Document ID: chunk:federal_register_of_legislation:F2021C01045:body:0:p7
Version: federal_register_of_legislation:F2021C01045
Segment Type: other
Provision Reference: 
Character Range: 14623–17189

the Act.
(2) This exemption does not apply if the agent:
(a) is a financial services licensee or a representative of a financial services licensee; or
(b) is the operator of a strata scheme; or
(c) is an excluded person.

9 Exemption for other persons from the prohibition on hawking
A person does not have to comply with section 992A of the Act for an offer to sell an interest in a strata scheme that appears to be covered by section 5.

10 Procedures for transferring management rights
Provisions to the following effect are required to be included in the agreement referred to in paragraph 5(2)(h):

Transfer of management rights
(a) If a majority of scheme members advise the operator in writing that they wish to terminate the operator's engagement, the operator must within 9 months transfer the management rights to a person:
(i) who is chosen by the operator; and
(ii) has not been involved in the operation (including promotion) of the scheme; and
(iii) is not controlled by a person that has been involved in the operation (including promotion) of the scheme.
(b) If the operator does not complete the transfer within the 9 month period, the operator must cause the transfer of the management rights to a replacement operator named in a written notice given by a majority of scheme members, at the price set out in the notice.
(c) A transfer referred to in paragraphs (a) or (b) must be done as soon as practicable, but if there is a body corporate for the real property to which the scheme relates, there must be a reasonable time for members of the body corporate to consider whether to make a decision referred to in paragraph (f) unless the body corporate has consented to the transfer.

Consent of body corporate to new caretaking arrangements
(e) If the operator receives a notice under paragraph (b), the operator must advise all body corporate members of the name of the person to whom the transfer is to be made.
(f) Unless the body corporate has consented to the transfer, an operator does not have to transfer the management rights to the person named in the notice given under paragraph (b) if a majority of body corporate members state in writing to the operator that the person should not be engaged by the body corporate to perform caretaking functions.
(g) If a majority of body corporate members make a decision referred to in paragraph (f), a majority of scheme members may then at any time name a replacement operator by a written notice, to whom the operator must transfer the management rights at a price set out in the notice and the