Question: Is it a problem if our paid manager keeps misapplying the Small Schemes Module?
The relevant legislation covering my unit block is the Body Corporate and Community Management Act 1997 and the Small Schemes Module Regulation 2020. My paid manager continually applies the Act only to body corporate matters, e.g. composition of a committee, despite his attention being drawn to the error several times. Is this a problem, or should I stay quiet?
Answer: Yes, mismatched modules can invalidate decisions, including committee composition.
Yes, it’s a problem. The rules amongst the modules for how a body corporate is meant to run are quite different (hence why there are different modules). In some cases the differences are minor. In other cases, the differences are considerable. If your body corporate is being run according to the rules of a module that doesn’t apply, it is technically not compliant with legislation, which in turn may have implications for decisions that have been made. It’s possible, for example, that if your AGM was run according to the provisions of an entirely different module, decisions made at that AGM, including composition of your committee, could be invalid.
We’re not sure why your manager would continue to misapply the module after being reminded of it more than once. Do you have any idea why? Are there other aspects of their management which are problematic, or is it just this issue? You may like to put your concerns in writing to them (if you haven’t already done so), and to their manager/head office as well. If the issue continues to occur, or you don’t receive a response to your concerns, the body corporate may need to consider moving on from that strata manager, as it seems, based on what you’ve said, they’re not doing their job. Do bear in mind that that may require legal advice, as a strata manager is appointed under a contract.
This is general information only and not legal advice.
This post appears in Strata News #806.
Chris Irons
Strata Solve
E: chris@stratasolve.com.au
P: 0419 805 898
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