We are not happy with the way the Trustees are running with our scheme we are going to request that an Administrator be appointed. How does that work?
If you look at the references in the STSM Act you will see that Section 16 deals with the appointment of the Administrator.
Looking at Section 16(3)
(3) An administrator has, to the exclusion of the body corporate, such powers and duties of the body corporate as the Magistrate’s Court directs and must exercise these powers to address the body corporate’s management problems as soon as reasonably possible.
It should therefor be an absolute last resort to appoint an Administrator as this person can run the scheme as they deem fit without consulting the owners on anything. There will no longer be ordinary / special or unanimous resolutions needed. This person will be able to make all the decisions.
This is however not a James Bond – License to Kill. The Administrator must report to CSOS. But if the owners want to have any say in the day to day running of their scheme it would be better to suggest to them not to get an Administrator appointed but rather to replace the Trustees or appoint an Executive Managing Agent (EMA). The EMA only takes over the functions and powers of the Trustees and still have to report to the owners and get certain approvals from the owners (as per the STSM Act)