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04/01/2014 at 10:12 am #9286
Hi all,
Our Strata Manager has placed a motion on our AGM agenda, the motion is for the Owners to terminate them, and we may do prior to the AGM.
Can a Manager requisition a motion? or is the out of order?
Thank you.
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04/01/2014 at 12:19 pm #20530
yes a SM can put a motion to the AGM
In our complex most of the motions are from the SM, Admin fund, sinking fund, approval of last years agenda, etc.
But why is the SM putting a motion to terminate their services, all he has to do is give notice that his service is not going to be renewed when current contract expires or he gives the required notice.
04/01/2014 at 3:16 pm #20533Long story but in a nutshell some Owners want them gone as they have done wrong by the Owners Corporation but the majority wants to keep them as the wrong doing favored the majority.
I suppose they are trying to prove a point that they win, and the minority are going to be in trouble moving forward.
The minority are in the process of convincing the majority it would be in the best interest to remove them as Strata Managers, we will see how we go.
04/01/2014 at 3:19 pm #20535Thank you very much again for your reply….
@kiwipaul said:
yes a SM can put a motion to the AGMIn our complex most of the motions are from the SM, Admin fund, sinking fund, approval of last years agenda, etc.
But why is the SM putting a motion to terminate their services, all he has to do is give notice that his service is not going to be renewed when current contract expires or he gives the required notice.
04/01/2014 at 3:34 pm #20537Over it —- I agree with KWP’s comments, but in NSW what your Strata Manager has done is only legal if the functions of the Executive Committee Secretary have been delegated to them in the Strata Management Agency Agreement that they hold with the Owners Corporation.
You need to check that.
Remember also that in NSW that Agreement can only be terminated without the prescribed notice (usually 3 months prior to its expiry date) by the mutual agreement of the parties as resolved by way of a simple majority vote taken at General Meeting of the Owners Corporation, and that votes on that Motion by proxy must include the proxy-givers’ specific instructions as opposed to the usual authority for the proxy-holder to simply vote on all Motions as they see fit.
04/01/2014 at 7:35 pm #20539Thank you will check the contract but I believe no that those duties are not delegated.
05/01/2014 at 9:06 am #20540@OverIt said:
Thank you will check the contract but I believe no that those duties are not delegated.That surprises me because who creates the admin fund budget / sinking fund budget the EC?? that you vote on at the AGM.
Does the EC formulate the agenda for the AGM and then send it to the SM for distribution, if so why bother having a SM when the EC is doing the SM job.
In most situations the SM creates the Agenda for the AGM covering all the basic requirements of the act and adds any motions that the owners or EC submit for inclusion.
05/01/2014 at 12:33 pm #20544@kiwipaul said:
@OverIt said:
Thank you will check the contract but I believe no that those duties are not delegated.That surprises me because who creates the admin fund budget / sinking fund budget the EC?? that you vote on at the AGM.
Does the EC formulate the agenda for the AGM and then send it to the SM for distribution, if so why bother having a SM when the EC is doing the SM job.
In most situations the SM creates the Agenda for the AGM covering all the basic requirements of the act and adds any motions that the owners or EC submit for inclusion.
The last scenario is pretty much what happens in buildings where there is an active EC, but that doesn’t mean the strata manager decides what’s in the budget or agenda. There are certain statutory requirements that the strata manager must either fulfill or insist that the EC does so. One of these requirements is the inclusion of any motion submitted by an owner prior to the agenda being distributed. In that respect alone, you can see that the strata manager does not set the agenda.
The strata manager also assists in the formulation of the budget – again with an eye on statutory requirements – but does not decide what the budget is or what the levies required will be.
The relationship between the strata manager, especially in larger buildings with active ECs, is not necessarily ‘either or’ and in fact is more likely to be the two working in conjunction to get what the EC wants and what the legislation requires.
But to reiterate what has been said earlier, the strata manager does or should do what the owners corp and EC want and not the other way round. And even in those fairly common situations where the Strata Manager has been given delegated powers, the Owners Corp or EC can over-ride their decisions.
So, the strata manager may help formulate, type, print and distribute the agenda and budget for the AGM but that is only with the tacit agreement of the EC’s secretary and treasurer, respectively.
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.
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