This is not a story about Eastwick. I wonder if Eastwick even exists. But, it is a story from the East Coast and it is a story about wicked witches. Therefore, there is some connection to Eastwick.

It is a story of how egos can get in the way of running a good strata plan. These three bitches are all highly intelligent, all wealthy, and well trained in the art of bitchery. They are part of a single strata scheme, which has a single investment purpose. That bitchery has resulted in the following:

  • The strata manager being sacked;
  • The building manager’s contract being under threat;
  • Investigation from the ATO;
  • Investigation from ASIC;
  • Reviews from Fair Trading;
  • Suits in various courts; and most importantly
  • A loss of profit.

Strata Schemes are an association of people who often have a single purpose. They are corporate governance whereby persons of different persuasions find a way to focus on that single purpose and can be highly successful. When people separate, and consider their own individual means and launch attacks, the strata scheme is nothing but a bloodbath.

Once a bloodbath commences, there is not stopping it. Doesn’t matter how hard you work, there is no cure to the bloodbath. People already hate each other. People have spent money. And, most often, people have taken positions where their egos will not allow retreat.

It is a warning to:

  • Manage arguments in strata meetings;
  • Engage alternative dispute resolution instead of hiring lawyers; and
  • Identify your objectives and stick to them.

This matter will end in tears for everyone. No one will win. The strata scheme will have trouble ever reestablishing itself. One of the things that the Strata Schemes Management Act 2015 forgot to legislate against was ego and self-interest. But is it the responsibility of government to tell people how to behave responsibly? No! These members of strata schemes are wise enough and intelligent enough to know what they are supposed to be doing. Stem your ego and realise that your interests are best served by making your strata scheme effective and profitable.

This article was written by Bailey Compton, Principal Solicitor & Director at Leverage Group.

To get in touch with Bailey, please email info@leveragegroup.com.au or call 1300 438 538