Under Prescribed Management Rule 28, cancellation may require a special resolution passed at a general meeting and two months’ notice. An agreement may also be cancelled in accordance with its terms or not renewed when it expires. The documents and rules applying to the particular scheme must therefore be checked.
RECORD WHY A CHANGE IS NEEDED
Trustees should identify the concerns leading to the proposed change:
- Poor communication
- Delayed financial reporting
- Unresolved administrative matters
- Weak arrears management
- Incomplete records
- Slow maintenance coordination
- Failure to implement authorised decisions
This helps trustees assess proposals against the scheme’s actual needs.
FOLLOW THE CORRECT PROCESS
The trustees should establish:
- What resolution is required
- Who must approve the change
- What notice must be given
- When the current appointment ends
- When the new appointment begins
If the termination is disputed or unclear, appropriate legal advice should be obtained before notice is issued.
SELECT THE NEW MANAGING AGENT
Compare more than the monthly fee. Consider:
- Scope of services
- Financial systems and reporting
- Communication standards
- Additional charges
- Experience and credentials
- Onboarding and handover support
The appointment should be properly authorised and recorded in a clear management agreement.
PLAN THE HANDOVER
The outgoing agent may hold important records, including:
- Financial and levy information
- Owner details and arrears records
- Meeting minutes and resolutions
- Supplier and insurance documents
- Maintenance and statutory records
- Access details and administrative files
Trustees should monitor the transfer and keep track of anything outstanding.
INFORM OWNERS
Owners should receive the effective date, new contact details and any changes to payment arrangements. Clear communication helps prevent uncertainty and interrupted levy payments.
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