In Victoria, an Owners Corporation has the legal authority to appoint and replace its Owners Corporation Manager. Changing a manager is not an unusual action; it forms part of the normal governance process of an Owners Corporation.
The general procedure is outlined below.
1. The Role of the Manager
An Owners Corporation Manager is a professional service provider appointed by the Owners Corporation to assist with administrative and management functions. The decision-making authority remains with the Owners Corporation, not the manager.
2. Initiating a Meeting
Any decision to change the manager must be considered and resolved at a General Meeting of the Owners Corporation.
A meeting may be convened in the following ways:
- The chairperson requires a meeting to be convened;
- A majority of committee members require a meeting; or
- Lot owners whose combined lot entitlements equal 25% or more of the total lot entitlements submit a written request for a Special General Meeting.
It is important to note that the legislation refers to lot entitlement, not the number of owners.
3. Making the Decision at the Meeting
The replacement of a manager is generally completed through the following steps:
1. A General Meeting is convened with proper notice issued to lot owners;
2. The motion is included in the meeting agenda;
3. Lot owners vote on the motion;
4. If passed, the appointment of the current manager is terminated and a new manager is appointed;
5. A formal handover of records, funds, and management responsibilities takes place.
Provided the meeting procedures comply with legislative and procedural requirements, the resolution is legally effective.
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4. Other Contractual Considerations
Before proceeding, the existing management agreement should be reviewed, including:
- Contract term;
- Required notice period;
- Any early termination provisions (if applicable).
Following contractual requirements helps ensure a smooth transition.