strata problem - bullying and being sneaky

[jkat]

Hi All,

I have done a search but can't find the answer to my question/s.

The problem:
Building we live in (12 units) is replacing windows - in the process it has been discovered that the original builder took some shortcuts and we will have to remove the eaves which have asbestos in them before we can finish replacing the windows (addition cost of roughly $25k)

We had our AGM and all the options were discussed and people voted to go ahead and raise a special levy. One of the owners didn't come to the meeting (saying that he didn't get the minutes/letter) even though when he wasn't there we knocked on his door and told him the meeting was happening. Afterwards he got 5 units to sign saying that:
1. they hadn't gotten the minutes/invite to the AGM
2. the window contractor needs to replace the broken asbestos eave because they broke it
3. that they didn't comply with OHS issues by breaking the asbestos eave

They tried not to break it but the way the windows were originally installed meant that it happened and because it has asbestos they could not continue working.

My questions:
1. Can this extraordinary meeting be called when only 5/12 owners asked for it?
2. 3/5 owners were present at the meeting so had clearly gotten the minutes/invite, or found out about it via other ways and were there. Can they just change their mind even though they voted at the time?
3. What is the law around this because this has happened before without my knowledge - we had voted on something and then this owner has gotten a petition of signatures and changed it afterwards
4. One owner who didn't sign says she felt pressured/bullied (her words) into signing - this is not okay and needs to be raised. Are there rules about this?
5. What does the strata manager HAVE to do (legally) in these type of situations

Thanks for reading and providing some guidance

 

[Tony3008]

Which state? In Victoria [IANAL] a special levy that is more than twice the regular levy needs a special resolution. This is from Owners Corporations Act 2006 - I think it's been amended since:

24. Extraordinary fees

(1) An owners corporation may levy special fees and charges designed to cover extraordinary items of expenditure.
...
(4) A special resolution is required when exercising a power under sub-section (1) if the amount involved is more than twice the total amount of the current annual fees set under section 23.

97. Interim special resolutions

(1) If, at a meeting or by ballot, the vote in favour of a matter requiring a special resolution is at least 50% of the total votes for all lots affected by the owners corporation and the vote against the resolution is not more than 25% of those votes, the resolution is to be taken to be passed as an interim special resolution.

So it looks like you have an interim resolution

(2) If the interim special resolution is passed at a meeting, notice of the interim special resolution and the minutes of the meeting at which the interim special resolution was passed must be forwarded to all lot owners within 14 days of the meeting.

(5) An interim special resolution becomes a special resolution of the owners corporation on the day that is 29 days after the day the interim special resolution was passed unless lot owners who hold more than 25% of the total votes for all the lots affected by the owners corporation petition the secretary against the resolution.

Note: The effect of sub-section (5) is that an interim special resolution cannot be acted on for 29 days after it is passed and cannot be acted on at all if a petition is received by the secretary within that 29-day period.

So my reading is that the disaffected owners don't have to argue about non receipt of meeting notices, just file an objection thus negating the motion.

but the OC Act 24.(5) says "Sub-section (4) [Special resolution needed] does not apply if the fees are levied to pay for or recoup the cost of repairs or maintenance carried out to any part of the property for which the owners corporation is responsible where immediate expenditure is or was necessary to ensure safety or to prevent significant loss or damage to persons or property.". Is this a safety issue?

 

[handyandy]

I would also be going back to the builder and suggesting that not all the eaves need replacing but only the section that was damaged.

We have replaced sheets in the eaves where the sheets were asbestos and only replaced the section that needed to be replaced. The 2 types work fine together.

Cheers

 

[jkat]

The building is in NSW

the problem is this building is from the 60s and the way teh windows are attached (on the top floor) they are nailed into the eaves... so trying to replace the windows breaks the eaves (which contain asbestos) so the window company won't continue work until the asbestos has been removed...

The levy was roughly $1000 per unit (yearly strata fees are roughly $2500 per unit)

is this more clear?

I guess I am wanting clarity on the rules for the owner who are trying to call an extraordinary meeting saying that they didn't get the AGM invite and the strata manager who is letting it happen when there was a legitimate vote on it.

 

[thatbum]

It doesn't seem particularly unusual. I don't know the vic strata titles legislation, but generally owners can call meetings for that sort of thing.

What would be the big deal with just letting that meeting happen?

 

[Scott No Mates]

In NSW 1/4 of the owners can require the secretary of the bc to call an extraordinary agm. A seven period of notice is required to be given to all eligible owners. Details are on the NSW Fair Trading website.

The legislation changed two years ago to require that an asbestos survey be required for all common areas of strata premises. If you have contractors working adjacent to the asbestos and the works can't be completed without its removal, then treat the work as a variation, get rid of it & move on. It was possible that this was the way the eaves were designed, and not poor building practice. Fibro was used as the eaves lining and fixed to the top of the windows, if it wasn't fixed down it would rattle in the wind.

Who are you going to sue, How long will that take? What will happen to the windows and building in the meantime?

Some things aren't discoverable at the time of tender, assumptions made, details not disclosed by the body corporate (eg asbestos) - who is at fault? Who foots the bill?

 

[jkat]

Thanks everyone -- I just want us to remove the asbestos and move on (as has been said here!) and this was FINALLY agreed to at the last meeting (after having wasted 6months on jibber jabber from some of the other owners)

Now, two of the owners are spearheading a mission to try and overthrow the decision that was made to get rid of the asbestos with this EGM. That is what is frustrating me (they won't accept the majority vote because it didn't go their way and are now acting like spoilt bratty kids about it).

Now that I know that they can call the meeting and keep talking about this issue even though we had a quorum and voted on it at the previous meeting there is nothing to do but keep arguing until we are blue in the face.

 

[jkat]

that bum - the problem with letting the meeting happen is that we voted on this issue. it was RESOLVED and they keep bringing it up because the vote didn't go their way. I feel like they will keep pushing the issue until people just go 'oh well' let them have it their way which is the wrong thing!

 

[Scott No Mates]

Where's the strata manager? They should be telling the dissenters the lay of the land whilst remaining impartial.