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Hi
My building recently had an AGM and the strata managers had added a motion to renew their contract. It was deferred as there has been talk of changing and to sign for 3 years was not wise.
Due to issues raised in AGM, we are having an EGM very soon and our strata managers have asked to include their contract renewal on the agenda again. I (chairman & treasurer) said no, as no one has had a chance to discuss yet, so it is pointless to readdress at this point in time.
They would not take my direction and proceeded to include this item on the agenda. As this seemed unreasonable I called Fair Trading and they advised that a strata manager cannot requisite a motion as only owners with the ability to vote are able to do this.
I have relayed this to my strata managers as we’ll as cited the relevant section of the act, but they still will not budge.
Can anyone confirm without a doubt that they are over stepping their capabilities and jurisdiction?
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The advice provided by the Department of Fair Trading is correct and the Sections of the NSW Strata Schemes Management Act (SCMA) that you’ve no doubt already found substantiate that position of only persons entitled to vote at a General Meeting being able to requisition Motions to be placed on its Agenda.
The only complication may be if the Agency Agreement (Contract) that your Owners Corporation holds with the Strata Manager has delegated them the role of Secretary, where that position is responsible for producing the Agenda for General Meetings, including Motions.
If it’s not too late, have the elected Secretary (of your Executive Committee) write to the Strata Manager to advise that they’re assuming the role of Secretary for the upcoming Extraordinary General Meeting (EGM), and instructing them to remove the Motion re their re-appointment from the Agenda.
Failing that, once the EGM commences, rather than implying acceptance of the Strata Manager’s Motion by again deferring it, you (as Chairman) have the ability to rule it out-of-order on the basis that it is in conflict with the provisions of the SCMA.
Before your Owners Corporation further contemplates termination of its Agency Agreement, have a careful read through all of its provisions – particularly those applying to it rolling-over if not renewed, and to the means of termination itself including the notice that the O/C must provide.
I have a similar situation to Scoop Barnacles. All roles of the EC have been delegated to the strata manager. Prior to the last AGM the EC gave the manager instructions in writing to amend one of the standard motions. He wrote and distributed the agenda without the amendment and then advised it could be changed during the meeting which it was. However he wrote and distributed the minutes which didn’t reflect the new motion and the fact that the meeting carried it and so we now need an EGM to correct them.
With a review of the management agreement underway I would prefer the OC agree to change managers but fear that it would be very difficult to get the OC to agree. Would it be prudent, if we go ahead with the new management agreement, not to delegate EC roles to the manager? And how much extra work would that create for the EC?
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