Usually not automatically. Calling the reason 'for cause' does not by itself create a right to dismiss a strata manager immediately. The owners corporation must check the signed management agreement and applicable state legislation.
Usually not automatically. Calling the reason 'for cause' does not by itself create a right to dismiss a strata manager immediately.
The owners corporation must check the signed management agreement and the legislation applying in its state or territory. A contract may require a breach notice and an opportunity to remedy the problem before termination. Some state laws also impose their own procedural steps.
In NSW, there is no general rule saying poor performance or misconduct lets an owners corporation terminate a strata managing agent instantly without following the agreement. Where the dispute is serious, the owners corporation can seek an NCAT order under section 72 of the Strata Schemes Management Act 2015 to terminate or vary the agreement.
Do not assume 'for cause' means 'no notice'. A serious breach may give the scheme a right to terminate early, but the contract or legislation may still require a breach notice, remedy period, owners corporation resolution or Tribunal process. Immediate termination is safest only where the agreement or legislation clearly permits it, or a Tribunal or court orders it.
'For cause' is a practical label for termination based on alleged wrongdoing, breach or serious non-performance rather than simply deciding to change providers.
The exact legal meaning comes from the management agreement and applicable legislation. One contract may permit termination after a material breach remains unremedied for 14 days; another may define insolvency, loss of licence or fraud as immediate termination events.
Because the words 'for cause' do not have one automatic meaning across Australian strata law, committees should identify the exact clause and facts relied on.
Possible 'cause' events may include:
Not simply because the owners corporation considers the manager's performance unacceptable.
The first document to check is the strata management agreement. If the contract contains a breach-and-remedy process, the owners corporation should normally follow it unless another lawful termination pathway clearly applies.
If the agreement cannot be ended cleanly under its own terms, section 72 of the Strata Schemes Management Act 2015 allows the owners corporation to ask NCAT to terminate or vary the agreement.
Section 72 gives the Tribunal power to make orders about a strata managing agent or building manager agreement.
The statutory grounds include matters such as the strata managing agent refusing or failing to perform the agreement, unsatisfactory performance, charging fees that are excessive in the circumstances, conduct inconsistent with the Act or agreement, and circumstances where the agreement is harsh, oppressive, unconscionable or unreasonable.
NCAT's current strata orders guidance says an owners corporation applying under section 72 should provide detailed evidence explaining why termination is sought and generally provide evidence of attempted mediation.
If the manager disputes the alleged breach, the contract does not clearly allow immediate termination, or the financial consequences are significant, the owners corporation can consider mediation and an NCAT application rather than risking a wrongful-termination claim.
If the owners corporation is itself deciding to remove the strata manager, the general-meeting approval process still matters.
Current NSW Government guidance says removal is considered by a motion at an AGM or EGM and requires a majority vote.
A serious allegation does not automatically allow one committee member to send an immediate dismissal notice on behalf of the scheme.
Potentially. Some agreements distinguish between breaches that must be remedied and serious events that permit termination immediately or on shorter notice.
Examples can include insolvency, loss of a required licence, dishonesty, fraud or another event specifically identified as an immediate termination event.
Whether such a clause is valid and triggered depends on the wording, evidence and applicable legislation. The committee should not rely on a generic idea of 'serious misconduct' if the contract defines the trigger more narrowly.
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A breach notice tells the manager what obligation is said to have been broken, the facts supporting the allegation, what must be done to fix the problem and the deadline for doing so.
The notice should follow the exact wording and service method required by the contract. A vague email saying 'performance is unacceptable' may not satisfy a formal contractual notice requirement.
Where the breach is capable of being remedied, giving the manager the contractually required opportunity to fix it can be essential to a valid early termination.
A well-prepared breach notice may include:
Queensland provides a clear example of why 'for cause' does not necessarily mean 'without notice'.
For specified misconduct, gross negligence, failure to carry out duties or code-of-conduct breaches by a body corporate manager, the applicable regulation module generally requires the body corporate to first give a remedial action notice.
The official Queensland guidance states that the remedial notice must give the manager no less than 14 days to remedy the issue. If the manager does not comply within that period, termination can then be approved by ordinary resolution at a general meeting.
Other statutory termination grounds, such as certain criminal convictions or unlawful business conduct, have different requirements. The key point is that serious cause does not create one universal no-notice rule.
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