Body Corporate and Community Management (Small Schemes Module) Regulation 2020
sec.74Termination for failure to comply with remedial action notice [ SM, s 152 ]
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sec.74 Termination for failure to comply with remedial action notice [ SM, s 152 ]
The body corporate may terminate a person’s engagement as a body corporate manager or service contractor if the person, including, if the person is a corporation, a director of the corporation— engages in misconduct, or is grossly negligent, in carrying out functions required under the engagement; or fails to carry out duties under the engagement; or fails to comply with section 75 (2) , 76 (2) or 77 (2) ; or for a body corporate manager— commits an offence under section 87 (2) ; or contravenes the code of conduct for body corporate managers and caretaking service contractors; or if the body corporate manager is acting under a chapter 3 , part 5 engagement—fails to give a report under section 28 . The body corporate may act under subsection (1) only if— the body corporate has given the person a remedial action notice under subsection (3) ; and the person fails to comply with the remedial action notice within the period stated in the notice; and the termination is approved by ordinary resolution of the body corporate. For subsection (2) , a remedial action notice is a written notice stating each of the following— that the body corporate believes the person has acted in a way mentioned in subsection (1) (a) to (d) ; details of the action sufficient to identify— the misconduct or gross negligence the body corporate believes has happened; or the duties the body corporate believes have not been carried out; or the provision of the code of conduct or this regulation the body corporate believes has been contravened; that the person must, within the period stated in the notice but not less than 14 days after the notice is given to the person— remedy the misconduct or gross negligence; or carry out the duties; or remedy the contravention; that if the person does not comply with the notice in the period stated, the body corporate may terminate the engagement. Despite subsection (2) (a) , if the person is a body corporate manager acting under a chapter 3 , part 5 engagement, the owners of at least one-half of the lots included in the community titles scheme may, on behalf of the body corporate, give the person a remedial action notice. (sec.74-ssec.1) The body corporate may terminate a person’s engagement as a body corporate manager or service contractor if the person, including, if the person is a corporation, a director of the corporation— engages in misconduct, or is grossly negligent, in carrying out functions required under the engagement; or fails to carry out duties under the engagement; or fails to comply with section 75 (2) , 76 (2) or 77 (2) ; or for a body corporate manager— commits an offence under section 87 (2) ; or contravenes the code of conduct for body corporate managers and caretaking service contractors; or if the body corporate manager is acting under a chapter 3 , part 5 engagement—fails to give a report under section 28 . (sec.74-ssec.2) The body corporate may act under subsection (1) only if— the body corporate has given the person a remedial action notice under subsection (3) ; and the person fails to comply with the remedial action notice within the period stated in the notice; and the termination is approved by ordinary resolution of the body corporate. (sec.74-ssec.3) For subsection (2) , a remedial action notice is a written notice stating each of the following— that the body corporate believes the person has acted in a way mentioned in subsection (1) (a) to (d) ; details of the action sufficient to identify— the misconduct or gross negligence the body corporate believes has happened; or the duties the body corporate believes have not been carried out; or the provision of the code of conduct or this regulation the body corporate believes has been contravened; that the person must, within the period stated in the notice but not less than 14 days after the notice is given to the person— remedy the misconduct or gross negligence; or carry out the duties; or remedy the contravention; that if the person does not comply with the notice in the period stated, the body corporate may terminate the engagement. (sec.74-ssec.4) Despite subsection (2) (a) , if the person is a body corporate manager acting under a chapter 3 , part 5 engagement, the owners of at least one-half of the lots included in the community titles scheme may, on behalf of the body corporate, give the person a remedial action notice.