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  • #8241
    Exhausted
    Flatchatter

      I am looking for information about voluntary administration in the strata setting. Where could I find relevant information about clear options to present to an AGM about a way forward for about 150 owners with loads of debt (about $15 million incurred from defective building, resultant legal fees, expert opinion and remediation works..not completed). The builder has just gone into voluntary administration…do we need to as well? The committee is not sure where to get sensible advice and options as there is so much disagreement and no absolute knowledge about a way forward.Extremely stressful!!!

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    • #15834
      scotlandx
      Strataguru

        You can’t put a strata scheme/OC into voluntary administration. Ultimately the debts of the OC are debts of the owners, apportioned by lot entitlement.
        If the builder has gone into voluntary administration, I presume you have Home Warranty insurance?
        It sounds like a very messy situation, you really should seek professional advice.

        #15835
        Anonymous

          Hi, its a very unfortunate situation your Owners Corporation finds itself in. There is not much advice that we could provide at the moment as we would need full particulars of the issues, however I would provide the folloiwng points: –

          1. Strata schemes/Owners Corporations are not incorporated under the Australian Securities Investement Commission (ASIC), they are created under the Strata Schemes Freehold Managemnet Act (SSFMA).
          2. Strata schemes can be terminated but this is normally due to he fact that the building has reached its servicebale life and the owners wish to re-develop the site.

          I have never heard of nor been involved with a strata scheme that has been terminated to owing a debt, thats not to say an Owners Corporation/strata scheme cannot be sued for a debt.

           

          I think the only sensible advice would be to contact an experienced strata lawyer. Quite obviously if the amount you say is owed by the Owners Corporation ($15 million), then this is not something that should be dealt with by peer advice alone.

           

          If your owners corporation needs some assistance in finding an experienced strata lawyer we may be able to help you with a list of those that we deal with in the Courts regularly. If you would like to email me with some better particulars then I may be able to narrow down the issues for you further.

           

          Chris Mo’ane AIAMA, MASBC-CPC

          GMD – Integrated Consultancy Group

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