Administrations
Administration, or ‘Compulsory Administration’ as it is sometimes known, is a statutory mechanism designed to protect owners and the integrity of a strata or community titles scheme when normal governance, or compliance, has broken down.
Bugden Allen advises owners corporations, committees, strata managers, mortgagees, lot owners and other interested parties on the appointment, scope and operation of administrators, including acting in applications before the Tribunal or the Commissioner.
What Is an Administrator?
An Administrator is essentially a statutory manager appointed to step into the shoes of the body corporate — and in some cases the committee or even lot owner — to make decisions, manage finances, resolve dysfunction or comply with earlier orders.
The role exists to protect owners and the scheme where ordinary governance structures are no longer functioning effectively, or there has been a significant, or ongoing, noncompliance with earlier orders.
When is an Administrator appointed?
An Administrator may be appointed in circumstances including where:
- The committee is dysfunctional, deadlocked or not performing its duties
- The body corporate is unable to form a committee (for example, due to lack of nominations)
- Serious conflict within the scheme prevents proper decision-making
- The body corporate is failing to meet legislative obligations (including budgets, levies or insurance)
- There are financial mismanagement issues, such as unpaid bills or levy arrears
- A body corporate manager appointed under a Part 5 engagement can no longer operate effectively
- One or more earlier orders have not been complied with
- A lot owner
- A mortgagee
- Another interested party
- The Commissioner
Powers of an Administrator
The powers of an Administrator depend on the terms of the appointment order made by the Magistrates Court or the Adjudicator appointed by the Commissioner. Appointments may be full or limited in scope.
Full Administration
Setting budgets and levies
Approving invoices and payments
Instructing lawyers
Issue management and risk assessment
Entering into contracts
Managing disputes
While owners retain their rights in respect of their individual lots, general meetings may be suspended during the period of full administration.
Limited Administration
Under a limited administration, the Administrator is appointed for a specific purpose only, such as:
- Conducting an annual general meeting
- Resolving a particular financial issue
- Making decisions the committee refuses or is unable to make
- Implementing an adjudicator’s order
Our Role in Administration Matters
- Advising on whether administration is appropriate
- Preparing and responding to applications for appointment
- Advising on the scope and duration of administration orders
- Working with appointed administrators during the administration period
- Advising on transition back to normal governance
Why Bugden Allen
Clients engage Bugden Allen in administration matters because of our:
- Specialist strata and community titles expertise
- Experience in complex and high-conflict schemes
- Clear understanding of statutory administration frameworks
- Practical, outcomes-focused advice
- Where required, novel but practical solutions
We focus on ensuring administration is used appropriately, proportionately and effectively to restore proper governance or compliance.
Administrations — FAQs
Your Questions Answered
What is an administrator in a strata scheme?
An administrator is a statutory manager appointed to step into the role of the body corporate — and sometimes the committee or even a lot owner — to make decisions, manage finances, resolve dysfunction where normal governance has broken down or secure compliance with earlier orders.
When can an administrator be appointed?
An administrator may be appointed where a scheme is unable to function properly, including where the committee is deadlocked or non-functional, the body corporate cannot form a committee, serious conflict prevents decision-making, legislative obligations are not being met or earlier orders are not being complied with.
Who can apply for the appointment of an administrator?
Applications for the appointment of an administrator may be made by a lot owner, a mortgagee, another interested party, or the Commissioner, depending on the circumstances and applicable legislation.
What powers does an administrator have?
What is the difference between full and limited administration?
Under full administration, the administrator exercises all functions of the body corporate and committee, including budgets, levies, contracts and disputes.
Under limited administration, the administrator is appointed only for a specific purpose, such as conducting an AGM, resolving a financial issue or implementing an adjudicator’s order.
Do owners lose their rights if an administrator is appointed?
No. Owners retain their rights in relation to their individual lots. However, during full administration, general meetings of the body corporate may be suspended.
How long does an administration appointment last?
The duration of an appointment depends on the terms of the order. Some administrations are short and targeted, while others continue until governance issues are resolved and the scheme can resume normal operation.
Can an administration be challenged or ended early?
In some circumstances, administration orders may be varied or brought to an end if the underlying issues have been resolved. Legal advice is essential to assess available options.
Do you assist with administration applications?
Yes. Bugden Allen advises on whether administration is appropriate, prepares and responds to applications, and assists clients throughout the administration process.
Our success stories
Relevant experience in strata administrations
22 Waruda Street Kirribilli
22 Waruda Street is an older-style residential apartment building consisting of 26 apartments in the exclusive harbourside suburb of Kirribilli. The owners recognised the value of the building due to its location and spectacular views across to the Sydney skyline and Opera House.
Successful outcomes
100%
Owners support secured, despite only needing 75%
Fast
Turnaround times delivered within a tight timeframe
$2.5M
Average sale price achieved per apartment
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