Victorian Current Acts

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OWNERS CORPORATIONS ACT 2006 - SECT 119A

Contract of appointment of manager

    (1)     A contract of appointment of the manager of an owners corporation ( contract of appointment ) must not include any of the following terms—

        (a)     a term that requires the owners corporation, before revoking the appointment of the manager—

              (i)     to pass a special resolution, a unanimous resolution or any other resolution requiring more than a simple majority of votes; or

              (ii)     to convene a general meeting of the owners corporation; or

              (iii)     to take any other prescribed step;

        (b)     a term that allows the manager to renew the contract of appointment at the manager's option;

        (c)     a term requiring a tier one owners corporation or a tier two owners corporation to give 3 months or more notice of its intention to revoke the manager's appointment;

        (d)     a term requiring a tier three owners corporation, a tier four owners corporation or a tier five owners corporation to give one month or more notice of its intention to revoke the manager's appointment;

        (e)     a term providing for the automatic renewal of the contract of appointment if the owners corporation fails to give notice, in accordance with the terms of the contract, of its intention not to renew the manager's contract;

        (f)     a term that restricts the ability of the owners corporation to refuse consent to an assignment of the contract of appointment to a person appointed as the manager, other than a requirement that such consent must not be unreasonably withheld by the owners corporation.

    (2)     If an owners corporation fails to give notice of its intention to renew a contract of appointment, the contract of appointment is taken to have been renewed on the basis that it may be terminated by the owners corporation or the manager by giving in writing—

        (a)     at least one month's notice; or

        (b)     if a shorter period of notice is provided under the contract, that shorter notice—

of the owners corporation's or manager's intention to terminate the contract of appointment.

    (3)     For the purposes of subsection (1)(f), an owners corporation that withholds consent to the assignment of the contract of appointment to a person who is appointed as the manager and is a full member of a professional body or association approved by the Director is taken to unreasonably withhold consent to the assignment of the contract of appointment.



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