unauthorised EGM called by strata manager | Strata managers | Flat Chat Forum: Your Questions Answered




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unauthorised EGM called by strata manager
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harmonious
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11/07/2017 - 12:16 am
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Our strata manager called an EGM without first consulting any owner, yet alone executive (strata) committee. The first we knew was the arrival of an agenda. The EC deemed the meeting unnecessary and cancelled it. No quorum would have been reached either due to the date and time. Then I look at the financial statement and they still charged us for the meeting!!

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JimmyT
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11/07/2017 - 10:09 am
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As a first option, I would try to resolve this with a phone call.

If that didn't work, I would be sending them a letter asking them to:

a) explain why they called the EGM in the first place

b) why they did not consult with the committee beforehand

c) why they thought it appropriate to charge for a meeting that was not required and not held.

It may be that they technically have the authority to do any or all of these things but that doesn't mean they should, just because they can

If your committee agrees, I would also say that the committee considers this a serious breach of trust and reserves the right to take this matter further if a satisfactory resolution is not reached.

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harmonious
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11/07/2017 - 4:13 pm
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Thank you, I was wondering if I was being unreasonable, if I was out of line.

This is the second time that our strata manager has done this.

In 2015 they called an EGM about a $1000 bill. I called them, we cancelled the EGM as the EC was allowed to make a call on bills under $2000 without a meeting. The EC told the strata manager to send the bill to the building next door as it wasn't ours. When I asked why they didn't call before sending an agenda the answer was they didn't have too. I should check to see if we paid for this meeting too.

This time it was about their managing agreement as they didn't include it in our AGM. "They were too busy with the new legislation to make a phone call". We cancelled the EGM and requested a 3 month extension. We were going to need 3 extensions to reach our new financial year. We are now having an EGM as we need $12000 of roof maintenance. 

They want us to renew their contract for 3 years. Ive requested that we renew it until the next AGM only. I also asked to add to the contract that the agent cannot call an EGM without first contacting someone from the strata committee. Am I allowed to do this? or should I round up the other owners to find another manager? The other owners are reluctant to change from what they know.

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scotlandx
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11/07/2017 - 6:49 pm
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Going by their track record I wouldn't be renewing their contract at all, they sound hopeless.  

Re the EGM they just tried to call to renew their agreement - if it is the case that they were calling the meeting because of their failure to include that in the AGM agenda, they should have borne any costs, because it was their failure.  The OC shouldn't have to pay for their mistakes, should they?

It's all very well to stick with what you know, but why do the owners want to pay for service that is incompetent and costing them money?  I suggest you get a list together of three candidates for a replacement manager and then present that list to the other owners.

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harmonious
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14/07/2017 - 3:02 pm
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Thank you for your responses and very good advice, and I realise my strata issues are very minor.

This is where my scenario is heading

The SM won't refund the cancelled EGM fee, nor the meeting fee for the cancelled 2014 EGM. Their response was it is the law so we can. The other owners think that is wrong but it is only [email protected] and the manager is "lovely and friendly". Im trying to get momentum to move to another managing company but it looks like its not going to happen. "Only you have a problem with the SM". The SM is insisting on a 3yr contract and none of the new legislation requirements have yet been met (declaration of commissions, 10yr plan, bylaw reviews etc) and still the owners just think the SM is "lovely"... The SM sent a letter to say they may call 2-3 EGMs at the OC expense to comply with the new legislation at the SM whim... "but they are lovely" say the owners...My hands are being tied... very disappointed.

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Mr Wong
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14/07/2017 - 9:04 pm
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Compile a list of how your SM has wasted or mismanaged OC money or business. Unless you already know the SM company's lawyers or can find it by other means, make an appointment to look through your OC's documents held in the SM's office, as is the right of all owners (they may ask a fee for accommodating your search and that is their right, but unlikely . . . although with your SM's past form . . ? ). Somewhere in that pile of documents may be the name of one of their lawyers. Without divulging either your own or Strata Property's details or SM's name, phone that lawyer. Ask for an estimate to prepare a submission to NCAT against your SM and mention you are looking for a law firm that will take no prisoners. If you are given any encouragement that you have a case, tell the lawyer you want to shop around and may call them back. Let the name of your SM drop by accident before you hang up. If you have a valid case, you may now just sit back and wait for the SM's resignation. 😉

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