- This topic has 4 replies, 3 voices, and was last updated 3 years, 5 months ago by .
-
Topic
-
Hi All,
I’m seeking help with the removal our Strata Manager. I’m in a 4 Lot Strata, all Owner Occupied.
The current situation is that the Agency Contract is being renewed every 3 months.
At the last A.G.M, the Motion is renew the Contract was 50% voting in favour, with 50% against.
With no majority the Motion was Lost. This was duly recorded in the Minutes. With regrettably no instruction to the contrary, Fast forward several months to the end of the Contract, the Manager sent out a Agenda for a Committee Meeting. It contained 4 Motions, for the renewal of the Contract in four 3 months periods. These periods tally 12 months, which was the duration of the last Contract.
3 Owners make up the Committee. 2 who were in favour of renewal and 1 against. The 2 in favour also being the same in favour at the A.G.M.
There is no argument over the legitimacy of this situation however it means the Manager doesn’t have the support of a majority of Owners. It is this I am belatedly trying to rectify. First thing, get 4 on Committee.
What would be the process from there ?
-
Replies
-
There is no argument over the legitimacy of this situation however it means the Manager doesn’t have the support of a majority of Owners.
The law in NSW says the manager can only be appointed at a general meeting. I would have thought renewal of a contract would be the same as appointment.
At a general meeting you could carry the other owner’s proxy and it might come down to a poll vote (unit entitlements) too. Also, if the vote (at a general meeting) is on a motion to renew the contract and there is a tie, the motion fails and the contract is not renewed.
I have never heard of this kind of three-month rolling contract before and it sounds like an elaborate way of the strata manager looking like they have support of the majority of owners while getting round their legal obligation to end or renew their contract after three years.
Rather than drag someone on to the committee who doesn’t want to be there, I would wait until the next AGM and make sure that the wording of the motion to renew means that when it is tied the outcome is that the motion fails and the strata manager has to walk.
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.
The three month extension is only allowed at the end of the contract and it’s a one-off. It can’t be rolled over every three months.
Here is my strategy
Get you own quotes and proposals for a strata manager. You do not need committee approval to do this.
Prior to the next meeting to renew the old strata manager, place a motion on the agenda proposing the strata manager you chose.
Schedule 2, clause 4 allows any owner to submit a motion, so don’t let the committee or strata manager tell you otherwise.
Its likely thst the strata manager will include a motion to renew their contract. Let that go for now.
When the motion to renew the old strata manager comes up, call up Schedule 2 clause 4(1). Ask the strata manager who submitted this motion. If it was not a lot owner,then the motion is out of order. Ask to see the WRITTEN request as the act states how it has to be submitted It’s usual for strata managers to submit a motion for their contract renewal, but the act does not allow it.
They may try to adjourn the meeting in order to “fix” this oversight, but once a meeting is called, the rules have been set.
Hopefully you have sufficient support from other owners so that your motion passes. If not then you have no strata manager, and the elected secretary will need to call another general meeting in order to elect a strata manager.
- You must be logged in to reply to this topic.