In the absence of the 25 per cent vote, if I were the secretary, I would be very reluctant to put the Owners Corp to the expense of an EGM to help someone who won’t pay their bills.
Neither the fact that the owners is unfinancial nor that there is an impending NCAT hearing presents any legal impediment that I can see to holding the EGM (but I am not a lawyer) However, there is no compulsion to do so either, so why bother?
In the absence of a compelling reason to hold the meeting, the secretary doesn’t need to provide a reason for not doing so.
What goes around, comes around. The unfinancial owner is depriving the other owners of their share of funds and most buildings don’t have that much leeway to carry other people’s debts.
Also, if the recalcitrant owner can’t raise the 25 percent of support required to call an EGM, they would have very little chance of getting the 50 per cent of votes required to pass approvals of their work let alone the 75 per cent of support for special resolutions that may be required as part of the renovations.
The unfinancial owner could, theoretically, take action under section 232(2) of the Act to compel the Owners Corp to hold the EGM except the already scheduled hearing would occur before the new one.
Also, under Section 232(3)(b) A person is not entitled “to make an application for an order under this section if the person has commenced, and not discontinued, proceedings in connection with the settlement of a dispute or complaint the subject of the application.”
I can’t think of any other way the unfinancial owner could pursue this – but I am not a strata lawyer and perhaps they should consult one.
That said, they would make their lives easier for themselves and the neighbours – whom they are doubtless annoying – by paying their bills before they start trying to get support from the very people who are carrying their debts.
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.