Cuckoo Funds & Management Companies

Girlsmam

Would anyone have any experience of these so called ‘cuckoo funds’ looking to join the Board of Directors of an Owners Management Company?
One of these large property investment companies recently bought a large number of properties in our development & would appear to want to elect a number of people to our board. I know they legally can do this. I feel this may provide them with a majority vote given the numbers & ultimately an increase in management fees. I don’t want to hand over control & decision making to a large corporation.

is_that_so

Girlsmam wrote: »

Would anyone have any experience of these so called ‘cuckoo funds’ looking to join the Board of Directors of an Owners Management Company?
One of these large property investment companies recently bought a large number of properties in our development & would appear to want to elect a number of people to our board. I know they legally can do this. I feel this may provide them with a majority vote given the numbers & ultimately an increase in management fees. I don’t want to hand over control & decision making to a large corporation.

Aren't fee increases and other changes subject to a vote by all members anyway?

Graham

Girlsmam wrote: »

I don’t want to hand over control & decision making to a large corporation.

Have a read of this:

Competition & Consumer Protection Commission: Owners’ management companies

Section 15 of the Multi-Unit Development Act 2011 states that there is one vote for each unit, regardless of the number of owners of that unit. An OMC can seek a court order to change this vote distribution, but only where it is considered essential to protect an economic interest or necessary in the interest of fairness and justice.

Maybe think about getting yourself elected to the board of the OMC or join forces with other owners if there's enough of you and if you think your interests are being surpressed.

is_that_so

Graham wrote: »

Have a read of this:

Competition & Consumer Protection Commission: Owners’ management companies



Maybe think about getting yourself elected to the board of the OMC or join forces with other owners if there's enough of you and if you think your interests are being suppressed.

One of the biggest problems is unit owners failing to show up at AGMs and then they complain when decisions are taken.

Graham

Not much anyone can do to prevent that unfortunately.

Maybe the OP could canvas the other owners and warn them of the implications of not turning up to vote. Even then a large number of owners are likely to do just as you suggest, i.e. nothing.

happyfriday74

One of these large property investment companies recently bought a large number of properties in our development & would appear to want to elect a number of people to our board.

This is not surprising. If the fund say bought 150 out of 250 units they effectively control the OMC. They will have a great interest in how the OMC is run and hence usually put one of their employees in act as a director of the OMC.




Good points are:

They are property fund and this is their business. They will want to the building professionally run
If, heaven forbid, you live in one of those blocks hit by defects which are all in the news today they will pay this much quicker than 150 different individuals.

Cons are:

Control of the Board- that employee of the fund director is turning up to the agm with a proxy worth 250 votes so can overrule and control any item thats decided by vote

voluntary

Graham wrote: »

Not much anyone can do to prevent that unfortunately.

Maybe the OP could canvas the other owners and warn them of the implications of not turning up to vote. Even then a large number of owners are likely to do just as you suggest, i.e. nothing.

Votes can be delegated.

happyfriday74

Votes can be delegated.

Exactly, owners dont have to turn up but they can pass their vote to another resident who can vote for them as a proxy at the agm on their behalf.