Changing a body corporate manager in Victoria is not a daily occurrence for most owners’ corporations. However, it is a more frequent and often necessary process than commonly perceived. Reasons for considering a change can include concerns about communication effectiveness, clarity of financial reporting, or the committee’s desire for a new management approach.
Regardless of the underlying reasons, the transition process can be managed effectively with proper planning and information. Depending on the existing structure and available support, several clear pathways can facilitate a change in management. Let’s understand and learn more about the steps involved.
How Can The Committee Change The Body Corporate Managers?
One of the simplest ways to change the body corporate managers in Melbourne is to act through the committee itself. If the authority to make this kind of decision has already been delegated to the committee at the annual general meeting, which it often is, then the process can begin.
There are two main paths here:
Option 1: Through a Committee Meeting
This is probably the most direct option. The chairperson calls a meeting (in person, over the phone, or via video conference). At least 50% of the committee members need to be present to proceed. Then, it’s down to a majority vote.
Option 2: Via Committee Ballot
If a meeting isn’t possible or convenient, a ballot can be circulated—usually by email or post. The same threshold applies: at least 50% of members need to participate, and a simple majority wins.
Many body corporate managers in Melbourne include clauses in their contracts that prevent committees from making the final call on switching managers. It’s worth checking the AGM minutes for anything labelled ‘committee delegations’. If the authority’s been restricted, the committee can’t make the change directly. Instead, you’ll either need to wait for the next AGM or organise a special general meeting.
How Can You Call A Special General Meeting To Change The Owners’ Corporation Managers?
A special general meeting is just another general meeting— it’s not just the annual one. All owners are invited, and the agenda will go out in advance. This type of meeting becomes particularly helpful when the committee doesn’t have the authority to make the decision on its own.
Here’s how it works: if the majority of those who attend the vote in favour of changing the manager, the motion passes. Simple enough. But there’s one catch: if less than 50% of owners attend (in person or via proxy), the resolution is considered interim. It only becomes final after 29 days.
For example, imagine a complex with 50 owners. If only 5 attend the meeting on 1 March and 3 vote to change the manager, that’s the interim decision. If there’s no challenge, it becomes final on 29 March.
So, how do you actually call a special general meeting?
It can be done by:
- The chairperson or secretary
- An owner nominated by at least 25% of owners
- The current manager, if acting on authority from the committee or 25% of owners
If you’re wondering how to get in touch with other owners to gather support, look at the ‘owner register.’ Under section 150(2) of the Owners Corporations Act, this list of names and postal addresses must be provided if requested by an owner. Email addresses and phone numbers, though, generally aren’t included due to privacy laws.
How Do You Change The Body Corporate Managers At The Annual General Meeting?
If an AGM is coming up soon, this could be the ideal time to make a change. In fact, it’s probably the easiest route—provided you have support.
Ideally, the topic of removing the current manager is addressed early in the meeting. An owner can ask for a motion to appoint a new body corporate manager to be added to the agenda. The outcome is based on most of those present (either in person or by proxy).
Again, just like a special general meeting, if the AGM doesn’t reach a quorum, the resolution becomes interim and finalises after 29 days.
One thing to keep in mind: AGMs can be a bit unpredictable. If the idea of changing managers hasn’t been floated with other owners beforehand, it might catch some off guard. In practice, it’s a good idea to talk to a few others beforehand. That way, you’ll know whether there’s enough support for the change and who plans to attend or send a proxy.
What Are Some Incorrect Myths About The Process?
When people start talking about changing strata managers in Melbourne, a few half-truths tend to float around. In some cases, existing management companies might repeat them.
A few of the more common ones:
- “You can only change managers at an AGM.”
- “You’ll have to pay out the full contract.”
- “You have to provide a reason for the change.”
- “The manager must be present for any meeting or ballot to be valid.”
Knowing these points helps avoid misunderstandings and makes it easier to focus on the steps that actually matter.
Which Option Is Right for Your Situation?
There’s no one-size-fits-all here. It really depends on how the owner’s corporation is structured and what kind of support you have.
- If you’re part of an active committee with delegation powers, a committee meeting or ballot might be the simplest route.
- If committee powers are restricted—or you know there’s broader support from owners—a special general meeting is likely to be more effective.
- Ballots can work well in smaller buildings or where most owners are easy to reach by email.
- And if an AGM is around the corner, it’s often the most practical option, so long as the support is already there.
Conclusion:
It’s really important to plan ahead, no matter how you decide to change managers. Make sure everyone else on the owner’s corporation committee agrees with the idea. Explain the process clearly so everyone understands what will happen step by step. Keep everyone informed so they are ready to vote when the time comes to make the final decision. Getting everyone on the same page early on will make the whole process much smoother.
To learn more about how to change a body corporate manager in Victoria, call (03) 9804 8770.
