Part 6 Bodies corporate

(1) On registration of a strata plan, a body corporate is established under the name Strata Corporation No........ with the addition of the name of the strata scheme.

(2) On registration of a community development scheme, a body corporate is established under the name stated in the registered scheme.

(3) A body corporate established under this section –

(a) has perpetual succession and a common seal; and

(b) may sue or be sued in its corporate name.

(4) A body corporate established under this Act is declared to be an excluded matter for the purposes of section 5F of the Corporations Act in relation to the whole of the Corporations legislation.

(5) A body corporate must, as soon as practicable after it is established, appoint a chairperson, secretary and treasurer.

(1) A body corporate may be divided into 2 or more separate bodies corporate by unanimous resolution of the body corporate.

(1A) A division of a body corporate does not affect the ownership of the common property.

(2) Any rights and liabilities that had accrued to the body corporate before the division takes effect attach to the bodies corporate formed by the division jointly and severally.

(3) Two or more bodies corporate established in relation to the same scheme may merge to form a single body corporate.

(4) Any rights and liabilities that had accrued to the bodies corporate subject to the merger before the merger takes effect attach to the body corporate formed by the merger.

(5) The merger of bodies corporate, or the division of a body corporate, under this section does not take effect until the merger or division is recorded on the folio or folios of the common property.

(6) If 2 or more bodies corporate are established in relation to the same scheme, constituent documents for the bodies corporate must be lodged with the Recorder.

(7) The constituent documents –

(a) must define the functions and responsibilities of each body corporate and, in doing so, may create an administrative hierarchy with one or more bodies corporate at each level of the hierarchy; and

(b) must provide for the resolution of disputes between the bodies corporate; and

(c) must ensure that the powers of a body corporate under this Act insofar as they relate to a lot within the scheme are directly exercisable in relation to each lot within the scheme by one, and only one, body corporate.

(1) A body corporate's common seal must include the name of the body corporate.

(2) The seal is not to be affixed to a document unless its use has been authorised by a resolution of the body corporate or its committee of management and its affixation must be attested by at least 2 members of the body corporate (unless there is only one member, in which case the affixation of the seal must be attested by that member).

(3) The body corporate must take reasonable steps to prevent unauthorised use of the seal.

(4) If a document appears to bear the common seal of a body corporate and the affixation of the seal appears to have been attested as required by this section –

(a) a person dealing with the body corporate without notice of irregularity is entitled to assume that the seal was duly affixed; and

(b) in any legal proceedings or proceedings before an official of the government or a council, it is to be presumed, in the absence of evidence to the contrary, that the seal was duly affixed.

(5) This section is not to be taken to imply that a body corporate cannot act through agents and without the use of its seal.

(1) In the case of a strata scheme for which a single body corporate is constituted, each owner of a lot is a member of the body corporate and entitled to vote personally or by proxy at general meetings of the members of the body corporate.

(2) In the case of a strata scheme for which 2 or more bodies corporate are constituted, or a community scheme, the membership and the voting rights of the members of a body corporate are to be determined in accordance with the constituent documents for the body corporate registered under this Act.

(3) If a mortgagee is in possession of a lot under the mortgage, the mortgagee becomes entitled to exercise any voting rights the owner may have, to the exclusion of the rights of the owner.

(1) It is the duty of the original proprietor to call and hold the first annual general meeting of the body corporate, which must be held –

(a) within 3 months after the registration of the strata plan; or

(b) on the sale of at least one-half of the lots contained in that plan –

Penalty: Fine not exceeding 50 penalty units.

(1A) On giving notice for the first annual general meeting of the body corporate, the original proprietor must specify in the notice the nature of the business to be transacted at the meeting and must, at the meeting, produce a policy or policies of insurance.

(2) An annual general meeting of the body corporate (other than the first annual general meeting of the body corporate) must be held within 15 months after the last annual general meeting of the body corporate.

(3) The committee of management or the secretary to a body corporate may call a special general meeting of the body corporate at any time and must do so if required by not less than one-third of the total number of members of the body corporate.

(4) The secretary to the body corporate must, at least 7 days before a general meeting of the body corporate, give to each member of the body corporate written notice –

(a) setting out the date, time and place of the general meeting; and

(b) stating the nature of the business to be transacted; and

(c) if a unanimous resolution is to be put before the general meeting, setting out the terms of the proposed resolution.

(5) In a case where a lot is owned jointly or in common by 2 or more persons, the notice may be addressed to the co-owners jointly and given or sent to any one of them.

(6) ........

(1) A member of the body corporate may vote personally or by proxy on matters arising for decision at a general meeting.

(2) Voting may be by show of hands but, if a poll is demanded, voting is –

(a) in the case of a strata scheme, proportionate to the unit entitlement of the member's lot; or

(b) in any other case, in accordance with the constituent documents of the body corporate.

(3) Co-owners may vote by proxy jointly appointed by them and, in the absence of such a proxy, are not entitled to vote on a show of hands (except on a motion for a unanimous resolution) but any one co-owner may require a poll and on the poll a co-owner is entitled to voting rights proportionate to the co-owner's interest in the lot.

(1) If a member of a body corporate is not of full age and capacity, or the member is, for some other reason, unable to exercise a right to vote, the voting rights of the member may be exercised by –

(a) a guardian; or

(b) a person who is authorised to administer the member's property; or

(c) a person appointed to exercise the relevant voting rights by the Tribunal.

(2) An application for an appointment under subsection (1)(c) may be made by –

(a) the body corporate; or

(b) any other person who has, in the Tribunal’s opinion, a proper interest in the matter.

(1) If a unanimous resolution is required for a particular purpose under this Act or the constituent documents of the body corporate, a member of the body corporate may vote on the resolution –

(a) at the general meeting of the body corporate at which the resolution is proposed; or

(b) by giving the body corporate written notice of the member's vote within 28 days after the date of that meeting.

(2) If the Recorder is satisfied, on application by a body corporate, that a resolution is urgently required, the Recorder may, in relation to the relevant matter, exclude the operation of subsection (1)(b) or reduce the period within which voting rights may be exercised after the conclusion of the general meeting.

(1) A body corporate may, by ordinary resolution –

(a) appoint a committee of management to transact business on behalf of the body corporate; or

(b) change the membership of a committee of management; or

(c) overrule a decision of the committee of management (to the extent it has not been acted on); or

(d) remove a committee of management from office.

(2) A committee of management may, subject to limitations and directions imposed or given by the body corporate in general meeting, exercise any powers of the body corporate except powers that may only be exercised by unanimous resolution of the body corporate.

(3) A committee of management –

(a) must consist of at least 3 members of the body corporate; and

(b) may consist of members representing sectional interests in the scheme.

(4) Subject to any rules to the contrary determined by the body corporate in general meeting –

(a) a majority of the total number of the members of the committee of management constitutes a quorum of the committee; and

(b) a decision in which a majority of the members present at a meeting of the committee agree is a decision of the committee.

(5) Any rules determined by the body corporate under subsection (4) must be fair and reasonable.

(6) The committee must keep proper minutes of its proceedings and must make them available on request for inspection by any member of the body corporate.

(1) The body corporate may appoint a manager and delegate to the manager functions related to the administration, management and control of the common property.

(2) A manager is subject to control and direction by the body corporate acting in general meeting or through a committee of management.

(1) A body corporate established for a strata scheme has the following functions:

(a) to enforce the by-laws;

(b) to control, manage and improve the common property;

(c) to maintain the common property in good condition and keep it in good and serviceable repair;

(d) to maintain the insurance required under this Act and any further insurance that may be required by ordinary resolution of the owners;

(da) to allocate spaces to lots for vehicle parking on the common property;

(e) to carry out other functions for the benefit of the owners.

(2) If 2 or more bodies corporate are established for a strata scheme, the functions referred to in subsection (1) are to be divided between them in accordance with the relevant constituent documents.

(3) A body corporate established for a community scheme has the functions and duties assigned to it by the constituent documents of the body corporate that form part of the registered scheme.

(4) A body corporate may establish and operate a business situated on the common property or, with the owner's consent, on a lot if –

(a) the business –

(i) is conducted according to law; and

(ii) is related to use and enjoyment of the lots and common property by owners or occupiers of lots; and

(iii) is not conducted outside the site; and

(iv) does not prevent the reasonable use and enjoyment of the site by the owners or occupiers of lots; and

(b) separate records of the business are kept.

(5) A body corporate may operate a retirement village, within the meaning of the Retirement Villages Act 2004, subject to that Act and to subsection (4) of this section.

(1) A body corporate must maintain a fund for the purpose of meeting its financial obligations under this Act.

(2) All income must be paid into the fund and all expenditure must be made from the fund.

(3) If the body corporate thinks fit, the fund may be subdivided into separate parts, one related to recurrent expenditure and the other related to capital expenditure.

(4) The fund must be maintained at a level sufficient to meet reasonably foreseeable expenditure to be incurred by the body corporate.

(1) The body corporate may from time to time levy contributions in respect of the lots for the purposes of raising an amount that the body corporate decides to be necessary to meet anticipated expenditure or for any other purpose as agreed by an ordinary resolution.

(2) The contributions are –

(a) in the case of a strata scheme, to be proportionate to the unit entitlements of the various lots; and

(b) in the case of a community scheme, to be levied on a basis fixed in the management statement registered under this Act.

(3) A contribution falls due for payment on a date fixed by the body corporate and notified by written notice of the amount due given by the body corporate to the owners.

(4) The owner of the lot as at the due date for payment is liable for the contribution and any person who later becomes an owner before the contribution is paid becomes jointly and severally liable for payment.

(4A) If a contribution for which an owner or other person is liable under subsection (4) is not paid, the owner or other person is taken to have failed to comply with a requirement of this Act while the contribution remains unpaid.

(5) The body corporate must, on application by an owner or a person having an interest in a lot, certify –

(a) the amount of any contribution payable by the owner; and

(b) the due date for payment of the contribution; and

(c) any amount by way of unpaid contribution that remains outstanding; and

(d) the amount of any other liability to the body corporate that remains outstanding from the owner; and

(e) information in relation to any funds of the body corporate administered by it; and

(f) information on any legal action to which the body corporate is a party; and

(g) any other matters that the body corporate considers relevant.

(6) A certificate under subsection (5) is, in favour of a person dealing with the owner, conclusive evidence of the matters certified.

(1) Interest accrues on overdue contributions at a rate fixed by resolution of the body corporate.

(2) The rate of interest must be fixed on a fair and reasonable basis.

(1) If –

(a) building work was carried out for the developer under a registered scheme in anticipation of registration of the scheme or under the terms of the registered scheme; and

(b) the building work is defective –

(2) The body corporate may recover damages under this section on its own behalf (so far as the defects relate to common property) or on behalf of owners of lots affected by the defects.

(3) The body corporate's right of subrogation under this section does not operate to the exclusion of the developer's rights and, if both the body corporate and the developer take action to recover damages for breach of contract, the damages may be apportioned between them as may be just.

(1) The address for service of a body corporate is the body corporate's address for service as registered by the Recorder.

(2) A body corporate must give the Recorder notification of any change in its address for service and, on that notification, the Recorder is to change the address for service accordingly.

(1) A body corporate must –

(a) maintain a mailbox clearly showing the body corporate's name in a suitable position at or near the street alignment of the site; or

(b) make suitable alternative arrangements for the receipt of mail.

(2) ........

(1) The Supreme Court may, on application by an interested person, appoint an administrator of the body corporate's affairs for a fixed period, or until further order by the Court.

(2) An appointment may be made on terms and conditions that the Court thinks fit.

(3) The administrator is to be remunerated on a basis determined by the Court and the remuneration and expenses of the administrator are payable from the body corporate's funds.

(4) The administrator has the powers and functions of the body corporate (or such of those powers and functions as the Court may determine) to the exclusion of the powers and functions of the body corporate.

(5) The administrator may delegate powers conferred under this section.

(6) The Court may, on the application of an interested person, remove or replace the administrator.

(7) If a person is appointed, removed or replaced as an administrator, the person must, within 7 days, give the Recorder written notice of the appointment, removal or replacement.

(8) In this section,

interested person means –

(a) the body corporate; or

(b) a creditor of the body corporate; or

(c) the owner or a registered mortgagee of a lot.