Generally it is up to the owners whether they employ a strata manager, but if things go wrong and a Strata Adjudicator is satisfied the owners corporation is not doing its work satisfactorily, or has failed to comply with an order, or failed to perform one or more of its duties or owes a judgement debt, the Adjudicator may appoint a strata manager.
Relevant NSW Legislation: Strata Schemes Management Act (2015)
Section 56: Exercise of functions of strata managing agent appointed by an Adjudicator
Sections 237: Agency Agreements
NSW Civil & Administrative Tribunal can appoint a strata manager to exercise all or specified functions of the owners corporation, where orders are usually made only if:
(a) the management structure of the scheme is not functioning or is not functioning satisfactorily; or
(b) the owners corporation failed to perform one or more of its duties or to comply with an order made under the Act.