64Disclosure by managing agents

#### 64 Disclosure by managing agents 64 Disclosure by managing agents > > (1) A managing agent for a scheme must report the following at the annual general meeting of the association for the scheme— > > > > > (a) whether commissions have been paid to the agent (other than by the association) in connection with the exercise by the agent of functions for the scheme during the preceding 12 months and particulars of any such commissions, > > > > > (b) any such commissions and the estimated amount of the commissions that the agent believes are likely to be received by the agent in the following 12 months, > > > > > (c) whether, during the preceding 12 months— > > > > > > > (i) a supplier of goods or services for the strata scheme has become connected with the agent, or > > > > > > > (ii) an original owner of the strata scheme has become connected with the agent, > > > > > (d) the following information— > > > > > > > (i) the suppliers of goods or services for the strata scheme who are connected with the agent, > > > > > > > (ii) the original owners of the strata scheme who are connected with the agent, > > > > > > > (iii) for subparagraphs (i) and (ii)—details about the nature of the relationship between the agent and the supplier or original owner, > > > > > > > (iv) for subparagraph (i)—details about the goods and services provided by the supplier. > > > > Maximum penalty— > > > > > (a) for a corporation—500 penalty units, or > > > > > (b) otherwise—100 penalty units. > > > > Note. > > > > It is an offence for an agent to receive commissions that are not of a kind permitted by the agent’s terms of appointment or approved by the association (see section 61). > > > (2) A managing agent must, as soon as practicable after becoming aware that commissions paid to the agent (other than by the association) differ from the commissions or an estimate of commissions disclosed at the annual general meeting, disclose to the association committee the variation and give an explanation for the variation. > > > > Maximum penalty— > > > > > (a) for a corporation—500 penalty units, or > > > > > (b) otherwise—100 penalty units. > > > (2A) A managing agent must give written notice to the association before entering into a contract for the purchase of goods or services if either or both of the following apply— > > > > > (a) under the contract, a commission or training service of the kind referred to in section 61(3)(b) or (b1) may be paid to the agent, > > > > > (b) the contract is with a person connected with the agent. > > > > Maximum penalty— > > > > > (a) for a corporation—500 penalty units, or > > > > > (b) otherwise—100 penalty units. > > > (2B) The notice must include the following— > > > > > (a) details, including the specific provision of the terms of appointment of the agent, if relevant, that demonstrate the payment of the commission or provision of the training service is permitted under section 61(3), > > > > > (b) details about the commission or training service, including the following— > > > > > > > (i) the amount of the commission and the method of its calculation, > > > > > > > (ii) for a training service—the monetary value of the training service or, if that is not known, an estimate of monetary value of the training service, > > > > > (c) details about the nature of the relationship between the person paying the commission or training service and the managing agent, > > > > > (d) details about why the contract is in the association’s best interest, > > > > > (e) a statement that the managing agent believes that entering into the contract does not contravene the [Property and Stock Agents Regulation 2022](/view/html/inforce/current/sl-2022-0501), Schedule 1, section 11 and the reasons for the belief. > > > (2C) A managing agent must give written notice to the association as soon as practicable after becoming aware of the following— > > > > > (a) a supplier of goods or services for the scheme becomes connected with the agent, > > > > > (b) the original owner of the scheme becomes connected with the agent, > > > > > (c) the agent acquires a direct or indirect pecuniary interest in the scheme. > > > > Maximum penalty— > > > > > (a) for a corporation—500 penalty units, or > > > > > (b) otherwise—100 penalty units. > > > (2D) The notice must include— > > > > > (a) for subsection (2C)(a) and (b)—details about the nature of the relationship between the agent and the supplier or original owner, and > > > > > (b) for subsection (2C)(a)—details about the goods and services provided by the supplier. > > > (3) The Tribunal may, on application by an association or the Secretary, order a managing agent to pay to the association— > > > > > (a) the whole or part of the amount of commissions paid to the agent and not disclosed in accordance with this section, or > > > > > (b) the whole or part of the amount of commissions paid to the agent that are not of a kind or an amount disclosed by the agent under this section, if the Tribunal is satisfied that the disclosure of commissions at the previous annual general meeting was not made in good faith. > > **s 64:** Am 2024 No 65, Sch 3\[1\] \[4\]–\[7\].