This topic contains 5 replies, has 3 voices, and was last updated by Jimmy-T 07/09/2019 at 6:05 pm.

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  • #41888
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    TrulEConcerned
    Flatchatter

    Good morning all,

    I am unsure if this is the right place for my query, but here goes.

    We received the agenda for the upcoming AGM (strata) but there is no mention of who is in arrears in his/her levies and to what extent. There is in short, no Lot Balance Report. Odd to say the least as this is the only strata I am involved with that the SC refuses to publish a lot balance report.

    Previously when I asked for this I was told “due to privacy concerns the SC/agent cannot reveal this information”, I replied that “that is a lie, all owners are entitled to know if others are tardy with their payments”. I have as yet not taken the matter further.

    Assuming the SC/agent does not supply the arrears information before the AGM takes place, what are my rights?

    Please advise.

    #41904
    Jimmy-T
    Jimmy-T
    Keymaster

    Items 8,9 and 10 of Schedule 1 of the strata Act cover this in different ways.

    8 Matters that must be included in notice of general meetings

    (1) The following matters must be included in, or accompany, the notice given of all general meetings:

    (f) a statement that an unfinancial owner, mortgagee or covenant chargee cannot vote at a meeting on a motion (other than a motion requiring a unanimous resolution) unless payment has been made before the meeting of all contributions levied on the owner, and any other amounts recoverable from the owner, in relation to the lot,

    9 Additional matters to be included in notice of AGM

    The following matters must also be included in, or accompany, the notice given of annual general meetings:

    (a) a copy of the last statements of key financial information for the administrative fund, the capital works fund and any other fund prepared by the owners corporation and any relevant auditor’s report,

    and

    (h) a form of motion to decide how to deal with any overdue contributions payable to the owners corporation,

    10 Financial statements to be provided on request

    (1) The owners corporation must, at the request of an owner or a mortgagee or covenant chargee of a lot, give to the owner, mortgagee or covenant chargee a copy of the last financial statements prepared for the administrative fund, the capital works fund and any other fund of the owners corporation by the owners corporation at least 2 days before the meeting at which the statements are to be presented.

    (2) This Schedule does not prevent the owners corporation from determining that a copy of the last financial statements prepared for the administrative fund, the capital works fund or other fund is to be included in, or to accompany, the notice of an annual general meeting.

    But apart from all that, as a contributing member of the Owners Corporation, you are entitled to see any correspondence or documentation that affects you, directly or indirectly.

    Even legal decisions invoving the strata scheme  that have been “sealed” from public view have to be made available to lot owners because they are party to the legal action and aren’t merely members of the public.

    #41909
    Avatar
    kaindub
    Flatchatter

    I’m not aware that the OC needs to provide the arrears list with the AGM notice.

    You have two options

    1. Ask to inspect the strata records. Strata records are never subject to privacy exemptions ans as an owner you are entitled to see any strata record .

    2. At the AGM you just ask the chairman who is entitled to vote. The chairman or the SM has to have this information available since any owner who is unfinancial is unable to vote.

    What you need to ensure in your strata is that the SM is applying the late payment interest charge to all levies not paid within 30 days of them being due and that your strata has a documented process of bringing in late levies. This should be a motion voted on at an AGM.

    Then let the SM or committee deal with the late payers.

    Remember there is no penalty to you for the late payers, and unless your strata is dealing hand to mouth with money, your strata should be able to carry the late payments till they are recovered.

    #41927
    Avatar
    TrulEConcerned
    Flatchatter
    Chat-starter

    Thanks. for your replies. To clarify: the strata mgr provided a financial report that would be marked with an “F” if submitted by a first semester first year accounting student. The financial statement mentions: Levies Due – Admin and Levies Due – Capital. As you’ll agree, such numbers are meaningless. What owners need to know is how much of the levies were actually paid and not how much is due (which is what the SC has supplied).

    #41929
    Avatar
    TrulEConcerned
    Flatchatter
    Chat-starter

    Hi Jimmy,

    My comments are in CAPITAL LETTERS in reply to your posting:
    8 Matters that must be included in notice of general meetings

    (1) The following matters must be included in, or accompany, the notice given of all general meetings:

    (f) a statement that an unfinancial owner, mortgagee or covenant chargee cannot vote at a meeting on a motion (other than a motion requiring a unanimous resolution) unless payment has been made before the meeting of all contributions levied on the owner, and any other amounts recoverable from the owner, in relation to the lot,

    THIS CLAUSE IS INCLUDED IN THE AGENDA, BUT NO MENTION IS MADE IF ANYONE IS UNFINANCIAL

    9 Additional matters to be included in notice of AGM
    The following matters must also be included in, or accompany, the notice given of annual general meetings:

    (a) a copy of the last statements of key financial information for the administrative fund, the capital works fund and any other fund prepared by the owners corporation and any relevant auditor’s report,

    WHO DEFINES “KEY”. FOR ME THE CASH RCPTS JOURNAL IS “KEY”, BUT MAYBE NOT TO OTHERS. THE ACCOUNTS SENT TO OWNERS LIST ACTUAL EXPENSES BUT LIST ONLY LEVIES DUE, NOT RCVD. YOU WOULD AGREE THAT WHAT IS “DUE” IS IMMATERIAL. WHAT HAS BEEN PAID BY OWNERS OR “RCVD” BY THE STRATA IS IMPORTANT.

    and

    (h) a form of motion to decide how to deal with any overdue contributions payable to the owners corporation, THIS IS MENTIONED

    10 Financial statements to be provided on request

    (1) The owners corporation must, at the request of an owner or a mortgagee or covenant chargee of a lot, give to the owner, mortgagee or covenant chargee a copy of the last financial statements prepared for the administrative fund, the capital works fund and any other fund of the owners corporation by the owners corporation at least 2 days before the meeting at which the statements are to be presented.

    DOES THIS INCLUDE ALL STATEMENTS? I ASK BECAUSE IT WAS MADE CLEAR THAT SC MEMBERS RCV MORE DETAILED FINANCIAL REPORTS, AND ON A REGULAR BASIS, THAN THE RIFF RAFF LIKE ME WHO IS NOT ON THE SC. CAN I ASK FOR SAY THE CASH RCPTS JOURNAL AND THE LOT BALANCE JOURNAL (WHICH SHOULD HAVE ALL LOT OWNERS LISTED WITH THEIR PMT HISTORIES)?

    (2) This Schedule does not prevent the owners corporation from determining that a copy of the last financial statements prepared for the administrative fund, the capital works fund or other fund is to be included in, or to accompany, the notice of an annual general meeting.

    But apart from all that, as a contributing member of the Owners Corporation, you are entitled to see any correspondence or documentation that affects you, directly or indirectly.

    PREVIOUSLY I RCVD ACCESS TO THE BOOKS AT A COST OF SOME $55

    Even legal decisions invoving the strata scheme  that have been “sealed” from public view have to be made available to lot owners because they are party to the legal action and aren’t merely members of the public.

    • This reply was modified 2 weeks ago by Jimmy-T.
    #41931
    Avatar
    TrulEConcerned
    Flatchatter
    Chat-starter

    Hey Kaindub,

    Are you saying that in order to get meaningful information I must pay the managing agent to access the records? I was forced to do this last year and the exercise cost me north of $55. Why can’t the SC or the agent be made to comply with providing me with MEANINGFUL data in the financial statements?

    Your suggestion to ask the chairman is a non starter. He is old and has no interest in strata matters and is Chair because it suits the other members of the SC. He would not know who is and who is not financial and would direct me to ask the Tsr, the Sec or the agnt.

    The idea of a late pmt fee is not a starter in my strata plan as it is a small plan and the SC harness the votes of all their mates, even the unfinancial UNLESS their mate(s) can be shown to be unfinancial. There were occasions where only when I queried again and again an owner’s levy pmts did the SC not count an owner’s vote.

    #42398
    Avatar
    TrulEConcerned
    Flatchatter
    Chat-starter

    Hi all,

    I was rereading the AGM paperwork and see that its financial accounts list:

    income and

    expenses

    The ACTUAL expenses for the year are mentioned, but not the ACTUAL levies paid. Instead it mentions DUE levies (i.e. the levies that were struck at the previous AGM). As a first year accounting student knows, the absence of ACTUAL figures renders the accounts as meaningless.

    Other than me going to inspect the books at the managing agent’s office and paying a fee, can I instead  ask her to email me or bring to the meeting evidence of levy payments made? For instance, a bank statement of the trust a/c?

    Please advise. Thank you!

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