Condo residents must act in their own interests
The proposed amendments to the Building Maintenance and Strata Management Act will put certain matters right, but they do not get to the core of the problem.
The proposed amendments to the Building Maintenance and Strata Management Act will put certain matters right, but they do not get to the core of the problem.
The Act provides for annual general meetings (AGMs) to proceed with only two or more subsidiary proprietors present, after a time lapse.
The AGM is important because that is when the management council is elected, from whom will come the chairman, secretary and treasurer, who will manage the estate and its funds.
It has been difficult to get subsidiary proprietors to attend, but in the same breath the Building and Construction Authority (BCA) sees no need for AGM reminders to be sent after the agenda notice has been sent.
With the current proviso, which managing agent or management council would do its utmost to encourage subsidiary proprietors to attend? No wonder attendances are low (New laws could bring relief, but condo residents’ apathy a bigger problem; Aug 12, online).
Entrusting millions of dollars in funds to a council elected by few subsidiary proprietors poses dangers. The provision could have led to the loose use of proxies and the lack of subsidiary proprietors standing for election and becoming office bearers.
At least 20 per cent of subsidiary proprietors should be present for an AGM to proceed. This would ensure that agents and councils encourage them to attend.
Naturally, subsidiary proprietors would be reminded that if attendance is poor and no council is formed, then the BCA has the authority under the new rules to appoint someone to administer the estate, which would come at a cost.
It is unlikely that subsidiary proprietors want to pay more for estate management. They would surely attend AGMs.