Question: Our body corporate manager’s contract expires a month earlier than the AGM. How do we deal with the gap between ending the 3 year engagement and our AGM date?
Our 3 years Engagement of the Body Corporate Manager is going to finish towards the end of July. Our AGM should be held at the end of August. There will be approximately 1 month after ending the 3 year engagement where the BC Manager should not provide any work for the BC. How do we deal with a situation like this?
Answer: Technically, an EGM should be called in advance of the contract expiry to agree on a new contract or a new managing agency.
Unless the contract has any specific rollover clauses, it will end on the day it ends. That can create some difficulties for body corporates and managing agencies.
Technically, an EGM should be called in advance of the contract expiry to agree on a new contract or a new managing agency. If that hasn’t happened and the body corporate manager continues to act as a managing agent after the contract end date, they may be challenged on their capacity to act as managers or raise any fees for works done.
NSW legislation has taken steps to tidy this situation up – committees can agree a three month extension of a contract to allow time for a meeting to be held – but I’m not aware of similar provisions in Queensland. If your body corporate has any concerns about this it should probably seek legal advice.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924