Question: Our body corporate manager is pressuring the committee into signing the agency agreement. Our AGM, six months ago, mentioned the appointment, but the agreement was never circulated. Are we required to sign?
Our body corporate manager is pressuring the committee into signing an agreement. Our AGM was held in September of last year, and the agreement has only been produced now. The below was itemised in the AGM, but the agreement was never circulated. What do we do?
The body corporate engages XXX as the body corporate.
Manager to provide administrative, financial and secretarial services with the terms being detailed.
In the Administration Agreement circulated with this agenda for a period of three (3) years, commencing on XXXX, for the secretarial fee of $214.00 plus GST per lot per annum, plus disbursements, and that any one (1) or two (2) members of the committee be authorised to execute the Administration Agreement under the common seal.
Answer: The regulation module includes specific requirements for the engagement of a body corporate manager to be valid.
The regulation module includes a number of specific requirements for the engagement of a body corporate manager to be valid. Relevantly, one of those is:
the material forwarded to members of the body corporate for the general meeting that considers the motion approving the engagement, authorisation or amendment includes … the terms of the engagement or authorisation
If the terms of the agreement the committee is being asked to sign match the information included in the agenda, the committee has an obligation to give effect to the resolutions passed by the body corporate, including signing the new agreement.
However, if the agreement does not match what was on the agenda, the committee would not be authorised to sign the new agreement.
Todd Garsden
Mahoneys
E: tgarsden@mahoneys.com.au
P: 07 3007 3753
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