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.