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  • #8397
    AfairEC
    Flatchatter

      This is a real case of how one man controls an Owners Corporation.

       

      1. In our strata schema, the Chairman of the EC controls the rusted-on proxies which gives her a majority at the AGM.

      2. She uses the proxies to make sure that only her friends are in the committee. If any one in the EC disagrees with her, she uses the proxies to vote them off the EC at the next AGM.

      3. Every year she uses her proxies to pass a resolution giving the EC full powers to make the decisions.

      4. With the control of the EC, she does what she wants with respect to our building.

      5. Attempt to break this one person’s control of the Owners Corporation has failed. The following was tried.

      a. A concerned owner thought that she should write to all the owners. She requested the EC and the strata managers to give her a list of all owners and their addresses and she was not given this on the grounds of privacy.

      b. Her request to the EC and the strata managers to send her letter to all the owners was refused as well.

      6. The above is a long standing problem. We donot know how to solve it.

      7. Now the person has embarked on a major (multi-million dollar) building maintenance and upgrade project. Very little information has been given to the owners (other than a bare minimum for the AGM) and with the rusted-on proxies the person has them approved by the AGM.

      Two noteworthy issues in connection with this are

      a. During this period, the EC never had what it called a “formal” meeting but had lots of “informal” meetings. This meant that concerned owners could neither attend EC meetings nor could get minutes of the EC as there were none produced. This has resulted in the Chairman’s favoured builder to get the construction contract. The procedure used seemed to have broken all the rules of good project management. It is not even clear whether the fulll extent of the building project is needed.

      b. During the construction phase, EC has recommended a huge payment to the chairman of the EC to be a contact-point between the residents and the builder. Given that some owners would have been happy to do this for nothing, it seems a huge conflict of interest for the Chairman of the EC (who in fact controls the EC) to get the EC to give her a huge amount of money like this. The AGM, where the Chairman has lots of indirect rusted-on proxies, has approved this.

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    • #16563
      HappyNow
      Flatchatter

        We have the same problem in our complex.  One Chairman who rules along with his wife as Secretary and their best friends on the EC.  It has been like this for 2 years now and the other Owners in the complex do not seem to be concerned.  They think that because this man says he was a builder – he will look after them, however, he was only ever an estimator and has made a botch of our large insurance claim for water seepage and resultant paint damage.  He has all the proxies because he has given his ‘friends’ in the complex favours so he sits pretty.  You can see he has no interest in the other owners but is only out to look after himself.  There is a survey on Dept of Fair Trading at the moment which you may like to complete.  I have suggested that no EC can sit for more than 2 years with the same people and after this time, they must stand down and be replaced with fresh members. Members should also have a police check done as many of these people are in control of many thousands in levies per year and not to mention most of these properties are worth millions of dollars.  There must be some accountability. We have two owners very keen to get on the EC to see that things are done correctly but are never elected as that would mean loss of control for the current incumbents.  I think a lot has to be considered regarding the control these members have.  Something does not sit right with me regarding this.  I am sure there are many complexes which are run quite legitimately however, Owners are being asked to put a lot of faith in inexperienced people.  I empathise with you and look forward to others feedback. 

        #16697
        simone42
        Flatchatter

          I feel your pain – when the strata manager and EC goes wrong it can go really wrong. I have found Fair Trading helpful 13 32 20. Call them and they may be able to point you in a direction to make everyone more accountable. Good Luck

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