Consumer Affairs Legislation Amendment Act 2010 affects Owners Corporation Administration

Whilst the Consumer Affairs Legislation Amendment Bill 2009 was introduced to Parliament merely seeking to clarify the Government`s intentions re OC Act that existed at the time of introduction The overall effect of the changes will see extra requirements imposed on OC`s and the managers.

The Act was assented on 9/2/10 and the section amending the OC Act will come into operation 1/11/11 unless proclaimed earlier

Some of the areas affected:

The need to delegate by instrument OC Committee powers at all AGMs

A requirement that the OC seal Include Plan of Subdivision Number and further control over use

The requirement to affirm if interest is to be charged on arrears

Additional OC Insurance obligations

The inclusion of the previous AGM minutes and reports for consideration with Meeting Notices

The requirement to have accounts settled (unless cash) 4 business days prior to AGM

The Chairman and secretary can be revoked by the OC Committee

Functions of Manager where no Committee

Sealing of OC Certificate and availability of register

 

For full details of the Act see www.legislation.vic.gov.au

 

Further details are available from this web page

or call

DR Strata Management on

03 97075330

or email  info@drstrata.com.au

 

 

 

 

 

Hints and Tips

DR Strata Management provides up to date information about the changing world of Owners Corporations so that you are better informed to enjoy your home or business premises to the full!

 

Owners Corporations have a language of their own

Owners Corporations are legal entities and there is a language and definitions that you will hear and read when they are being discussed. Here are a few terms which you will need to know:


Owners Corporation
A Owners Corporation is created to manage common ownership of property when a plan of subdivision is registered

 

Members and Owners

‘Owners’ and ‘Members’ are one and the same – an owner of a lot which is part of a Owners Corporation is a member of the Owners Corporation

 

Lots – entitlement and liability

A member's liability and voting entitlements are determined by the member's lot liability and entitlement, which are set out on the plan of subdivision and are set by the surveyor at the time of subdivision.

 

When you purchase a lot in a strata or (owners corporation) subdivision you buy both the lot (your unit) and a ‘share’ in the common property. All the land or parts of the building on the plan of subdivision that are not lots are normally part of the common property.

 

Each plan of subdivision sets out the liability and entitlement of each lot which is usually expressed as the number of units of liability (or entitlement) as a part of the total units of liability (or entitlement) for the total Owners Corporation.

 

Lot liability is the proportion of Owners Corporation expenses, which the lot owner is obliged to pay.

 

Lot entitlement determines voting rights at a meeting of the Owners Corporation.

 

Lot Liability and entitlement are not always the same and a unanimous decision of the owners corporation or representation to the appropriate court of law is required to vary liability or entitlements

 

Resolutions

Owners Corporations decision-making processes are defined by law, and different criteria may be required for different decisions.

To pass a normal resolution requires the agreement of a simple majority of a quorum eligible of members votes. (note members are required to be fully financial to be entitled to vote

A special resolution is required for some decisions to do with Owners Corporations (including make, amend or revoke the rules of the owners corporation).

To pass a special resolution requires the agreement of 75 per cent of the members’ votes.

Some decisions require a unanimous resolution of all owners


Running Effective Meetings

A key role of DR Strata Management is to run effective meetings of Owners Corporations so that the members views are fully canvassed and effective decisions are made for the common good.

 

A Owners Corporation is required to conduct a meeting of its members within the first six months of registration with Land Registry, Land Victoria. After this initial meeting, a Owners Corporation is required to have an Annual General Meeting if it receives or pays out money in the financial year.

 

DR Strata Management provides prior to any meeting conducted by them on behalf of the Owners Corporation full agenda a documentation to support the meeting

 

For an Annual General Meeting you are provided with financial reports of the previous year of the Owners Corporation as well as the statutory reports, any relevant quotations to be considered and a budget for your Owners Corporation.

 

DR Strata Managers have the expertise to effectivly chair your Owners Corporation meetings when and as required