Owners’ Corporation – Appointing a Manager

Appointing a manager

An owners’ corporation may appoint a manager to carry out any powers or functions it is able to delegate (matters that require an ordinary resolution and that do not require a general meeting). The owners’ corporation usually delegates powers to a manager in a contract or instrument of delegation. This enables the manager to make decisions on behalf of the owners’ corporation. The appointment must be in writing or through a written contract.

Some owners’ corporations may be self-managed on a voluntary basis by a committee or a lot owner who has been delegated powers.

Duties of managers

All professional managers must:

  • register with the Business Licensing Authority
  • be appointed by an instrument or by contract of appointment
  • act honestly and in good faith
  • have professional indemnity insurance
  • hold all owners’ corporation money in trust
  • account separately for money held for each owners’ corporation they manage
  • report to the owners’ corporation at each Annual General Meeting
  • report to the committee as required
  • lodge an annual statement with the Business Licensing Authority.

Registration and professional indemnity insurance

All paid owners’ corporation managers must register with the Business Licensing Authority and have professional indemnity insurance. Registration applies to management businesses, rather than each individual manager who may be an employee of the business.

People aged under 18, bankrupts, or those who do not have professional indemnity insurance cannot register as a manager.

You can check a manager’s registration on the Business Licensing Authority’s public register of owners’ corporation managers. This register includes details of any orders made against a manager.

Removing a manager

A manager may be ‘removed’ by not renewing their contract of appointment.

Removing a manager before the expiry of their contract raises complex legal and contractual issues.

To remove a manager, an owners’ corporation should:

  • arrange a general meeting or postal ballot of lot owners. Alternatively, any authorised delegate can remove the manager without advising lot owners
  • follow the process for the removal or termination of the manager outlined in the contract of appointment.

The owners’ corporation may also apply to the Victorian Civil and Administrative Tribunal for an order terminating the manager’s contract.

Once a manager’s appointment is terminated, the manager has 28 days to return all funds and records to the owners’ corporation.

 

For further information or enquiry on the above, please contact us