122Termination of certain agreements

#### 122 Termination of certain agreements 122 Termination of certain agreements > > (1) This section applies to an agreement with a person (other than a public authority) for the continuing provision to an association, or to the members of an association, of services or recreational facilities. > > > (2) If an association enters into an agreement to which this section applies during the initial period for a scheme, the agreement terminates at the end of the first annual general meeting of the association unless— > > > > > (a) its effect was disclosed in the association’s management statement before the transfer of any lots in the scheme, or > > > > > (b) it is ratified at the meeting. > > > (3) An association is guilty of an offence if— > > > > > (a) during the initial period, it enters into an agreement to which this section applies, and > > > > > (b) the agreement would terminate at the end of the first annual general meeting of the association unless ratified at the meeting, and > > > > > (c) the association did not, before entering into the agreement, inform the other party, or each of the other parties, to the agreement that it would so terminate. > > > > Maximum penalty—5 penalty units. > > > (4) In this section— > > > > services does not include the services of a managing agent.