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The Strata Schemes Management Act (in NSW) provides that a Strata Manager’s services may only be terminated by way of a resolution voted upon and passed at a General Meeting of the Owners Corporation, and then only in accordance with the conditions contained in the Strata Manager’s “instrument of appointment “; and that’s the Strata Management Agency Agreement between your Owners Corporation (O/C) and its Strata Manager.
So the first thing your O/C needs to do is to peruse that Agreement, and in particular the Clause relating to its termination, where save a significant breach of fiduciary responsibilities, the usual provision is that the O/C must provide its Strata Manager with three (3) months written notice of its intention to terminate. If that’s not possible given the Agreement’s expiry date, then it’s easiest to let the Agreement expire and roll-over, and then give the prescribed notice.
Once the termination provisions have been determined, then your O/C Secretary should convene the General Meeting (an AGM if the timing suits or an Extra Ordinary Meeting otherwise) and place a suitably worded Motion on the Agenda. Take care to ensure that any proxies submitted are properly completed in terms of Proprietors giving specific instructions concerning their vote on the Motion to terminate the Agreement.
The above summarises the legal aspects, but the relationship aspects are equally important, and in that regard your O/C should seek proposals from other Strata Managers prior to the General Meeting and put a complementary Motion (to the one to terminate) on the Agenda covering the appointment of its new Strata Manager, and ensure that there’s a hand-over process locked in – because it’s rarely good enough to rely on the professionalism and goodwill of the parties to strictly follow those provisions even though they too are provided for in the Agreement!
