A A A

You must be registered and logged in to reply to posts or post new topics. Click on "How to Use This Forum" for simple instructions on how to get on board. NB: Please do not use your real name or email address as your screen name - if you do it will be changed to something less insecure.

Avatar

Please consider registering
Guest

Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

Register Lost password?
sp_Feed sp_PrintTopic sp_TopicIcon
Vertically integrated strata management companies
Avatar
LKY
FlatChatter
Members
Forum Posts: 11
Member Since:
27/07/2015
sp_UserOfflineSmall Offline
1
03/07/2018 - 1:05 pm
sp_Permalink sp_Print sp_EditHistory

As far as possible strata committees / strata owners MUST avoid taking same strata management’s sister company for building management as strata owners can get caught in a coordinated pincer move, so much so they may act as if they own the strata property.

Even in the banks Chinese walls are not respected ( as they used to in 1980s & 1990s ) ; so what can you expect with a strata management company? 

I tell you how it happened in our own strata. Let’s say a strata management company SMX also owns a building management company (let’s call it BMY). Both SMX and BMY got sweetheart deals with SMX getting a 3 year deal with guaranteed 5% annual fee increase and their sister BMY getting a 5 year deal.

As the end of  5 years approached, we got a lawyer’s opinion and made SMX issue a termination letter to their sister company BMY. Then after a few weeks we wanted SMX to invite new building management bids from pre-identified new companies excluding BMY.

Now SMX wrote to us saying termination of the BMY contract requires AGM approval and then only we can invite new bids for the building management contracts. This was a delaying tactic to cause us maximum inconvenience.

We stood firm, said there is need for AGM approval for appointment of new strata management company, but not for termination of a building management company, at the end of a contract as per its terms earlier approved at an AGM.

SMX finally had to fall in line.

This is what you can face when your strata manager and building manager are both owned by one apex group company.

So beware of vertically integrated companies in strata land. You can be buying trouble.

This post was edited for clarity and legal reasons – JimmyT

Forum Timezone: Australia/Sydney

Most Users Ever Online: 518

Currently Online: maryjane
30 Guest(s)

Currently Browsing this Page:
1 Guest(s)

Top Posters:

Whale: 1584

kiwipaul: 584

struggler: 458

Austman: 340

Millie: 211

Billen Ben: 205

Cosmo: 193

considerate band fair: 160

Boronia: 141

FlatChatFan: 140

Newest Members:

magdisaad

Datolite

brookx777

brookx

prahran

jametown03

sandwill

joimik

EmmaFisher

bokay

Forum Stats:

Groups: 3

Forums: 40

Topics: 4844

Posts: 23108

 

Member Stats:

Guest Posters: 243

Members: 5544

Moderators: 6

Admins: 1

Administrators: JimmyT

Moderators: Sir Humphrey, scotlandx, Christopher Jones, Lady Penelope, Stratabox.com.au, Jimmy-T