Part 8 Strata company

(1) A strata company must —

[(a) deleted]

(b) control and manage the common property for the benefit of all the owners of lots; and

(c) keep in good and serviceable repair, properly maintain and, if necessary, renew and replace —

(i) the common property, including the fittings, fixtures and lifts used in connection with the common property; and

(ii) any personal property owned by the strata company,

and to do so whether damage or deterioration arises from fair wear and tear, inherent defect or any other cause.

[(d)-(k) deleted]

(2) A strata company may improve or alter the common property in a manner that goes beyond what is required under subsection (1).

Note for this subsection:

Expenditure above a certain amount incurred for the purposes set out in subsection (2) must be authorised by special resolution, except for expenditure on sustainability infrastructure, which may be authorised by ordinary resolution: see section 102.

(3) A strata company may sue and be sued for rights and liabilities related to the common property in the strata titles scheme as if it were the owner and occupier of the common property.

(1) A strata company may, by resolution without dissent, for the purpose of creating temporary common property —

(a) for a freehold scheme — accept a lease of a lot in the scheme or of land that is contiguous to the parcel or separated only by a road, railway or waterway; and

(b) for a leasehold scheme — accept a lease (that expires on or before the expiry day for the scheme) of a lot in the scheme or of land that is contiguous to the parcel or separated only by a road, railway or waterway.

(2) Except as provided in the regulations, the land that is leased must not be subject to a designated interest.

(3) A strata company may, by resolution without dissent (made with the concurrence of the lessor if required under the lease), surrender a lease accepted by it under this section.

(4) If a resolution is passed under this section, the strata company may enter into the necessary transaction in its own name.

(1) Subject to subsection (3), a strata company may enter into a transaction to which this section applies and execute documents related to the transaction in its own name, as if —

(a) for a freehold scheme — it were the owner of an estate in fee simple in the land; or

(b) for a leasehold scheme — it were the owner of a leasehold estate in the land under a registered lease that expires on the expiry day for the scheme.

(2) This section applies to the following transactions for a strata titles scheme —

(a) the acceptance of a transfer of land that —

(i) is contiguous to the parcel or separated only by a road, railway or waterway; and

(ii) is not subject to a mortgage or other encumbrance; and

(iii) is to be added to the common property in the scheme in connection with a subdivision that is to be given effect by registration of an amendment of the scheme;

(b) the disposal of land comprising common property (other than temporary common property) in the scheme in connection with a subdivision that is to be given effect by registration of an amendment of the scheme;

(c) a lease of common property in the scheme;

(d) the surrender of or re-entry under a lease of common property in the scheme;

(e) the execution, acceptance, discharge or surrender of an easement or restrictive covenant burdening or benefiting the parcel.

(3) The strata company may enter into a transaction to which this section applies if —

(a) the transaction is authorised by a resolution without dissent; or

(b) the transaction is required for completion of a stage of subdivision to which staged subdivision by-laws apply and the subdivision has been undertaken with sufficient compliance with the by-laws as determined in accordance with the regulations.

Note for this subsection:

Staged subdivision by-laws cannot apply to subdivision comprised of the removal, from the parcel, of land comprised of common property or the addition, to the parcel, of land from outside the parcel. Consequently, paragraph (b) can only apply in the context of a type 1 subdivision comprised of the conversion of a lot to common property or a type 3 or type 4 subdivision.

(4) This section does not affect the making of an exclusive use by-law by the strata company.

(5) The Property Law Act 1969 section 121 does not apply to a right, arising from an instrument executed under this section, to access or to the use of light or air.

(1) If a notice issued, or order made, under a written law has been served on the owner of a lot requiring that owner to carry out any work on or in relation to that lot and the notice or order is not complied with, the strata company may carry out the work.

(2) A strata company may carry out work that an owner or occupier of a lot fails or neglects to carry out if the work is —

(a) required to be carried out by that person under a term or condition of exclusive use by-laws; or

(b) necessary to remedy a contravention of a duty that the person has under a statutory easement.

(3) If an owner or occupier of a lot fails or neglects to carry out work on or in relation to that lot required to be carried out by order of a court or tribunal, the strata company may carry out the work specified in the order.

(4) If the strata company carries out work under subsection (1), other than work performed for the benefit of the scheme building generally, or under subsection (2), it may recover the cost of so doing, as a debt in a court of competent jurisdiction —

(a) from the owner or occupier referred to in subsection (1) or (2); or

(b) if the work is carried out under —

(i) subsection (1), from a person who, after the work is carried out, becomes the owner of the lot on or in relation to which the work was carried out; or

(ii) subsection (2), from a person who, after the work is carried out, becomes the owner of the lot referred to in subsection (2).

(5) If an order has been made to which subsection (3) refers and the order is not complied with, the strata company may recover from the person against whom the order was made the cost of carrying out the work, as a debt in a court of competent jurisdiction.

(6) If any part of a scheme building comprised in a lot contains a structural defect which affects or is likely to affect the support or shelter provided by that lot for another lot in that building or the common property and the defect is not due to any contravention of a duty that a person has under a statutory easement, the strata company may, at its own expense, carry out such work as is necessary to rectify the defect.

(1) A strata company may enter any part of the parcel for the purpose of —

(a) carrying out work that the strata company is required or permitted to carry out under this Act; or

(b) carrying out work that the strata company is required to carry out under an order of a court or tribunal; or

(c) carrying out work that the strata company is required to carry out under a notice issued, or other order made, under any other written law; or

(d) inspecting that part or any other part of the parcel; or

(e) ascertaining whether scheme by-laws or this Act has been, or is being, complied with.

(2) Sections 65 and 66 apply to entry to common property or a lot by a strata company under this section as if the strata company were exercising rights under a statutory easement.

(3) A person must not obstruct or hinder a person exercising a power under this section.

(1) A strata company may give written notice to a person requiring the person to deliver all records, keys or other property of the strata company in the person’s possession or control to a specified person within a specified period (being a period that is reasonable in the circumstances).

(2) A person commits an offence if the person fails, without reasonable excuse to deliver property in the person’s possession or control as required by the notice.

Penalty for this subsection: a fine of $3 000.

(3) A person cannot exercise any claim or lien against or on the property of a strata company that the person is required, under this section, to deliver to the strata company.

(1) A strata company must ensure that the following insurance is in place for the strata titles scheme —

(a) all insurable assets of the scheme must be insured against fire, storm and tempest (excluding damage by sea, flood or erosion), lightning, explosion and earthquake —

(i) to replacement value; or

(ii) to replacement value up to, for an event of a specified kind, a maximum amount specified in the contract of insurance that is a reasonable limitation in the circumstances;

and

(b) the strata company must be insured against damage to property, death, bodily injury or illness for which the strata company could become liable in damages to an amount of not less than $10,000,000 or, if some other amount is determined under the regulations, that amount.

Note for this subsection:

1. The owner of a lot in a survey-strata scheme is responsible for insurance of the kind referred to in paragraph (a) for infrastructure on the lot.

2. The owner of a lot is responsible for insurance of the kind referred to in paragraph (b) for damages for which the owner could become liable.

(2) However, if a strata company has taken all reasonably practicable steps available to it to obtain the required insurance but no insurer is willing to enter into a contract of insurance on reasonable terms that meets the requirements, the strata company must obtain whatever insurance it can obtain on reasonable terms that most closely meets the requirements.

(3) The Tribunal may, on application by a strata company, exempt it from compliance with this section subject to conditions specified in the exemption.

(4) A strata company may enter into a contract of insurance relating to the insurable assets of its strata titles scheme and execute documents relating to the contract in its own name, as if it were the owner of the assets.

(5) Subject to subsection (6), if a strata company receives money from an insurer in the event of damage to or destruction of an insurable asset of the strata titles scheme, that money must be applied by the strata company in rebuilding, replacing, repairing or restoring the insurable asset so far as that may lawfully be done.

(6) Subsection (5) does not apply if —

(a) the strata titles scheme is a survey-strata scheme; and

(b) the strata company passes a resolution without dissent —

(i) determining that a specified part or all of the money is not to be used for the purposes of rebuilding, replacing, repairing or restoring the insurable asset of the strata titles scheme; and

(ii) specifying how that money is to be distributed amongst members of the strata company or used;

and

(c) the insurable asset of the strata titles scheme or, if the insurable asset has been destroyed or removed, the area affected by the damage or destruction, is left in a safe condition.

(7) Nothing in this section derogates from —

(a) any other requirement imposed on a strata company to obtain insurance (for example, for workers’ compensation or by resolution of the strata company); or

(b) the power of the strata company to obtain other insurance in its capacity as a body corporate.

Note for this section:

Schedule 2A contains special provisions for a single tier strata scheme for the required insurance.

(1) If it is reasonably necessary in order for a strata company to obtain the required insurance on reasonable terms, the strata company may give written notice to a member of the strata company requiring the member to do 1 or more of the following —

(a) to take specified action within a specified period;

(b) to refrain from taking specified action;

(c) to pay a specified amount to the strata company within a specified period, being an amount equal to that part of the premium payable by the strata company for the required insurance attributable solely to the risk associated with something within the member’s control.

(2) A member of a strata company given such a notice may negotiate with the strata company to take some step other than that specified in the notice to enable the required insurance to be obtained by the strata company on reasonable terms.

(3) The strata company must negotiate with the member with a view to achieving a fair and reasonable outcome.

(1) If a strata company fails to comply with section 97, a member of the strata company may effect and maintain, in the name of the strata company, such insurance as the strata company ought to effect and maintain under that section.

(2) Costs incurred by a member of a strata company under subsection (1) may be recovered, on application to the Tribunal, as a debt owed to the member by the strata company.

(3) A member of a strata company may accept, at the option of the member, a credit against contributions or other amounts owed by the member to the strata company in full or partial satisfaction of the amount owed under subsection (2).

(1) A strata company must —

(a) establish a fund (an administrative fund) for administrative expenses that is sufficient in the opinion of the strata company for the control and management of the common property, for the payment of any premiums of insurance and the discharge of any other obligation of the strata company; and

(b) determine the amounts to be raised for payment into the administrative fund; and

(c) raise amounts so determined by levying contributions on owners of lots —

(i) in proportion to the unit entitlements of their respective lots; or

(ii) if the scheme by-laws provide for a different basis for levying contributions, in accordance with that basis;

and

(d) recover from the owner of a lot, by action in a court of competent jurisdiction if necessary, any sum of money expended by the company for repairs or work done by it or at its direction in complying with a notice issued, or order made, under a written law in respect of the lot.

(2) A strata company must, if it is a designated strata company, and may, in any other case —

(a) establish a fund (a reserve fund) for the purpose of accumulating funds to meet contingent expenses, other than those of a routine nature, and other major expenses of the strata company likely to arise in the future; and

(b) determine the amounts to be raised for payment into the reserve fund; and

(c) may raise amounts so determined by levying contributions on the owners in proportion to the unit entitlements of their respective lots.

(2A) A designated strata company must ensure —

(a) that there is a 10 year plan that sets out —

(i) the common property and the personal property of the strata company that is anticipated to require maintenance, repair, renewal or replacement (other than of a routine nature) in the period covered by the plan; and

(ii) the estimated costs for the maintenance, repairs, renewal or replacement; and

(iii) other information required to be included by the regulations;

and

(b) that the 10 year plan is revised at least once in each 5 years and that, when revised, the plan is extended to cover the 10 years following the revision.

(3) Except in so far as and to the extent that the scheme by-laws may empower the council of that company to exercise the functions in subsections (1)(a), (b) and (c) and (2), those functions must be performed by and in accordance with resolutions passed by the strata company.

(4) Any contribution levied under this section —

(a) becomes due and payable to the strata company in accordance with the terms of the decision to make the levy; and

(b) if not paid when it becomes due and payable, bears interest on the amount unpaid at the rate of simple interest specified in the regulations, unless the company determines (either generally or in a particular case) that an unpaid contribution bears no interest or interest at a lesser rate; and

(c) including interest accrued under paragraph (b), may be recovered as a debt by the strata company in a court of competent jurisdiction and the strata company may agree to a compromise of such a debt.

(5) Interest paid or recovered under subsection (4) or (6) forms part of the fund to which the contribution belongs.

(6) The owner of a lot is liable in respect of any contribution levied under this section and any interest on the contribution, jointly and severally with any person who was liable to pay that contribution and interest when that owner became the owner of that lot, to pay so much of that contribution and interest as was unpaid when the owner became the owner of that lot.

(7) In this section —

designated strata company means —

(a) a strata company for a scheme with 10 or more lots; or

(b) a strata company included in this definition by the regulations.

(1) A strata company must keep proper accounting records of its income and expenditure.

(2) A strata company must prepare a statement of accounts for each financial year showing —

(a) the assets and liabilities of the strata company at the end of the financial year; and

(b) the income and expenditure of the strata company for the financial year.

(1) A strata company must prepare a budget for each financial year and submit it for approval to its annual general meeting.

(2) The budget must be prepared —

(a) taking into account, if applicable, the 10 year plan for the reserve fund; and

(b) in accordance with any requirements set out in the regulations and the scheme by-laws.

(3) The strata company may, by ordinary resolution at its annual general meeting or at a subsequent general meeting, approve a budget with or without modification.

(4) The strata company may, by ordinary resolution, vary its approved budget.

(5) If a budget or a variation of a budget provides for expenditure on common property under section 91(2) (other than expenditure on sustainability infrastructure) exceeding an amount determined under the regulations —

(a) information regarding that expenditure must be provided to the members of the strata company as required by the regulations; and

(b) the budget or variation must be approved by special resolution.

(6) A strata company must not make any expenditure that is not authorised by an approved budget except for expenditure as follows —

(a) expenditure of an amount not exceeding, in a financial year, for each lot in the strata titles scheme —

(i) the amount fixed by the strata company by special resolution; or

(ii) if the strata company has not fixed the amount by special resolution, the amount fixed by the regulations;

(b) expenditure (not being of the kind referred to in subsection (5)) made on the following conditions being met —

(i) notice in the approved form of the purpose and amount of a proposed expenditure is given to the owners and first mortgagees of all lots in the strata titles scheme; and

(ii) if the regulations so require, quotations or tenders for the expenditure are submitted to those owners and first mortgagees; and

(iii) within 14 days after the requirements in the preceding subparagraphs are met, objection to the proposed expenditure has not been notified in writing to the strata company by the owners or first mortgagees of —

(I) 25% or more of the lots in the scheme; or

(II) lots of which the total unit entitlement is 25% or more of the sum of the unit entitlements of all the lots in the scheme;

(c) expenditure required by a court or tribunal or by a notice or order given under a written law to the strata company.

(7) For subsection (6)(b), if an objection is notified under subsection (6)(b)(iii) by a first mortgagee of a lot, an objection notified by the owner of that lot must be disregarded.

(8) This section has effect subject to any regulations or scheme by-laws that require a special resolution, resolution without dissent or unanimous resolution or other steps to be taken for expenditure of a particular class.

(1) If the owners of the lots in a strata titles scheme are jointly entitled to take proceedings against a person or are liable to have proceedings relating to common property taken against them jointly, the proceedings may be taken by or against the strata company and any judgment or order given or made in favour of or against the strata company in the proceedings has effect as if it were a judgment or order given or made in favour of or against the owners.

(2) If an owner of a lot is liable to make a contribution to another owner for a judgment debt arising under a judgment referred to in subsection (1), the amount of that contribution must bear to the judgment debt the same proportion as the unit entitlement of the lot of the first-mentioned owner bears to the sum of the unit entitlements of all the lots.

(1) A strata company must —

(a) keep a copy of each of the following —

(i) the current scheme documents;

(ii) any proposed amendments of the scheme documents of which it is aware and that remain current;

and

(b) make and keep for a period fixed by the regulations —

(i) minutes of its general meetings and meetings of its council; and

(ii) records of its resolutions and decisions of its council; and

(iii) such other records as are required by the regulations;

and

(c) keep for a period fixed by the regulations —

(i) records and statements of account made or kept under section 101; and

(ii) notices of its general meetings and meetings of its council; and

(iii) notices of proposed resolutions and material submitted to members of the strata company in connection with proposed resolutions; and

(iv) notices of disclosures made under section 79, 145(2) or 147; and

(v) all correspondence, other notices and orders it or its council sends or receives; and

(vi) each lease accepted under section 92 and any instrument of surrender of such a lease; and

(vii) a copy of each contract entered into by the strata company and any variation, extension or termination of such a contract, including (without limitation) the following —

(I) a strata management contract;

(II) an insurance contract;

(III) an infrastructure contract for a common property (utility and sustainability infrastructure) easement;

(IV) a contract for services or amenities provided to the strata company or members of the strata company;

and

(viii) each lease, licence or other document granting a special privilege over the common property (other than exclusive use by-laws); and

(ix) each key document it has received; and

(x) each document it has kept or received under section 63(8) or (9);

and

(d) keep the following in a manner that facilitates access to the information, in particular, for use by the members of the council and officers of the strata company —

(i) the terms of any current resolution about the use of the common seal of the strata company or authorising persons to execute documents on its behalf;

(ii) the current balance of the administrative fund and, if applicable, the reserve fund of the strata company;

(iii) the current budget (showing estimated income and expenditure) of the strata company;

(iv) the terms of the most recent resolution determining contributions, the period for which they are determined, the basis on which the contributions are apportioned amongst the members of the strata company and the date on which they fall due;

(v) the most recent 10 year plan, if applicable;

(vi) any termination proposal submitted to the strata company that remains current.

(2) The regulations may impose additional requirements for the making or keeping of records by a strata company or about the manner in which this section is to be complied with.

(3) A strata company must ensure that —

(a) a letterbox with the name of the strata company clearly shown on it is continuously available and suitably placed on the parcel; and

(b) a mechanism for corresponding with the strata company electronically is reasonably available to —

(i) members of the strata company; and

(ii) occupiers of lots in the strata titles scheme.

(1) A strata company must prepare and maintain a roll containing the particulars required by subsection (4).

Penalty for this subsection: a fine of $3 000.

(2) The roll may be kept in any medium.

(3) A strata company may make or amend entries in the roll on the basis of —

(a) the information in documents registered under this Act; or

(b) subject to subsection (5), information provided by, or on behalf of, an owner or a mortgagee of a lot.

(4) The particulars to be entered in the roll are —

(a) the name of the strata company; and

(b) the name and address for service of each member of the council, or officer, of the strata company; and

(c) the name and address for service of the owner of each lot; and

(d) the name and address for service of each strata manager of the strata company; and

(e) the name and address for service of any lessee or tenant of a lot notified to the strata company; and

(f) the name and address for service of any mortgagee of a lot notified to the strata company.

(5) A strata company must not amend the roll —

(a) to reflect the discharge of a mortgage except on the basis of —

(i) information provided by, or on behalf of, the mortgagee; or

(ii) the production of a certified copy of a certificate of title showing the mortgage as having been discharged;

or

(b) to show a change of address of a mortgagee except on the basis of information provided by, or on behalf of, the mortgagee.

(1) If, in accordance with section 140, a roll is not maintained by a strata company for a 2, 3, 4 or 5-lot scheme, the owner of a lot in the scheme must give written notice to the strata company and the owner of each other lot of the owner’s address for service.

Penalty for this subsection: a fine of $3 000.

(2) If, on a change of ownership, the owner of a lot in a scheme for which a roll is not maintained notifies an address for service to the strata company and the owner of each other lot, each of the other owners must give written notice to the new owner of their respective addresses for service.

Penalty for this subsection: a fine of $3 000.

(1) A person with a proper interest in information about a strata titles scheme, or a person authorised in writing by such a person, may apply in writing to the strata company for the scheme for —

(a) information under section 108; or

(b) inspection of material under section 109; or

(c) a certificate under section 110.

(2) A person has a proper interest in information about a strata titles scheme if the person is —

(a) a member of the strata company for the scheme; or

(b) a buyer who has entered into a contract for the sale and purchase of a lot in the strata titles scheme; or

(c) a mortgagee of a lot in the strata titles scheme; or

(d) a person of a class specified in the regulations.

(3) A strata company may charge a fee for an application under this section.

(4) However, any fee that is charged must not exceed an amount fixed by the regulations.

A strata company commits an offence if it does not, within 14 days after being given an application for contact information under section 107, provide the applicant with the following as stated in the application —

(a) the name and address for service of a member of the council of the strata company;

(b) the name and address for service of an officer of the strata company;

Penalty: a fine of $3 000.

(1) A strata company commits an offence if, on application for inspection under section 107, it does not make material to which this section applies available for inspection by the applicant at a place and time —

(a) agreed between the strata company and the person; or

(b) if agreement is not reached within 3 days after the strata company is given the application, specified in a written notice given by the strata company to the person.

Penalty for this subsection: a fine of $3 000.

(2) The time specified in a notice under subsection (1)(b) must be between 9am and 5pm on a day not more than 10 days after the strata company is given the application.

(3) The material may be made available in electronic or hard copy form.

(4) A person inspecting material under this section —

(a) may take extracts from, or make a copy of, the material, including by photographing it, subject to any limitations specified in the regulations; and

(b) must not, without the consent of the strata company, remove physical material from the custody of the strata company; and

(c) must not alter, damage, conceal or destroy any material or entry.

(5) The strata company may, but is not obliged to, provide a copy of any material at the request of the applicant, and, if it does so, it may charge a fee for the copy of an amount not exceeding an amount fixed by the regulations.

(6) This section applies to the following —

(a) material kept under section 104;

(b) the roll kept under section 105;

(c) other documents in the possession or control of the strata company.

(1) A strata company commits an offence if it does not, within 14 days after being given an application for a certificate under section 107, provide the applicant with a certificate certifying, as at the date of the certificate, the following matters as stated in the application —

(a) whether or not a strata management contract is in effect and, if so, when the contract starts and ends;

(b) details of any contracts of insurance maintained by the strata company, including the name of the insurer, the contract number, the type and amount of cover, and the expiry day;

(c) whether any transfer, lease or other disposition has been entered into or exclusive use by-laws have been made in favour of a person over the common property but not registered by the Registrar of Titles, and, if so, the name of the person and the nature and effect of the transaction or by-laws.

Penalty for this subsection: a fine of $3 000.

(2) A strata company commits an offence if it does not, within 14 days after being given an application for a certificate under section 107, provide the applicant with a certificate certifying, as at the date of the certificate, the following matters as they relate to a lot specified in the application —

(a) the amount and due date of contributions determined for the lot —

(i) at the most recent annual general meeting of the strata company; and

(ii) at any time subsequent to that meeting; and

(iii) in the previous 12 months;

(b) any amount owed to the strata company by the owner or occupier of the lot that is outstanding, the date on which it became outstanding, and the nature of the payment;

Note for this paragraph:

For example, the amount may be an amount of —

contributions; or

an amount payable under exclusive use by-laws; or

an amount payable for work undertaken on the part of the owner of the lot; or

any penalty or other amount ordered to be paid by the Tribunal; or

any amount payable for utility services or other services or amenities.

(c) the rate of interest payable in respect of the outstanding amount.

Penalty for this subsection: a fine of $3 000.

(3) A certificate under this section is conclusive evidence of the matters stated in the certificate, as at the date of the certificate, in favour of a person taking an estate or interest in a lot for valuable consideration.

(1) Nothing in this Subdivision requires a strata company —

(a) to give or certify any information that is the subject of legal professional privilege; or

(b) to make available a document or a part of a document if that would disclose information that is the subject of legal professional privilege.

(2) It is a defence to an action for defamation if the defendant proves that —

(a) the defamatory matter was contained in information or a document mentioned in this Subdivision; and

(b) the publication consisted of giving or certifying the information, or making the document available, in accordance with this Subdivision.

A strata company has the function of complying with the scheme by-laws and enforcing compliance with those by-laws by others to whom they apply.

A strata company may enter into a contract or arrangement with a local government about the enforcement of laws relating to roads on the parcel.

A strata company may enter into a contract or arrangement with a local government about the enforcement of a local law on the parcel.

(1) There is implied in every contract to which this section applies a provision that the strata company may terminate the contract, by written notice to every other party to the contract, after 5 years have passed since the contract was made.

(2) No cause of action against any person arises from the exercise of the power referred to in subsection (1).

(3) A contract or any other agreement or arrangement must not exclude the operation of subsection (1) and to the extent that it purports to do so it is of no effect.

(4) This section applies to a contract if —

(a) it relates to the provision of amenities or services to the strata company or the owners of lots; and

(b) it is made after the commencement of section 41 of the Strata Titles Amendment Act 1995; and

(c) it was made before registration of the strata titles scheme or when any owner held 50% or more of the unit entitlement of the lots.

(5) The Tribunal may, on the application of a person made in respect of a contract, by order extend the period of 5 years provided for by subsection (1), so far as it applies to that contract, if satisfied that the contract —

(a) is fair to all owners of lots in the strata titles scheme; and

(b) will remain fair to all those owners during the extended period.

(6) An extended period under subsection (5) is not to exceed the term specified in the contract or a period of 10 years from the time when the contract was made, whichever is the lesser.

(1) Without limiting the powers of a strata company to perform its functions, a strata company may —

(a) purchase, hire or otherwise acquire personal property for use by owners of lots in connection with their enjoyment of the common property or for use by the strata company in the performance of its functions; and

(b) sell or otherwise dispose of personal property owned by it; and

(c) borrow money required by it in the performance of its functions; and

(d) secure the repayment of money borrowed by it, and the payment of interest on that money, by negotiable instrument, or mortgage of unpaid contributions (whether imposed or not), or mortgage of any property owned by it, or by a combination of those means; and

(e) invest money in its administrative fund or reserve fund in the manner permitted by law for the investment of trust funds or by the regulations; and

(f) if the strata company considers it necessary, effect a compromise of an action for the recovery of money due to the strata company; and

(g) make a contract with the owner or occupier of a lot for the provision of amenities or services by it to the lot or to the owner or occupier; and

(h) accept or acquire a lease, licence or permit for the purpose of providing moorings or landings for vessels; and

(i) grant a lease, licence or other rights over common property for the purpose of utility infrastructure or sustainability infrastructure; and

(j) for the purpose of performing any of its functions, develop and turn to account any technology, software, or intellectual property that relates to the function and, for that purpose, apply for, hold, exploit, and dispose of any patent, patent rights, copyright, or similar rights; and

(k) arrange for the auditing of any accounting records.

(2) Any interest received on an investment made under subsection (1) forms part of the fund to which the investment belongs.

(1) A strata company must not —

(a) acquire or dispose of land, or an interest in land, except as authorised under section 92 or 93; or

(b) mortgage common property; or

(c) act as a guarantor; or

(d) establish a corporation or subsidiary of a corporation; or

(e) engage in an activity that a strata company must not engage in under the regulations.

(2) A strata company must not, except as authorised by resolution without dissent, perform or exercise a function that the regulations allow to be exercised only as authorised by resolution without dissent.

(1) If a strata company has a common seal —

(a) the seal may be used only as authorised by ordinary resolution of the strata company; and

(b) its use must be attested by the signatures of 2 members of the council of the strata company.

(2) A strata company may, by ordinary resolution, authorise any of the following to execute documents on its behalf subject to any conditions or limitations specified in the resolution —

(a) a member of the council of the strata company; or

(b) members of the council of the strata company acting jointly; or

(c) a strata manager of the strata company.

(3) A document is duly executed by a strata company if —

(a) the common seal of the strata company is applied to it in accordance with this section; or

(b) the document is signed on behalf of the strata company by a person or persons in accordance with an authority conferred under this section.

(4) For a document in an electronic form that bears a facsimile of the common seal and a facsimile of the signatures required to attest its use, the sealed document as it appears electronically, or as it appears when printed on paper, has the same effect as if the common seal had been applied and attested in accordance with this section, unless there is evidence that the document was not executed by the strata company.

(1) In performing its functions, a strata company is to have the objective of implementing processes and achieving outcomes that are not, having regard to the use and enjoyment of lots and common property in the strata titles scheme —

(a) unfairly prejudicial to or discriminatory against a person; or

(b) oppressive or unreasonable.

(2) In achieving that objective, a strata company —

(a) must take into account any failure of a person to act consistently with this Act or the scheme by-laws; and

(b) must consider the merits of any proposal put to it and the options that are reasonably available in any particular circumstances; and

(c) must be aware that —

(i) a resolution or other conduct may be overturned for failure to meet that objective despite the fact that it reflects the will of the majority of members of the strata company as expressed through the exercise of their voting powers; and

(ii) the fact that a person has chosen to become the owner of a lot does not prevent the person challenging the performance of a function for failure to meet that objective.

(3) Without limitation, a strata company acts oppressively or unreasonably in passing or not passing a resolution if —

(a) the resolution would not have been passed, or not have been passed as a particular type of resolution, but for the fact that a person was improperly denied a vote on the resolution; or

(b) the resolution would have been passed, or would have been passed as a particular type of resolution, if a person had properly been given an opportunity to vote on the resolution.

(1) The owner of each lot in a strata titles scheme is entitled to 1 vote on a proposed resolution of the strata company.

(2) However, the owner of a lot is not entitled to cast the vote attached to the lot if —

(a) the resolution is not required to be a unanimous resolution or a resolution without dissent and is not a resolution for postponing the expiry day for a leasehold scheme or a termination resolution; and

(b) there is an outstanding amount recoverable under this Act owed to the strata company by the owner of the lot.

(3) A proposed resolution can be put to the members of a strata company —

(a) at a general meeting; or

(b) outside of a general meeting.

(4) A resolution can be proposed only by a member of the strata company who is entitled to vote on the resolution.

(5) The vote attached to a lot can, and can only, be cast, if at the time it is cast, the person is entitled to cast the vote attached to the lot.

(6) The owner of a lot may cast the vote attached to the lot in person or by duly appointed proxy.

(7) However, if a vote is taken at a general meeting at which both the owner of a lot and a proxy entitled to cast the vote attached to the lot are present and the owner is not a co-owner of the lot, the owner of the lot must cast the vote.

(8) The voting system, whether it is electronic or by other means, must —

(a) enable votes to be cast in a manner designed to protect the integrity of the voting system; and

(b) comply with any requirements specified in the regulations.

(1) If a resolution is required to be a unanimous resolution, resolution without dissent or special resolution, the period allowed for voting must be 28 days or, if the regulations specify some other period, that period.

(2) If a vote on a resolution that is required to be a unanimous resolution, resolution without dissent or special resolution is taken at a general meeting —

(a) the voting period opens at the meeting and closes 28 days (or if the regulations specify some other period, that period) after the meeting; and

(b) if, for 1 or more lots, there was no-one present at the meeting in person or by proxy who could cast the vote attached to the lot — written notice of the outcome of the vote at the meeting is given to the owner of each such lot; and

(c) if the vote for a lot was not cast at a meeting, the vote may be cast by written notice to the strata company before the voting period closes.

(1) Votes are to be counted (and recorded) as follows —

(a) for a unanimous resolution or a resolution without dissent, the votes must be counted by the number of votes cast;

(b) for a special resolution, the votes must be counted both by the number of votes cast and by the number of unit entitlements of the lots for which votes are cast;

(c) for an ordinary resolution, the votes must be counted by the number of votes cast unless any person entitled to cast a vote demands that they be counted by the number of unit entitlements of the lots for which votes are cast, in which case, they must be counted in that manner.

(2) A demand that a vote be counted by the number of unit entitlements of the lots for which votes are cast can be made —

(a) if the vote is being taken at a general meeting, orally or in writing before the resolution is put to the vote; and

(b) if the vote is being taken outside of a general meeting, when the vote is cast.

(3) Such a demand may only be withdrawn by the person who made the demand.

(1) A resolution of a strata company is a unanimous resolution if —

(a) 14 days’ notice of the terms of the proposed resolution is given to each member of the strata company before voting on the resolution opens; and

(b) the vote attached to each lot in the scheme is cast in favour of the resolution.

(2) Subject to subsection (3), a resolution of a strata company is a resolution without dissent if —

(a) 14 days’ notice of the terms of the proposed resolution is given to each member of the strata company before voting on the resolution opens; and

(b) no vote attached to a lot in the scheme is cast against the resolution.

(3) For a 2-lot scheme, a resolution is only to be regarded as a resolution without dissent if it is a unanimous resolution.

(4) Subject to subsections (5) and (6), a resolution of a strata company is a special resolution if —

(a) 14 days’ notice of the terms of the proposed resolution is given to each member of the strata company before voting on the resolution opens; and

(b) the votes in favour of the resolution equal —

(i) when counted by number — not less than 50% of the number of lots in the scheme; and

(ii) when counted by unit entitlements — not less than 50% of the unit entitlements of the lots in the scheme;

and

(c) the votes against the resolution equal —

(i) when counted by number — less than 25% of the number of lots in the scheme; and

(ii) when counted by unit entitlements — less than 25% of the unit entitlements of the lots in the scheme.

(5) For a 2-lot scheme, a resolution is only to be regarded as a special resolution if it is a unanimous resolution.

(6) For a 3, 4 or 5-lot scheme, a resolution of the strata company is a special resolution if —

(a) 14 days’ notice of the terms of the proposed resolution is given to each member of the strata company before voting on the resolution opens; and

(b) the votes in favour of the resolution equal—

(i) when counted by number —

(I) for a 3-lot scheme — not less than 2; and

(II) for a 4-lot scheme — not less than 3; and

(III) for a 5-lot scheme — not less than 4;

and

(ii) when counted by unit entitlements — not less than 50% of the unit entitlements of the lots in the scheme.

(7) A resolution of a strata company is an ordinary resolution if —

(a) for a resolution passed other than at a general meeting, 14 days’ notice of the terms of the proposed resolution is given to each member of the strata company before voting on the resolution opens; and

(b) it is passed when counted as required under section 122 (1)(c) —

(i) by number — by more than 50% of the number of lots for which votes are cast; or

(ii) by unit entitlements — by more than 50% of the sum of the unit entitlements of the lots in the scheme for which votes are cast.

Note for this subsection:

For an ordinary resolution, the question is determined against the resolution on an equal number of votes whether counted by number or by unit entitlements.

(1) An instrument appointing a proxy to cast a vote must be in writing and executed by the appointer or the appointer’s attorney.

(2) Subject to any limitations expressed in the instrument of appointment, the appointment of a proxy is for all general meetings and for all purposes.

(3) The instrument of appointment of a proxy may limit the appointment —

(a) to a specified general meeting or to voting on a specified resolution; or

(b) to general meetings held, or votes taken, within a specified period; or

(c) to a specified purpose; or

(d) in any other specified way.

(4) A proxy may be, but is not required to be, a member of the strata company.

(5) The regulations may impose limitations on a strata manager being appointed as a proxy, including limitations as to the number of lot owners or unit entitlements of lots for which a strata manager may be appointed as a proxy.

(1) If a member of a strata company who is an individual and sole owner of a lot is present at a general meeting of the strata company, the member must cast the vote for the lot personally rather than by proxy.

(2) A person must not vote as a proxy of another person on a resolution relating to the provision of goods, amenity or service to the strata company if the person so voting (the proxy) has a direct or indirect pecuniary or other interest in the provision of the goods, amenity or service.

(3) Subsection (2) does not apply if —

(a) notice of the proposed resolution included, if applicable, the particulars described in subsection (4); and

(b) the instrument appointing the proxy expressly authorises the proxy to vote on the resolution and specifies whether the proxy is to vote for or against it.

(4) If the resolution relates to the strata company making, varying or extending a strata management contract, the notice of the resolution must specify —

(a) the name of the strata manager; and

(b) when the proposed contract, or the contract as proposed to be varied or extended (as the case may require) is to start and end; and

(c) each proposed variation, if applicable; and

(d) the remuneration that is payable under the contract or the way in which the remuneration that is payable under the contract is to be calculated.

The entitlement of the owner of a lot to vote on a proposed resolution is subject to the following —

(a) if the lot is subject to a registered mortgage —

(i) the first mortgagee of the lot may, in person or by proxy, cast the vote on behalf of the owner of the lot; and

(ii) the owner may cast the vote if the first mortgagee does not do so;

and

(b) in any event —

(i) if the owner of the lot has not attained 18 years of age, the owner may not cast the vote but the owner’s guardian may do so on behalf of the owner; and

(ii) if the owner of the lot is, for any reason, unable to control the owner’s property, the person who is, for the time being, authorised by law to control the owner’s property may cast the vote on behalf of the owner; and

(iii) if there are co-owners of the lot, the co-owners may only cast the vote through jointly appointing a single proxy (who may be 1 of the co-owners).

(1) A strata company must hold an annual general meeting once in each 12 month period and not more than 15 months after its previous annual general meeting.

(2) Subsection (1) does not apply to a strata company for a 2-lot scheme but a strata company for a 2-lot scheme may make by-laws having the same effect as subsection (1).

(3) The following matters must be included as an item of business on the agenda for each annual general meeting of a strata company (including the first annual general meeting) —

(a) election of council members;

(b) consideration of accounts;

(c) the presentation of copies of certificates and schedules for the insurance required under this Act, current as at the date of the meeting.

(4) All business transacted at an annual general meeting other than that referred to in subsection (3) is taken to be special business.

(1) An extraordinary general meeting of a strata company is a general meeting of the strata company other than an annual general meeting.

(2) An extraordinary general meeting of a strata company —

(a) may be convened by the council of the strata company as the council thinks fit; and

(b) must be convened by the council of the strata company on the written request of owners entitled to 25% or more of the unit entitlements of the lots in the strata titles scheme.

(3) The owners making a request under subsection (2)(b), or any of them holding more than 50% of the unit entitlements of the lots in the strata titles scheme, may convene an extraordinary general meeting if the council does not, within 21 days after the request was made, take steps to convene the meeting.

(4) To the extent practicable, a meeting referred to in subsection (3) must be convened in the same manner as that in which meetings are to be convened by the council.

(5) A meeting convened under subsection (3) must not be held after the expiration of the period of 3 months starting on the day on which the request was made.

(6) All business transacted at an extraordinary general meeting is taken to be special business.

(1) All owners of lots in a strata titles scheme and first mortgagees of those lots must be given at least 14 days’ notice of every general meeting of the strata company for the scheme.

(2) The notice must include —

(a) the date, time and venue of the meeting; and

(b) for an annual general meeting, notice of each item of business referred to in section 127(3); and

(c) for special business, notice of the general nature of that business; and

(d) notice of each method of voting, whether by means of an electronic communication or otherwise, that is acceptable to the strata company.

(3) Accidental omission to give notice of a general meeting to the owner or first mortgagee of a lot or non-receipt of the notice by the owner or first mortgagee of a lot does not invalidate any proceedings at the meeting.

(4) The owner of a lot may give written notice to a member of the council of the strata company of an item of business that the owner requires to be included on the agenda for a general meeting of the strata company and that item must be included on the agenda for the meeting and notice must be given of that item as an item of special business under subsection (2)(c).

(1) No business may be transacted at a general meeting unless a quorum is present at the time when the meeting proceeds to business.

(2) At a general meeting of a strata company for a 2-lot scheme, a quorum is constituted if there are present persons who are entitled to cast the vote attached to each of the lots.

(3) At a general meeting of a strata company for a strata titles scheme other than a 2-lot scheme, a quorum is constituted if there are present persons who are entitled to cast the votes attached to 50% of the lots in the scheme.

(4) If a quorum is not present after 30 minutes has elapsed from the time appointed for a general meeting of a strata company for a strata titles scheme other than a 2-lot scheme, the persons entitled to vote who are present at the meeting are taken to constitute a quorum for the purposes of that meeting.

(5) A person who is a proxy of a person entitled to cast the vote attached to a lot is to be counted for the purposes of determining whether a quorum is present.

(1) A person (including a proxy of a member of a strata company) may, in accordance with any requirements of the scheme by-laws, attend, and vote, at a meeting of a strata company by telephone, video link, internet connection or similar means of remote communication (provided that provision of relevant facilities does not place an unreasonable burden on the strata company).

(2) A person attending a meeting by remote communication is taken to be present at the meeting.

(1) A general meeting may be adjourned by the chairperson, with the consent of the meeting, from time to time and from place to place but no business may be transacted at an adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

(2) A person is not entitled to move a motion at a general meeting or to nominate a candidate for election as a member of the council unless the person is entitled to vote on the motion or at the election.

Resolutions passed at a general meeting may be ordinary resolutions unless this Act requires otherwise.

If, by ordinary resolution of a strata company, the council of the strata company is prohibited from performing a function, the function may be performed by the owners of lots in general meeting of the strata company.

(1) The functions of a strata company, subject to this Act and to any restriction imposed or direction given by ordinary resolution, are to be performed by the council of the strata company.

(2) The council of a strata company must be constituted and perform its functions in accordance with this Act and the scheme by-laws.

(3) On an election of the council at a general meeting of the strata company —

(a) a person who is entitled to vote in the election and who is present in person or by proxy at the meeting may demand that the votes in the election be counted by unit entitlement of the lots; and

(b) if no such demand is made, the votes in the election are to be counted by number.

(4) 1 of the members of the council of a strata company must hold office as the chairperson of the strata company.

Note for this section:

Section 143 provides that the functions of a strata company or the council or an officer of a strata company may be performed by a strata manager.

(1) A corporation is eligible to be an officer of a strata company or a member of the council of a strata company.

(2) A corporation may authorise an individual to perform on its behalf a function conferred under this Act on the corporation as an officer of the strata company or as a member of the council and may revoke the authority of an individual so authorised.

(3) If an individual performs a function that the individual is authorised to perform by a corporation under subsection (2), the function is taken to be performed by the corporation.

(1) This section applies to a person who is —

(a) a member of the council of a strata company (including when acting as an officer of the strata company); or

(b) an individual authorised under section 136(2) by a corporation to perform the corporation’s functions as a member of the council, or an officer, of a strata company.

(2) A person to whom this section applies —

(a) must at all times act honestly, with loyalty and in good faith in the performance of functions as a member of the council or an officer of the strata company; and

(b) must at all times exercise the degree of care and diligence in the performance of those functions that a reasonable person in the person’s position and the circumstances of the strata company would reasonably be expected to exercise; and

(c) must not make improper use of the person’s position —

(i) to gain, directly or indirectly, an advantage for the person or any other person; or

(ii) to cause detriment to the strata company.

(3) A person to whom this section applies —

(a) must inform the council in writing of any direct or indirect pecuniary or other interest that the person has that conflicts or may conflict with the performance of a function as a member of the council or, if applicable, as an officer of the strata company; and

(b) must do so as soon as is practicable after the person becomes aware of the relevant facts; and

(c) in the case of a member of the council, must not vote on a matter in which the member has an interest required to be disclosed under paragraph (a).

(4) Subsection (3) does not apply to an interest arising solely from the fact that the member is the owner of a lot in the scheme.

If, at any time, there is no council of a strata company or there are insufficient members of the council to constitute a quorum in accordance with the scheme by-laws, the functions of the council may be performed by the owners of the lots in general meeting of the strata company.

(1) In so far as the formalities of making, varying, extending, discharging or terminating a contract are concerned, a person acting under the express or implied authority of a strata company may make, vary, extend, discharge or terminate a contract in the name of or on behalf of the strata company in the same manner as if that contract were made, varied, extended, discharged or terminated by a natural person.

(2) The making, variation, extension, discharge or termination of a contract in accordance with subsection (1) is effectual in law and binds the strata company and other parties to the contract.

(3) This section does not affect —

(a) section 115; or

(b) section 151; or

(c) the operation of a law that requires some consent or sanction to be obtained, or some procedure to be complied with, in relation to the making, variation, extension, discharge or termination of a contract.

(1) A strata company for a 2-lot scheme —

(a) may, but is not required to, perform a designated function; and

(b) cannot establish an administrative fund unless required to do so by scheme by-laws.

(2) The scheme by-laws for a 3, 4 or 5-lot scheme may exempt the strata company from a designated function.

(3) However, the Tribunal may, on application by a member of the strata company, require a strata company to perform a designated function despite this section.

(4) In this section —

designated function means a function conferred under any of the following sections or included in this definition by the regulations —

(1) This section applies to a person who is or has been —

(a) a member of the council of a strata company (including when acting as an officer of the strata company); or

(b) an individual authorised under section 136(2) by a corporation to perform the corporation’s functions as a member of the council, or an officer, of a strata company.

(2) No civil liability attaches to a person to whom this section applies for anything that the person has, in good faith, done or omitted to be done —

(a) in the performance of a function under this Act or scheme by-laws; or

(b) in the reasonable belief that the act or omission was in the performance of a function under this Act or scheme by-laws.

(3) A liability that would, but for subsection (2), attach to a person attaches instead to the strata company.

The following matters are declared to be excluded matters for the purposes of the Corporations Act 2001 (Commonwealth) section 5F in relation to the whole of the Corporations legislation to which Part 1.1A of that Act applies —

(a) a strata company;

(b) an act or omission of a person, body or other entity in relation to a strata company.