- This topic has 8 replies, 4 voices, and was last updated 1 year, 2 months ago by .
-
Topic
-
Out of curiosity, what is the best and fairest way to remove a Strata Manager?
Can it be done at a General Meeting ie ask the owners to vote on whether they wish to have them renew their agreement and continue as their SMs. If the majority is no, they can then elect new strata managers at the AGM.
-
Replies
-
You should read the agreement (contract) between your Owners Corporation and the strata manager. Find out the start and end dates of your agreement and the rules for terminating an agreement. If you hold a general meeting just before the agreement is due to end, there would be a motion to renew the agreement. If a majority votes against that motion, the agreement can’t be renewed.
If you wish to terminate the agreement and appoint a new strata manager at the same meeting, I think you would have to submit the agreement for the new strata manager when the agenda is distributed. People need to see the agreement before they vote to accept it. Are you happy for the old strata manager to see your new contract?
In my strata plan, we held an EGM requesting the strata manager change some parts of their agreement. They said that if we voted in favour of these changes, they would resign from our service. We voted in favour. They resigned.
If they have breached the code of conduct or failed to deliver services you can use the Act to terminate them. The wording varies in each state but we did this successfully in the ACT with our strata manager, we gave them 30 days to explain their actions and if these were not acceptable to the Executive Committee their services would be terminated. We had already explored alternative Strata Managers and had one ready to move to.
From what I’ve heard, most owners wait till the AGM and just not renew the SM’s agreement.
Most SMs in NSW are on three-year contracts. If they have turned out to be a dud, you don’t want to wait three years to get rid of them.
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.
For me, if there was no alternative to sacking the manager, the process would be:
- Sit with the committee and identify areas in the SM contract where they have failed. Make a written note but don’t minute them in detail
- Find a new strata manager with good references who is prepared to take over.
- Confront the existing manager and invite them to resign rather than face a motion at a general meeting seeking their removal, at which all their alleged failures will be read into a permanent strata record.
- If they refuse, call the meeting, explain the problem and vote. Have a representative of the new strata manager there ready to take over.
As far as what happens in the interim, the law requires seven days’ notice (which is really 10 days to take into account postage and weekends). That is plenty of time for the strata manager to rethink their position but not enough to do any serious harm to the strata scheme.
The new strata manager can’t really take up the role until the previous one has been removed. Then it becomes an issue of getting the scheme’s records handed over which the previous incumbent can delay, despite the law saying they mustn’t, because Fair Trading doesn’t do anything to sanction strata managers who break strata law.
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.
- This reply was modified 1 year, 2 months ago by .
does the SC have to use legal terms to describe the failures?
You would use the terms used in the contract, nothing more, nothing less, as that reduces the opportunity for fudging the issues and deliberate misinterpretation.
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.
- You must be logged in to reply to this topic.