Chen v The Owners - Strata Plan No. 7262 [2022] NSWCATCD 58

Chen v The Owners - Strata Plan No. 7262 [2022] NSWCATCD 58

The Tribunal was satisfied that the Respondent's failure to comply with SSMA requirements for annual general meetings, properly constituted and managed funds, statutory requirements for appointment of Mr Kong or entities associated with him, and the unreliability of its accounts showed that the management of the strata scheme was not functioning satisfactorily and that the owners corporation had failed to perform duties. It was appropriate to appoint an independent strata managing agent, Foreshew, because it had provided the required consent and CPM Strata had not, and because CPM Strata appeared to have adopted disputed positions without apparent investigation. The Applicants were also...

Jurisdiction
Australia
Judgment Date
02 May 2022
Procedural Posture
Application for Supply of Information Under Section 188 of the Strata Schemes Management Act 2015 (nsw) and for Appointment of a Strata Managing Agent Under Section 237 of the Strata Schemes Management Act 2015 (nsw) / Principal Judgment After Hearing
Outcome
Application granted; inspection orders made and Foreshew Strata Agency Pty Limited appointed strata managing agent with immediate effect.
Legal Topics
['appointment of Compulsory Strata Managing Agent' 'order to Supply Information or Documents' 'inspection of Owners Corporation Records' 'strata Scheme Management']

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Procedural Posture

Application for Supply of Information Under Section 188 of the Strata Schemes Management Act 2015 (nsw) and for Appointment of a Strata Managing Agent Under Section 237 of the Strata Schemes Management Act 2015 (nsw) / Principal Judgment After Hearing

  1. 1 ['Whether the Respondent should be ordered under s. 188 of the Strata Schemes Management Act 2015 (NSW) to permit inspection of original documents by the Applicants.' 'Whether the management of the strata scheme was not functioning or was not functioning satisfactorily, or whether the owners corporation had failed to perform duties, so as to justify an order under s. 237 of the Strata Schemes Management Act 2015 (NSW).' 'Whether Foreshew Strata Agency Pty Limited or CPM Strata should be appointed as strata managing agent.']

Ratio Decidendi

The Tribunal was satisfied that the Respondent's failure to comply with SSMA requirements for annual general meetings, properly constituted and managed funds, statutory requirements for appointment of Mr Kong or entities associated with him, and the unreliability of its accounts showed that the management of the strata scheme was not functioning satisfactorily and that the owners corporation had failed to perform duties. It was appropriate to appoint an independent strata managing agent, Foreshew, because it had provided the required consent and CPM Strata had not, and because CPM Strata appeared to have adopted disputed positions without apparent investigation. The Applicants were also...

Court Disposition

Application granted; inspection orders made and Foreshew Strata Agency Pty Limited appointed strata managing agent with immediate effect.

Orders

  • ['Pursuant to s. 188 of the Strata Schemes Management Act 2015 (NSW) the Respondent is to permit the Applicants to inspect specified original documents at the offices occupied by Mr Geoffrey Kong and/or entities associated with him at XXX Sussex Street.' "Inspection is subject to conditions that both Applicants may...