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Before any decision can be made in relation to terminating your current strata managing agent, you need to obtain a copy of the agency agreement from your existing manager and note the expiry date of the contract.

Most agreements require you to provide 3 months written notice prior to the end of the initial term or after the expiry of the contract.

Recent amendments to the regulations prevent agreements from automatically rolling over for successive terms, therefore if the initial term of your agreement has expired you are only required to provide the specified termination notice period.

The appointment of a strata managing agent can only be approved at a general meeting of the Owners Corporation. This can be an Annual General Meeting or an Extraordinary General Meeting.

The motion to terminate and appoint strata managing agent is an “ordinary” resolution which only requires majority approval.

If your scheme has an upcoming general meeting the Secretary can include a motion on the agenda about the termination and appointment of a Strata Manager. Any Owner within the scheme may also request that the Secretary place a motion on the agenda for consideration.

The following motions must be adopted by the Owners Corporation at a general meeting in order to effectively terminate and appoint a strata managing agent:-

Motion 1 - Termination of [Name of current manager]

That the appointment of [name of current manager] as the strata managing agent for the Strata Scheme no. (Insert plan no.] be terminated in accordance with section 27 (2) of the Strata Schemes Management Act 1996, effective [No. of days as per agreement] from the date of this meeting, and that the Secretary is authorised to give notice of the termination in accordance with the terms of the original appointment.

That the delegation of functions of the Owners Corporation, its Executive Committee, Chairperson, Secretary and Treasurer to [name of current manager] be revoked in accordance with section 28 (2) of the Strata Schemes Management Act 1996, effective [No. of days as per agreement] from the date of this meeting, and that the Secretary is authorised to give notice of the revocation in accordance with the terms of the original delegation.

Motion 2 - Appointment of The Strata Agency Pty Limited

Resolved that in accordance with Section 27(1) of the Strata Schemes Management Act 1996 (‘Act’) that the appointment of The Strata Agency Pty Limited (‘Agent’) as strata managing agents be approved for a (No.) month’s term from (insert date) and that:

(a) The Owners Corporation delegates to the Agent all of the functions of:

(i) The Owners Corporation (other than those listed in section 28(3) of the Act) and;

(ii) Its Chairperson, Treasurer, Secretary and Executive Committee, necessary to enable the Agent to carry out the ‘routine services’ and the ‘non-routine services’ as defined in the agreement to be tabled at this meeting (‘Agreement’); and

(b) The delegation to the Agent is to be subject to the conditions and limitations in the Agreement; and

(c) The Owners Corporation execute the Agreement to give effect to this appointment and delegation; and

(d) Authority be given for the common seal of the owners corporation to be affixed to the Agreement by 2 members of the executive committee.

The Strata Schemes Management Act provides details as to how a general meeting of the Owners Corporation may be convened. Below are some recommendations as to how to convene a general meeting of the Owners Corporation in order to deal with the appointment and termination of a strata managing agent.

Notice of a General Meeting

A notice of a general meeting must be sent to all owners shown on the Strata Roll at least “7 clear days” before the scheduled date of the meeting (i.e. 7 business days, not counting the day the notice is sent or received).

Motion of Executive Committee

An Executive Committee has the power to decide at an Executive Committee Meeting to convene an Extraordinary General Meeting to appoint a strata manager.

In doing so, the Executive Committee is exercising its power pursuant to Clause 31 (2) of schedule 2 of the Strata Schemes Management Act.

The decision of the Executive Committee should be recorded in the minutes of the meeting as follows:

The Executive Committee decided that pursuant to its powers pursuant to Clause 31 (2) of schedule 2 of the Strata Schemes Management Act to:

(a) Convene an Extraordinary general Meeting of the Owners Corporation, to be held at [address] on [date], commencing at [time];

(b) Consider a motion to terminate [name of current manager];

(c) Consider a motion to appoint a strata managing agent, The Strata Agency Pty Limited; and

(d) Instruct the Secretary to prepare and send the notice for the meeting.

Requisition for Extraordinary General Meeting

Another option available to owners is to request an Extraordinary General Meeting be held to consider the appointment of a strata manager. The notice must be signed by lot owners whose total unit entitlement equal at least one-quarter of aggregate unit entitlements for your strata scheme.

If you require a copy of the “Requisition for Extraordinary General Meeting Form” please contact us