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Strata Management

What happens if we don’t have a Body Corporate?

By November 15, 2021December 3rd, 2021No Comments

An active Council of the Strata Company (Body Corporate) is imperative in effective Strata Company management.

A Council member, also known as a Body Corporate member, is a voluntary position who acts for and on behalf of your Strata Company. The Council operates in accordance with the Strata Titles Act and any specific by-laws in force for the strata scheme.

Impact of having no Council

The Council of Owners (COO) is made up of between three and seven lot owners. If there is no council for a complex, then any decision (including maintenance) which needs to be made, requires correspondence to be sent to all owners and more than 50% of owners need to approve any work prior to a Strata Manager taking any action.

Typical outcome of having no Council

Many owners, particularly in complexes where no owners want to nominate for a COO position, typically disregard any requests sent by the Strata Manager. This leaves the Strata Manager unable to carry out any non-budgeted works, resulting in a complex which is not maintained well.

Benefits of having a COO

Having an active Council of Owners who meet regularly and liaise with the Strata Managers to ensure ongoing maintenance is attended to is a far more effective and efficient way to ensure your strata complex is well-maintained and the value preserved.

Excerpt From Act

Schedule 1
4  (3)         Where there are not more than three proprietors, the council shall consist of all proprietors and where there are more than three proprietors the council shall consist of not less than three nor more than seven proprietors as is determined by the strata company.

Download a copy of the Strata Titles Act here  

 

Are you frustrated with the way your Strata Company is managed?

Get in touch with our team of Strata Specialists to chat about your building and how we can support you in the management of your Strata Complex here.