Levy in addition to Management charge

[VPS]

Hello

We've received a letter requesting payment of extra 350 euro on the top of usual 1750 euro annual Management charge (3-bed apt)

350 euro levy (once off payment) was approved by AGM Meeting which we were unable to attend.

Levy is mainly to install CCTV system (total cost is 60 K !) in underground parking and common areas to prevent vandalism .
In my view CCTV is not efficient as perpetrator can easily hide his/her identity from camera.

Management Company insists extra 350 euro must be paid as levy was approved by AGM Meeting.
What are my rights in this situation ?

Thanks

 

[dem_syhp]

I'd have thought that yes, you have a vote like everyone else if you chose not to go to the meeting that's your choice.

However I'd have thought that you would have paid for something like that out of a sinking fund. Maybe in was a conscious decision not to use it. But check that you do you have one or you'll be stung for painting next year and something else the year after?

Having said that - we have CCTV and I would say that it is good and worth having.

Dem

 

[shesells]

If the charge is agreed by an AGM there is very little you can do about it.

Few sinking funds would be big enough to pay 60k out of and stil have enough money to plan for painting of exterior and common areas, carpeting of common areas etc.

In our development there will probably be a painting levy some year in the future as even though we have a healthy sinking fund, painting costs would wipe it out so whether by levy or an increase in the management fees, we have to get more money in.

BTW CCTV is an ongoing expense, upkeep, monitoring etc. This levy won't be the last charge related to it.

 

[markpb]

We did the same in our estate to pay for gates for the underground car parks. We could have just added the fee into the service charge but we decided to be more democratic and ask people if they wanted to pay it. People who turned up at the AGM voted for it, people who didn't complained afterwards.

We checked our company documents and it seemed okay. I think a few people in the estate sought legal action (or at least threatened to) but nothing came of it so I assume the solicitors told them they had no recourse.

Were you told in advance that you'd be asked to vote on it? If you were, did you ask the managing agent about using proxy or postal votes?

 

[VPS]

Thanks for your replies.


Post from dem_syhp reads “If the charge is agreed by an AGM there is very little you can do about it”

Does this mean that ANY charge approved by AGM Meeting is mandatory for all members? Should approval be unanimous or just majority ?


The problem with AGM is that usually only 10-15 percent of members attend it.
What regulations/legislation controls this area ?

Answering your questions:
“Were you told in advance that you'd be asked to vote on it? If you were, did you ask the managing agent about using proxy or postal votes?”

I’ve received AGM invitation but there was no details on new levy.

 

[markpb]

Does this mean that ANY charge approved by AGM Meeting is mandatory for all members? Should approval be unanimous or just majority?

I think it differs for each company so you'll need to check the company documents with the CRO but generally approval at an AGM is majority voting. If you wanted to change some elements such as house rules, I think a unanimous vote is required.

The problem with AGM is that usually only 10-15 percent of members attend it. What regulations/legislation controls this area ?

I think it must be called by the company secretary and all members must be given at least 21 days notice. It should be at a time and in a location which is relatively convenient (i.e. not 100 miles from the estate and on Christmas eve). If only 85% of members can't be bothered to attend, why would the law protect them?