Part 3 The strata corporation

(1) The name of a strata corporation is "Strata Corporation No. Incorporated" (the number being the number of the deposited strata plan).

(2) The abbreviation "Inc." may be used in place of the word "Incorporated".

(3) The strata corporation must have a common seal bearing its name.

(4) All the unit holders of the units are members of the strata corporation.

(1) Subject to this section, the articles of a strata corporation will be as set out in Schedule 3.

(2) A strata corporation may by special resolution—

(a) adopt articles in substitution for those set out in Schedule 3; or

(b) revoke or vary articles previously so adopted.

(3) A resolution under subsection (2) has no effect until a copy of the resolution certified in the prescribed manner and accompanied (where appropriate) by the substituted articles, or the variation to the articles, is lodged with the Registrar-General.

(3a) The articles of a strata corporation may impose a penalty, not exceeding the prescribed amount, for contravention of, or failure to comply with, any articles.

(3b) The following provisions apply in relation to a penalty imposed on a person for contravention of, or failure to comply with, articles:

(a) the penalty is (despite section 29 of the Acts Interpretation Act 1915) payable to the strata corporation in accordance with this subsection;

(b) subject to the making of an application under paragraph (e), the penalty is payable by the person on the date specified for payment in a notice served by the corporation on the person;

(c) the notice must—

(i) be in writing in the form prescribed by regulation; and

(ii) specify the amount of the penalty payable and a date for payment (being not less than 60 days after the notice is served);

(d) the penalty payable under the notice is recoverable by the strata corporation as a debt and, in the case of a notice served on a unit holder, may be recovered by the strata corporation as if it were a contribution payable to the strata corporation under section 27 (and interest will be payable on the penalty amount in the same way as if it were such a contribution);

(e) the person may, within 60 days after service of the notice, apply to the Magistrates Court for revocation of the notice and the Court must grant the application if either—

(i) the Court is not satisfied that the person committed the contravention or failure alleged in the notice; or

(ii) the Court is satisfied that the contravention or failure alleged in the notice is trifling;

(f) the strata corporation is a party to an application under paragraph (e) and bears the onus of proving, on the balance of probabilities, that the person committed the contravention, or failure alleged in the notice;

(g) if an application is made in accordance with paragraph (e), the penalty specified in the notice is not payable unless the application for revocation is withdrawn or otherwise discontinued by the applicant or is dismissed or refused by the Court (and, in such a case, the penalty will be payable on the date on which the application is so withdrawn, discontinued, dismissed or refused or on the date for payment specified in the notice, whichever occurs later).

(3c) A person's contravention of, or failure to comply with, articles will, for the purposes of this section, be regarded as trifling if, and only if, the person establishes that the circumstances surrounding the commission of the contravention or failure were such that he or she ought to be excused from the imposition of a penalty on the ground that—

(a) there were compelling humanitarian or safety reasons for the conduct that allegedly constituted the contravention or failure; or

(b) the person could not, in all the circumstances, reasonably have averted committing the contravention or failure; or

(c) the conduct allegedly constituting the contravention or failure was merely a technical, trivial or petty instance of a contravention of or failure to comply with the relevant articles.

(3d) The regulations may make further provision in relation to enforcement of the articles of a strata corporation.

(4) The articles of a strata corporation cannot—

(a) prevent or restrict alienation of a unit by a unit holder; or

(b) prevent or restrict a unit holder from leasing or granting rights of occupation in respect of a unit; or

(c) prevent an occupier of a unit who has a disability from keeping a relevant animal at the unit, or restrict the use of a relevant animal by the occupier if the relevant animal is trained to assist the occupier in respect of the disability; or

(d) prevent a visitor to a unit who has a disability from using a relevant animal trained to assist the visitor in respect of the disability.

(5) In this section—

prescribed amount, in relation to a penalty imposed under articles of a strata corporation, means—

(a) if the strata scheme only includes units that are used, or are intended to be used, solely or predominantly for business or commercial purposes—$2 000; or

(b) in any other case—$500.

(1) Any articles that—

(a) reduce the value of a unit; or

(b) unfairly discriminate against a unit holder,

may be struck out by order of the Magistrates Court or the District Court on an application made under Part 3A.

(2) An application referred to in subsection (1) can only be made by a person who was a unit holder when the articles came into force and must be made within 3 months after the person (or either or any of the unit holders where the unit is held by 2 or more persons) first knew, or could reasonably be expected to have known, that the articles had been made.

(3) For the purposes of this section, a reference to a unit holder includes a person who has contracted to purchase the unit.

(1) The articles of a strata corporation are binding on—

(a) the corporation; and

(b) the unit holders; and

(c) insofar as they affect the use of units or the common property—occupiers of units who are not unit holders.

(2) A unit holder or mortgagee in possession of a unit must take reasonable steps to ensure that an occupier of the unit who is not a unit holder complies with the articles of the strata corporation.

(1) If a strata corporation defaults in payment of a pecuniary liability, the liability is enforceable against the unit holders jointly and severally.

(2) The unit holders have amongst themselves a right of contribution determined by reference to the respective unit entitlements of the various units.

(1) Except as authorised by or under this Act, or by order of the Court, a strata corporation must not make any payment to any of its members.

(2) Subsection (1) does not prevent—

(a) reasonable payments to a member for services provided to the strata corporation by that member;

(b) the reimbursement of costs or expenses incurred by a member on behalf of the strata corporation.

(1) A strata corporation must have the following officers:

(a) a presiding officer (to preside at meetings of the corporation); and

(b) a secretary; and

(c) a treasurer.

(1a) Unless all of the units comprised in the strata scheme consist of non-residential premises, the officers of a strata corporation must be unit holders.

(2) Any two or more of the above offices may be held simultaneously by the same person.

(3) Until the first appointments are made to the above offices, they will be held by the original proprietor (or, if the original proprietor is a body corporate, by its nominee or in the absence of a nominee, by its secretary).

(4) Appointments to the above offices must be made by the strata corporation at a general meeting of the corporation.

(5) A strata corporation must not allow any of the above offices to remain vacant for more than six months.

(6) A strata corporation may appoint or engage a person to assist any person appointed under this section as an officer of the corporation.

A strata corporation contracts as follows:

(a) a contract may be entered into under the common seal of the corporation; or

(b) a contract may be entered into by an officer or agent authorised by the corporation to enter into the contract on its behalf.

The functions of the strata corporation are as follows:

(a) to administer and maintain the common property for the benefit of the unit holders and, to such extent as may be appropriate, other members of the strata community; and

(b) to administer all other property of the corporation; and

(c) to enforce the articles of the corporation.

(1) For the purpose of carrying out its functions, a strata corporation may—

(a) acquire, deal with and dispose of real and personal property (including an interest in a unit) and rights in relation to real and personal property;

(b) borrow money and obtain other forms of financial accommodation;

(c) open and maintain accounts at ADIs;

(d) invest money not immediately required for its purposes—

(i) in investments in which trustees are authorised by statute to invest trust funds; or

(ii) in any prescribed investment;

(e) enter into any kind of contract or arrangement;

(f) do anything reasonably incidental to its functions under this Act.

(2) A strata corporation cannot acquire property unless—

(a) the property is reasonably required for the purposes of the corporation or for the use or benefit of the strata community;

(b) in the case of real property, the property is a unit within the site or is adjacent to the site.

(3) A strata corporation cannot acquire, deal with or dispose of real property unless authorised by unanimous resolution of the corporation.

(4) The strata corporation may, if authorised to do so by unanimous resolution of the corporation, grant to a unit holder an exclusive right to occupy part of the common property for a specified period.

(5) A strata corporation may only dispose of real property that has been held as common property if the property no longer forms part of the site.

(6) If a strata corporation sells real property, any money received in respect of the sale must, after paying the costs of the sale and any associated expenses, be paid into the funds of the corporation and used to meet any outstanding administrative expenses or other liabilities of the corporation and any remaining balance may then, by unanimous resolution of the corporation, be divided between the unit holders in proportion to the unit entitlements of their respective units.

A strata corporation can only delegate its functions or powers to the extent permitted by Division 2A.

(1) A strata corporation may raise such funds (including reserve funds for future expenditure of a capital nature) as it thinks necessary.

(2) For the purpose of raising funds the strata corporation may, by ordinary resolution, levy contributions against all unit holders.

(3) The contributions—

(a) will be proportional to the unit entitlements of the various units; or

(b) will be determined on such other basis as the strata corporation decides by unanimous resolution.

(4) A strata corporation may, by ordinary resolution—

(a) permit contributions to be paid in instalments specified in the resolution; and

(b) fix (in accordance with the regulations) interest payable in respect of a contribution, or an instalment of a contribution, that is in arrears.

(5) The strata corporation may recover an unpaid contribution (and interest on any such contribution), as a debt, from the unit holder of the unit in respect of which the contribution is payable (whether or not that person was the unit holder when the liability arose).

(6) If the strata corporation carries out work that wholly or substantially benefits a particular unit or group of units, the corporation may, subject to any agreement to the contrary, recover the cost of that work as a debt from the unit holder or unit holders of the unit or units.

(7) Where the cost referred to in subsection (6) is recoverable from two or more unit holders, the extent of their liability will be proportioned according to the unit entitlements of their respective units.

(8) An amount paid by a person under this section is not recoverable by the person from the strata corporation when he or she ceases to be a unit holder.

(1) A strata corporation may delegate any of its functions and powers (except this power of delegation) to a member or employee of the corporation.

(2) A strata corporation may delegate the following functions and powers to any person:

(a) the receipt and holding of money and other personal property on behalf of the corporation;

(b) payment of money on behalf of the corporation;

(c) the preparation of statements of expenditure and proposed expenditure and statements of accounts;

(d) the collection of money due to the corporation;

(e) entering into contracts of insurance with insurers on behalf of the corporation;

(f) maintaining and keeping records on behalf of the corporation;

(g) issuing and signing notices on behalf of the corporation;

(h) preparing minutes of meetings of the corporation;

(i) providing information as required by the Act on behalf of the corporation;

(j) investing money on behalf of the corporation;

(k) arranging for the maintenance and repair of the common property on behalf of the corporation.

(3) A delegation by a strata corporation is to be made by ordinary resolution of the strata corporation.

(4) However, a strata corporation cannot delegate a function or power under subsection (1) or (2) if the function or power is of a kind that can only be performed or exercised by the corporation by passing a special or unanimous resolution.

(5) A delegation by a strata corporation—

(a) may be absolute or conditional; and

(b) does not derogate from the power of the corporation to act in any matter; and

(c) is—

(i) in a case where there is a contract relating to the delegation between the corporation and a body corporate manager—revoked on termination or expiry of the contract; or

(ii) in any other case—revocable by the corporation at any time by notice given in writing (notwithstanding any agreement to the contrary by the corporation).

(1) This section applies to a delegation of functions or powers by a strata corporation if—

(a) the delegation is made to a person (the body corporate manager) who carries on a business, or is an employee in a business, that consists of, or includes, acting as a delegate of strata corporations or of community corporations under the Community Titles Act 1996; and

(b) the delegation is made after the commencement of this section or a contract, between the body corporate manager and the corporation, relating to the delegation is made, renewed or extended after the commencement of this section; and

(c) it is proposed that the body corporate manager be remunerated in respect of work performed in exercising the delegated functions or powers.

(2) A body corporate manager is only entitled to receive remuneration in respect of work performed in exercising functions or powers under a delegation to which this section applies if—

(a) the body corporate manager and the strata corporation enter into a contract in compliance with subsections (3) and (8); and

(b) the body corporate manager, prior to entering into the contract referred to in paragraph (a), provided the strata corporation with documents of a kind prescribed by regulation verifying the body corporate manager's entitlement to act as a body corporate manager and any other prescribed matter; and

(c) the body corporate manager, whilst performing such work, maintains professional indemnity insurance complying with the requirements prescribed by the regulations,

(and if a body corporate manager has received, from a strata corporation, remuneration to which he or she is not entitled under this subsection, the strata corporation may recover the amount of the remuneration as a debt).

(3) The contract must—

(a) be in writing; and

(b) specify the term of the contract; and

(c) set out the functions or powers to be delegated; and

(d) specify the rights of the strata corporation under subsection (4); and

(e) set out the remuneration payable to the body corporate manager in respect of the work performed in exercising the delegated functions or powers, or set out the basis on which such remuneration is to be calculated; and

(f) contain any other particulars required by the regulations; and

(g) have annexed to it a copy of each document provided by the body corporate manager in accordance with subsection (2)(b).

(4) Where—

(a) there is a contract (other than a contract that is for a period of 12 months or less) in force between a strata corporation and a body corporate manager; and

(b) the strata corporation has had relevant contractual arrangements with the body corporate manager for a continuous period of at least 12 months,

the strata corporation may terminate the contract by written notice given to the body corporate manager at least 28 days (or a lesser period specified in the contract) before the termination of the contract is to come into effect.

(5) For the purposes of subsection (4)(a), the period of a contract is the term of the contract disregarding any renewal period that may occur at the end of that term unless the renewal occurs at the option of the body corporate manager (in which case the period of the contract will be taken to include the period of the renewal).

(6) The right of a strata corporation to terminate a contract under subsection (4) is in addition to, and does not derogate from, any other right of the strata corporation to terminate the contract.

(7) A decision to terminate a contract in accordance with subsection (4) is to be made by ordinary resolution of the strata corporation.

(8) The body corporate manager must ensure that a copy of the contract, and any other prescribed information or document of a kind prescribed by regulation is available for inspection by unit holders at least 5 clear days before the date of the meeting at which the corporation is to consider whether or not to enter into the contract.

(9) The body corporate manager must, at the request of any member of the corporation, make a copy of the body corporate manager's policy of professional indemnity insurance available for inspection and copying by the member within 3 business days of the request.

Penalty: Division 9 fine.

(10) The Minister may, by notice in the Gazette, exempt body corporate managers from compliance with subsection (2)(c) for such period as the Minister thinks fit.

(11) An exemption granted by the Minister under subsection (10)—

(a) may be subject to conditions specified in the notice of exemption; and

(b) may be varied or revoked by the Minister at any time by subsequent notice in the Gazette.

(12) In this section—

relevant contractual arrangements mean contractual arrangements relating to a delegation of functions or powers by a strata corporation to a body corporate manager.

(1) For the avoidance of doubt—

(a) the body corporate manager stands in a fiduciary relationship with the strata corporation; and

(b) the duties owed by the body corporate manager under this Act are in addition to, and do not derogate from, the duties arising out of that fiduciary relationship.

(2) Without derogating from subsection (1), a body corporate manager—

(a) must act honestly and in good faith in the performance of the manager's functions; and

(b) must exercise due care and diligence in the performance of the manager's functions; and

(c) must not make improper use of the manager's position to gain, directly or indirectly, an advantage personally or for any other person.

(1) A delegate of a strata corporation who has a direct or indirect pecuniary interest in a matter in relation to which he or she proposes to perform delegated functions or powers must disclose the nature of the interest, in writing, to the corporation before performing the functions or powers.

Penalty: Division 4 fine.

Example—

For example, if the delegate would receive a commission from a person for placing business of the strata corporation with that person, it would be an offence to fail to disclose that fact before placing business with the person. Similarly, if the delegate were to profit by placing business of the strata corporation with a related body corporate, it would be an offence to fail to disclose that fact before placing business with the related body corporate.

(2) If an employee or agent of a delegate has a direct or indirect pecuniary interest in a matter, the delegate is, for the purposes of subsection (1), taken to have a direct or indirect pecuniary interest in the matter.

(3) A delegate who is a unit holder is not obliged by subsection (1) to disclose an interest that he or she has in common with all of the unit holders.

(4) It is a defence to a charge of an offence against subsection (1) for the defendant to prove that he or she did not know and could not reasonably have been expected to know of his or her interest in the matter.

(5) A delegate of a strata corporation must, on application by a unit holder, provide the applicant, on a quarterly basis, with a statement setting out details of dealings by the delegate with the corporation's money (and must continue to so provide the statements until the applicant ceases to be a unit holder or revokes the application).

Maximum penalty: $500.

(6) If all delegations by a strata corporation to a delegate are revoked, the delegate must return to, or make available for collection by, the corporation—

(a) all records of the corporation held by the delegate; and

(b) all trust money held pursuant to the delegations,

in accordance with any requirements prescribed by the regulations.

Penalty: Division 7 fine.

(7) A delegate of a strata corporation who holds records of the corporation must, at the request of any unit holder—

(a) make those records available for the unit holder to inspect within 10 business days of the request; and

(b) provide the unit holder with a copy of any of the records on payment of a fee (not exceeding a fee calculated in accordance with the regulations).

Penalty: Division 9 fine.

(1) A strata corporation may, by notice in writing to a unit holder, require the unit holder—

(a) to carry out specified work in pursuance of a duty of maintenance or repair imposed on the unit holder by the articles;

(b) to carry out specified work to remedy a breach of this Act or the articles on the part of the unit holder, a former unit holder, or an occupier or former occupier of the unit;

(c) to carry out specified work required to be carried out on the unit by a public authority or council.

(2) If the unit holder does not comply with a requirement imposed under this section within the time allowed in the notice, a person or persons authorised by the strata corporation may (using such force as may be reasonably necessary in the circumstances) enter the unit and carry out the specified work.

(3) A power of entry must not be exercised under subsection (2) unless the unit holder and the occupier of the unit have been given at least 2 days notice in writing of the proposed entry.

(3a) Despite any other provision of this section, an officer of a strata corporation or a person or persons authorised by a strata corporation may, if satisfied that urgent action is necessary to avert a risk of death or injury or significant damage to property, enter a unit (using such force as may be reasonably necessary in the circumstances) and carry out such work as is reasonably necessary to deal with the risk.

(3b) A person proposing to enter a unit in accordance with subsection (3a) must give such notice (if any) to the unit holder and the occupier of the unit as he or she considers reasonable in the circumstances.

(4) Any cost reasonably incurred by the strata corporation in having work carried out under this section may be recovered as a debt from the unit holder.

(5) Where—

(a) the strata corporation recovers costs from a unit holder under subsection (4); and

(b) the circumstances out of which the work was required are attributable to the act or default of another person,

the unit holder may in turn recover those costs from that other person as a debt.

(1) Subject to subsection (1a), a person must not carry out prescribed work in relation to a unit unless the person is authorised to do so—

(a) where all of the units comprised in the strata scheme consist of non-residential premises—under the articles of the strata corporation; or

(b) in any case—by special resolution of the strata corporation.

(1a) Subsection (1) does not apply to—

(a) prescribed work carried out in compliance with a direction under section 23 of the Housing Improvement Act 1940; or

(b) prescribed work carried out on a unit in a strata scheme consisting only of 2 units if the work is approved development under the Planning, Development and Infrastructure Act 2016.

(1b) Where a person carries out prescribed work referred to in subsection (1a)(b), the strata corporation may, by notice in writing to the owner of the unit, require the owner to carry out, within a reasonable period fixed in the notice, specified work to remedy any structural deficiency caused by the work.

(2) Where a person acts in contravention of subsection (1), the strata corporation may, by notice in writing to the unit holder, require him or her to carry out, within a reasonable period fixed in the notice, specified work—

(a) to remedy any structural deficiency caused by the work; or

(b) to restore the unit to its previous state.

(6) In this section—

prescribed work in relation to a unit means—

(a) the erection, alteration, demolition or removal of a building or structure;

(b) the alteration of the external appearance of a building or structure.

This Division does not apply to a strata corporation if all units comprised in the strata scheme are held by the same registered proprietor and no unit comprised in the strata scheme is subject to a contract for sale.

(1) A strata corporation must keep all buildings and building improvements on the site insured to their replacement value.

(2) The replacement value of buildings and building improvements is the cost of their complete replacement including the cost of any necessary preliminary demolition work, any necessary surveying, architectural or engineering work and any other associated or incidental costs.

(3) The insurance must be against—

(a) risks of damage caused by events (other than subsidence) declared to be prescribed events in relation to home building insurance under Part 5 of the Insurance Contracts Act 1984 of the Commonwealth; and

(b) risks against which insurance is required by the regulations.

(4) Any money to which a strata corporation is entitled under a contract of insurance in relation to damage to buildings or building improvements must, subject to any contrary order of the Court, be applied by it in reinstating or repairing those buildings or building improvements.

(1) A strata corporation must keep itself insured against liability in tort.

(2) The insurance cover must be for at least $5 000 000 or such greater amount as the regulations may prescribe.

(2a) A strata corporation (other than a corporation of a kind prescribed by regulation) must maintain fidelity guarantee insurance complying with the requirements prescribed by the regulations.

Penalty: Division 4 fine.

(2b) The Minister may, by notice in the Gazette, exempt strata corporations from compliance with subsection (2a) for such period as the Minister thinks fit.

(2c) An exemption granted by the Minister—

(a) may be subject to conditions specified in the notice of exemption; and

(b) may be varied or revoked by the Minister at any time by subsequent notice in the Gazette.

(3) A strata corporation must keep itself insured against any other liability—

(a) determined by special resolution of the corporation; or

(b) prescribed by the regulations.

(1) A strata corporation must, within 5 business days after the making of a request by a unit holder, a mortgagee of a unit or a prospective purchaser or mortgagee of a unit, produce for inspection all current policies of insurance taken out by the corporation.

(2) A request under subsection (1) may be addressed to the secretary.

(1) A strata corporation may hold a meeting of its members (a general meeting) at any time.

(2) Such a meeting may be convened by—

(a) the secretary; or

(b) if the corporation has a management committee—any two members of the committee; or

(c) the unit holders of one-fifth or more of the total number of units; or

(d) in the case of the first such meeting—the original registered proprietor; or

(e) order of the Magistrates Court (made on the application of a person of a class specified in section 41AA).

(3) A meeting is convened by giving written notice of the day, time and place of the meeting to all unit holders at least 14 days before the date of the meeting.

(3aa) A unit holder may not nominate another person to be given notices referred to in subsection (3) on his or her behalf (although nothing prevents the strata corporation from agreeing to provide notices to such a person in addition to the unit holder).

(3a) A person or group of persons proposing to convene a meeting of the members of a strata corporation should take reasonable steps to ensure that the proposed day, time and place are reasonably convenient to a majority of members of the corporation.

(4) The corporation must hold at least one such meeting (the annual general meeting) in every calendar year and no more than 15 months after the last such meeting.

(4a) The notice convening a general meeting must set out the agenda for the meeting.

(4b) The agenda must include—

(a) the text of any unanimous or special resolutions to be moved at the meeting; and

(b) a motion confirming the minutes of the previous general meeting; and

(c) in the case of an annual general meeting—

(i) presentation of the accounts for the previous accounting period; and

(ii) contributions to be paid by members for the current accounting period; and

(iii) presentation of statements required under section 33A; and

(iv) presentation of copies of all insurance policies required under this Act; and

(v) such other matters as are required by regulation.

(5) Subject to subsection (6), no business may be transacted at a general meeting of the corporation unless a quorum, consisting of persons entitled to exercise the voting power in respect of not less than one-half of the units, is present at the time when the meeting proceeds to business.

(6) If a quorum is not formed within half an hour of the time appointed for a general meeting of the corporation—

(a) the unit holders present must appoint another day for the meeting, being a day at least seven days but not more than 14 days away; and

(b) the meeting then stands adjourned to that day at the same place and time; and

(c) if the quorum is not formed at the adjourned meeting within half an hour of the relevant time, the persons who are present and entitled to vote constitute a quorum.

(7) Where a meeting of the corporation is adjourned under subsection (6), the secretary of the corporation must cause reasonable notice of the day, place and time of the adjourned meeting to be given, in writing, to the unit holders.

(8) Subject to subsection (9), in the absence of the presiding officer, a person present may be appointed to preside at the meeting by the persons present and entitled to vote at the meeting.

(9) A person who is a body corporate manager in relation to a corporation, or is an employee of such a body corporate manager, may preside at a meeting of the corporation if a majority of the persons present and entitled to vote at the meeting agree to that person presiding (and the body corporate manager or employer is taken not to be entitled to vote for that purpose except in circumstances prescribed by the regulations).

(10) The regulations may make further provision in relation to the procedures to be followed at a meeting at which a body corporate manager, or an employee of a body corporate manager, is to preside.

(11) A unit holder may, in accordance with any requirements prescribed by regulation, attend, and vote, at a meeting by telephone, video-link, Internet connection or any similar means of remote communication (provided that no obligation lies on a strata corporation to provide such facilities to unit holders who wish to attend or vote in such a manner).

(12) In this section—

accounting period, for a strata corporation, means the accounting period for the corporation under section 40(2).

(1) A statement setting out the following information must be presented by a strata corporation to each annual general meeting of the corporation:

(a) proposed expenditure (other than recurrent expenditure) for the period prescribed by the regulations for the purposes of this paragraph (which must not exceed 5 years);

(b) the estimated expenditure of a recurrent nature and the estimated expenditure of a non-recurrent nature to be made by the corporation in the current financial year;

(c) the estimated expenditure in future years for which funds should be raised now and held in reserve;

(d) the amount to be raised by way of contributions from unit holders to cover the expenditure referred to in paragraphs (b) and (c).

(2) New information must be prepared for the purposes of subsection (1)(a) at the times prescribed by regulation.

(3) A statement presented to a meeting in accordance with this section forms part of the minutes of the meeting.

(4) The regulations may exclude a strata corporation of a specified class from the operation of subsections (1)(a) and (2).

(5) In this section—

recurrent, in relation to expenditure, means expenditure for a particular purpose that is normally made every year or more frequently.

(1) Subject to this section, at a general meeting of a strata corporation, one vote may be exercised in respect of each unit on any matter arising for decision.

(2) If—

(a) all of the units comprised in the strata scheme consist of non-residential premises; and

(b) the strata corporation has, by unanimous resolution, decided to adopt the voting system provided by this subsection,

then a number of votes is exercisable in respect of each unit equivalent to the unit entitlement of the unit.

(2a) A unit holder may nominate another person (a proxy) to attend and vote at meetings on his or her behalf.

(3) A vote may be exercised as follows:

(a) it may be exercised (subject to paragraph (b)) by the unit holder or a proxy of the unit holder;

(b) if there are two or more unit holders in respect of the same unit, the following provisions apply:

(i) if only one attends the meeting—the vote is exercisable by that unit holder;

(ii) if two or more attend the meeting—the vote is exercisable by one of them on behalf of all in accordance with an agreement between them or, if there is no such agreement, by the unit holder whose name appears first on the certificate of title for the unit.

(3a) The nomination of a person as a proxy of a unit holder—

(a) must—

(i) be made by written notice to the secretary of the strata corporation; and

(ii) specify whether the nominated person—

(A) is nominated to attend and vote at all meetings, and in relation to all matters, on behalf of the unit holder; or

(B) is nominated to attend and vote only at specified meetings, or in relation to specified matters, on behalf of the unit holder; and

(b) may specify conditions in relation to the nomination; and

(c) if a specified condition requires the nominated person to vote in a particular way in relation to a matter in which the unit holder has a direct or indirect pecuniary interest (other than an interest that the unit holder has in common with all the holders of the strata units)—must specify the nature of the unit holder's pecuniary interest; and

(d) may be revoked by the unit holder at any time by subsequent written notice to the secretary (and any contract or agreement to the contrary is unenforceable); and

(e) is effective for a period of 12 months or such lesser period as may be specified in the written notice of nomination unless the nomination is revoked earlier under paragraph (d); and

(f) does not derogate from the power of the unit holder to attend and vote at meetings on his or her own behalf.

(3b) Failure to comply with a requirement of subsection (3a)(a) will invalidate the nomination.

(3c) Without limiting subsection (3a), if a person who is a body corporate manager or an employee of a body corporate manager is nominated as a proxy of a unit holder of the corporation, the nomination ceases to have effect on the person ceasing to be a body corporate manager in relation to the corporation or an employee of such a body corporate manager (as the case may require).

(3d) If a unit holder appoints, by general power of attorney under section 5 of the Powers of Attorney and Agency Act 1984, a person as his or her attorney specifically for the purpose of attending and voting at meetings, or specified meetings, of the strata corporation, the appointment is, despite any provision of that Act or the terms of the general power of attorney, effective for a period of 12 months or such lesser period as may be specified in the power of attorney unless the power of attorney is revoked earlier.

(3e) If a general power of attorney referred to in subsection (3d) appoints a body corporate manager, a copy of the instrument of appointment must be provided to the secretary of the corporation before the meeting, or the first of the meetings, to which it relates.

(3f) The secretary of the corporation must ensure that a copy of each written notice of nomination, and each instrument provided under subsection (3e), applying in relation to a meeting is available for inspection at the meeting before any matter is voted on.

Penalty: Division 9 fine.

(4) A unit holder may exercise an absentee vote on a proposed resolution by giving the secretary written notice of the proposed vote at least six hours before the time of the meeting.

(5) A written ballot may be demanded by a unit holder (or a proxy of a unit holder) attending a meeting.

(6) Such a ballot will be taken amongst the unit holders (or proxies of unit holders) attending the meeting in such manner as the person presiding at the meeting thinks fit.

(7) Except where a unanimous resolution is required, a vote is not exercisable in relation to a unit unless all amounts due and payable to the strata corporation in respect of the unit have been paid.

(8) Except where otherwise provided by this Act or by the articles of a strata corporation, the decisions of the corporation in a general meeting will be made by ordinary resolutions.

(1) If a person (whether a co-owner of a unit or not) has been nominated to attend and vote at a meeting of a strata corporation on behalf of another person, the nominated person must—

(a) if the nominated person has a direct or indirect pecuniary interest in any matter to be voted on at a meeting—

(i) if it is practicable to do so, disclose the nature of the interest to his or her principal before the vote is taken; or

(ii) in any other case, disclose the nature of the interest to his or her principal as soon as practicable after the vote is taken; and

(b) if the nominating person declared a pecuniary interest in accordance with section 34(3a)(c) in relation to the matter, the nominated person must disclose the nature of the interest to the members present at the meeting before the vote on the matter is taken.

Penalty: Division 4 fine.

(2) A co-owner of a unit is not obliged by subsection (1) to disclose an interest that he or she has in common with his or her other co-owners.

(3) A person who—

(a) attends and is entitled to vote at, a meeting of a strata corporation; or

(b) presides at such a meeting,

and who has a direct or indirect pecuniary interest in any matter to be voted on at the meeting must disclose the nature of the interest to the members present at the meeting before the vote is taken.

Penalty: Division 4 fine.

(4) A unit holder is not obliged by subsection (3) to disclose an interest that he or she has in common with all of the unit holders.

(5) It is a defence to a charge of an offence against this section to prove that the defendant was not, at the time of the alleged offence, aware of his or her interest in the matter.

(1) Subject to subsection (1a), a strata corporation may, by ordinary resolution, appoint a management committee of unit holders.

(1a) Where all of the units comprised in the strata scheme consist of non-residential premises, the management committee may consist of, or include, persons who are not unit holders.

(2) A management committee will, subject to any limitation imposed by the strata corporation, have full power to transact any business of the corporation.

(3) A management committee does not have power to do anything for which a special or unanimous resolution of the strata corporation is required by this Act or by the articles of the corporation.

(4) The prescribed number of members of a management committee constitute a quorum of the committee and no business may be transacted at a meeting of the committee unless a quorum is present.

(4a) The prescribed number for the purposes of subsection (4) is a number ascertained by dividing the total number of members of the committee by two, ignoring any fraction resulting from the division, and adding one.

(4b) A decision supported by a majority of the members at a meeting of a management committee of which at least three days notice has been given to all members will be taken to be a decision of the committee.

(5) A member of a management committee holds office on terms fixed by the strata corporation and may be removed by ordinary resolution of the strata corporation at any time.

(6) A management committee may co-opt a suitable person to fill a casual vacancy in the membership of the committee.

(7) A member of a management committee can appoint another person (who must, unless all of the units comprised in the strata scheme consist of non-residential units, be a unit holder) to act as his or her proxy at any meeting of the committee that the member is unable to attend.

(8) A management committee must—

(a) keep minutes of its proceedings; and

(b) cause proper accounting records to be kept in respect of money received and expended by it.

(9) Subject to the articles and any direction of the strata corporation, a committee may otherwise regulate its meetings and proceedings as it thinks fit.

(10) A strata corporation may appoint or engage a person to assist its management committee in the performance of the committee's functions.

Where a management committee acts honestly, the subsequent discovery of some defect affecting the appointment of a member, or the right of a person to act as a member, does not invalidate an act of the committee.

This Division applies where a strata corporation has authorised a person (the agent) (not being an ADI or other financial institution) to receive money from another person (not being the corporation) and to hold the money on behalf of the corporation or to deal with it in accordance with this Division.

In this Division, unless the contrary intention appears—

agent means a person, not being an ADI or other financial institution, who has been authorised by a strata corporation to receive money on its behalf and to hold it or to deal with it in accordance with this Division;

auditor means a registered company auditor within the meaning of the Corporations Law;

financial institution means an institution of a kind declared by regulation to be a financial institution;

trust account means an account in which trust money is required to be deposited by an agent;

trust money means money received by an agent on behalf of a strata corporation.

(1) An agent must, as soon as practicable after receiving trust money, deposit the money in an account authorised by this Division in the name of the agent.

Penalty: Division 5 fine.

(2) An agent must not pay any money except trust money into the agent's trust account.

Penalty: Division 5 fine.

(3) An agent must not withdraw, or permit another person to withdraw, money from a trust account except in accordance with this Part.

Penalty: Division 5 fine.

(4) An agent must, when applying to open a trust account, inform the ADI or other financial institution that the account is to be a trust account for the purposes of this Division.

Penalty: Division 5 fine.

An agent may withdraw money from a trust account—

(a) in exercise of powers delegated to the agent by the strata corporation; or

(b) in satisfaction of a claim for fees, costs or disbursements (that are authorised by the regulations) that the agent has against the corporation; or

(c) to satisfy an order of a court against the corporation; or

(d) for making any other payment authorised by law.

An account at an ADI or at any other financial institution prescribed for the purposes of this section by regulation that provides for the payment of interest on money held in the account in accordance with the regulations is authorised for the purposes of this Division.

If money received by an agent on behalf of two or more strata corporations is held in the same trust account, interest credited to the trust account must be credited by the agent proportionately to the strata corporations on whose behalf that money is held.

(1) An agent must keep detailed records of all trust money received by the agent and of any disbursement of, or other dealing with, that money and must compile detailed accounts of those receipts and disbursements or other dealings that—

(a) accurately disclose the state of the trust account maintained by the agent; and

(b) enable the receipt and disposition of trust money to be conveniently and properly audited; and

(c) comply with all other requirements specified by regulation.

Penalty: Division 5 fine.

(2) In particular, the agent must, in respect of the receipt of trust money—

(a) make available to the person making payment a receipt that sets out the information specified by regulation in the form specified by regulation; and

(b) make and retain a copy of the receipt as part of the agent's records.

Penalty: Division 5 fine.

(3) An agent must, at the request of a strata corporation provide the corporation, within 5 business days after the making of the request, with a statement setting out details of dealings by the agent with the corporation's money.

Penalty: Division 9 fine.

(4) An agent must keep the accounts and records referred to in this section (including copies of receipts under subsection (2)(b)) in a legible written form, or so as to be readily convertible into such a form, for at least five years.

Penalty: Division 5 fine.

(1) An agent who maintains a trust account must—

(a) have the accounts and records kept under this Division audited by an auditor in respect of each audit period specified by regulation; and

(b) forward to the secretary of the strata corporation a statement relating to the audit that sets out the information specified by regulation.

(2) An agent who—

(a) fails to have accounts and records audited as required; or

(b) fails to forward the audit statement to the secretary of the strata corporation within the time allowed by or under the regulations,

is guilty of an offence.

Penalty: Division 5 fine.

(1) An auditor employed by an agent to make an audit of the trust accounts of the agent, may require the agent or any other person in a position to do so—

(a) to produce all the accounts (including accounts that are not trust accounts) relating to the business of the agent and all documents and records relating to those accounts, including written records that reproduce in a readily understandable form information kept by computer, microfilm or other process; and

(b) to provide any relevant information relating to the operation of the accounts.

(2) The manager or other principal officer of an ADI or other financial institution with which an agent has deposited money, whether in his or her own account or in a general or separate trust account, must, on being required to do so by an auditor employed or appointed to make an audit under this Division, disclose every such account (including all deposit slips, cancelled cheques and other documents relating to the operation of the account) to the auditor.

Penalty: Division 5 fine.

(3) A person who is required by this section to produce documents to an auditor must permit the auditor to make a copy of the whole, or any part, of those documents.

Penalty: Division 5 fine.

(4) In this section—

account includes a record required to be kept under this Division in relation to the receipt of and disbursement of or other dealing with trust money;

agent includes a former agent.

An ADI or other financial institution with which a trust account has been established must, as soon as practicable, and in any event within 14 days, after becoming aware of a deficiency in that account, report the deficiency to the Minister.

Penalty: Division 5 fine.

An auditor must not divulge information that has come to his or her knowledge in the course of performing functions under this Division except—

(a) to the agent; or

(b) to the Minister; or

(c) as otherwise required by law.

Penalty: Division 5 fine.

(1) Subject to subsection (2), an ADI or other financial institution is not affected by notice of a specific trust to which money deposited in a trust account is subject, and is not bound to satisfy itself of the due application of that money.

(2) This section does not relieve an ADI or other financial institution of liability for negligence.

(a1) In this section—

relevant court means the Court or the Magistrates Court.

(1) A relevant court may, on application by—

(a) a strata corporation;

(b) a creditor of a strata corporation;

(c) a person with a registered interest in a unit,

appoint an administrator of the strata corporation, or remove or replace an administrator previously appointed.

(2) An administrator has, while the appointment remains in force, full and exclusive power to administer the affairs of the strata corporation (including power to do anything for which a special or unanimous resolution of the strata corporation is required).

(3) The administrator must comply with any directions that the relevant court may give from time to time.

(4) The remuneration of an administrator will be fixed by the relevant court and payable from the strata corporation's funds.

(5) The administrator may, by written instrument, delegate any of his or her powers.

(6) A delegation under subsection (5)—

(a) may be made on such conditions as the administrator thinks fit; and

(b) is revocable at will; and

(c) does not derogate from the power of the administrator to act in any matter personally.

(7) Where a person—

(a) is appointed as an administrator; or

(b) is removed or replaced as an administrator,

that person must, within 14 days, give the Registrar-General written notice of his or her appointment, removal or replacement.

(1) The original registered proprietor must ensure that a general meeting of the strata corporation is convened within three months after the relevant date.

Penalty: Division 7 fine.

(2) The relevant date is the first date on which there are two or more members of the corporation holding different units.

(3) The original registered proprietor must, at the first general meeting of the strata corporation, place it in possession of—

(b) a copy of all plans, drawings, specifications and reports in his or her possession relating to the design and construction of buildings and building improvements on the site;

(c) a copy of any other notice, order or document in his or her possession relating to the strata scheme of which the strata corporation will need to know in order to carry out its statutory functions.

Penalty: Division 7 fine.

(1) A strata corporation may by notice in writing to a person who has possession of any record, key, or other property of the corporation, require that person to deliver it to an officer of the corporation named in the notice on or before a specified time.

(2) A person who fails to comply with a requirement under subsection (1) is guilty of an offence.

Penalty: Division 7 fine.

(1) A strata corporation must maintain a register of the names of the unit holders which shows—

(a) the unit holder's last contact address, telephone number and email address known to the corporation; and

(b) the unit holder's unit entitlement.

(2) A corporation must keep a record of the information used to compile the register for the period required by the regulations.

(1) A strata corporation must—

(a) keep—

(i) a minute book containing minutes of its meetings; and

(ii) proper accounting records in respect of its receipts and expenditure;

(b) ensure that a proper statement of accounts is prepared in respect of each accounting period;

(c) keep a record of any notice or order served on the corporation;

(d) retain for such period as may be prescribed—

(i) the minute book and accounting records kept under paragraph (a);

(ii) a copy of any statement of account prepared under paragraph (b);

(iii) any notice or order referred to in paragraph (c);

(iv) a copy of any correspondence received or sent by the corporation;

(v) notices of meetings of the corporation and its management committee;

(vi) such other documentary material as may be prescribed.

(2) An accounting period for a strata corporation is—

(a) a period—

(i) commencing on the commencement of this Act, the date of incorporation of the corporation or the end of a previous accounting period (whichever is the later); and

(ii) ending on the following 30 June; or

(b) a period of not less than 9 months and not more than 18 months fixed by the corporation as an accounting period (but the corporation's accounting periods must be consecutive, following immediately one upon the other).

(1) A strata corporation must, on application by or on behalf of the owner or a mortgagee of a unit, or by or on behalf of a prospective purchaser or mortgagee of a unit, within 5 business days after the making of the application—

(a) furnish—

(i) particulars of any contribution payable in relation to the unit (including details of any arrears of contribution related to the unit);

(ii) particulars of the assets and liabilities of the corporation;

(iii) particulars of any expenditure that the corporation has incurred, or has resolved to incur, and to which the unit holder of the unit must contribute, or is likely to be required to contribute;

(iv) particulars in relation to any prescribed matter;

(b) provide copies of—

(i) the minutes of general meetings of the corporation and meetings of its management committee for such period, not exceeding two years, specified in the application;

(ii) the statement of accounts of the corporation last prepared by the corporation;

(iii) the articles for the time being in force;

(iv) current policies of insurance taken out by the corporation;

(c) make available for inspection—

(i) a copy of the accounting records of the corporation;

(ii) the minute books of the corporation;

(iii) any other prescribed documentary material;

(d) if the strata corporation is a party to a contract with a body corporate manager—make available for inspection a copy of the contract;

(e) make available for inspection the register maintained under section 39A.

Penalty: Division 9 fine.

(1a) A strata corporation must, on application by a unit holder, provide the applicant, on a quarterly basis, with ADI statements for all accounts maintained by the corporation (and must continue to so provide the statements until the applicant ceases to be a unit holder or revokes the application).

Penalty: Division 9 fine.

(1b) Subsection (1a) does not apply to a strata corporation if a body corporate manager maintains the accounts on behalf of the corporation.

(2) An application under this section must be accompanied by the prescribed fee.

(2a) A strata corporation must not charge more than the prescribed fee in respect of a service provided in pursuance of an application under this section.

Penalty: Division 9 fine.

(3) The application is duly made if given or sent to—

(a) the secretary of the strata corporation;

(b) if the strata corporation has a management committee—any member of the management committee.

(4) A statement of a strata corporation provided for the purposes of subsection (1)(a) is, in favour of the person to whom it is provided and as against the corporation, conclusive evidence (as at the date of the statement) of the matters contained in the statement.