Lot owners sues in VCAT to remove manager of the owners corporation and ends up having to pay 50% of the manager’s legal fees...

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A Sneak Peek at the Latest VCAT Strata Decisions
Lot owners sues in VCAT to remove manager of the owners corporation and ends up
having to pay 50% of the manager’s legal fees…
The case of Halls v Kilger Woods heard in VCAT in late November 2013 involved a lot owner
alleging the manager of the owners corporation should be removed because it had breached its
statutory duty under s.122 of the Owners Corporations Act 2006 to act honestly, in good faith and
with due care and diligence. The lot owner claimed that the manager had:
1. held owners corporation meetings more than 15 months apart;
2. held owners corporation meetings at inconvenient times;
3. advised a committee meeting was invalid because the lot owner who called the meeting
was not the chairperson or secretary (as required under s.108 of the OC Act 2006).
The lot owner’s claim was rejected by VCAT who refused to order the manager’s removal. The
VCAT set out the sober reality of Victorian owners corporations at paragraphs [84] to [86]:
“[84] An owners corporation is a corporation that operates within the framework of specific
legislation [The Owners Corporations Act 2006]. The legislation operates in a similar way to
the constitution or articles of association of a general company.
[85] Lot owners may participate in the affairs and management of their owners corporation in a
number of ways, apart from attending meetings. They may give proxies to others for voting at
meetings, they may communicate their wishes and concerns to committee members.
[86] They may also decline to participate and leave the management of the owners
corporation to others. Voting is not mandatory. Attendance at meetings is not mandatory. The
Act makes specific provision for what is to happen if a quorum is not achieved at meetings.”
Case Reference: Halls v Kliger Wood Real Estate Pty Ltd (Owners Corporations) [2013] VCAT
2020 (28 November 2013)
January 2014
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Nicole Wilde, Senior Solicitor, TEYS Lawyers Melbourne (03) 9600 1128
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