Victorian Current Acts

OWNERS CORPORATIONS ACT 2006 - SECT 122

    (1)     A manager—

        (a)     must act honestly and in good faith in the performance of the manager's functions; and

        (b)     must exercise due care and diligence in the performance of the manager's functions; and

S. 122(1)(c) amended by No. 4/2021 s. 53(1)(a).

        (c)     must not make improper use of the manager's position to gain, directly or indirectly, an advantage personally or for any other person; and

S. 122(1)(d) inserted by No. 4/2021 s. 53(1)(b).

        (d)     must take reasonable steps to ensure that any goods or services procured by the manager on behalf of the owners corporation are procured at competitive prices and on competitive terms; and

S. 122(1)(e) inserted by No. 4/2021 s. 53(1)(b).

        (e)     must not exert pressure on any member of the owners corporation in order to influence the outcome of a vote or election held by the owners corporation; and

S. 122(1)(f) inserted by No. 4/2021 s. 53(1)(b).

        (f)     before a contract is entered into for the supply of goods or services to an owners corporation under which a manager is entitled to receive a commission, payment or other benefit, must give written notice to the chairperson of the owners corporation disclosing the commission, payment or other benefit in accordance with section 122B.

    (2)     A manager—

        (a)     holds all money held on behalf of an owners corporation on trust for the owners corporation; and

S. 122(2)(b) substituted by No. 4/2021 s. 53(2)(a).

        (b)     if subsection (3) applies, must account separately for the money held by the manager for each owners corporation on the plan of subdivision; and

S. 122(2)(c) inserted by No. 4/2021 s. 53(2)(b).

        (c)     subject to subsection (3), must hold all money held on behalf of separate owners corporations on trust in separate bank accounts; and

S. 122(2)(d) inserted by No. 4/2021 s. 53(2)(b).

        (d)     must comply, as soon as practicable, with any reasonable request made by an owners corporation to provide copies of financial statements of bank accounts—

              (i)     that contain money held by the manager on behalf of the owners corporation on trust; and

              (ii)     for any period within 3 years immediately preceding the request.

S. 122(3) inserted by No. 4/2021 s. 53(3).

    (3)     Despite subsection (2)(c), a manager may hold money on behalf of separate owners corporations on trust in the same bank account if—

        (a)     each owners corporation—

              (i)     is on the same plan of subdivision; and

              (ii)     has consented to the money being held in the same account with the funds of other owners corporations; or

        (b)     the bank account is a statutory trust account held by—

              (i)     a licensed estate agent under the Estate Agents Act 1980 ; or

              (ii)     an Australian legal practitioner within the meaning of the Legal Profession Uniform Law (Victoria); or

              (iii)     a licensee under the Conveyancers Act 2006 .

S. 122(4) inserted by No. 4/2021 s. 53(3).

    (4)     Money held by a manager on behalf of an owners corporation on trust for the owners corporation includes any interest earned.

S. 122A inserted by No. 4/2021 s. 54.