We are considering appointing an administrator for our scheme. All members of the executive committee have health concerns, there are lots of outstanding matters and the committee are experiencing a lot of criticism.
I am the secretary of a small body corporate. Of our eight apartments, six are owner-occupied and two are rentals.
What is the cost of appointing an administrator? We have many repairs, insurance and maintenance issues to manage. The current chair, secretary and treasurer have had health issues, travel and family matters that have been taking up a lot of our time. I work full-time and am finding it very difficult to stay on top of things. The committee are also experiencing a lot of criticism and negative feedback.
What are the next steps to have an administrator appointed?
Appointing an administrator is the most serious intervention which can be made in a scheme.
Take a look at this Practice Direction on Administrator Appointment, prepared by the Commissioner’s Office, as your first port of call.
You will see that appointing an administrator is the most serious intervention which can be made in a scheme and is a decision which an adjudicator does not make lightly. An administrator is warranted where the scheme has become dysfunctional. That can mean things such as no functioning committe, no budgets adopted, no insurance or no maintenance being done. Based on the brief description you have provided, I wouldn’t think your situation warrants an administrator and you might benefit from some other kinds of assistance (e.g., addressing the source of the criticism) before progressing to that step. That said, you might like to seek legal advice for clarification.
Costs vary greatly depending on the nature of the issues. Generally it is a very costly undertaking, as the administrator is tasked with dealing with very problematic situations. They will charge accordingly, in other words.
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