Question: Our BC and owners have called a meeting that is not legally binding but are proceeding anyway. They are also discussing major spending without comparison quotes. What do we do?
Our BC and owners have called a meeting that falls within the mandatory 21 day period and they have been advised that it is not legally binding but are proceeding anyway. The meeting notice did not come with a form 5. I understand that any decisions made at this meeting would not be binding but what would happen about the costs of this meeting?
The body Corp managers are not involved as the original request for an EGM was not supported by a list of signatures that represented 25% of owners. The BCM are taking no part as they say their services have not been requested.
Amongst other items on the agenda is the replacement of BC managers and replace security to the value of $831,000 pa without comparison quotes.
I am at a loss of what to do and what the next step would be if the EGM does go ahead. This is a large complex of around 700 units.
Answer: It may be hard to get clear information, but it would be worth starting by assembling as many definite facts as possible.
It sounds like there is a lot going on, and I suspect there is a much longer story than the question and answer format here allows.
It may be hard to get clear information, but it would be worth starting by assembling as many definite facts as possible.
For example, the question states that the meeting has not been called in accordance with the 21 day notice period. You will know the meeting date and the Secretary should be able to verify the date the notices were issued. This should be a verifiable fact.
For items such as the security, it seems likely that two quotes are required. You can check the information available against the legislation on (major spending limits) to confirm. It’s possible that the body corporate managers motion may also need additional quotes. See the government website for advice on spending limits: Queensland Government: Body corporate spending
Once you have your facts you can reach out to other owners to see if they agree. If you have concerns it is likely that others will too.
Then, you can write to the Committee via the Secretary stating your concerns over the validity of the meeting and asking them to respond.
If things are really serious it may be worth engaging a body corporate lawyer to review the notice for you and provide some advice as to how you may object if appropriate.
Otherwise you can contact the commissioner’s office and seek advice on the best time to make an application to them either to dispute the calling of the meeting, the terms of the meeting or the outcome when received via the minutes.
This post appears in Strata News #478.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924