Jam

Firstly, thank you, Julie for your reply and thorough explanation in contxt to the ‘Act’ and re arrears; penalty interests and any related waive notices.

I agree with your interpretation: however, my concern/query is, more over, to do with the actual integrity/purpose/validity of the Manager including a motion in the AGM notice at all and when the Manager, is aware that ‘waive’ notices were issued (the Manager having issued them); SO, why have the motion at all included in the agenda? i.e. and which asks the owners to vote on whether there were instances where penalty interest on lot Owners’ Fee arrears were waived or reduced during the previous financial year and when Manager KNOWS there were instances (as do the majority of owners?

I know for a fact, that the committee did ‘waive’ penalty interest rates for a couple of the owners and ‘waive’ notices were consequently, issued. My query (and perhaps I did not make this clear originally) is HOW CAN THE MANGER/COMMITTEE (and whom ever is responsible for drawing up the notice), include a resolution i.e., as below and when both ‘waive notices’ were, in fact, issued AND the Manager, consequently issued and charged OC via invoice for generating ‘final notices’. In my mind, it s redundant, therefore, to have such a motion entered onto the AGM notice as it is a FACT that penalty interests were incurred (Manager final fee notice charged to OC and deducted from OC bank account) and then the penalty interest charged to owners on arrears was ‘waived’ by the committee.

Noting that the Manager, charged and received monies for sending out ‘final fee’ notices.

How is it then, that the Manager (and/or committee) can, in all good faith and with integrity include what, I regard as a superfluous/redundant motion* – (this is in regards to the forth coming AGM): I know it is ahead of time but I expect (based on last year’s vote results on similar motions), certain owners and including the Manager will seek to want to not make transparent any arrears and waive notices yet again. And I point out, neither has any entry been made into the Manager’s report attached to the current AGM agenda notice (recently issued) for last reporting fin yr i.e., 2022 to 2023 re the ‘waive’ notices which were issued by the Manager (made by COM).

1. Is it incorrect for the motion to be included and if ‘waive notices were, in fact, sent out and
2. Is it incorrect (and, esp. in context to the ‘ACT’) for the Manager to completely omit from commenting about ‘waive’ notices in the Manager report (noting the ‘waive’ notices have not been mentioned anywhere else in the body of the AGM notice either).
3. Are you able to offer a reason as to why S29 (4) exists; what is its purpose, do you think?

At the risk of making a value judgement, I suspect that the Manager and majority of owners (including those owners who had arrears) are looking to not make transparent or disclose that the penalty interest was in fact, ‘waived’ and by way of ‘voting,’ in the affirmative, (‘YES’), indicting there were ‘no instances…etc’ and so, Manager is not compelled to officially record ‘waive’ notices in Minutes.

Any further comments would help and Thanks again for your expert advice and reply, very much appreciated.

*

‘Penalty Interest on Fee Arrears Ordinary Resolution

THAT in accordance with Section 29 of the Owners Corporations Act 2006, the Owners

Corporation will charge interest in respect of any instalment of Fees that are in arrears and

that interest charged will be at maximum rate of interest payable under the Penalty Interest

Rates Act 1983. The Committee may use its discretion to waive or reduce penalty interest in

any case.

There were no instances where penalty interest on lot Owners’ Fee arrears were waived or

reduced during the previous financial year.

YES         NO        ABSTAIN ‘