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  • #9318
    justsaying
    Flatchatter

      Guidance needed, please? I objected to works not approved at AGM/GM. The most recent is the repainting of foyers in new colours. Residents (not owners) were letterboxed that the “new colours” were displayed on a foyer for residents to appove and three days for objections. Several days later, I arrived home to find my front door repainted in the “new”colour. I took advice and applied for a interim order to stop this work from progessing,  and today… it was dismissed on the grounds that the EC have no financial restriction placed on them and this work represents maintenance or replacement so they can make these changes….and this is an example of a number of changes that have taken place in the last year.

      Are we owners meant to just let these cowboys change everything without general approval? Surely there should be some agenda item on AGM to indicate such changes?

      thanks in anticpation of your advice

       

    Viewing 7 replies - 1 through 7 (of 7 total)
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    • #20720
      kiwipaul
      Flatchatter

        I’m afraid you are virtually powerless because their are virtually no restrictions on the spending powers of the EC in NSW. I was gobsmacked when I discovered this (in QLD they are restricted to $200 x No of lots).

        On well run EC this is not a problem but when cowboys are in control you’ve seen the effects. Restrictions should be added to the new legislation.

        #20760
        justsaying
        Flatchatter
        Chat-starter

          Could anyone advise what financial restrictions they place on the EC to safeguard unauthorised work in a 100+ scheme, please? Can this item be put in a EGM?

          thanks very much

          #20764
          Whale
          Flatchatter

            There are existing restrictions imposed by the provisions of Pt 4 of the NSW Strata Schemes Management Regulation (2010) with regard to legal expenditure and to the need to obtain quotations, and the NSW Strata Schemes Management Act (1996) imposes restrictions on E/C’s of Schemes >100 lots spending >10% in excess of any budgeted amount, and additionally requires that the Agenda of every AGM of an Owners Corporation (O/C) must include an item to resolve “….if any matter or type of matter is to be determined only by the Owners Corporation in General Meeting.”

            That is the means for O/Cs to impose the additional financial restrictions that you envisage – those can be specific to types of expenditure such as on all capital works, and/or be generalist such as to all expenditure exceeding X% (i.e. <10%) of any amount budgeted.

            The matters or types of matters that might be considered would depend, amongst other things, on the confidence the O/C has in its Committee Members, but it should in my opinion exercise these additional provisions carefully, lest every nut-and-bolt decision or item of expenditure needs be referred to a General Meeting.

            #20768
            daphne diaphanous
            Flatchatter

              Our EC is restricted to $5,000 at a time, meaning they can spend $5,000 every day until the kitty is cleared out. This is never pointed out at the AGMs, during the discussions on restrictions. We haven’t raised it so far in the two AGMs we have attended; however, we have begun taking steps to discover documents (they are very well hidden, including any EC meetings or related minutes). Just recently, we came into possession of our EC’s minutes (only one mind you), via the Tribunal. We had no idea they’d had a meeting at that time, let alone an agenda or the ensuing minutes. It (the ECM) had been held more than a year earlier & not mentioned at all at our AGM last year. The trouble in NSW is that the Tribunal does not take any action when it becomes aware of wrong doing, but sits on its laurels until it receives a complaint. No law can serve its purpose when there is no supervision of its administration. It is clear, the government expects every owner in strata schemes to have a well rounded legal training, not just in the SSMA, but common law as well, which is almost a thousand years old by the way, along with very deep pockets in case they lose an action at the Tribunal (must pay its costs). In order to deter vexacious complainants and/or litigants, the application & supervision of the Act has been made very cumbersome & expensive for everyone, except the miscreants. But, never fear, we shall rise up & “cause justice to be done on all malefactors”; well, failing that, we will attend to the ones in our vicinity.

              #20769
              kiwipaul
              Flatchatter

                @Whale said:
                There are existing restrictions imposed by the provisions of Pt 4 of the NSW Strata Schemes Management Regulation (2010) with regard to legal expenditure and to the need to obtain quotations, and the NSW Strata Schemes Management Act (1996) imposes restrictions on E/C’s of Schemes >100 lots spending >10% in excess of any budgeted amount, and additionally requires that the Agenda of every AGM of an Owners Corporation (O/C) must include an item to resolve “….if any matter or type of matter is to be determined only by the Owners Corporation in General Meeting.”

                I understand legal advise is limited which is sensible.

                But for other spending are you saying the EC can only spend money that is budgeted for in the Admin fund. When we approve the budget in QLD we are authorizing the SM to spend up to each item in the admin fund without futher approval.

                BUT in QLD the EC can authorize other spending from either the admin or sinking fund up to a limit of $200 x No of lots without OC approval. The only requirement is that they inform the OC of the results of the motion and 50% don’t object within 7 days of being informed of the spending.

                I’m getting very confused about how it works in NSW.

                #20771
                Whale
                Flatchatter

                  The only difference in NSW (apart from the number of pages in the Act) is that when the mandatory motion about the O/C wanting to (or not) restrict the spending of its E/C on any particular item or matter is reached at the AGM, then to mimic your example, the O/C could then resolve:

                  THAT the E/C’s other spending from either the admin or sinking fund is $200 x No of lots, and that where that occurs they must on each occasion inform the OC of the results.

                  So in summary, in QLD a restriction of E/C spending is mandatorily limited in accordance with a standard formula in the Act, and in NSW it’s both optional and the formula flexible in accordance with the O/C’s requirements.

                  Neither is perfect in my opinion.

                   

                  (PS the internet must be on a faux public holiday as well – I had to edit this post 6 times just to get it to stick!)

                  #20783
                  justsaying
                  Flatchatter
                  Chat-starter

                    To clarify my question. It is relating to the issue of the EC making a decision to change the colour of the internal walls of the scheme and so on. The budget on the AGM stated ” painting of foyers”. No mention of changes to the scheme. I raised the question at the AGM of changes in relation to some items and was told it was maintenance . The adjudicator dismiss the application because there was no financial restriction therefore the EC has the authority to make changes? Interestingly enough the SM advised me the EC were in breach of the Act and a EGM meeting will be held to ratify the works… After the horse has bolted! 

                    I agree with previous comments, one needs a deep pocket to take issues on, we are not lawyers, and when large levies are already paid why should owners have to tolerate a small group who make decisions without consultation.

                    So do we insist the budget is completely detailed regarding any major works at AGM? Would this stop the problems! I agree that one does not want to continue having general meetings so work can continue.

                    thanks for your valuable advice and discussion about the real grass roots problems affecting owners

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