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  • #7602
    imported_dech
    Blocked

         Our E.C. has routinely altered common property using O. C. funds without approval of a special resolution at a General meeting.  With a view to getting some attention from the docile members among the owners is it reasonable and non-defamatory to refer to this as mis-appropriation of funds?

         An addition question is – could the secretary refuse to include an agenda item for the AGM to the effect that EC nominees should demonstrate that they understand at least three of the basic functions/limitations of an EC – and three be included on the agenda e.g.

      1. Not alter common property under any circumstance nor be able to be delegated such a role.

      2. Arrange repair of common property in a timely manner without regard to whether they think it is worth repairing (a sole O.C. responsibility).

      3. Address all reports of breaches of the by-laws.  

    Viewing 13 replies - 1 through 13 (of 13 total)
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    • #13607
      QRH

        Hi Dech,

        I think it is a slightly “long bow” to be calling it “misappropriation”as your EC probably has the authority to spend money as it pleases without limitations.

        What you need to do is get a motion on the next agenda of a General Meeting to LIMIT their authority – if you and other owners think that is necessary.

        I would suggest that it is simply good strata politics to get a concensus when altering common property but I don’t think any such non-agreed changes amounts to misappropriation of funds…

        With respect to arranging repairs on common property, the strata shemes management act and regulations places an obligation upon an OC to do this.  IF they don’t, you should take them to the CTTT.

         

        Similarly, I think that they have an obligation to respond to correspondence to the EC – epseically if it relates to breahes of by-laws. again – if they fail – take them to the CTTT.

        #13615
        Billen Ben
        Flatchatter

          dech said:

            …… With a view to getting some attention from the docile members among the owners is it reasonable and non-defamatory to refer to this as mis-appropriation of funds?

             An addition question is – could the secretary refuse to include an agenda item for the AGM to the effect that EC nominees should demonstrate that they understand at least three of the basic functions/limitations of an EC ……

          FROM: https://www.legal-explanations.com/definitions/misappropriation.htm
          (n) Misappropriation is the wrong application or utilization of funds allocated for any specific purposes, by illegally diverting the money, forging the documents or otherwise misleading the beneficiaries and owners of the fund. Misappropriation is a felony crime punishable by imprisonment.

          In a cetrain context the term misappropriate is applicable but it is not a recommended term as people get a little touchy once such terms start getting thrown about. Perhaps using a phrase such as “wrong application or utilization of funds that were allocated for another specific purpose” is better wording; it means the same thing but does not compromise an individuals character as the harshness of saying misappropriate.

          Clause 36 of Schedule 2 of the SSMA relaters to requesting motions be put on an agenda.

          cl 36 (2)  The secretary must give effect to the requirement of the notice.

          In English; if you make a requisition for a motion to be included then the motion gets included – and i believe that means regardless of the content of the motion unless the motion has the potential to see the OC sued.

          If the motion has defects or issues then it becomes a matter for the Chair to deal with on the day of the meeting and it is would be up to the Chair of the meeting to determine if the motion gets put to the meeting.

          Our AGM agendas often get used as a opportunity to make a statement by people who include such motions as having a minutes silence for the apathetic who do not come to AGMs. Most of these “statement motions” are withdrawn when they come up but they get included because they are required to be included.

          The motion you elude to should be on the agenda if you request it but would be one that possibly should not be put to the meeting. The Act sets out the requirements to become an EC member and showing an understanding of any strata knowledge is not one of the requirements.

          I do not believe you could deny a person a nomination for an EC position, or an EC position, because they can't answer the “riddles three”.

          I would add to the above that no one should expect CTTT to put their house in order if things are not as they should be. I'm not saying do not use CTTT but if you do use CTTT then do not have any expectation of the Act being applied or an outcome that corrects poor management practices. CTTT are not the strata police.

          #13617
          Jimmy-T
          Keymaster

            Just a quick note on defamation … the exchange of information necessary for the proper operation of an owner’s corporation will allow a certain amount of ‘privilege’ under fair comment.  And letters written to the CTTT in support of one side of a case or another certainly come under that umbrella.

            However, if there is a clear perception of malice behind criticisms made in minutes, agendas, circulars and notices on your noticeboard … maybe a series of snide comments directed at an individual or a group of owners, for instance … your legal protection may fly out of the window, taking your EC members’ insurance cover with it.

            There is no Bill of Rights protecting freedom of speech in this country.  But there are laws protecting people from having their reputations unfairly damaged by negative comments made in public. All it takes is one owner with the resources and determination to object to the way they have been characterised and you could be entering an expensive world of pain.

            The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
            #13619
            struggler
            Flatchatter

              Our complex has set limits for spending money by the EC.  It allows the EC to do most works without having to get permission.  But larger projects need to be brought before the owners for their consideration.

              Has worked in that the smaller projects get attended to immediately.  However, the larger projects linger on and on as owners object to spending the money.

              If we had no limit, this place would be in better nick than it is.  But having no limit could prove a dangerous thing.  Limits are necessary.

              #13623
              imported_dech
              Blocked
              Chat-starter

                   

                    If I could meet Miss Appropriation maybe I'd stop worrying – but I'm more a Laura Norder guy – however thank you for the responses.  

                    If the Act exclusively requires the OC to alter common property then if some other entity – such as a dominant EC get their hands on the money then it smells a lot like theft; they might say that you would never get more than 25% to oppose even if they proposed building a landing site for aliens at great expense but this rules out the possibility that if reasonable objections are raised often enough a couple of investors could be aroused. 

                    If they spend say a thousand dollars on a nice garden Buddha statue one might not be overly concerned (except on principle) but a thousand dollars on say tearing up a garden because EC members don't like certain plants is a bit harder to stomach and on paper it could just appear as something innocuous sounding like “tidy garden at northern side” – which would be another breach – it's hardly a “detailed agenda” as required by the Act unless some indication of expenditure is included.

                #13630
                Billen Ben
                Flatchatter

                  dech said:

                     

                     …….. on paper it could just appear as something innocuous sounding like “tidy garden at northern side” – which would be another breach – it's hardly a “detailed agenda” as required by the Act unless some indication of expenditure is included.

                  Hi Dech,
                  “Detailed agenda”; what a concept.
                  My SP has for years (about 5) had agendas that are one word or two word items. Of course this is not a detailed agenda but it gets better.

                  The EC will have say 5 or 6, one or two word, items on the agenda and none of that will get dealt with at the meeting and instead 5 or 6 motions will get introduced and the first things owners know about anything is a set of EC minutes a week or so later; with a similar agenda for the next meeting. It has been going on for years.

                  It has all been to CTTT, twice, CTTT was sent 3 years worth of EC minutes as evidence and the end result was dismissal.

                  “Tidy garden at northern side”; that is 5 words and more detail than owners here get and it wouldn't matter if owners here did get 5 word agenda items because the agenda is not the business of the meeting in this SP.

                  The agenda for the next EC meeting here has 5 items; 3 are two word items, one is a 3 word item and the other is a 4 word item. None of that matters because you can bet your life there will be introduced matters. A recent meeting made 5 resolutions and not one was from an agenda item; the agenda might as well have been a blank piece of paper.

                  Send enough applications to CTTT and you will learn nobody at CTTT really cares about what is in the Act. Is your SP seriously dysfunctional is all that matters and not getting a detailed agenda and the EC blowing a few grand on self serving gardening are hardly matters that warrant action from our inept strata overlords.

                  #13669
                  bpositive
                  Flatchatter

                    Just thought I would enlighten everyone on this situation. Previous EC had full control and authority and no limits. They brought in a “Gardener Friend” and made him secretary.  Also since he is MR Gardener pays him $12000 for maintenance (where does this money go?). So essentially we have a superb well manicured garden in the northern side and a wild garden at the back. (this has been discussed before). It does not take an Einstein to guess where this Mr Gardener lives.  How do you prove that $12000 is not being spent appropriately? I offered several quotes which were several thousand dollars less but since these members have majority it always gets voted down. How one person can replace a team of 4 is beyond me? How do you prove such things?

                    #13671
                    Billen Ben
                    Flatchatter

                      Billen Ben said:

                      dech said:

                         

                         …….. on paper it could just appear as something innocuous sounding like “tidy garden at northern side” – which would be another breach – it's hardly a “detailed agenda” as required by the Act unless some indication of expenditure is included.

                      Hi Dech,
                      “Detailed agenda”; what a concept.
                      My SP has for years (about 5) had agendas that are one word or two word items. Of course this is not a detailed agenda but it gets better.

                      ……….
                      The agenda for the next EC meeting here has 5 items; 3 are two word items, one is a 3 word item and the other is a 4 word item. None of that matters because you can bet your life there will be introduced matters……

                       

                      Hi Dech,
                      Although this goes a little outside the garden issue and the apparent use of money by EC members to pursue what amounts to personal agendas i just though i would update you on the concept of a detailed agenda.

                      As i state above the next EC meeting here has 5 items blah blah blah.
                      The meeting has been held and there were 20 introduced motions and the 5 items on the agenda did not rate a mention. (and i can't get an order to correct this, CTTT just does not care about it)

                      If you get some innocuous sounding agenda item then think yourself lucky because at least there is a hint of what is going on.

                      #14864
                      FLOWERPOT MAN
                      Flatchatter

                        FROM: Billen Ben

                        (n) Misappropriation is the wrong application or utilization of funds allocated for any specific purposes, by illegally diverting the money, forging the documents or otherwise misleading the beneficiaries and owners of the fund. Misappropriation is a felony crime punishable by imprisonment.

                        The motion you elude to should be on the agenda if you request it but …. I'm not saying do not use CTTT but if you do use CTTT then do not have any expectation of the Act being applied or an outcome that corrects poor management practices.

                        Wha possible application can a five year old USA website referring to “felony crime” have in NSW strata admin.
                        If you are going to be picky with others it helps to be able to spell allude
                        Please explain this comment. If not the Act, what does the CTTT use as a basis for its decisions? Have you told them they are wrong and you know best?

                        #14868
                        Jimmy-T
                        Keymaster

                          FLOWERPOT MAN said:

                          Wha possible application can a five year old USA website referring to “felony crime” have in NSW strata admin.
                          If you are going to be picky with others it helps to be able to spell allude
                          Please explain this comment. If not the Act, what does the CTTT use as a basis for its decisions? Have you told them they are wrong and you know best?

                          And if you are going to get picky with other people’s spelling, I suggest you learn to spell ‘what’. By the way, journalists call this Muphry’s Law: Any attempt to correct a misspelling will itself contain another, often worse, literal error.

                          I don’t always agree with Billen Ben’s point of view – in fact,  I often don’t agree with him – but if you think the CTTT is a fair and logical arbiter of Strata law in this state then you are living in a fool’s paradise. Read some of the other posts on this website if you don’t believe me. Or perhaps, as he suggests elsewhere, you have benefitted from one of their bizarre decisions.

                          In any case, I will not allow this website to be used for personal sniping at this level – you are boring the rest of us.  Keep your internal issues to yourselves and try to deal with them internally where they will do some good, if not for you, for the others in your community. 

                          You have been amply warned and you are now banned from posting to the site for a month.  Back in the shed, Flowerpot Man.   And congratulations – you are the first person to be red-carded from Flat Chat.

                          The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
                          #14871
                          imported_dech
                          Blocked
                          Chat-starter

                            dech said:

                               Our E.C. has routinely altered common property using O. C. funds without approval of a special resolution ……

                            Not many good news stories appear on this site & this is a very partial one.  Not long after the visit to the CTTT the EC erected a notice board (not considered by the relevant body) and are now posting detailed agendas and have indicated that for a particular alteration a General meeting will be called.  The existence of the “special resolution” either eludes them or the fear that someone might manage to beat even their numerous proxies applies.  Not long after the CTTT visit they stopped all cleaning of common property even though two members of the OC had their properties on the market (neither has ever attended meetings or provided a proxy.  Finally one of the agents complained about the general filth and there is now a once monthly outside blowing.  The agent concerned said he couldn’t understand why the unit had not sold and clearly implied that rubbish strewn everywhere would not normally be a consideration for investors.  I’m sure he is correct but perhaps only after they have bought and believe that “other people” will keep everything in order.

                            #14873
                            Jimmy-T
                            Keymaster

                              dech said:

                              Not many good news stories appear on this site & this is a very partial one.

                              It's human nature, Dech.  People don't write in to say how happy they are. It's a shame we tend to hear only one side of the story … but nice to think people are too busy being happy.Laugh

                              The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
                              #14896
                              fchat56
                              Flatchatter

                                Hi,

                                 

                                Strata laws are deliberately vague and expect community to take

                                care of their own problems. In reality, it often does not work.

                                I have caught my managing agent and the ageing executive committee who wanted to push for telco’s mobile antennae installation on the building roof for about $80 per owner per year!? They did not even tell owners that any profit from common property has to be declared through individual tax. And they organized the design of the upgrade of the power supply to the complex before the voting happened (see document below).

                                They made every effort to deny wrongdoing. They refused to attend DFT mediation and the first CTTT case was cancelled by me only to be reinitiated (now pending) after I discovered other horrors.

                                One of the original CTTT complaints was that I provided too much information! They did not even read the statements.

                                 

                                If you want some details, you are welcome: [There was a link to a document here. I have reviewed this material and it contains some pretty serious allegations and enough details that, if pulled together, could lead to identification of the strata plan. I can't risk a defamation case so I have removed the link. If anyone wants to read the nine-page document, I'll pass your email address on to this correspondent -JT]

                                 

                                My complex has special by-law which allows the EC to spend 10% of

                                the sinking fund WITHOUT any approvals. I tried to overturn the

                                by-law and they refused to provide owners with the reasons for my

                                motion:

                                [Ditto]

                                They , without discussion and approval, introduced rebates for

                                gas and water for townhouse owners for many years (three members of

                                the committee live in townhouses).

                                 

                                What I have discovered equals to crime activities, and yet, I have

                                lot of slowdowns to bring justice.

                                 

                                So, I agree with the original statements displayed here.

                                 

                                Most of my friends said: give up but that is too easy. I am doing the opposite.

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