| (1) | The body corporate may, by special resolution, appoint an executive managing agent to perform the functions and exercise the powers that would otherwise be performed and exercised by the trustees. |
| (2) | Members entitled to 25 per cent of the total quotas of all sections may apply to the Community Scheme Ombud Service for the appointment of an executive managing agent. |
| (3) | An executive managing agent— |
| (a) | is subject to all the duties and obligations of a trustee under the Act and the rules of the scheme; |
| (b) | is obliged to manage the scheme with the required professional level of skill and care; |
| (c) | is liable for any loss suffered by the body corporate as a result of not applying such skill and care; |
| (d) | has a fiduciary obligation to every member of the body corporate; |
| (e) | must arrange for the inspection of the common property at least every six months; and |
| (f) | must report at least every four months to every member of the body corporate on the administration of the scheme. |
| (4) | The reports of an executive managing agent referred to in sub-rule (3)(f) must include at least the following details— |
| (a) | proposed repairs to and maintenance of the common property and assets of the body corporate within the next four months; |
| (b) | matters the executive managing agent considers relevant to the condition of the common property and the assets of the body corporate; |
| (c) | the balance of each of the administrative and reserve funds of the body corporate on the date of the report and a reconciliation statement for each fund; and |
| (d) | for the period since the appointment of the executive managing agent or from the date of the last report— |
| (i) | the expenses of the body corporate, including repair, maintenance and replacement costs; and |
| (ii) | a brief description of the date and nature of all decisions made by the executive managing agent. |
| (5) | The body corporate may, if trustees so resolve, and must if required by— |
| (a) | a registered mortgagee of 25 per cent in number of the primary sections; or |
| (b) | a resolution of members, |
appoint a managing agent to perform specified financial, secretarial, administrative or other management services under the supervision of the trustees.
| (6) | A management agreement for any managing agent must comply with the requirements as may be set out in the regulations. |
| (7) | A management agreement may not endure for a period longer than three years and may be cancelled, without liability or penalty, despite any provision of the management agreement or other agreement to the contrary— |
| (a) | by the body corporate on two months notice, if the cancellation is first approved by a special resolution passed at a general meeting, or |
| (b) | by the managing agent on two months notice. |
| (8) | The body corporate or trustees may by ordinary resolution cancel the management agreement in accordance with its terms or refuse to renew the management agreement when it expires. |
