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Hi all,
We have had this apartment for 8 years, but have only recently decided to move into it. During these 8 years, there is a couple who runs the place and basically what they say , goes. No one questions it . They have been there the longest.
In the past few years, we noted that repairs were not being done or being done very cheaply. The wife is the Chairperson. She has total control . Tradespeople are given instructions that they are not to talk to anyone except her. A lot of disturbing discrepancies have occurred.
We are having our AGM. I am on the Committee and have started to ask lots of questions. We have been sent the financial statements, which just categorises expenses. I have requested the invoices. The Strata Manager sent some but said that if I want all of them , we will be charged for the time taken.
I dont know what I can or cannot request without rocking the boat. Are we supposed to accept the amounts in the Financial statement without knowing what they individually consisted of ? We do not have a Treasurer or Secretary. Is the Chairperson supposed to check the amounts? If there are no check measures, then there is no transparency and scope for fraud.
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The word “must” doesn’t appear in strata law often enough for my tastes, but it does turn up in section 107 of the Victorian Owners Corporation Act (below) saying that the strata committee must appoint a secretary.
If I were you, I would nominate myself for the role secretary, assuming you are elected on to the committee at the AGM (and you might want to keep this plan under your hat until the first commitee meeting after the AGM). FYI: In Victoria and NSW, the office-bearers are elected by the committee, not the whole ownership at the AGM.
That will give you a level of oversight and control without having to challenge every decision just to find out what’s going on. Tread lightly, though. If the chair sees this as a challenge, she might wrangle the votes to elect herself in both roles.
The role of secretary in a strata committee is potentially the most powerful if the incumbent chooses it to be. He or she calls the meetings, sets the agendas and issues the minutes, as defined by the Act.
Regarding the strata manager charges, it depends very much of the kind of contract you have with the SM. If it’s a more expensive “all-in” contract, where you pay a fee for complete service, then the strata manager is not really being reasonable. If it’s a cheaper (up front, at least) “Schedule B” contract, where the strata manager can charge for every letter opened and phone call made or received, then you are stuck with that until the contract runs out.
107. Secretary of committee
The members of the committee must appoint a member of the committee to be the secretary of the committee.NB: This post was originally answered under the mistaken assumption that “Getting There” was in NSW – now corrected.
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.
Im not over-awed by any of the top 3 roles: chairman, secretary or treasurer. Those 3 roles no longer have the sway that they did in years back before it became necessary to have a paid and professional manager. But they need to be locally filled and they and your committee (most are large enough complexes to require a set number) make the decisions on the ground and instruct the hands-on guys to initiate things. But they are not a law unto them self so can certainly be challenged or inspired to take on board what other owners prefer.
It is good that some folks get underway and keep some control and it can be good and efficient when you have a good servant in place, but a pain when the opposite. Get to know the local state legislation and know your bylaws to use that to your advantage, as well as stay in friendly contact with your professional manager who should give you unbiased guidance beyond the assumptions your current chairman’s may have.
You as do other owners have full access to your records but typically need to pay a fee to the professional manager to see these at there premises, as well as pay per page to get copies.
Flame Tree wrote:
You as do other owners have full access to your records but typically need to pay a fee to the professional manager to see these at there premises, as well as pay per page to get copies.
Which why I suggested Getting There becomes an officer – then they won’t have to pay and scrutinising receipts will be part of their role, rather than seen as almost an accusation of some wrongdoing.
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.
It’s part of the reason why having a few involved and keeping things in check is important. Sometimes the chief, as in your building, finds it easier to do most things themself esp when other committee members are not trusted/capable or apply themself, but when they make mistakes these can get through. I suggest getting to know your state’s legislation and bylaws so you can raise your concerns and back this up by quoting legislation which folks will want to know their committee and members are adherring to, and that alone can help right the ship.
I’m not convinced that needing to be on the executive is always necessary, esp if you don’t think you are up for the effort to get things corrected over the year you will be volunteering for. If you are: great, but you are on your committee already, but if you choose not to and can’t get them to act friendly in this regard act in your own best interest, even better if you can get others concerned as you are to help carry the load.
This is an area where your diplomatic skills are more important that your accounting abilities. Your biggest challenge is going to be getting the Chair to relinquish some of her power – after that it’s not vital for you to examine the books forensically – just let it be known that there are checks and balances.
Regarding Flame Tree’s comments about being aware of your state’s strata laws, one of them, as mentioned above, is that the committee must appoint a secretary. That is your pathway into oversight.
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.
On a technical note for Victoria, I note that each time my committees are elected (at each AGM) there is another motion that delegates the functions and duties of the secretary to the strata manager. That’s in the rest of s.107:
107 Secretary of committee The members of the committee must appoint a member of the committee or the manager of the owners corporation to be the secretary of the committee.
It seems that many strata managers in Victoria prefer it that way.
So Victorian strata committees, at least in my experience, where a strata manager exists, tend to be comprised of the chairperson and the rest of the committee.
The committee chairperson technically doesn’t have that much more authority than other committee members. They can also call meetings and have a casting vote but that’s about it. In reality however, they tend to be the main point of contact for the OC and are the main interface to the manager.
I would first inspect the strata records, that should be held by the manager and establish the facts.
S.146 of the OC Act gives you that right, free of charge (to you).
Ive got a similar situation, (QLD)
the yearly budget for our sinking fund just states $5000 – spent on maintance and repairs
we havent done anything to the building that would warrent $5000 from the sinking fund
we replaced some garden lights and adding a timming meter
we spent $3000 on baiting rats and plumming costs as an owner had rats in her toilet (I know!) but that would not be a sinking fund cost surely ?
whilst I dont think there any thing “dodgy” going on I suspect that some of the sinking fund budget might be getting used to pay for things that should come from the administration fund in order to keep body corp fees down
we have a group of penny pinching oldies that dont want to replace anything or improve the building (ie replace fence, replace carpets, paint)
they want to keep fees low – at the expense of not spending anything on the buidling
so my first question
so its normal not to get a detailed record of expenses ?
and as an owener/committee members I have to pay to search the records ?
also
at the very least shoudn’t BC fees increase with inflation each year ?
what that best way to proceed without getting people offside ?
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