The definition of ‘dysfunctional’.

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  • 05/10/2013 at 12:59 pm #9074
    AH1.Cobra
    Flatchatter

      Could it be said that an Executive Committee which has made clearly inappropriate decisions in the interests of some members of an Owners Corporation, but not in the interests of an Owners Corporation as a whole, is dysfunctional?

      Especially if some of these decisions were to be voted on at a General Meeting with the aim of getting them approved through proxy-gathering?

      And all overseen by a Strata Manager who knows better and pretends he’s listening and agrees bad stuff is happening, but does nothing about it.

      Does the NSW Strata Titles Act have to be breached? Or does corporate governance and probity come into it too?

      PleaseConfused

       

       

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    • 08/10/2013 at 5:04 pm #19734
      AH1.Cobra
      Flatchatter
      Chat-starter

        Are my questions here out of order? Or is everyone on holidays or something?

        08/10/2013 at 6:14 pm #19735
        Jimmy-T
        Keymaster

          @AH1.Cobra said:
          Are my questions here out of order? Or is everyone on holidays or something?

          Well, it’s only three days since you posted and we have had a long weekend in NSW, so maybe  … yes.

          It’s very hard for us to judge at arms length whether or not your EC is dysfunctional since there are always people who are unhappy with decisions that are made (and the means by which the decisions are taken).

          My definition of dysfunctional would include the following:

          • The common property is not being properly maintained

          • The owners are not beiing informed about what’s going on.

          • The owners’ concerns are not being addressed by the EC or office bearers

          • There is corrupt behaviour

          • the EC is run by a combination of an autocratic chair and apathetic owners.

          • Illegal activities (such as short term lets) are big permitted or even encouraged.

          Incompetence is not necessarily ‘dysfunction’ as it can be easily corrected. And excessive holding of proxies is never a good thing but it doesn’t always lead to bad or corrupt decisions (it just makes them easier).

          But if a minority had control of an Owners Corp and they maintained that control by virtue of deceptive behaviour and misinforming the other owners, then I would say that was dysfunctional.

          The easiest way to test this is to run a case at the CTTT to have whatever you think has been done wrong changed.

           

          The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
          08/10/2013 at 6:24 pm #19736
          kiwipaul
          Flatchatter

            Don’t blame the SM as he is more correctly a Strata Administator as he can make no decisions without the permission of the EC or OC.

            You can only take action if the EC breaches the Act or bylaw and what you consider inappropite might not seen so to other owners.

            If the EC is maintaining EC owners property but not others this would clearly be illegal and give you grounds to take it to CTTT.

            09/10/2013 at 1:13 pm #19741
            AH1.Cobra
            Flatchatter
            Chat-starter

              Thank you JimmyT and Kiwipaul. But shouldn’t our Strata Manager, to whom all functions are apparently delegated in our contract, at least advise against, I’ll say ‘inappropriate’ decisions and actions by an Executive Committee and its members? And make sure of good ‘corporate governance’? 

              Let’s say, a General Meeting chaired by the SM was stacked with proxies, all in favour of having an outdoor community spa and mini bar put on an otherwise quiet lawn and garden at the back of our strata at the Owners Corporation’s expense. Yet no quotes, costings had been circulated with the agenda and very little information. In short, only those in-the-know and their toadies know the full picture. And the majority certainly wouldn’t vote for it if they really knew the cost and were interested instead of apathetic. 

              Would that sort of thing be one indication that “the management structure is not functioning, or is not functioning satisfactorily” to quote the NSW Strata Titles Act?

              09/10/2013 at 8:26 pm #19748
              imported_dech
              Blocked

                   “Let’s say, a General Meeting chaired by the SM was stacked with proxies, all in favour of having an outdoor community spa and mini bar put on an otherwise quiet lawn and garden at the back of our strata at the Owners Corporation’s expense. Yet no quotes, costings had been circulated with the agenda”.

                 

                   To be in accordance with “the Act” this would at least require a special resolution which may alert some apathetic owners. Otherwise my understanding is that it would be quite legitimate.  The requirement for the agenda of an EC specifies a detailed agenda which would appear to include some indication of cost but this doesn’t apply to GM’s; so would “Improve resident facilities in south garden area” allow spending of the entire sinking and admin. funds if approved. I would think so.  If some charasmatic political organisation were elected as the federal government with a promise of greatly improving hospital services they could legally strip or shut down many other government services to achieve the goal, perhaps to the increasing horror of those who didn’t ask where the money was coming from. 

                18/10/2013 at 3:32 pm #19829
                AH1.Cobra
                Flatchatter
                Chat-starter

                  The implication on the CTTT form for seeking an Adjudicators Order to have a Manager appointed on the basis that “the management structure is not functioning, or not functioning satisfactorily” is that you don’t have to have been to OFT mediation first.

                  My question, now, is might you take this idea to mediation first? To show the EC, Strata Manager and CTTT that you’re serious? Or just ‘go for the doctor’.

                  Yep. I’m got to the ‘form’ stage.

                   

                  18/10/2013 at 8:14 pm #19832
                  Anonymous

                     

                    An OC needs to be more than dysfunctional, it needs to be seriously dysfunctional.

                    “but the tribunal must makes its determination based on objective considerations and there must be objective evidence that the management of the owners corporation is seriously dysfunctional before the tribunal would be disposed to make such an order under section 162.“
                    JUDGMENT OF: Associate Justice Harrison

                    Mortlock and Anor v Owners of Strata Plan No 55434  [2006] NSWSC 363 (3 May 2006)

                    And you will find several CTTT cases that use the term seriously dysfunctional and refer to this case.

                     

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