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Topic
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I have an issue with my strata manager not doing its job – ie lack of repairs, poor communication etc. I live in a strata complex of 3 units, each holding more than 25% entitlements. I want the strata manager terminated. Other 2 owners are not cooperating.
Each time I call the NSW Fair Trading, I get a different response. I was told to convene a an EGM, and that:
- Considering I hold more than 25% of unit entitlements, I can call an EGM myself.
- I only need to send a Notice of an EGM to the owners 7 days in advance.
- I don’t need to notify the Strata Manager.
- Anyone in attendance can chair an EGM.
- To pass a motion, I need more than 50% of votes in attendance or via proxy.
- If no one except me attends or sends in a proxy, I can pass a motion on my own, considering I have more than 25% of the units entitlements.
It would be appreciated if any of the strata gurus could advise if the above EGM procedure is correct? I would not want for other owners/strata manager to road block me using some technicalities.
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Replies
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sb – in response to your questions:
1. Considering I hold more than 25% of unit entitlements, I can call an EGM myself.
With 25% of the unit entitlements you can certainly “requisition” a Member of the Executive Committee (usually the Secretary) to convene an Extraordinary General Meeting (EGM), but unless you’re a Member of the Executive Committee you can’t convene that Meeting yourself, although the Secretary or a Member is required to do so “as soon as practicable” after receiving a written “requisition” to do so.
2. I only need to send a Notice of an EGM to the owners 7 days in advance.
Strictly speaking it’s the Secretary’s role to provide the Notice but there’s nothing that I’m aware of that would prevent you from doing it.
3. I don’t need to notify the Strata Manager.
Other than for reasons of courtesy, and particularly if the role of Secretary has been delegated to the Strata Manager.
4. Anyone in attendance can chair an EGM.
Provided the Chairperson is not in attendance, Correct
5. To pass a motion, I need more than 50% of votes in attendance or via proxy.
For simple resolutions such as one to terminate the Agency Agreement with the Strata Manager, Correct.
6. If no one except me attends or sends in a proxy, I can pass a motion on my own, considering I have more than 25% of the units entitlements.
At the time that the EGM is convened NO, because if the application of the 25% rule results in a quorum requirement of less than two persons, then the quorum requirement prescribed in the Act is two persons who are entitled to vote.
So if you’re the only person in attendance (incl. by proxy) then you’d have resolve to adjourn the EGM, to minute that, and to then re-convene the Meeting a minimum 7 days later after providing all Owners with at least 1 days notice.
A few words of caution though – make sure you’re aware of and follow all the termination provisions of the Agency Agreement with the current Strata Manager that, among other things, typically requires the Owners Corporation to provide 3 months written notice of termination, and that you have another Strata Manager who’s ready and able to take over the management of your Plan.
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