Community Titles Act 2018

There are proper grounds for termination of a scheme management contract by a community corporation if —

the scheme manager has contravened this Act; or

the scheme manager has contravened the contract; or

the scheme manager is, according to the Interpretation Act 1984 section 13D, a bankrupt or a person whose affairs are under insolvency laws; or

the scheme manager is a Chapter 5 body corporate within the meaning given in the Corporations Act 2001 (Commonwealth) section 9; or

the scheme manager, or a director or chief executive officer of the scheme manager, is convicted in this State of an offence punishable by imprisonment for 12 months or longer and the community corporation is satisfied that the offence affects the scheme manager’s suitability to perform the scheme manager’s functions; or

the scheme manager, or a director or chief executive officer of the scheme 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 community corporation is satisfied that the offence affects the scheme manager’s suitability to perform the scheme manager’s functions.

If a community corporation is satisfied that there are proper grounds for termination of a scheme management contract, the community corporation may terminate the contract by giving the scheme manager written notice of termination —

specifying the date (being not less than 28 days after the date of the notice) on which the termination will take effect; and

informing the scheme manager of the right to apply to the Tribunal for review of the decision to terminate the contract.

Before a community corporation terminates a scheme management contract under subsection (2), the community corporation must give the scheme manager a notice (a show cause notice).

A show cause notice must —

be in writing; and

state that the community corporation proposes to terminate the scheme management contract; and

specify the grounds on which it is proposed to terminate the scheme management contract; and

set out particulars of the facts relied on as evidence of those grounds; and

invite the scheme manager to make written submissions to the community corporation as to why the scheme management contract should not be terminated; and

specify the period (being at least 14 days after the date of the notice) within which the written submissions must be received by the community corporation.

A community corporation must give proper consideration to any written submissions made by the scheme manager within the period specified in the show cause notice.

Nothing in this section affects the operation of section 102 in relation to a scheme management contract or any other right that the community corporation may have to terminate the contract.