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[Dudley]

That said, can I impose and ask some further questions re re the upcoming AGM agenda. The last point on the agenda is reproduced below.

Agent Reappointment

The NSW Govt have passed a new Strata Scheme Management Act through Parliament which is due to come into effect on 1 July 2016.

The Owners Corporation are to consider the ramifications of the new Act as it may apply to Strata Plan XXXXX. Due to the changes in in the Act it will also be necessary to pass the following motion.

That in accordance with section 27 (1) of the strata Schemes Management Act.

1. Strata Manager be reappointed as strata managing agent of Strata Plan XXXXX, for a period of 15 months from the date of this meeting.
2. The owners corporation re-delegate all of its functions (other than those listed in 28(3) of he Act) and all of the functions of its chairperson, secretary, treasurer and executive committee.
3. The owners corporation execute the written agreement,as presented to the meeting at which this resolution is passed to give effect to this appointment and delegation.
4. The delegation is to be subject to the conditions and limitations set out in the agreement; and
5. Authority is given for the common seal of the owners corporation to be affixed to the Agreement.

My questions are,

In looking at some posts in the forum the date of effect of the new Strata Scheme Management Act is not 1 July 2016, am I correct?

1. Are we compelled to reappoint the strata manager?
2. It seems as though we are expected to pass the motion and execute a written agreement at the meeting – even though we will not have seen it until the meeting. Is this correct?
3. I am assuming that the common seal is held by the Strata Manager – is this usual, and what is the protocol re common seal usage?

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[Jimmy-T]

@Dudley said:

My questions are,

In looking at some posts in the forum the date of effect of the new Strata Scheme Management Act is not 1 July 2016, am I correct?

The new strata Act is due to come into force on November 30, with the exception of the Defects Bond regulations which have been postponed until some time next year.

Are we compelled to reappoint the strata manager?

This seems odd to me.  Anyone else heard of this?

It seems as though we are expected to pass the motion and execute a written agreement at the meeting – even though we will not have seen it until the meeting. Is this correct?

That’s what they want you to do but unless the contracts has been circulated along with the agenda, you would be very unwise to do so.

I am assuming that the common seal is held by the Strata Manager – is this usual, and what is the protocol re common seal usage?

The strata manager usually holds the common seal on your behalf but they should not use it unless instructed by the EC or a general meeting (unless its use is covered by delegated powers, which may well be the case in your block)

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[Whale]

Dudley – with regard to your question about the need to reappoint your strata managing agent upon the introduction of the new NSW strata laws in November, the Department of Fair Trading’s website states that if a strata managing agent is appointed before 30 November 2016, then the term of their appointment ends either 3 years from the date of that appointment, or 6 months after the introduction of the new strata laws whichever is the later date.

There may be a couple of reasons (at least) why your strata managing agent is proposing a new Strata Management Agency Agreement, the first being that under the current laws those Agreements merely roll-over for successive terms unless earlier terminated by one of the parties, whereas under the new laws the maximum permitted term is 3 years.

Secondly, the new laws require owners corporations to approve of any compulsorily declared commissions that are paid to their strata managing agent (e.g. from strata insurers), and the new form of Agreement that I’ve seen allows strata managing agents to increase their agreed service fee by an equivalent amount in those circumstances.

You can read more on the post November 2016 “strata managing agent reforms” HERE.

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