Changing Your Management Rights Agreements
Management rights agreements have a fixed term and their value is tied to the length remaining on that term.
Making sure your management rights agreements have the longest possible term available to you is very important. This needs the support of owners on general meeting, so you need to make sure you can get an ordinary resolution through.
We can help you do this.
When seeking to extend your agreements there are a number of issues to consider. These include:
- Do you go for new agreements or a variation of the existing ones? There are certain statutory rules that need to be considered.
- If you are going for new agreements do you prepare them like the previous ones or do you change the way they are structured?
- Making sure you comply with the statutory requirements. Ensuring the motion is right, the documents are right and that the necessary statutory forms are included with the agenda.
- Making sure the body corporate manager has the right instructions.
Leaving aside these legalities, there is an art on making sure you use the right strategy with your different owner groups to ensure their support.
We can tailor a package for you from simply preparing the documents, right through to providing tailored material and strategies to canvass your owners.
Where necessary we can also advise around forcing a body corporate to convene and EGM and sometimes even lodge applications with QCAT to prevent the committee or the body corporate acting in certain ways.
These things sound simple, but they quite often aren’t. You want to make sure you have the right advice when you are dealing with your body corporate to secure the investment you have made.
When it comes to extending an agreement through the exercise of an existing option we can also help. These are normally non contentious issues, but they still need to be drafted correctly.
Examples of articles where we talk about these issues:
Topping up management rights agreements - the contest continues
The difference between an extension and a variation
Do not forget your option
Lobbying your owners
Why top up your management rights agreeements?