Flat Chat Forum Company Title Current Page

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  • #39360
    AvatarLittle Manly NSW
    Flatchatter

    Did try to find answers in FlatChat maze but am FlatChat virgin so apologies if I’ve missed this somewhere else . . . does ‘Strata Schemes Management Regulation Schedule 2 Bylaws for pre-1996 strata schemes’ (verbatim from letter uploaded to company website so can only assume Reg made under Strata Schemes Management Act NSW 2015) apply to company title buildings?

    Since early 1990s have been only owner/occupier of unit in company title block of six.  All OK until four of six units inherited/bought by husband/wife who no  longer consult or even communicate with us two owners (eg change from individual to communal bins decided by two majority shareholders alone—fait accompli only discovered by accident when I rang Council about new bin collection).

    Am now being threatened with bylaw breach and $2200 fine under this Reg because I had temerity to swap (for various reasons, mostly to do with my safety) parking space with another resident without committee approval. Other resident was happy to do so, no-one else affected.

    Did not believe I needed committee permission since majority shareholders did not object when I previously obliged another resident (majority shareholders’ daughter!) by swapping car spaces with her so she could more easily wrangle small child from her car.

    Directors/Committee (ie two majority shareholders, despite Articles of Association stating that company must have one director from each unit) and managing agent have repeatedly ignored formal requests for copies of bylaws but I doubt they exist: in almost 30 years, have neither discussed nor been advised of any (much less to do with parking) and nothing on ‘Bylaws’ section of company website on stratamanageit.com.au.

    Finally, have significant concerns about governance so also would like to know: Is individual membership of Owners Corporation Network worthwhile for company title issues? (Believe I will need to network to find specialist company title lawyer soon: oppression finally getting to me.)

    • This topic was modified 1 year, 4 months ago by .
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  • #39853
    AvatarLittle Manly NSW
    Flatchatter
    Chat-starter

    thanks indeed for sound advice . . .

    #39506
    AvatarSujenna
    Flatchatter

    Your Articles of Association cover the rules to abide by in Corporations Law. Often these are old and never updated since the incorporation of the company (sometimes 50 years ago). Some older style units (in Sydney they are often around the expensive waterfront suburbs like Manly and Fairlight) are still company title.  As I recall from my university days there is a section in corporations law under oppression of the minority by a majority of shareholders which is what it sounds like with 4/6 of the units being owned by one couple.

    Your Articles should stipulate the quorum required for Directors meetings of which you are entitled to stand for election to be voted onto the board. The couple who own the four units should not be the chairman, director, secretary etc to the exclusion of the two others, as this creates an oppression of the minority. An annual general meeting should be held each year, with minutes taken and an agenda created beforehand with issues for discussion and voting. If the meetings are not being held in accordance with company law, then an application to the Supreme Court may be the only avenue. You would need to see a specialist lawyer in company title law for advice. The Local Court was, I believe, given some jurisdiction recently in some issues to do with disagreements between residents in company title unit blocks.The Chamber Magistrate at Manly Local court may be able to give you some preliminary advice free of charge, or the community aid centre in Wentworth Street used to provide free legal advice some evenings. I found it easier to sell up and move into a strata unit block to escape from my unconscionable neighbors in Fairlight.

    #39411
    Jimmy-TJimmy-T
    Keymaster

    Having said that, if your building’s board adopted the strata by-laws as your by-laws, then they would apply.

    Are parking spaces common (company) property?  This all seems very strange and the threat seems very petty.  Seek advice.

    #39372
    Jimmy-TJimmy-T
    Keymaster

    Company Title comes under company law and has nothing to do with strata law.

    I strongly recommend that you contact one of our sponsors, Strata Answers, for initial advice and another, Sachs Gerace Broome, for legal advice if required.

    Just be aware that company title issues have to be run in the Supreme Court (and I think any fines might have to be pursued there too).

     

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