Executive Committee problems

Just hoping someone might be able to give us an idea as to what to do with this situation. We have been in our unit as owner occupiers for 6 years and for all that time I have been on the Executive Committee.

We are in a block on 15 with three Executive Committee members. Thing is, I am being deliberately left out of emails, quotes and general correspondence of the other two members ( we are in an “L” shaped block, I am on the side with 9 units and both of them on the other side with 6 units). I am finding a lot of the strata levies going into their side, gardens etc, it just doesn’t sound right to me.

One woman in the Exec Committee basically makes all the calls on virtually everything – her husband is an absolute shocker too, hogs one of 4 parking spaces for the whole block, poisons plants, trees and grass, I have even seen him dump old household items on our side of the building.

Sorry for the long winded post but how can I get more of a say? And how can I get her (and her husband) to take a step back and acknowledge that the block belongs to everyone and not just them? We have already had one Exec Committee member (from our side) sell up and leave because of the frustration of this woman.
 
Appoint professional Body Corp managers. Otherwise require 3 signatures for access to B corp funds. Bring it up as a special res at next AGM.
 
Welcome to the world of strata.

Been there, done that, rather not do it again.

Couple options here:

Option 1:
  • Ignore it. Yes you will cop having to pay for other people's crap, but that the way of strata.
Benefit:
  • You'll live a happier and more peaceful life. (This is also what the other residents are doing)

Option 2:
  • Fight it, get people on your side. You will need to be extremely thick skinned.
Benefit
  • You might win, you might lose.
  • You may get what you want, but expect casualties.
Warning:
  • Be prepared to get slandered by the other two.
  • Chances are you'll find that the other people in the complex dont like these other people as well but arent prepared to stick their neck out.
  • That said, you might find yourself becoming the voice of these "quiet" people, but in reality, you're being used as a scapegoat.
  • Be prepared to have crap put on you when things go wrong.
  • Be prepared to also sell.

Option 3: (What i wish i did)
  • Keep the property, but rent it out
Benefits:
  • You dont see the crap thats happening (ignorance is bliss)
  • The extra crap you have to pay is tax deductible.
Warning:
  • Tenants may trash your place, but thats with any IP.
 
I would air your concerns with the strata manager. Ask for their opinion how to deal with it.

Is there anyone on your side you could "recruit" to join the exec?

Any expenditure usually needs to be approved by the committee. You're typically going to be out voted 2 to 1.

You need to stand up for yourself. It's your money just as much as it's theirs.
 
Strata manager wouldnt give two hoots about your problem.

They are there to oversee the management of the property. The best they can do is write a letter to the offender.

That said, they probably wont, or it will be a very gently worded letter. You do not bite the hands that feed you.

To vote in a new strata manager requires a AGM (Annual General Meeting) or EGM (Extraordinary General Meeting), if everyone is too lazy (or too scared) to stand up for themselves, that leaves the 2 EC members vs Agenda here.

Those two EC members will always win because they have majority vote.

That said, for a AGM or EGM to proceed, there must be a quorum (if a remember correctly this is 25% of owners, so there must be a minimum of 4 people), so the strata manager may not be able to to voted out, however I'd really doubt the strata manager would take such a chance anyway.

Furthermore, if a strata manager feels the unit is going to cause heaps of trouble, they usually walk away in advance.
 
Really appreciate the feedback – helps a lot and thank you!

I agree going head to head is going to cause extra problems – plus, I don’t trust the meat head husband as we have two beautiful trees that we look into, he has already poisoned a gum over the other side of the building and I don’t want to risk him doing to one of the trees on our side.

Strata Manager won’t do anything as my understanding is she is personal friends of the Managing Agent.

Might be best wait it out – I am on good terms with the other Exco Member and I “think” he might be getting a bit over it, plus he knows what she and the husband are like. We do have a 68 unit entitlement of 1000 while she has 67, if the other guy bales at out next meeting in November (thinking he just might), I will then have the majority vote if the two of us remain – is that correct?
 
I'd say that to be unlikely.

For the AGM to proceed, you will need 250 units out of 1000 units.
Lets just assume for the moment everyone has 67 units.

You + Neighbour + crazy couple 1 + crazy couple 2 = 67 x 4 = 268.
Now assuming crazy couple 1 bales, you will have 67 x 3 = 201.

But the likelihood is that crazy couple 1 would have given a proxy to crazy couple 2 (ie allowing crazy 2 to vote on behalf of crazy 1).

Alternatively, crazy 1 might give their vote to the strata manager (who is on their side), so again you might lose, especially if they have bigger entitlements than you.

You then need to take into consideration the people who dont show up might send their proxy to the strata manager, at which point the strata manager might vote against you.

I've realised after typing all this, what exactly do you want to vote on? It needs to be on the agenda in order for it to be voted on.
 
Not sure if NSW law is different, however the entitlement numbers only refer to "interest" or "contributions" not voting. I believe you each get just one vote, and the entitlements do not increase the value of a vote over another. I think a way through this, is to get the support of the other unit owners to vote you and your "assistants" on at the next meeting, and not to vote for these difficult people. The thought of direct confrontation is not a good one.
Good luck.
 
I think the entitlement only comes into play if it is a tied vote on an issue.
I don't see the point in changing strata managers as it won't change your problem.

You mention others are sick of this couple. Talk at least one person into joining the exec committee. See what the rule is on spending money. Does it need everyone to agree? What is the limit of spending without having an extraordinary meeting? If you have 2 people on your side at the AGM you can change these things.
 
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Might be best wait it out – I am on good terms with the other Exco Member and I “think” he might be getting a bit over it, plus he knows what she and the husband are like. We do have a 68 unit entitlement of 1000 while she has 67, if the other guy bales at out next meeting in November (thinking he just might), I will then have the majority vote if the two of us remain – is that correct?

Are you referring to the executive meeting or the general meeting. As I understand it at the executive level the unit entitlement has no bearing - one person one vote. At the general meeting its one person one vote until a deadlock and then revert back to units entitlement.

Cheers
 
At the Executive Committee meeting level, there should be a maximum limit they can spend. Anything above the maximum should require an Extraordinary General Meeting to be held.

However if at the AGM or EGM they set no limit on what they can spend, then at the EC meetings they technically can spend whatever amount they want i believe.

Normally its 1 unit owner = 1 vote and unit entitlement is usually used in deadlock situations. That said, if the unit entitlement works in your favour, I would be using it.
 
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