or on application, make an order appointing a person as a strata managing agent or requiring an owners corporation to appoint a person as a strata managing agent—

        (a)  to exercise all the functions of an owners corporation, or

        (b)  to exercise specified functions of an owners corporation, or

        (c)  to exercise all the functions other than specified functions of an owners corporation.

        The phrase “on its own motion” means that you could take a very specific complaint or a number of complaints to NCAT and the member might decide to appoint a strata manager, even though that’s not what you asked for.

        I would be very careful, going down this road and make sure you ahve a strata manager to nominate who will do the job.

        Recently we have seen compulsory managers appointed who were married to the person the scheme was getting rid of, and another appointed after having been sacked by three previous schemes.

        I would consider pursuing orders under Section 232(2) (failure to exercise a function) and have a strata manager in the wings ready to step in if the Tribunal ruled that a compulsory manager was the answer to all your problems.

         

        The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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