In previous articles in this series, I have argued for the scrapping of laws about maintenance plans (instead imposing minimum contribution to capital works as a percentage of a buildings value) and conflict of interest disclosure (instead relying on the common-law and the Crimes Act secret commission provisions). This week I take the razor to summary statements about financial statements.
Repeal section 92 - statements of key financial information
This section of the NSW strata laws requires a summary of the financial statements to be sent with the AGM papers. It’s a classic solution in search of a problem. It replicates the work done by strata managers in presenting financial statements for no real benefit. A key financial statement can replace full financial statements for an AGM. But a competent strata manager would not hold back the full set. A full set of documents is a must for these meetings. Anything less breeds distrust.
What do you say, scrap or stay?
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
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