What the new law means for me? (Part 2)

Published on: Mar 17, 2011

What is the change?

In many complexes, the developer has given himself a preferential vote or golden vote. This allows them to have an overall majority at any AGM or EGM even if the owners out-vote them numerically. If there are 200 owners and the 1 developer keeps telling you he’s in charge, he appoints the directors, he chooses the managing agent and sets the service charge, you’re probably in this situation.

From 1st April, the developer cannot use preferential votes without first asking the Circuit Court for approval and convincing the Court that they’re doing so for the right reasons. Without that ruling, they have one vote for each of the units that they still own.

What does this mean for me?

After 1st April, if the owners out-number the developer, they can elect each other onto the board and then have more say in the running of the company. This means that owners who live there (or own there) can set the budget and service charge and hire and fire contractors (including the managing agent) as they see fit.

What do I need to do?

Wait for April 1st and start exercising your right to vote!

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