Question: Our body corporate manager is retiring and would like to transfer the agreement to another strata manager. They have asked the committee to vote on the proposition. Can the committee of four vote on the decision, or should the matter go to an EGM for all 13 owners to vote?
Answer: Yes, the committee can approve this.
Section 143 of the Standard Module (equivalent provisions of other Modules) provides for transfers of engagement, including engagement as a body corporate manager. It provides this can be given by resolution of the committee. The only exceptions would be if something like this is a restricted issue or if, for example, the committee decides to make it a decision of all owners (and then it would be by an ordinary resolution).
So, in your scenario, yes, the committee can approve it. If you have only four committee members, at least three would need to vote ‘yes’ to the proposed transfer (as a two-two vote would be a failed motion).
If you have some reservations about the transfer, it is fine to raise them and try to discuss it with the committee or other owners. It would always be preferable if any reservations you had were based on some factual information about the transfer rather than, say, not being a fan of it on principle.
This is general information only and not legal advice.
Chris Irons
Strata Solve
E: chris@stratasolve.com.au
P: 0419 805 898
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