About once per month, an owner of a unit in a body corporate (strata) building seeks advice about defamation where perceived highhanded behaviour by the Chairman of the committee is somehow involved. Fortunately, it is not the same unit owner.
Chairman out of order
A client asks, “My Body Corporate (“BC”) Chairman is a megalomaniac". What can I do?”
There is a long history of megalomaniacs rising to power in BCs. It is said that Adolf Hitler himself was Chairman of his BC in Bavaria before he resigned to invade Poland. Much of the philosophy behind Mein Kampf is based on ‘Exclusive Use Areas’.
In these circumstances, you will appreciate that Appeasement is out of the question.
Ten Tips for BC Meetings
1. The Chairman does not have a casting vote. It may look like he has the last say but he does not.
2. 7 days notice of committee meetings should be given to each committee member. Lot Owners (LOs) should be told of meeting dates.
3. LOs can attend a committee meeting on giving 24 hour written notice but cannot speak without permission on penalty of being thrown out.
4. The Chairman must say if he has a conflict of interest and cannot vote on any such decision.
5. Votes can be by proxy but a proxy only lasts for one meeting. Proxies must be given to the Secretary before the meeting and are not pulled out at dramatic moments. However much fun the latter approach is.
6. The Secretary must keep the committee records for two years.
7. Committee decisions are not to be carried out until a copy of the decision has been given to the LOs (e.g. building works). Notice of opposition can be signed by 50% of the LOs and given within 7 days.
8. There are statutory limits to committee spending.
9. If you get 25% of LOs together, you can hold an Extraordinary General Meeting (EGM).
10. The Committee has an obligation to be reasonable.
If the Chairman is given to making long speeches with inappropriate asides against certain LOs, record the meeting. This may cause him to watch his words. However, if his speeches become longer and he starts to strut, look out.
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For advice about defamation, your Body Corporate Chairman and other legal disputes.
Contact Paul at Brennans solicitors
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