Question: Our overbearing strata manager retains control of our inexperienced chair and committee, refusing to share financials or committee contact details. What can I do?
My complex’s strata manager illegally refuses to show me banking transaction details, job verification details and won’t provide me with remote members’ contact details. They do favours for members in return for votes.
The most inexperienced unknowledgeable meekest persons are elected as Chairperson and committee. This strata manager rules them absolutely and always maintains the ‘committee’ instructs and approves all the maintenance reports.
Now we are in indefinite lockdown. Against COVID, not DIVOC (divided OC).
What can be done about a dysfunctional strata manager and dysfunctional committee?
Answer: The simplest solution to your concern is to join the Committee.
The simplest solution to your concern is to join the Committee. The manager is employed by and working under the direction of the Owners Corporation as an entity, the Manager is not employed by an individual lot owner. As a result, no individual lot owner can give the manager an order or direction, however, the Owners Corporation can. The Manager cannot, and should not act under the direction of an individual lot owner unless that individual has been delegated those specific powers by the Owners Corporation.
Please remember, the Committee is, by extension, the Owners Corporation. The act goes so far as to say S113 “A resolution of the Committee of an Owners Corporation in respect of any matter has effect as a resolution of the Owners Corporation”. Therefore, if the Committee makes a decision, that decision is and holds the same weight as, a decision of the Owners Corporation.
As a member, you have the ability to join the Committee and help steer the ship. If your concerns are primarily around banking, financial operations/data, I would suggest when you join the committee, seek to be appointed as treasurer or financial controller. In doing so, delegating your authority to request financial statements, bank statements, and other relevant documents on behalf of the Owners Corporation. It is also worth noting you would be undertaking this task on behalf of the Owners Corporation, not yourself individually. The Owners Corporations Act 2006 has clear conduct provisions for committee members under S117.
It is also worth noting, if you don’t join the Committee but still wish to see the financial data, the committee could approve a request for the Manager to provide additional financial data, however aren’t obliged to.
If for whatever reason your foray into Committee life doesn’t work out and your concerns remain, you have the ability to lodge a formal complaint under the act. However, I would only ever suggest going down this pathway if you are sure you have exhausted all other diplomatic options. Sometimes, once internal grievances are formally escalated, it can result in a permanent breakdown of relationships between all parties which can be extremely unpleasant when instead, a direct phone call or face to face chat may have been all that was needed to diffuse or resolve a situation.
Your claim that the manager is essentially manipulating the committee is serious, not a claim I would make lightly, and if true would be grounds for termination, if not more serious legal action. The Owners Corporations Act 2006 states the manager “must act honestly and in good faith” and “must not make improper use of the manager’s position to gain, directly or indirectly” – and (an amendment to come into effect on 1st December 2021) S122 “must not exert pressure on any member of the owners corporation in order to influence the outcome of a vote or election held by the owners corporation”.
The key to harmonious relationships in a Strata Community (or any community for that matter) is based around objectivity, competency, communication, with a sprinkling trust and respect between all parties. The way in which some of your comments/assertions are couched could be taken as quite antagonistic, and it is well known you’ll catch more flies with honey than you will with vinegar. I am not saying your concerns aren’t valid, but it is possible to communicate the same concerns in an objective way that doesn’t antagonise those people that you are ultimately seeking to help you, work with you or live next door to you.
In relation to obtaining other lot owners contact details. Under S150 of the Act, all members are permitted to view the Owners Corporation Register which includes all lot owners names and mailing addresses. So obtaining this information will allow you to send a letter to the registered address of other lot owners. The register does not contain phone or email information. In saying that, it is not uncommon for a Manager to forward one lot owner’s phone/email details to another lot owner, and then it is up to the recipient if they want to contact that person back, or not. The Manager is not required to provide this additional service, but in saying that, my experience has been that the overwhelming majority will be willing to help if, as above, the interaction/request is polite and respectful.
Deryck Walker SMTI deryck.walker@smti.com.au