(1) This section
applies to a delegation of functions or powers by a community corporation
if—
(a) the
delegation is made to a person (the "body corporate manager ) who carries on a
business, or is an employee in a business, that consists of, or includes,
acting as a delegate of community corporations or of strata corporations under
the Strata Titles Act 1988 ; and
(b) the
delegation is made after the commencement of this section or a contract,
between the body corporate manager and the corporation, relating to the
delegation is made, renewed or extended after the commencement of this
section; and
(c) it
is proposed that the body corporate manager be remunerated in respect of work
performed in exercising the delegated functions or powers.
(2) A body
corporate manager is only entitled to receive remuneration in respect of work
performed in exercising functions or powers under a delegation to which this
section applies if—
(a) the
body corporate manager and the community corporation have entered into a
contract in compliance with subsections (3) and (8); and
(b) the
body corporate manager, prior to entering into the contract referred to in
paragraph (a), provided the community corporation with documents of a
kind prescribed by regulation verifying the body corporate manager's
entitlement to act as a body corporate manager and any other prescribed
matter; and
(c) the
body corporate manager, whilst performing such work, maintained professional
indemnity insurance complying with the requirements prescribed by the
regulations,
(and if a body corporate manager has received, from a community corporation,
remuneration to which he or she is not entitled under this subsection, the
community corporation may recover the amount of the remuneration as a debt).
(3) A contract between
a body corporate manager and a community corporation must—
(a) be
in writing; and
(b)
specify the term of the contract; and
(c) set
out the functions or powers to be delegated; and
(d)
specify the rights of the community corporation under subsection (4); and
(e) set
out the remuneration payable to the body corporate manager in respect of the
work performed in exercising the delegated functions or powers, or set out the
basis on which such remuneration is to be calculated; and
(f)
contain any other particulars required by the regulations; and
(g) have
annexed to it a copy of each document provided by the body corporate manager
in accordance with subsection (2)(b).
(a)
there is a contract (other than a contract that is for a period of
12 months or less) in force between a community corporation and a
body corporate manager; and
(b) the
community corporation has had relevant contractual arrangements with the
body corporate manager for a continuous period of at least 12 months,
the community corporation may terminate the contract by written notice given
to the body corporate manager at least 28 days (or a lesser period
specified in the contract) before the termination of the contract is to come
into effect.
(5) For the purposes
of subsection (4)(a), the period of a contract is the term of the
contract disregarding any renewal period that may occur at the end of that
term unless the renewal occurs at the option of the body corporate manager (in
which case the period of the contract will be taken to include the period of
the renewal).
(6) The right of a
community corporation to terminate a contract under subsection (4) is in
addition to, and does not derogate from, any other right of the
community corporation to terminate the contract.
(7) A decision to
terminate a contract in accordance with subsection (4) is to be made by
ordinary resolution of the community corporation.
(8) The body
corporate manager must ensure that a copy of the contract, and any other
prescribed information or document of a kind prescribed by regulation is
available for inspection by members of the corporation at least 5 clear
days before the date of the meeting at which the corporation is to consider
whether or not to enter into the contract.
(9) The
body corporate manager must, at the request of any member of the corporation,
make a copy of the body corporate manager's policy of professional indemnity
insurance available for inspection and copying by the member within
3 business days of the request.
Maximum penalty: $500.
(10) The Minister may,
by notice in the Gazette, exempt body corporate managers from compliance with
subsection (2)(c) for such period as the Minister thinks fit.
(11) An exemption
granted by the Minister under subsection (10)—
(a) may
be subject to conditions specified in the notice of exemption; and
(b) may
be varied or revoked by the Minister at any time by subsequent notice in the
Gazette.
(12) In this
section—
"relevant contractual arrangements" mean contractual arrangements relating to
a delegation of functions or powers by a community corporation to a
body corporate manager.