ACT: How to change strata managers in the ACT voting requirements, notice periods and key steps

Question: We want to change strata managers. What do we need to consider when voting on and implementing this change?

I am chair of the body corporate for my complex in the ACT. We want to change strata managers and understand we first have to have a vote on this but I wanted to know firstly, is the vote to change required from all owners or just the executive committee?

Secondly, does it need to be a majority or a certain percentage?

Thirdly, what time frame is required to notify our strata managers that we wish to discontinue their services?

Answer: Although it is common for the EC to make the recommendation to appoint after interviewing various agencies, that recommendation is formally put to owners at the AGM or GM for appointment.

Section 50 of the Unit Titles (Management) Act 2011 requires an ordinary resolution to enter into a contract for management of a units plan; The requirement for an ordinary resolution dictates that the decision must be placed to all owners at a General Meeting, and is not a decision which can be made by the Executive Committee. Although it is common for the EC to make the recommendation to appoint after interviewing various agencies, that recommendation is formally put to owners at the AGM or GM for appointment.

An ordinary resolution requires a simple majority vote, unless a poll is called. Please refer below S3.15 of the UTMA for further detail.

3.15 Ordinary resolutions

1. For an owners corporation with more than 2 members, the requirement for passing an ordinary resolution at a general meeting is that
   
   —
   1. unless a poll is taken—the number of votes cast in favour of the resolution is greater than the number of votes cast against it; or
   2. on a poll—the voting value of votes cast in favour of the resolution is greater than the voting value of the votes cast against it.

In order to be valid, the notice of General Meeting (requiring only ordinary or special resolutions) must be issued so that the notice would reasonably be expected to be received at least 14 days before the date fixed for the meeting. Your current strata manager should assist you with convening the meeting, noting that additional charges may apply.

Discontinuation of your contract will vary depending on the termination clause contained within your individual contract and the length of time remaining on the contract. Without these details, it is impossible to advise of any relevant timeframes as they will be specific to each individual circumstance. It is always recommended an EC review their contract and notice periods as one of the first things they do when approaching the market.

This post appears in Strata News #519.

Nina Cannell
Signature Strata
E: nina@signaturestrata.com.au
P: 02 6185 0347