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Topic
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Is there any requirement for a Strata Manager to give 28 days notice for OC levy payment?
The background is that on 8 Dec our (new) Strata Manager sent out the quarterly OC levy notice which is payable by 20 Dec. Approval of the budget (and hence the OC levy) is an item at the AGM on Dec 19. Auuuugh!
Thanks in advance for any suggestions,
Woodwalker
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Is this the fourth quarterly levy payment as approved at the previous AGM? If so, then you would have had almost a year of notice.
If this is for a first levy payment for the coming year’s budget due on the 20th that it is assumed will be approved at the AGM on the 19th, then it could be 1) presumptuous to assume the budget will be approved without amendment and 2) unwise if there is any risk of a reduced quorum at the AGM. If the meeting has a reduced quorum, then the decisions of that meeting do not take effect until 28 days have elapsed after the meeting. The earliest due date I would have for the first levy payment of a new budget would be a full month after the AGM date, and even that is really a bit too soon.
… The owners who are concerned about due process will put a motion that the levy notice is redrafted and sent AFTER the OC approves the budget at the AGM on Dec 19…
I would make it an amendment of the budget motion with dates put in for when levy payments are due. A usual form of a budget motion would include something along the lines of:
That the Owners Corporation, by ORDINARY RESOLUTION, adopts the proposed budget (excl GST) for the year to [date], comprising expenditure of $X from the General Fund and, $Y from the Sinking Fund; with levies (incl. GST) of $A for the General Fund and $B for the Sinking Fund, to be contributed in accordance with unit entitlements, in four equal instalments due on [date], [date], [date], and [date].I would make the first of those dates at least 28 days after the date of the AGM because the budget resolution cannot be acted on earlier if there is a reduced quorum (fewer than 50% of the units taking part in the meeting in person or by proxy.
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