RIGGED Strata Executive Committee voting!

WaterMark on 20/11/2014 - 16:34
Last edited 21/11/2014 - 00:03

Just recently our AGM was held for our new building of apartments and something dodgy happened. I would like to know if this is the norm or just my objective opinion.

So in the AGM of approximately 270 units only around 30-40 residents were there (possibly others have not moved in or CBB). A further of these were 5 people in particular who each of them have around 15-20 properties under them (including proxies to vote). The five people had around 70 voting units and suprise suprise they were all related to the developer. Now comes the voting for the executive committee and the 5 people vote amongst themselves which leaves the average residents outvoted with only 4 executives. Our numbers present weren't even close to what they have. By NSW strata law the maximum executives are 9. Coincidently 5/9 are from the developer.

What was even more flawed was that the voting system was to vote 9 people (by each person or proxy) instead of voting one person and the top 9 to enter as executives. Is this how it is usually run?

I would like some insight as we are afraid because they have over 50% of the executives then they can literally knock back all repairs or bills against the developer.

Do we have any grounds for appeal from fair trading or we just got into a trap of the developer?

Thank you OzBargainers

Home & Garden

Comments

  • Baghern on 20/11/2014 - 16:53

    Goto FlatChat

    http://www.flat-chat.com.au/forum/

  • Cheeper on 20/11/2014 - 22:06

    That is not right at all. Basically pointless having an election for any positions with that setup.
    Isn't there some govt authority that oversees BCs?

  • ESEMCE on 21/11/2014 - 08:13

    Pretty sure that's all above board…
    Whoever owns each apartment has a vote and votes can be made by proxy.
    Strata sucks!

  • mskeggs on 21/11/2014 - 08:13

    So you would like to see a majority of the units not be able to vote at the strata election?
    That's like saying it is rigged that the Liberal party are in power because you voted Labour.
    Obviously in this case a small group hold all the power, but that is how the laws are designed to work. The majority rules according to the voting rights laid out in the strata plan.

    • WaterMark on 21/11/2014 - 10:17

      Whist I agree they have their right to vote but all the 5 people who have 15-20 lots each are related to the developer ie the same surname. It would seem the proxies were obtained from overseas buyers who may have signed it ages ago when they first purchased it. They may have obtained financial incentive at that point by doing so in return so the developer does not need to pay expensive repairs. This however is only a speculation so do not take it as fact. I personally don't have a problem but it just seems "coincident" that they have 5 people (not more not less) present and all of them want to be on the executive committee. They also have 25% of the total lots and thus cannot be outvoted even later on by an induced motion.

      • the-mal on 21/11/2014 - 10:23

        I'm sure it's not a coincidence at all, they'd know exactly what they're doing. But not much you can do, they have majority rule.

        Having said that, they also have a high interest in the general upkeep of the property, since they don't want to lose money (value of property or potential rent) so I can't see them holding back on too many general repairs.

        Property developers have all the loopholes worked out nicely. It sucks, but they usually only "bend" the rules without breaking them. It may be unethical, but it's not illegal.

  • Archi on 21/11/2014 - 09:05

    you generally see that in larger developments, it's a disease and not sure whether is a cure for it.

    that's why we consciously made an effort to live in a smaller development of apartments that was walk up with no facilities and lift and minimal common areas to maintain (contributes to lower strata fees as well). you get to know your neighbours better and you have better transparency in strata meetings where owners of the apartments actually care for the well being and sustainability of the development.

    • WaterMark on 21/11/2014 - 10:22

      I was talking to my colleague about this and she said it was the same case with her place too with only 40 units. The developer had a strong hold for 5 years and then buggered off after the warranty expired. Now she's left with building problems.

      • Archi on 21/11/2014 - 10:35

        damn… sorry to hear that man.

        we live in complex of about 20 and we pretty much know everyone and all the owners. I guess unfortunately there will be dodgy people where ever you go .

  • the-mal on 21/11/2014 - 10:32

    Worth a read: http://www.smh.com.au/articles/2007/10/26/1192941339504.html

    Old article, but it does mention that the proxy can essentially be overturned at the discretion of the owners. So if issues did arise, you could try to rally the proxy owners and boot out the shonky fellows.

    • WaterMark on 21/11/2014 - 11:26

      That would still be one year at next AGM as we are not able to obtain 75% of votes despite everyone voting since they hold 25%

  • Baghern on 21/11/2014 - 14:51

    FlatChat - Jimmy T are very helpful.

    A good example of being able to overturn a dodgy Developer/strata scheme is the Worldsquare building. I believe its now self managed.

    What has happened here, has been happening for a long time.

    I'm looking at getting into strata, will Flatchat shortcut on my browser

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