tracer

Mucho thanks for your comments, kiwipaul. Although we didn’t ourselves do the installations we have documents to prove the installations were fully compliant with the relevant bylaw (including council permission and a structural engineer’s report), and had OC approval.

Which begs the question – how can subsequent owners be held solely responsible for possible consequences from approved works 20 years + later?

Thanks Whale for your comprehensive and insightful comments. Will be following up your suggestions in the coming week.

There is no record of any OC consent for any of the illegal works, but will try to obtain written confirmation of this.

Find it incongruous that individual owners cannot be held financially liable for ‘making good’ unapproved major alterations to / or removal of common property within their units but the OC can.

Ironically there is a suggestion that the sliding doors / windows may no longer be considered common property if the balcony is already fully enclosed. Isn’t strata confusing?

Thanks again for your helpful advice.

@Whale said:
Tracer – as others have said, a Special Resolution is not be required in order for the Owners Corporation (O/C) to vote on painting of the Common Property, but if your Executive Committee (E/C) is as you advised proposing “silver metal sculptures, signage, tiling” and those items are not there now, then they’re considered additions and /or alterations and/or new structures on the Common Property, and the O/C does need to vote on those by way of the Special Resolution as proposed [NSW Strata Schemes Management Act (SCMA); Cl.65A].

So you have a few options:

• Obviously the paint’s existing, and if everything else now proposed to be updated (i.e. sculptures et al) is just replacing something existing at the same locations, then a vote by a simple majority can decide whether the Motion is passed or defeated.
• If the sculptures etc are additions to what’s there now, or in different locations, then a vote by >25% of those in attendance at the Meeting, both personally and by proxy, can defeat the Special Resolution Motion or amend it to any extent that does not alter the intent of what’s proposed – and as that’s for the O/C to comply with its obligation to “properly maintain its Common Property” (SCMA; Cl.62), the intent’s pretty broad and there’s therefore ample scope for complying amendments!
• If like-minded Owners want to take a more moderate approach than to defeat the Motion (as you suggest), then consider it as put (i.e. as a Special Resolution) and >25% of those could then vote to defer any decision at all until such time as the E/C comes back with more details, obtains additional quotations, or as you suggest simply gives Owners some time to receive and contemplate the detail of the information that’s intended to be provided at the Meeting. Bear in mind of course that another General Meeting will need to convened to make a decision once everyone’s contemplated and had their input.

Lastly, if your Plan has >100 Lots and the expenditure proposed under the Motion exceeds $30,000 then a minimum two (2) quotations is mandatory under the Regulation (2010) to the SCMA, and, if you want to achieve your desired outcome then you’ll need to do some lobbying between now and the Meeting to get ≥25% on-side; that’s calculated by unit entitlement by the way, not by Lot ownership.

Thanks for your advice Whale etall – very frustrating when an EC behaves more like a secret society or tribal elite than an aware and reasonable group of owners. If you are fortunate enough to have a sensible and responsible EC, they are gold!

@JimmyT said:
OK, that settles it.  I am forming a Strata Swat Team.  We will descend upon dysfunctional ECs, crashing through the windows on abseiling ropes, if need be ready to dispense instant strata karma to the backsliders, nest-featherers, prevaricators, procrastinators and preposterous, posturing petty potentates that blight the bottom tier of democracy in this country.

We’ll issue sheaves of Notices to Comply, arrange EGMs at which all the baddies will be de-elected, clamp a few cars (just for fun) and then roar away on our StratMobile, leaving only a massive special levy which will be required to pay our extortionate fees.

Any takers?

This is a profoundly excellent idea! Our very own StratSwat team!! Let’s gather our mallets and get to it!!

@kiwipaul said:

@tracer said:
I intend placing a motion on our AGM agenda to deal with conflict of interest issues but not sure how to phrase it.

I regret to say the NSW Strata act dosn’t address the confilict of interest issue and so you have to rely on the honesty of the individuals concerned as you cannot legally stop them voting for their own motions concerning anything.

You might be able to introduce a bylaw that addresses this issue but to get it approved you would need a 75% vote in favour of the new bylaw passed at the AGM and then registered with NSW gov.

Thanks for this, kiwipaul. Realise the NSW Strata Act is mute on this issue however intend to submit a motion on the AGM agenda so owners may have the opportunity to air their views. Probably won’t get up however may prompt the EC to put some controls in place (wishful thinking). Our EC pretty well does what it likes (strata laws or not).

Whale – this is fine if you have the processes in place to keep things above board.

The trouble with our place is there are no processes (other than the parties not voting);  remaining EC members vote as one on these contracts; some owners feel they are being taken for a ride; and the work undertaken is not done in a timely or professional manner.

I intend placing a motion on our AGM agenda to deal with conflict of interest issues but not sure how to phrase it.

Peter C – Thanks for your views, which I shared until recently. Their quotes for specific contracts are regularly 10% cheaper than others obtained – however the rate charged for ongoing maintenance work and small jobs is significantly higher than previously.

I was interested to see that the Owners Corporation Network’s position on financial conflicts of interest is definite – people should neither nominate nor sit on a committee if they have a direct financial interest in any decisions. Abstaining from voting is immaterial as they would be privy to other quotes etc. The particular people involved have always had the last crack at quotations.

How do other Owners Corporations handle conflicts of interest issues?

Thanks for this, Jimmy T – will be following your guidelines. What is it with NSW?