straita

Strata Managers

What resolution is needed to terminate a strata manager?

Short answer

In NSW, ending a strata managing agent’s appointment is a decision for the owners corporation as a whole, by ordinary resolution at a general meeting — not something the strata committee can do on its own. The termination motion goes on the agenda of an annual general meeting (AGM) or a specially convened extraordinary general meeting (EGM), and passes on a simple majority of the votes cast. The appointment can only be ended in line with the terms of the agency agreement and the Strata Schemes Management Act 2015.

What kind of resolution — and who votes?

It’s an ordinary resolution (a simple majority of the votes cast at the meeting), made by the owners corporation at a general meeting under the Strata Schemes Management Act 2015 (NSW). The strata committee cannot terminate the manager by itself — the decision belongs to the owners at a general meeting.

The steps

  1. Put it on an agenda. Add the termination motion (and ideally a motion to appoint a replacement) to the next AGM, or requisition an EGM for the purpose.
  2. Give proper notice. Members must receive notice of the meeting and the agenda within the timeframe the Act requires.
  3. Hold the meeting and vote. If the ordinary resolution passes, the appointment ends in accordance with the instrument of appointment.
  4. Check the agreement. The agency agreement’s own termination terms (notice, handover of records and funds) still apply — read it before you move.

Watch the contract terms and timing

A managing agent’s appointment already has a limited term under the Act, and the agreement sets out how it can be ended. Ending it mid-term without following the agreement’s process can expose the scheme to a dispute, so confirm the notice and handover terms first. (See what should be in a strata management agreement.)

After the vote

Once terminated, the scheme needs a plan for who runs the administration next — a new agent (see how to find a new strata manager) or self-management. Self-management doesn’t mean the committee suddenly does everything by hand: a system such as Straita does the work — levies, meetings, records, compliance and money — while the committee just approves the decisions.

Primary sources