(1) The term of the engagement of a person as a body corporate manager or a service contractor must not be longer than 1 year after allowing for any rights or options of extension or renewal, whether provided for in the engagement or subsequently agreed to.
Example—
The engagement of a body corporate manager starts on 1 January 2012 and is for a term of 1 year. The engagement can not end later than 31 December 2012.
(2) If the term purports to be longer than 1 year, it is taken to be 1 year.
(3) To remove any doubt, it is declared that at the end of the term—
(a) the engagement expires; and
(b) the person can not act again as the body corporate manager or as a service contractor without a new engagement.