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  • #8909

    Hi everyone,

    Apologies if this question does not go in the right area.

    I understand how a RWD works, and that Strata Titles Act in WA suggests that they are needed when wanting to change Schedule 1 by-laws, and thats ok because I don’t have an issue with those.

    The issue I am facing is that the Developer of our complex, who also still owns a unit and for a while was acting as our Chairman, Treasurer, Secretary and Strata Manager, held the First AGM when he was the Sole Proprietor. In that meeting, he passed several resolutions using a RWD. One of those resolutions was in regards to opening a specific bank account.

    As we have now moved on to a private Strata company managing our complex, and with that, using a new banking system, he is claiming that because he used a RWD to open the old bank account, we cannot change that unless we have that decision over-turned with another RWD. So basically, because he won’t vote to change, he is saying we are stuck with the old banking system.

    My question is, was that the right resolution to use in the first place (the Act says nothing about requiring a RWD to open a bank account) and if someone does use a RWD in the incorrect circumstance, how much weight does it hold in terms of being valid or invalid?

    Thanks for any help

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  • #18862
    kiwipaul
    Flatchatter

      A resolution without dissent is only required when you are doing something drastic, changing unit entitlements, passing common property to a lot owner, etc and it should say in the WA Act what these situations are.

      It’s a pretty safe bet that opening a bank account is NOT one of them, as it is such a trivial issue. I would say the SM could change the bank account without any vote whatsoever (and the SM should know this anyway).

      The only situation where you MIGHT have a problem is if they registered a special bylaw specifying which bank to use. But even then a developer who controls all the lots initially has a duty of care to not do anything to prejudice subsequent owners, and I would say this fits the bill exactly.

      I know nothing at all about WA strata this is just general info which applies to some state (NSW & QLD) but I suspect it would apply universally in Oz.

       

      #18865

      Thanks kiwipaul, that would be my understanding too.

       

      There is definitely nothing in the WA Act about needing a RWD to open a bank account and we have no by-laws regarding a bank account either.

       

      #18866

      I should also add for clarity that we did change bank accounts over a year ago and just recently closed the old bank account. The reason it is a concern now is because the Developer is taking us to the State Administrative Tribunal in order to have the old bank account reinstated, saying that we defied the original RWD.

      I’m hoping the Member dismisses the issue because it is trivial, as you said.13

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