Changing Strata Agent

[eastside]

Our block of 12 units would like to try and change strata managing agent, and I need some advice.
The block consists mostly of owners who never come to the AGM and never get involved, and as such it has been up to the strata committee to constantly chase up the slack and recalcitrant managing agent. The fees have gone up year after year to a ridiculous cost and still money is being frittered away. Now my questions are:
1) The next AGM is on 30 NOV, but would it be best to call a special meeting before then so it is not put to the vote in the current agents' office, as this agent has the gift of the gab and most of the owners are elderly and easily intimidated/misled (part of the reason why things are in this dismal stage now).
2) If it is better to call a special meeting, should we do it before the AGM, and as soon as possible?
3) If we have this meeting, how many owners need to attend it and how many owners need to vote on it in order to effect a change, remembering there are 12 units. Do we need a quorum?
4)How much notice do we need to give of this meeting to enable everyone to attend under legal rules, and does anyone have the wording required for the agenda?
5) Are there any websites that specify this info (Fair Trading not very specific on phone or on the web). So far I have not managed to find much detail on this.
Many thanks in advance!

 

[handyandy]

Just going through the same exercise.

Have pretty well the same questions be it that one of the strata agents who provided new quotes has given some info. This was all verbal and sketchy but apparently some other managers provide kit form changeover kits.

Thus far my understanding is that first we need to hold an executive meeting which is open to all strata owners (so they need to be invited) and where 100% of the executive need to vote to have an extraordinary meeting for the tabling of the same to the whole strata.

At the main meeting we need 25% of the BC to vote for a change.


I am not absolutely sure of the actual %'s so if anybody cares to elaborate please do so.

Cheers

 

[travelbug]

Hi, we did this last year.

Also I'm not happy with the strata manager of my IP2 so am starting the procedure again.
We never here from him. After contacting him a few months ago about things he was giving the go ahead for he (long story) but he asked the committee not to Email him (just make decisions and let him know) as he didn't want his in box to be overloaded. I thought his job was to be involved.

Things I learned from last time is to check the contract with the existing Strata manager. We went to sack them last year at the AGM then found out we had to give them 3 months notice PRIOR to the AGM so had to wait another year. The first time the exec committee approved it and we called a special meeting. One of the owners didn't like the idea and requested that we get at least 3 quotes from different companies (which we then did). We put a specific scenarios to each and asked what their action/response would be in that situation.
Also make sure you are comparing apples to apples. We found they all charged differently.
Some had set stationary fees, some charged per piece (eg photocopying, etc). It took a while to decipher costs so they could be compared.

I'll check on the percentages for you.

 

[eastside]

Numbers

Thanks for all that info. Does anyone have the stats on the numbers one needs to get this change voted through?
If there are 12 units, what are the minimum number we need to attend the meeting, and what is the minimum number we need to vote for change to enable it?
I talked to Fair Trading, they said 3 is a quorum and 3 is enough, but that seems quite low to me. If only 3 attend the meeting we can change...sounds very low.

 

[Meisterin]

If you go to the legislation Strata Schemes Management Act 1996, it will tell you how many until entitlements you need to have a valid meeting

You need a minimum quorom which I believe is about one half or one third of total unit entitlements attending the meeting to hold a strata meeting.

 

[eastside]

quorum definition:

Thanks ! from the Act:

12 Quorum
(1) A motion submitted at a general meeting of an owners corporation must not be considered, and an election must not be held, unless there is a quorum present to consider and vote on the motion or on the election.
(2) There is a quorum for considering and voting on such a motion or at such an election only if:
(a) at least one-quarter of the number of persons entitled to vote on the motion or at the election is present, either personally or by duly appointed proxy, or
(b) at least one-quarter of the aggregate unit entitlement of the strata scheme is represented by the persons who are present and entitled to vote on the motion or at the election, either personally or by duly appointed proxy.
(3) However, if there is more than one owner in the strata scheme and the quorum calculated in accordance with subclause (2) is less than 2 persons the quorum is 2 persons entitled to vote on the motion or at the election.
(4) If a quorum, as provided by subclause (2), is not present within the next half-hour after the relevant motion or business arises for consideration at the meeting, the meeting stands adjourned for at least 7 days.
(5) If a quorum, as provided by subclause (2), is not present within the next half-hour after the time fixed for the adjourned meeting, the persons present personally or by duly appointed proxy and entitled to vote constitute a quorum for considering that motion or business.

One last question - if only owners including the strata committee members attend the meeting , it means we can't send people proxies, as there will be no-one at the meeting who isn't voting and has not got an interest in the matter. Is that correct? So only people attending the meeting will be allowed to vote?

 

[travelbug]

The quorum is one quarter of the owners entitled to vote so provided all owners are financial, you would need 3 owners at the meeting to meet a quorum. Then you would need a majority in favour to pass the motion.

"at least one-quarter of the number of persons entitled to vote on the motion or at the election is present, either personally or by duly appointed proxy"

We had proxies at our meeting. 2 owners that couldn't make it just gave their signed proxy form to one of the exec committee.

You'll probably find that some won't be interested and won't bother. Some will go along with what you think (if you make valid points). You may get 1 hat objects (that's what happened to us).

Out of 21 units only 1 expressed concerns. 8 (from memory) turned up.

 

[Meisterin]

Once the meeting is valid, that is all the due notices given to the owners to attend the meeting, and there is a quorum present at the meeting, including proxy vote, then a motion could pass if it is passed by a majority.

So if there is a total of 1000 until entitlements in the strata scheme, then you need at least 250 until entitlements present who are financial(meaning their levies are paid up to date) for a meeting to be valid and you need at least 125 unit entitlements to pass each agenda of the meeting.

So when you have your next meeting, have it as one of your agendas to sack the current strata manager and to appoint a new strata manager and then to allow either a secretary or chairman of the strata scheme to sign the new agreement with the new strata manager.

I think it is best that you talk to a new strata manager and ask what is the best way of appointing them, as they should be aware of the laws applying to the strata scheme.

 

[eastside]

Brilliant, thanks.
We are meeting with a potential new strata manager and I am inviting everyone (well, only 4 other owners) that have shown interest, that way everyone can ask questions. I have done lots of research and asked around and noted all the strata manager recommendations down. The manager we are meeting with I had 3 seperate referrals to, from different individuals in different blocks, I am sorry to say that the majority of people I questioned did express the opinion that they are also unhappy with their strata, and not to use theirs!
Does anyone know if you can use proxies, if there isn't a person present at the meeting who does not have a vested interest in the block? Or can you use postal votes? Or can people only vote if they attend in person?

 

[krgambling]

Hi there,

I'm from Brisbane so not sure if the same rules apply in your state...but for Qld a proxy vote can't be exercised at a general meeting on a motion approving the engagement of a person as the body corp/strata manager.

Also (maybe just in Qld) but to make a change in strata mangement, it must be an item that is included on the Annual General Meeting agenda. Best advice would be to speak to the management company you have in mind and ask them what you need to do - from my experience these companies will bend over backwards to explain how you need to legally appoint them (it's in their best interests to help you!).

It never ceases to amaze me how members of a body corporate take no interest in meetings etc.

Cheers,
Keith.