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  • #10685

    Not sure if this the right forum for this but our strata building (in NSW) entered into a contract for fire protection with a company that went bankrupt 4 months after they commenced.

    Our EC (of which I have only been a member since October last year) are about to agree to a further $5000 worth of repairs making this years annual, 6 monthly & routine costs $12,000.

    The building is only 9 years old and up until December 2014 paid about $4000 per year maintenance but decided this was too expensive so switched to this company.  Since then costs have been ever increasing.

    When I queried the validity of the current repairs the “office bearers” did request some further information but ignored my concerns regarding dealing with a company that was liquidated 3 months into the contract but did not advise us.  All their accounts from October 2015 advised of a different bank account (big yellow sticker) but nothing else.

    I did some digging which was when I discovered they had registered a new P/L company 7 days before a liquidator was appointed but used an almost identical trading name. On reviewing their invoices they moved from their commercial premises and have provided 5 residential addresses, 5 different phone numbers but retained their original website with the old company name.

    This all smells of desperation and I wondered if anyone could point me in the right direction as to whether it is legal to deal with this company and/or who can provide advice regarding the legality of our contract.

    I have avoided using any names but the contractor lists mainly strata companies operated by a multinational.

    I hope someone has an answer.


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  • #25604

      You first steps should be to contact Fair Trading and ASIC. I think it is illegal for a company to trade whilst in liquidation unless any contracts it makes are made by a liquidator.  ASIC should be very interested.  The more information you can provide ASIC the more likely they are to do something.

      Names of the people from the company the strata dealt with while in liquidation would be number one. If these people were also directors of that company they could be in trouble. Even if you didn’t deal directly with them, my view is that  the directors are responsible for ensuring this doesn’t happen.  


      Thanks Cosmo

      As suggested I have now lodged a “complaint” with ASIC and will await their response.  Our Strata Manager requested a reply from the company concerned and it doesn’t agree wth any of the information from official sites. BUT they are happy with the response so at present business as usual.

      Neither our committee of the strata manager seem to have any interest in the companies they deal with and accept everything at face value.

      Will post again after I get a formal response from ASIC.

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