You’ve made the decision to appoint a professional Owners Corporate Manager (OCM) to assist in running your Owners Corporation.
The new OCM will have a close working relationship with the OC executive committee – particularly the Chairperson and secretary – and will take on the substantial burden of day to day operations.
Your OCM will guide you through the appointment procedure, but to assist you in understanding the process we’ve put together this summary.
First things first
Check the Consumer Affairs Victoria website for registration and insurance details – in Victoria, all professional OCM’s must:
- Be registered with the Business Licensing Authority
- Carry professional indemnity insurance for the prescribed amount or minimum $1.5M
- Be engaged under “contract of appointment” in the approved form.
A contract of appointment is between the Owners Corporation (as a legal entity) and the manager (or their company), so it’s the Owners Corporation that is held legally responsible for the actions (and omissions) undertaken by the appointed manager on its behalf!
The OCM’s legal powers and functions are:
- Determined or delegated by the Owners Corporation at a general meeting or,
- Determined or delegated by the committee
- In terms of Contract of Appointment
So what will your OC Manager do?
Here’s a short list of the basics….
Your OCM will works closely with the OC executive committee, in particular the chairperson, co-ordinating the daily operation of the OC in areas such as:
- Organising OC executive committee meetings
- Reporting at OC executive committee meetings and AGMs
- Collecting and banking fees
- Attending to correspondence
- Arranging quotations for repairs and maintenance
- Ensuring required insurance coverage is in place
- Invoice payment
- Preparation and distribution of budgets & financial statements
- Provision of OC certificates
- Maintenance of the OC register
- Maintenance of records
- Arrangement of legally required audits and reports
- Preparation and implementation of a grievance procedures
- Providing assistance in the development and implementation of by-laws
- Ensuring compliance with the Owners Corporations Act 2006, the Owners Corporations Regulations 2007 and rules.
So that’s the summary, but as always the “devil is in the detail”!
If you’ve done your homework and selected the right OCM for your facility, you’ll find the handover is a liberating experience – as always it’s about having the right People, the right Process to deliver the Performance you’re looking for.