Western Australian Current Acts Western Australian Current Acts (1) There are proper
grounds for termination of a strata management contract by a strata company if
—
(a) the
strata manager has contravened this Act; or
(b) the
strata manager has contravened the contract; or
(c) the
strata manager is, according to the Interpretation Act 1984 section 13D, a
bankrupt or a person whose affairs are under insolvency laws; or
(d) the
strata manager is a Chapter 5 body corporate within the meaning given in the
Corporations Act 2001 (Commonwealth) section 9; or
(e) the
strata manager, or a director or chief executive officer of the strata
manager, is convicted in this State of an offence punishable by imprisonment
for 12 months or longer and the strata company is satisfied that the offence
affects the strata manager’s suitability to perform the strata
manager’s functions; or
(f) the
strata manager, or a director or chief executive officer of the strata
manager, is convicted outside this State, in Australia or elsewhere, of an
offence that, if it had been committed in this State, would be punishable by
imprisonment for 12 months or longer and the strata company is satisfied that
the offence affects the strata manager’s suitability to perform the
strata manager’s functions.
(2) If a strata
company is satisfied that there are proper grounds for termination of a strata
management contract, the strata company may terminate the contract by giving
the strata manager written notice of termination —
(a)
specifying the date (being not less than 28 days after the date of the notice)
on which the termination will take effect; and
(b)
informing the strata manager of the right to apply to the Tribunal for review
of the decision to terminate the contract.
(3) Before a strata
company terminates a strata management contract under subsection (2), the
strata company must give the strata manager a notice (a show cause notice ).
(4) A show cause
notice must —
(a) be
in writing; and
(b)
state that the strata company proposes to terminate the strata management
contract; and
(c)
specify the grounds on which it is proposed to terminate the strata management
contract; and
(d) set
out particulars of the facts relied on as evidence of those grounds; and
(e)
invite the strata manager to make written submissions to the strata company as
to why the strata management contract should not be terminated; and
(f)
specify the period (being at least 14 days after the date of the notice)
within which the written submissions must be received by the strata company.
(5) A strata company
must give proper consideration to any written submissions made by the strata
manager within the period specified in the show cause notice.
(6) Nothing in this
section affects the operation of section 115 in relation to a strata
management contract or any other right that the strata company may have to
terminate the contract.
[Section 151 inserted: No. 30 of 2018 s. 83.]