Question: Why would our strata manager insist we approve the proposed budget at a VOC before the AGM, rather than simply approving the proposed budget at the AGM itself?
Answer: Are owners better informed if they see the minutes of a VOC than if they see and vote on the budget via the AGM papers?
Why, indeed?
There are quite a lot of strata managers who require VOCs to approve budgets. They might argue that as the legislation only lets the committee make a formal decision at a committee meeting or via a VOC, it has to be done this way. They may be looking to isolate the body corporate manager from the process so they can show the budget is a proposal of the committee rather than the manager.
Too often, though, the process is just bureaucracy for bureaucracy’s sake, an additional process at an additional cost for no additional gain.
The committee should ask whether there has been a clear structure around determining the budget and an agreed majority outcome. If the answer to that is yes, ask if a VOC will change anything or if it is necessary to make owners aware of the decision through this method. A VOC is probably unnecessary if the answer to that second question is no.
On the other hand, if committee members disagree with the budget or you are improving a large increase that needs some definition for owners, you might consider it worthwhile. Are owners better informed if they see the minutes of a VOC than if they just see and vote on the budget via the AGM papers?
It’s important to remember that the body corporate manager works for you, not the other way around. If they say you must have a VOC and you don’t want one, say no. Your focus should be on actions that improve your scheme. If it is beneficial to have a VOC, do so. If not, don’t.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924