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I’m a unit owner in a small block. The only people who ever turn up to AGM’s are the members of the Executive Committee (including me.)
Two of them want to get rid of the Strata Manager “so we can manage it ourselves.” I believe it is a power grab, given the context of the politics of this block and, moreover, that they may sway neutral parties.
I’d like to go to the Strata Manager’s office and get the contact details of some of the other owners – who are investors and who never turn up to meetings – so I can tell them what I think may happen and, if they agree, obtain their proxy votes to keep the Strata Manager.
Am I authorised to review the books, note their contact details down and contact them?
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The EC is entitled to ask for the unit roll. Are there more than you and the two others on the EC? If so, I suggest you sound out the others for the following course of action: Say to the rest of the EC: ‘Managing the OC is a big job and a big responsibility. There may be advantages in doing that but there may be disadvantages as well. What if we have a willing and competent EC now but we might not in a few years? Would the owners more generally think it is in their interests to leave it to a few owners? They might save some money, an interested EC might do a better job but then a disinterested manager might do a better job, especially since the EC can direct the manager to do things in any case. Owners might regard the manager as worth the fee for some belt and braces protection in case some future EC was not as good as the current one. I propose that we should write to owners to let them know that this is a matter the EC is thinking about and we would be interested to gauge owner sentiment on the topic before developing the idea further. I think we could spell out in general terms in the letter what we think the advantages and disadvantages might be.’ Depending on your relationship with the strata manager, the EC could simply direct the manager to mail your letter to all owners. The manager is obliged to act on the instruction if it is a resolution of an EC meeting. Of course that would reveal to the manager that you are thinking about dumping him/her. You could say ‘That might cause him/her to pull up their socks which might be a good thing if we think there is a reasonable case for suggesting we are not getting good service. This might in itself justify this course of action. By the time of a later general meeting we might be able to report that we have decided to keep going it alone on our agenda but on the back burner for now because the manager seems to have been so much more attentive lately.’
What about trying that with your EC?
@Adalazie said:
I’d like to go to the Strata Manager’s office and get the contact details of some of the other owners – who are investors and who never turn up to meetings – so I can tell them what I think may happen and, if they agree, obtain their proxy votes to keep the Strata Manager.Just a note here, make sure the proxy form has option 3 fully filled out (and option 1 selected AND option 2 crossed out – or option 2 filled out AND option 1 crossed out). Option 3 is:
“If a vote is taken on whether
………………………………………………………………………………………………………………………………………………….
(the strata managing agent) should be appointed or remain in office or whether another managing agent
is to be appointed, I/we want the proxy to vote as follows:”The failure to adhere to the above requirements (including the crossing out of the inapplicable options or the failure to fill out option 3 or option 2 if applicable) will, more likely than not, render the proxy form invalid.
Adalazie – firstly, I’m sure you’re welcome, and secondly on the subject of you having a browse through “the books” in order to obtain the contact details of other Owners, that’s specifically permitted (in NSW) under Sect 108 of the Strata Schemes Management Act (1996) for a Fee of $31 for the first hour and $15 for each half-hour thereafter paid to your Owners Corporation, plus whatever amount your Strata Manager may reasonably charge you for administrative services such as photocopying and printing should you need them.
Further to mini‘s post (#3), if you do decide to browse through the books, then you also need to check the terms of the termination clause that will be included in the Strata Management Agency Agreement that your Owners Corporation currently has with its Strata Manager, because termination and more importantly the proper hand-over of documents can be difficult if the correct procedures aren’t followed.
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