In NSW, does the strata management agency agreement need to be attached to the EGM agenda when appointing a new strata managing agent?
At our AGM, we resolved to terminate our existing strata managing agent and to call an extraordinary general meeting to appoint a new strata manager. Two companies have been proposed. One has provided a strata management agency agreement, and the other has not.
In New South Wales, is the proposed strata management agency agreement required to be attached to the EGM agenda or circulated with the notice of meeting? If so, what legislation or regulation sets out this requirement?
The managing agency agreement is required to be made available to the general meeting notice in support of a motion to appoint a strata management company.
The short answer to the question is yes, the managing agency agreement is required to be made available to the general meeting notice in support of a motion to appoint a strata management company.
The longer answer is that, while the NSW Strata Schemes Management Act 2015 nor the Property and Stock Agents Act 2002 do not explicitly state this requirement in a single section of their legislation, it is an implication of the need for a detailed motion at the meeting to define the manager's roles and functions and to allow all owners the opportunity to consider the agreement before they vote on the appointment, in accordance with section 49(2) of the NSW Strata Schemes Management Act 2015:
"the appointment (of a strata managing agent) is to be made by instrument in writing, authorised by a resolution at a general meeting of the owners corporation."
In support of this implication, the published NSW Government Guidelines for appointment of a strata managing agent state that: Before the General Meeting, the secretary must attached the draft management agreement to the agenda. This gives the owners time to consider contract terms.
If the owners are not in a position to annex the agreement to the meeting notice, the proposed version of the document must be made available (preferably) before or (at least) at the meeting. However, if the latter, the motion must clearly state that the agreement is to be "tabled and accepted" during the meeting.
By ensuring the agreement is available, the process allows for the owners corporation's transparent and informed decision-making.
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During her tenure as a Licensed Strata Manager, Megan played an integral part of the strata industry since 2017 when commencing with an Industry Leader and was recognised for her dedication in the awarding of the 2019 SCA NSW Rising Star Award and 2020 SCA Australasia Rising Star Award.
Equipped with a Class 2 Strata Management Licence and Certificate 4 in Strata Management, she possesses a strong foundation of knowledge and expertise with respect to the multi-faceted management requirements of Owners Corporations, Building Management Committees, and all forms of Registered Associations, including but not limited to, Asset Management, Trust Account Management, Compliance Management, and complex Meeting Management with internal and external stakeholders.
Through the combination of all aspects of her professional experience, business management skills and passion for achieving success on behalf of her client base, Megan has been drawn to co-founding Tender Advisory to help Owners Corporation’s re-gain their confidence and control over the management of their properties and their trust accounts.
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