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We are terminating our contract with our present SM by mutual agreement.
Some SC members have found a new SM which has been verbally agreed to by a majority of the OC.
We need to formalise this decision. Can this be done through an EGM held by email and sent out by the secretary, without involvement of the (soon to be) ex-strata manager? If so, is there a particular way the motion should be worded, and does anything need to be attached other than the proposed strata management agreement?
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We are in Victoria – we have an SCA contract from a large Body Corporate Management group. Is terminating a contract by mutual agreement the same as “without having to specify the reason for termination”?
There is a clause in our SCA contract which states:
If no notice of its intention to revoke this Appointment is given by the Owners Corporation to the Manager
at least 28 days prior to the expiry date the Appointment will continue until the expiration of one year
after the expiry date (which date will then become the expiry date) but will not exceed the date of the
next Annual General Meeting at which time re-appointment must be confirmed.I would also like to know if the termination process follow some sort of procedure.
In our case the contract will come to an end in October. The AGM is usually in December. The Manager/Management have discovered after 9 months that the contract is unsigned. The person meant to sign it was appointed at the AGM but then resigned. All owners are part of the Body corporate.
It is almost not worth doing anything.
Regardless of whether or not you want to continue with your current manager, you should give notice that you want to terminate the (unsigned) contract. Then you can decide whether or not you want to renew that contract, renegotiate the terms, or find someone else entirely.
Doing nothing is an option but it’s not a good one.
By the way, all owners are part of an Owners Corporation (body corporate in Victoria) by default. I think you mean the strata committee
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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