Question: Since 2016, I have been our chair, secretary and treasurer. No one else has ever attended an AGM. I’ve had enough. If I resign, what are our body corporate’s options?
Since our 8 unit block was completed in 2016, I have been the committee’s chair, secretary and treasurer. We have had many big issues, with an even bigger problem looming. All the pressure, time and responsibility is detrimental to my health. I have two ordinary committee members. One who has never had any input has decided not to put their name down again for our next AGM, and the other, as lovely as they are, always responds with, “I will go with whatever you think is best”. While it might be complimentary that they have confidence in me, I find the whole thing too demanding.
What happens if I do not nominate again or if I resign? Nobody but me has ever attended an AGM. In fairness, all the other owners work full-time and have no experience. If no one takes the reigns, would we employ someone, and how would that work? I’d still be the only one taking notice or reporting required maintenance. Will they get paid while not much changes for me? I would appreciate some advice.
Answer: Engage with your fellow owners to get them involved and remind them their participation on the committee is not only required under legislation, but it is in their financial interests to do so.
Firstly, I’m sorry to hear this happening. It is tough when you volunteer your time and it starts to wear you down. That is not how things should be.
To me, there is both an informal and a formal set of options for you here. The informal path – which, frankly, I think will be better for all concerned – is to engage with your fellow owners to get them involved and remind them their participation on the committee is not only required under legislation, it is in their financial interests to do so. The simplest way of doing that is to write to them (or chat with them, if that is possible and appropriate) and explain how it is vital they participate and form a committee. Ideally, you will have their details to do this. I’d emphasise there will be a significant cost if they don’t participate.
That ‘significant cost’ is where the formal options come in. If you have a strata manager engaged and your body corporate cannot form a committee at its next AGM, there is a process to undertake in which the strata manager executes what is sometimes called a Part 5 agreement. Under this arrangement, the strata manager takes on the functions of the committee. Not all strata managers will take on this role, and if they do, expect their charges to be considerably higher than normal, reflecting the work involved.
If you don’t have a strata manager, or you don’t have a committee at any time other than the AGM, then you or another owner may need to apply to the commissioner’s office to have an administrator appointed. This is roughly akin to having a receiver appointed in the corporate world. The administrator can be a strata manager, a lawyer, or someone with relevant expertise (I have been appointed and nominated for appointment as an administrator, for example). Again, expect the administrator’s proposed fees to be significant.
In either case above, the body corporate pays the fees. In other words, all owners will foot the bill. That, to me, is the single most compelling argument for your fellow owners to get involved.
You probably won’t be surprised to learn this situation comes up quite a bit. In all likelihood, there are probably thousands of bodies corporate in Queensland operating without a properly formed and compliant committee. That can continue indefinitely or until something happens – such as where you are at – to change the status quo. You will need to decide if and how much time and effort you are prepared to put in here. Is that fair on you, given what you have already contributed? No. Should we have a better system to manage these situations? Yes. I for one think it is entirely appropriate to allow bodies corporate to contract out their responsibilities to a suitable entity, although as it currently stands, you cannot do that, other than the methods described above.
This is general information only and not legal advice.
This post appears in Strata News #732.
Chris Irons
Strata Solve
E: chris@stratasolve.com.au
P: 0419 805 898
I suggest becoming a member of your Committee and encourage others to also join to change the current situation.
How frustrating for this owner who is evidently one of the few in the complex who want a “home” with all the benefits and responsibilities that entails.
It’s surprising there is no mention of an option to regulate appearance of common areas by registering a suitable by-law on the strata plan to, at least, prevent the value of the complex from deteriorating.
Perhaps the unhappy owner should come and live in WA! Here we could have gone to the State Administrative Tribunal asking for a ruling against the committee’s decision to switch off the reticulation IF no alternative action was to be implemented to maintain the gardens to the previous (or similar) standard, such as conversion to native plants. I imagine this type of action is why the strata insurance policy might include Office Bearers liability.