the OC doesn’t have the power to set levies (they can call a meeting for owners to set them, which didn’t happen), and therefore by extension, neither does the compulsory SM.
This is simply notthe case. Under normal circumstances it is the OC (Owners Corporation) that sets the levies. The OC is all the owners acting as as a group.
Also you shouldn’t be using one set of circumstances to apply to completely different ones – strata doesn’t work like that. The idea that a compulsorily appointed strata manager can’t set the levies is ludicrous. How else are they going to fix things in an dysfunctional building if they can’t set proper levies?
It depends on the specific terms of the appointment, but in most cases that defaults to the SM taking over all functions of the OC. Just to be clear, compulsory strata managers aren’t appointed to take over from the Strata Committee (SC) alone – they take over from the Owners Corporation of which the SC is (or should be) merely an adjunct.