sec.201ZMTermination for failure to comply with remedial action notice [SM, s 131 ]

sec.201ZM Termination for failure to comply with remedial action notice [SM, s 131 ]

A community body corporate or precinct body corporate may terminate a person’s appointment as a body corporate manager or engagement as a service contractor if the person or, 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 appointment or engagement; or fails to carry out duties under the appointment or engagement; or contravenes— for a body corporate manager—the code of conduct for body corporate managers and caretaking service contractors; or for a service contractor who is a caretaking service contractor—the code of conduct for body corporate managers and caretaking service contractors or the code of conduct for letting agents. Also, the body corporate may terminate a person’s authorisation as a letting agent if— the person or, if the person is a corporation, a director of the corporation— engages in misconduct, or is grossly negligent, in carrying out obligations, if any, under the authorisation; or fails to carry out duties under the authorisation; or contravenes the code of conduct for letting agents or, for a caretaking service contractor, the code of conduct for body corporate managers and caretaking service contractors; or the person— has been given a transfer notice requiring transfer of the person’s management rights; and has not transferred the management rights as required under section 201ZE . The body corporate may act under subsection (1) or (2) only if— the body corporate has given the manager, contractor or agent a remedial action notice; and the manager, contractor or agent 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; and for the termination of a person’s engagement as a caretaking service contractor or authorisation as a letting agent—the motion to approve the termination is decided by secret ballot. In this section— remedial action notice means a written notice stating each of the following— that the body corporate believes the person to whom the notice is given has acted— for a body corporate manager or service contractor—in a way mentioned in subsection (1) ; or for a letting agent—in a way mentioned in subsection (2) ; 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 the body corporate believes has been contravened; or if subsection (2) (b) applies, the contravention of the code contravention notice or the relevant provision of the code of conduct that was the ground for requiring the transfer of the person’s management rights under section 201ZA ; that the person must, within a reasonable period of at least 14 days stated in the notice— 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 stated period, the body corporate may terminate the person’s appointment, engagement or authorisation as a body corporate manager, service contractor or letting agent. s 201ZM ins 2011 No. 27 s 302 (sec.201ZM-ssec.1) A community body corporate or precinct body corporate may terminate a person’s appointment as a body corporate manager or engagement as a service contractor if the person or, 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 appointment or engagement; or fails to carry out duties under the appointment or engagement; or contravenes— for a body corporate manager—the code of conduct for body corporate managers and caretaking service contractors; or for a service contractor who is a caretaking service contractor—the code of conduct for body corporate managers and caretaking service contractors or the code of conduct for letting agents. (sec.201ZM-ssec.2) Also, the body corporate may terminate a person’s authorisation as a letting agent if— the person or, if the person is a corporation, a director of the corporation— engages in misconduct, or is grossly negligent, in carrying out obligations, if any, under the authorisation; or fails to carry out duties under the authorisation; or contravenes the code of conduct for letting agents or, for a caretaking service contractor, the code of conduct for body corporate managers and caretaking service contractors; or the person— has been given a transfer notice requiring transfer of the person’s management rights; and has not transferred the management rights as required under section 201ZE . (sec.201ZM-ssec.3) The body corporate may act under subsection (1) or (2) only if— the body corporate has given the manager, contractor or agent a remedial action notice; and the manager, contractor or agent 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; and for the termination of a person’s engagement as a caretaking service contractor or authorisation as a letting agent—the motion to approve the termination is decided by secret ballot. (sec.201ZM-ssec.4) In this section— remedial action notice means a written notice stating each of the following— that the body corporate believes the person to whom the notice is given has acted— for a body corporate manager or service contractor—in a way mentioned in subsection (1) ; or for a letting agent—in a way mentioned in subsection (2) ; 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 the body corporate believes has been contravened; or if subsection (2) (b) applies, the contravention of the code contravention notice or the relevant provision of the code of conduct that was the ground for requiring the transfer of the person’s management rights under section 201ZA ; that the person must, within a reasonable period of at least 14 days stated in the notice— 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 stated period, the body corporate may terminate the person’s appointment, engagement or authorisation as a body corporate manager, service contractor or letting agent.