- This topic has 2 replies, 3 voices, and was last updated 9 years, 4 months ago by .
-
Topic
-
Long time reader of the forum yet newbie poster.
I am the secretary of a small scheme comprising of 10 units in Sydney (Parramatta).
Due to the new laws, our contract will expire on the 30th May. Our AGM is in 2 weeks time and we have a motion to terminate our current manager and to appoint a new manager (BCS). Since our contract terminates on the 30th May, is that when our new company can take over since the new laws state the contract terminates, as opposed to the usual 3 month notice?
-
Replies
-
Greg – From Bannermans Lawyers: Agency Agreements Expiry Deadline – 29 May 2017
Many agency agreements are due to expire on 29 May 2017 due to the operation of Section 50(1) and clause 14(1) of Schedule 3 of the Strata Schemes Management Act 2015.For those schemes the managers were to notify the owners corporation on or before 28 February 2017 that their agreements were due to expire on 29 May 2017.
Did your existing strata manager notify your OC on or before 28 Feb that their agreements were due to expire on 29 May?
It does not appear that 3 months notice is required as the Act seems to imply that the term of appointment “ends on the following day”. Therefore it appears that a new strata manager appointment can begin from that date. If I was you, however, I would clarify this with your intended new strata manager.
Clause 14(1) of Schedule 3 of SSMA 2015 states:
14 Terms of appointment of strata managing agents
(1) The term of appointment of a strata managing agent appointed or reappointed before the commencement of section 50 (1) of this Act, that is in force on that commencement, ends on the following day:
(a) if the agent was appointed or reappointed for a term (including any roll over or extension period) of 3 years or more, on the day that is 3 years after the term commenced or that is 6 months after the commencement of section 50 (1) of this Act, whichever is the later,
(b) if the agent was appointed or reappointed for a term (including any roll over or extension period) of less than 3 years, on the day that the term ends or that is 6 months after the commencement of section 50 (1) of this Act, whichever is the later.
I’m in a similar situation to GregHornsby. I wonder whether we even need a motion to terminate our current SM, given the effect of Clause 14(1). My plan is to simply put up a motion to engage the new strata manager.
Does anyone know what notice (if any) we need to give to the existing strata manager? I will check this with our intended new SM in the coming days.
Our existing SM did not formally notify us on or before 28 Feb about the impending expiry of the agreement.