• Creator
  • #44757

    For NSW units:

    The AGM Notice contains 2 motions regarding strata management agreements. The 1st relates to renewal of the current strata mgr’s agreement. The 2nd relates to the OC entering into an agreement with a new strata mgr. Both motions state that the strata com be authorised to sign these agreements on behalf of the OC which we think is usual.
    However, the problem is that neither of the proposed new agreements are attached to the AGM Notice. We’ve been told in the past that proposed agreements should be attached for all owners to read before the AGM. Under the SSM Act 2015 does that still apply?
    Frankly, unless  owners read an agreement before accepting it they won’t know what services the strata mgr will and won’t provide nor what their fees are. Secondly, how can owners authorise the strata com to sign something owners haven’t read?  Are these two motions invalid?
    Furthermore, the current strata com have breached several laws and by-laws for their own benefit so who would trust them to decide the terms and conditions of such an important agreement.
    If we email the strata mgr and ask that the 2 proposed agreements be sent to all owners urgently, can he/she refuse to do so?
    Does NCAT have jurisdiction to order a strata mgr to send owners copies of the proposed agreements? If so, could NCAT deal with such an application urgently?

Viewing 2 replies - 1 through 2 (of 2 total)
  • Author
  • #48194
    (from NSW)

    Same thing happened at our last AGM, only a few owners received the new agreement. Luckily, those that didn’t spoke up and the SM was smart enough not to push it further and withdrew the motion. It was still 5 months until contract end, so I guess he was trying to see if he could push it through with little examination. 2 months later and some owners have still not received it. I think his days are numbered just like Dru’s experience above.


    Our owners corporation in NSW also had the same problem with our former strata manager. A few owners checked with their own solicitors about the fact that the new strata management agreement was not attached to the Notice of AGM. They all said that it must be attached and that every owner had the right to seek advice from their own solicitor about the clauses in the agreement. Based on their solicitors’ advice Owners also had the right to ask the strata committee to renegotiate any undesirable provisions before the AGM. One solicitor went so far as to say that because the agreement was not attached to the notice, that the motion was invalid. He also said that any strata managers and strata committees who did not attach the agreement to the notice was treating owners as idiots and they should be sacked. He wrote a letter to the strata manager who then cancelled the AGM and served a new notice of AGM attaching the agreement. Nevertheless owners decided to appoint a different strata manager because it was felt the existing one was not trustworthy.

    • Opinions from other solicitors on this issue would be very valuable in order prevent other owners corporations being in the same position.


Viewing 2 replies - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.