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This is a Bill, not an Act. For current law, see the Acts databases.


STRATA LEGISLATION AMENDMENT BILL 2010




Strata Legislation Amendment Bill
2010
No     , 2010


A Bill for

An Act to amend the Strata Schemes Management Act 1996 in relation to the
obligations of owners corporations, executive committees and owners and occupiers
of lots, procedures for meetings and the finances of strata schemes; to amend other
Acts consequentially; and for other purposes.
Clause 1      Strata Legislation Amendment Bill 2010




The Legislature of New South Wales enacts:                          1

 1    Name of Act                                                   2

           This Act is the Strata Legislation Amendment Act 2010.   3

 2    Commencement                                                  4

           This Act commences on the date of assent to this Act.    5




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Strata Legislation Amendment Bill 2010

Amendment of Strata Schemes Management Act 1996 No 138                   Schedule 1




Schedule 1             Amendment of Strata Schemes                                         1
                       Management Act 1996 No 138                                          2

[1]   Sections 27A and 27B                                                                 3

      Insert after section 27:                                                             4

      27A    Prohibition on certain persons holding position of strata                     5
             managing agent                                                                6

              (1)   The following persons may not be appointed as a strata managing        7
                    agent of a strata scheme:                                              8
                    (a) the original owner,                                                9
                    (b) if the original owner is a corporation:                           10
                            (i) a corporation that, within the meaning of the             11
                                  Corporations Act 2001 of the Commonwealth, is a         12
                                  related body corporate of the original owner, or        13
                           (ii) a corporation that holds shares in the original owner     14
                                  or in a related body corporate of the original owner,   15
                    (c) if the original owner is an individual:                           16
                            (i) a corporation that employs the original owner, or         17
                           (ii) a corporation in respect of which the original owner      18
                                  holds shares, or                                        19
                          (iii) a corporation in respect of which the original owner      20
                                  occupies a position of authority.                       21

              (2)   If an owners corporation or executive committee of a strata           22
                    scheme becomes aware after the appointment of a strata                23
                    managing agent of the scheme that the agent is a person referred      24
                    to in subsection (1), the owners corporation or executive             25
                    committee must terminate the strata managing agent's                  26
                    appointment as soon as possible.                                      27

              (3)   An owners corporation or executive committee may terminate            28
                    the appointment of a strata managing agent in accordance with         29
                    this section whether or not the instrument of appointment of the      30
                    strata managing agent provides for termination under this section     31
                    and any such termination does not constitute a breach of contract.    32

              (4)   No person is entitled to compensation or damages as a result of       33
                    the termination of the appointment of a strata managing agent in      34
                    accordance with this section.                                         35




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               Strata Legislation Amendment Bill 2010

Schedule 1         Amendment of Strata Schemes Management Act 1996 No 138




     27B     Requirement to disclose certain connections                                    1
             (1)      For the purposes of this section, each of the following persons is    2
                      a relevant person in relation to a strata scheme:                     3
                      (a) the original owner,                                               4
                      (b) a caretaker appointed for the strata scheme,                      5
                      (c) a person who is a party to a contract with the owners             6
                             corporation.                                                   7

             (2)      Before accepting an appointment as a strata managing agent of a       8
                      strata scheme, a person must disclose in writing to the owners        9
                      corporation if the person is connected with any of the relevant      10
                      persons.                                                             11
                      Maximum penalty: 55 penalty units.                                   12

             (3)      It is a defence to a prosecution for an offence against              13
                      subsection (2) if the defendant establishes that, when accepting     14
                      the appointment as strata managing agent, the defendant did not      15
                      know, and could not reasonably be expected to have known, that       16
                      the defendant was connected with a relevant person.                  17

             (4)      As soon as possible after a strata managing agent of a strata        18
                      scheme becomes aware that the agent is connected with a              19
                      relevant person, the agent must disclose in writing to the owners    20
                      corporation any connection that the person has with the relevant     21
                      person and the date on which the connection commenced.               22
                      Maximum penalty: 55 penalty units.                                   23

             (5)      If an owners corporation or executive committee of a strata          24
                      scheme becomes aware after the appointment of a strata               25
                      managing agent for the scheme that the agent is connected with a     26
                      relevant person, the owners corporation or the executive             27
                      committee may terminate the appointment of the agent.                28

             (6)      An owners corporation or executive committee may terminate           29
                      the appointment of a strata managing agent in accordance with        30
                      this section whether or not the instrument of appointment of the     31
                      strata managing agent provides for termination under this section    32
                      and any such termination does not constitute a breach of contract.   33

             (7)      No person is entitled to compensation or damages as a result of      34
                      the termination of the appointment of a strata managing agent in     35
                      accordance with this section.                                        36




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Amendment of Strata Schemes Management Act 1996 No 138                   Schedule 1




[2]   Section 40D                                                                          1
      Insert after section 40C:                                                            2

      40D    Prohibition on certain persons holding position of caretaker                  3

              (1)   The following persons may not be appointed as a caretaker for a        4
                    strata scheme:                                                         5
                    (a) the original owner,                                                6
                    (b) if the original owner is a corporation:                            7
                             (i) a corporation that, within the meaning of the             8
                                 Corporations Act 2001 of the Commonwealth, is a           9
                                 related body corporate of the original owner, or         10
                            (ii) a corporation that holds shares in the original owner    11
                                 or in a related body corporate of the original owner,    12
                    (c) if the original owner is an individual:                           13
                             (i) a corporation that employs the original owner, or        14
                            (ii) a corporation in respect of which the original owner     15
                                 holds shares, or                                         16
                           (iii) a corporation in respect of which the original owner     17
                                 occupies a position of authority.                        18

              (2)   If an owners corporation for a strata scheme becomes aware after      19
                    the appointment of a caretaker for the scheme that the caretaker      20
                    is a person referred to in subsection (1), the owners corporation     21
                    must:                                                                 22
                     (a) terminate the caretaker's appointment, and                       23
                    (b) determine whether a new caretaker is to be appointed.             24

              (3)   The action required to be taken by the owners corporation under       25
                    subsection (2) is to be taken:                                        26
                    (a) at the general meeting of the owners corporation at which         27
                          the owners corporation becomes aware that the caretaker is      28
                          a person referred to in subsection (1), or                      29
                    (b) if the owners corporation becomes aware that the caretaker        30
                          is a person referred to in subsection (1) otherwise than at a   31
                          general meeting, at the next general meeting after the          32
                          owners corporation becomes so aware.                            33

              (4)   An owners corporation may terminate the appointment of a              34
                    caretaker in accordance with this section whether or not the          35
                    caretaker agreement provides for termination under this section       36
                    and any such termination does not constitute a breach of contract.    37




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                Strata Legislation Amendment Bill 2010

Schedule 1         Amendment of Strata Schemes Management Act 1996 No 138




             (5)      No person is entitled to compensation or damages as a result of        1
                      the termination of the appointment of a caretaker in accordance        2
                      with this section.                                                     3

[3]   Section 48 What steps must an owners corporation take to make an                       4
      amendment effective?                                                                   5

      Omit section 48 (1) (a). Insert instead:                                               6
                   (a) the owners corporation has lodged in the office of the                7
                         Registrar-General a notification in the form approved               8
                         under the Real Property Act 1900 accompanied by:                    9
                          (i) a copy of the special resolution of the owners                10
                                 corporation approving the amendment, repeal or             11
                                 new by-law, and                                            12
                         (ii) a consolidated copy of all the by-laws for the strata         13
                                 scheme incorporating that amendment, repeal or             14
                                 new by-law, and                                            15

[4]   Section 76 Owners corporation to set levy for contributions to                        16
      administrative and sinking funds                                                      17

      Insert "or the sinking fund (as the case may be)" after "administrative fund" in      18
      section 76 (4).                                                                       19

[5]   Section 76 (6) and (7)                                                                20

      Insert after section 76 (5):                                                          21

             (6)      Despite any other provision of this Act, if a quorum is not present   22
                      as required by clause 12 (5) of Schedule 2 at an adjourned annual     23
                      general meeting of the owners corporation at which the amounts        24
                      to be levied as contributions to the administrative fund and          25
                      sinking fund are to be determined, those amounts are taken to         26
                      have been determined to be the same amounts as the                    27
                      contributions last determined, increased to take account of the       28
                      relevant Consumer Price Index.                                        29

             (7)      For the purposes of subsection (6), the relevant Consumer Price       30
                      Index is the Consumer Price Index (All Groups Index) for              31
                      Sydney last issued by the Australian Statistician before the date     32
                      of the adjourned annual general meeting.                              33

[6]   Section 87 What other insurance must an owners corporation take out?                  34

      Omit "$10,000,000" from section 87 (2).                                               35

      Insert instead "$20,000,000".                                                         36




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Amendment of Strata Schemes Management Act 1996 No 138                    Schedule 1




[7]    Section 98 What must be recorded in the strata roll?                                1
       Insert after section 98 (2) (e):                                                    2
                       (f) a copy of each licence granted by the owners corporation        3
                            for the use of common property and that is in force,           4
                      (g) plans and approvals for all building work that has been          5
                            carried out to the common property,                            6
                      (h) details of each loan to the owners corporation,                  7
                       (i) a copy of each special resolution passed for the purposes       8
                            of section 65A.                                                9

[8]    Sections 117A and 117B                                                             10

       Insert after section 117:                                                          11

      117A    Owner and occupier liable for damage to common property                     12
              caused by occupier                                                          13

              (1)    The owner and occupier of a lot are jointly and severally liable     14
                     for damage caused to the common property by the occupier.            15

              (2)    The owner of a lot is entitled to be indemnified by an occupier of   16
                     the lot for any amount of damage caused to the common property       17
                     by the occupier in respect of which the owner is liable under        18
                     subsection (1).                                                      19

      117B    Owner and occupier not to permit overcrowding                               20

                     The owner and occupier of a lot must not permit more persons         21
                     over the age of 18 to reside on the lot than the number obtained     22
                     by multiplying 2 by the number of rooms in the lot that were         23
                     constructed for the purpose of bedrooms or sleeping areas.           24

[9]    Chapter 5 Disputes and orders of Adjudicators and Tribunal                         25

       Insert under the heading "General orders for settlement of disputes" after         26
       the matter relating to section 139 in the introductory note:                       27


        To settle disputes or rectify     Person bound by the statement   183C
        complaints concerning
        management of a building or its
        site subject to a strata
        management statement




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Schedule 1          Amendment of Strata Schemes Management Act 1996 No 138




[10]   Chapter 5, introductory note                                                      1
       Omit the matter relating to orders appointing strata managing agents.             2

       Insert instead:                                                                   3


         Orders appointing strata managing agents and terminating appointments
         To appoint strata managing        Person who obtained order under 162
         agent                             this Act that imposed duty on
                                           owners corporation or office
                                           holder of executive committee
                                           that has not been complied with
                                           Person having estate or interest
                                           in lot or, in the case of leasehold
                                           strata scheme, lease of lot
                                           Authority having benefit of
                                           positive covenant that imposes
                                           duty on owners corporation
                                           Judgment creditor to whom
                                           owners corporation owes
                                           judgment debt
         To terminate appointment of       Owners corporation             162
         strata managing agent             Owner of lot

[11]   Chapter 5, Part 4, Division 10, heading                                           4

       Insert "and terminating appointments" after "agents".                             5

[12]   Section 162 Orders appointing strata managing agent to exercise certain           6
       functions or terminating appointment of strata managing agent                     7

       Insert after section 162 (2):                                                     8

             (2A)      Order terminating appointment of strata managing agent            9

                       An Adjudicator may by order terminate the appointment of a       10
                       strata managing agent.                                           11

[13]   Section 162 (3A)                                                                 12

       Insert at the end of section 162 (3A) (d):                                       13
                            , or                                                        14
                      (e) an owners corporation has failed to terminate the             15
                            appointment of a strata managing agent in accordance with   16
                            section 27A (2).                                            17




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Amendment of Strata Schemes Management Act 1996 No 138                    Schedule 1




[14]    Section 162 (7)                                                                     1
        Insert "(other than an order under subsection (2A))" after "under this section".    2

[15]    Section 162 (8)                                                                     3

        Insert after section 162 (7):                                                       4

               (8)   An application for an order under subsection (2A) may be made          5
                     only by the owners corporation or the owner of a lot in the strata     6
                     scheme concerned.                                                      7

[16]    Section 183C                                                                        8

        Insert after section 183B:                                                          9

       183C   Orders relating to strata management statements                              10

               (1)   The Tribunal may make an order to settle a dispute, or rectify a      11
                     complaint, concerning the management of a building or its site        12
                     that is subject to a strata management statement, but only if:        13
                      (a) the strata management statement provides for the reference       14
                             of disputes or complaints to the Tribunal, or                 15
                     (b) in a case where the strata management statement does not          16
                             so provide, the Tribunal is of the opinion that the method    17
                             of settling such disputes or complaints provided for in the   18
                             statement has been tried and has not resulted in the          19
                             settlement of the dispute or rectification of the complaint   20
                             concerned.                                                    21

               (2)   An application for an order under this section may be made only       22
                     by a person who is bound by the strata management statement.          23
                     However, such an application may not be made by the owner of          24
                     a lot in a strata scheme if the owners corporation of the strata      25
                     scheme is bound by the strata management statement.                   26

[17]    Section 198 Contempt of Tribunal                                                   27

        Omit "5 penalty units" wherever occurring in section 198 (1) and (2).              28

        Insert instead "50 penalty units".                                                 29

[18]    Section 201A                                                                       30

        Insert after section 201:                                                          31

       201A   Failure to comply with order of Tribunal or Adjudicator                      32

               (1)   A person who is subject to an order under this Chapter must not       33
                     contravene the order.                                                 34
                     Maximum penalty: 200 penalty units.                                   35



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                 Strata Legislation Amendment Bill 2010

Schedule 1          Amendment of Strata Schemes Management Act 1996 No 138




              (2)      A person is not liable to any penalty in respect of an offence          1
                       under this section if the person has been ordered to pay a civil        2
                       penalty under section 202 in respect of the same contravention.         3

[19]    Section 226 Other rights and remedies not affected by this Act                         4

        Omit section 226 (2) and (3). Insert instead:                                          5

              (2)      In any proceedings to enforce a right or remedy referred to in          6
                       subsection (1), the court in which the proceedings are taken is not     7
                       to refuse to determine the proceedings or to grant any relief or        8
                       remedy merely because this Act or Part 4 of the Community Land          9
                       Management Act 1989 makes provision for the enforcement of             10
                       those rights or remedies.                                              11

              (3)      However, in any such proceedings, the court in which the               12
                       proceedings are taken must order the plaintiff to pay the              13
                       defendant's costs if the court is of the opinion that, having regard   14
                       to the following matters, the proceedings should not have been         15
                       brought in that court:                                                 16
                        (a) whether the matter would be dealt with more expeditiously         17
                              and cheaply if brought in another forum,                        18
                       (b) whether the enforcement of the right or remedy by the              19
                              court would be likely to resolve the issues in dispute,         20
                        (c) whether the plaintiff would be able to get an appropriate         21
                              remedy in another forum,                                        22
                       (d) whether the plaintiff would suffer any substantial hardship        23
                              if the court refused to hear and determine the proceedings,     24
                        (e) any other matter the court considers relevant.                    25

[20]    Chapter 7, Part 1A, heading                                                           26

        Omit the heading. Insert instead:                                                     27


        Part 1A Legal services provided to owners                                             28
                corporation                                                                   29

[21]    Section 230B                                                                          30

        Insert after section 230A:                                                            31

       230B   Requirement to disclose certain connections                                     32

              (1)      Before undertaking to provide any legal services to an owners          33
                       corporation, a legal practitioner must disclose in writing to the      34




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Amendment of Strata Schemes Management Act 1996 No 138                   Schedule 1




                    owners corporation if the practitioner is connected with the           1
                    original owner.                                                        2
                    Maximum penalty: 55 penalty units.                                     3

              (2)   It is a defence to a prosecution for an offence against subsection     4
                    (1) if the defendant establishes that, when undertaking to perform     5
                    those legal services, the defendant did not know, and could not        6
                    reasonably be expected to have known, that the defendant was           7
                    connected with the original owner.                                     8

              (3)   As soon as possible after a legal practitioner who is providing        9
                    legal services to an owners corporation becomes aware that the        10
                    practitioner is connected with the original owner, the practitioner   11
                    must disclose in writing to the owners corporation any                12
                    connection that the person has with the original owner and the        13
                    date when the connection commenced.                                   14
                    Maximum penalty: 55 penalty units.                                    15

              (4)   If an owners corporation or executive committee of a strata           16
                    scheme becomes aware after engaging a legal practitioner to           17
                    provide legal services in relation to the scheme that the             18
                    practitioner is connected with the original owner, the owners         19
                    corporation is, within 42 days, to determine at a general meeting     20
                    whether the practitioner's engagement should be terminated and        21
                    a different practitioner engaged.                                     22

              (5)   Subsection (4) does not prevent the owners corporation or             23
                    executive committee from terminating the engagement of the            24
                    legal practitioner at any time for any other reason.                  25

              (6)   The termination of the engagement of a legal practitioner in          26
                    accordance with this section does not constitute a breach of          27
                    contract and no person is entitled to compensation or damages as      28
                    a result of the termination.                                          29

[22]   Section 235 Service of documents on an owners corporation                          30

       Omit section 235 (1). Insert instead:                                              31

              (1)   A summons or other legal process may be served on an owners           32
                    corporation by doing both of the following:                           33
                    (a) leaving it with the chairperson or strata managing agent          34
                          whose address for service has been recorded in the folio of     35
                          the Register,                                                   36
                    (b) posting it, by prepaid mail, to the owners corporation at the     37
                          address recorded in the folio of the Register as the address    38
                          for the service of documents on the owners corporation          39
                          and at the address of the strata scheme concerned.              40




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Schedule 1          Amendment of Strata Schemes Management Act 1996 No 138




[23]   Section 236 Service of documents by owners corporation and others                      1
       Insert after section 236 (6):                                                          2

              (7)      Service of certain documents by electronic means                       3

                       A notice that is required to be given to a person under this Act by    4
                       an owners corporation or an executive committee may be given           5
                       to the person by electronic means, but only if the person has given    6
                       the owners corporation an e-mail address for the service of            7
                       notices under this Act and the notice is sent to that address.         8

[24]   Section 239 Address for service of documents on owners corporation                     9

       Insert "and other documents" after "notices" in section 239 (1).                      10

[25]   Section 239 (1A)-(1C)                                                                 11

       Insert after section 239 (1):                                                         12

             (1A)      A person whose address is recorded in the folio of the Register as    13
                       the Chairperson's or strata managing agent's address for a strata     14
                       scheme must lodge in the office of the Registrar-General a notice     15
                       in the form approved under the Real Property Act 1900 within          16
                       7 days after a change in the person's address or after ceasing to     17
                       be the Chairperson or strata managing agent, as the case may be.      18
                       Maximum penalty: 10 penalty units.                                    19

             (1B)      An owners corporation must lodge in the office of the                 20
                       Registrar-General a notice in the form approved under the Real        21
                       Property Act 1900 within 7 days after a person whose address is       22
                       recorded in the folio of the Register as the Chairperson or strata    23
                       managing agent for the strata scheme concerned ceases to be the       24
                       Chairperson or strata managing agent, as the case may be.             25
                       Maximum penalty: 10 penalty units.                                    26

             (1C)      An owners corporation is not guilty of an offence under               27
                       subsection (1B) for failing to lodge a notice within that 7-day       28
                       period if a notice to the same effect was lodged within that period   29
                       in accordance with subsection (1A).                                   30

[26]   Section 246 Regulations                                                               31

       Insert after section 246 (2) (l):                                                     32
                     (m) the procedures to be observed by the chairperson and                33
                            secretary in relation to meetings of the owners corporation      34
                            and by persons presiding at such meetings,                       35
                      (n) a code of conduct for the chairperson, secretary and               36
                            treasurer.                                                       37




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Amendment of Strata Schemes Management Act 1996 No 138                  Schedule 1




[27]   Section 246 (2A)                                                                   1
       Insert after section 246 (2):                                                      2

            (2A)    A regulation relating to the matter referred to in subsection (2)     3
                    (m) or (n) may apply, adopt or incorporate by reference wholly or     4
                    partly, and with or without modification, any published               5
                    document as in force at a particular time or as in force from time    6
                    to time.                                                              7

[28]   Schedule 2 Meetings and procedure of owners corporation                            8

       Insert after clause 10 (8):                                                        9

            (8A)    For the purposes of subclause (8), payment by means of a cheque      10
                    of an amount owing is taken to have been made before a meeting       11
                    only if the cheque was received at least 5 clear working days        12
                    before the meeting and no notice has been received by the time of    13
                    the meeting of the cheque having been dishonoured.                   14

[29]   Schedule 2, clause 19 (2A)                                                        15

       Insert after clause 19 (2):                                                       16

            (2A)    In the case of a poll demanded after a vote has been taken, the      17
                    demand may be made no later than the completion of                   18
                    consideration of the next item on the agenda if one or more items    19
                    on the agenda remain to be considered.                               20

[30]   Schedule 2, clause 31 (1)                                                         21

       Omit "An". Insert instead "Subject to subclause (1A), an".                        22

[31]   Schedule 2, clause 31 (1A)                                                        23

       Insert after clause 31 (1):                                                       24

            (1A)    An owners corporation may vary the time at which the annual          25
                    general meeting is required to be held by resolution passed at a     26
                    general meeting so long as:                                          27
                    (a) the variation results in an annual general meeting being         28
                          held in each year, and                                         29
                    (b) the time for holding the meeting has not already been            30
                          varied by order of an Adjudicator under section 152.           31




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Schedule 1          Amendment of Strata Schemes Management Act 1996 No 138




[32]   Schedule 2, clauses 33A and 33B                                                        1
       Insert after clause 33:                                                                2

       33A    Notice including proposal relating to by-laws                                   3

                       Notice of a general meeting that includes a form of motion to          4
                       amend, repeal or substitute a by-law must include a report             5
                       prepared by the executive committee explaining the effect of the       6
                       proposed amendment, repeal or substitution of the by-law.              7

       33B    Notice of general meeting to include disclosures                                8

                       Notice of a general meeting must include a copy of any disclosure      9
                       made to the owners corporation by a strata managing agent under       10
                       section 27B, or a legal practitioner under section 230B, since the    11
                       last general meeting.                                                 12

[33]   Schedule 2, clause 34 (b1)                                                            13

       Insert after clause 34 (b):                                                           14
                    (b1) include proposed estimates of amounts needed to be                  15
                            credited to the administrative and sinking funds as referred     16
                            to in section 75 and proposed amounts of contributions           17
                            based on the proposed estimates, and                             18

[34]   Schedule 3 Constitution of executive committee of the owners                          19
       corporation and meetings of executive committee                                       20

       Omit "or caretaker" wherever occurring in clause 3A (1), (3) and (4).                 21

       Insert instead ", caretaker or strata managing agent".                                22

[35]   Schedule 3, clause 3A (1A)-(1D)                                                       23

       Insert after clause 3A (1):                                                           24

             (1A)      A person who is elected as a member of the executive committee        25
                       after failing to make a disclosure in accordance with                 26
                       subclause (1) in relation to that election is guilty of an offence.   27
                       Maximum penalty: 55 penalty units.                                    28

             (1B)      A member of the executive committee is guilty of an offence in        29
                       relation to each occasion on which the member votes on a matter       30
                       being considered by the executive committee after failing to          31
                       make a disclosure in accordance with subclause (1) or (4).            32
                       Maximum penalty: 55 penalty units.                                    33




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Amendment of Strata Schemes Management Act 1996 No 138                   Schedule 1




            (1C)    If an owners corporation becomes aware after the election of a         1
                    member of the executive committee that the member is a person          2
                    referred to in subclause (1), the owners corporation must:             3
                     (a) declare the member's position vacant, and                         4
                    (b) determine whether a new member of the executive                    5
                           committee is to be elected.                                     6

            (1D)    The action required to be taken by the owners corporation under        7
                    subclause (1C) is to be taken:                                         8
                    (a) at the general meeting at which the owners corporation             9
                          becomes aware that the member is a person referred to in        10
                          subclause (1), or                                               11
                    (b) if the owners corporation becomes aware that the member           12
                          is a person referred to in subclause (1) otherwise than at a    13
                          general meeting, at the next general meeting after the          14
                          owners corporation becomes so aware.                            15

[36]   Schedule 3, clause 3A (3A)-(3D)                                                    16

       Insert after clause 3A (3):                                                        17

            (3A)    A person who is appointed to act in the place of a member of the      18
                    executive committee after failing to make a disclosure in             19
                    accordance with subclause (3) in relation to that appointment is      20
                    guilty of an offence.                                                 21
                    Maximum penalty: 55 penalty units.                                    22

            (3B)    A person who is appointed to act in the place of a member of the      23
                    executive committee is guilty of an offence in relation to each       24
                    occasion on which the person votes on a matter being considered       25
                    by the executive committee as a member of the executive               26
                    committee after failing to make a disclosure in accordance with       27
                    subclause (3) or (4).                                                 28
                    Maximum penalty: 55 penalty units.                                    29

            (3C)    If an executive committee becomes aware after the appointment         30
                    of a person to act in the place of a member of the executive          31
                    committee that the person is a person referred to in subclause (3),   32
                    the executive committee must:                                         33
                     (a) withdraw its consent to the person's appointment, and            34
                    (b) determine whether to give consent to the appointment of a         35
                           different person to act in the place of the member of the      36
                           executive committee.                                           37




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                    Strata Legislation Amendment Bill 2010

Schedule 1          Amendment of Strata Schemes Management Act 1996 No 138




             (3D)      The action required to be taken by the executive committee under       1
                       subclause (3C) is to be taken:                                         2
                       (a) at the meeting of the executive committee at which the             3
                             committee becomes aware that the person concerned is a           4
                             person referred to in subclause (3), or                          5
                       (b) if the executive committee becomes aware that the person           6
                             concerned is a person referred to in subclause (3)               7
                             otherwise than at a meeting of the executive committee, at       8
                             the next meeting of the executive committee after the            9
                             executive committee becomes so aware.                           10

[37]   Schedule 3, clause 3A (4)                                                             11

       Insert at the end of the subclause:                                                   12
                     Maximum penalty: 55 penalty units.                                      13

[38]   Schedule 3, clause 6A                                                                 14

       Insert after clause 6:                                                                15

       6A     Notice of executive committee meeting to include disclosures                   16

                       Notice of an executive committee meeting must include a copy of       17
                       any disclosure made to the owners corporation by a strata             18
                       managing agent under section 27B, or a legal practitioner under       19
                       section 230B, since the last executive committee meeting.             20

[39]   Schedule 3, clause 17A                                                                21

       Insert after clause 17:                                                               22

       17A    Transaction of meetings by telephone etc                                       23

                       The executive committee may, if it thinks fit, transact any of its    24
                       business at a meeting at which members (or some members)              25
                       participate by telephone, closed-circuit television or other means,   26
                       but only if any member who speaks on a matter before the              27
                       meeting can be heard by the other members and each other person       28
                       who is present at the meeting and entitled to attend.                 29

[40]   Schedule 4 Savings, transitional and other provisions                                 30

       Insert at the end of clause 1 (1):                                                    31

                       Strata Legislation Amendment Act 2010                                 32




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Strata Legislation Amendment Bill 2010

Amendment of Strata Schemes Management Act 1996 No 138                   Schedule 1




[41]   Schedule 4                                                                          1
       Insert at the end of the Schedule with appropriate Part and clause numbers:         2


       Part         Provisions consequent on enactment of                                  3
                    Strata Legislation Amendment Act 2010                                  4

              Definitions                                                                  5

                    In this Part:                                                          6
                    amending Act means the Strata Legislation Amendment Act                7
                    2010.                                                                  8

              Strata rolls                                                                 9

                    A requirement to record a document or information on the strata       10
                    roll that is imposed by an amendment to section 98 by the             11
                    amending Act extends to recording any such document that was          12
                    created before the commencement of the amendment and any              13
                    such information that related to an event that occurred before that   14
                    commencement if the document or information is reasonably             15
                    available.                                                            16

              Strata managing agents, caretakers and other appointments                   17

              (1)   A requirement in section 27A (2) (as inserted by the amending         18
                    Act) to terminate a strata managing agent's appointment:              19
                    (a) extends to strata managing agents appointed before the            20
                           commencement of that subsection, and                           21
                    (b) is to be read as a requirement to terminate the appointment       22
                           within 60 days after the commencement of that subsection       23
                           if the owners corporation or executive committee became        24
                           aware before that commencement that the strata managing        25
                           agent was a person referred to in section 27A (1) (as          26
                           inserted by the amending Act).                                 27

              (2)   Section 27B (2) (as inserted by the amending Act) is to be read as    28
                    requiring a person who held the position of strata managing agent     29
                    immediately before the commencement of that subsection to             30
                    disclose, within 60 days after that commencement, any                 31
                    connection with a relevant person of which the agent was aware        32
                    before that commencement.                                             33

              (3)   Section 230B (3) (as inserted by the amending Act) is to be read      34
                    as requiring a legal practitioner who was providing legal services    35
                    to an owners corporation immediately before the commencement          36
                    of that subsection to disclose, within 60 days after that             37




                                                                             Page 17
               Strata Legislation Amendment Bill 2010

Schedule 1         Amendment of Strata Schemes Management Act 1996 No 138




                      commencement, any connection with the original owner of which          1
                      the practitioner was aware before that commencement.                   2

             (4)      A requirement in section 230B (4) (as inserted by the amending         3
                      Act) in relation to the engagement of a legal practitioner:            4
                      (a) extends to practitioners engaged before the                        5
                             commencement of that subsection, and                            6
                      (b) is to be read as a requirement to convene and hold a general       7
                             meeting within 60 days after the commencement of that           8
                             subsection if the owners corporation or executive               9
                             committee became aware before that commencement that           10
                             the practitioner was connected to the original owner.          11

             Meetings and procedure                                                         12

             (1)      Clause 10 (8A) of Schedule 2 (as inserted by the amending Act)        13
                      does not apply to a payment made by means of a cheque before          14
                      the commencement of that subclause.                                   15

             (2)      Clauses 33A, 33B and 34 (b1) of Schedule 2 and clause 6A of           16
                      Schedule 3 (as inserted by the amending Act) do not apply to          17
                      notices sent before the commencement of those provisions.             18

             Insurance                                                                      19

                      The amendment made to section 87 by the amending Act does not         20
                      apply to an owners corporation until the next renewal of the          21
                      insurance required under that section occurring after the             22
                      commencement of that amendment.                                       23

             Owner's and occupier's liability for damage to common property                 24

                      Section 117A (as inserted by the amending Act) does not apply         25
                      to or in respect of any damage to common property occurring           26
                      before the commencement of that section.                              27

             Notices of change of information                                               28

                      A requirement imposed by section 239 (1A) or (1B) (as inserted        29
                      by the amending Act) to lodge a notice within 7 days after a          30
                      particular event occurs is to be read as a requirement to lodge the   31
                      notice within 7 days after the commencement of that subsection        32
                      if the event concerned occurred before that commencement.             33




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Strata Legislation Amendment Bill 2010

Amendment of other Acts                                                  Schedule 2




Schedule 2             Amendment of other Acts                                          1


2.1 Strata Schemes (Freehold Development) Act 1973 No 68                                2

[1]   Section 8 Registration of strata plans                                            3

      Omit section 8 (2) (a). Insert instead:                                           4
                   (a) the address of the body corporate for the service of             5
                          documents and the address of the chairperson for the          6
                          service of a summons or other legal process if there is no    7
                          strata managing agent, and                                    8
                 (a1) the name and business address of the strata managing              9
                          agent if an agent is appointed, and                          10

[2]   Section 22 Folio where no common property                                        11

      Omit section 22 (1) (b). Insert instead:                                         12
                   (b) the name of the body corporate, and                             13
                 (b1) the address of the body corporate for the service of             14
                         documents and the address of the chairperson for the          15
                         service of a summons or other legal process if there is no    16
                         strata managing agent, and                                    17
                 (b2) the name and business address of the strata managing             18
                         agent if an agent is appointed, and                           19

[3]   Section 22 (2) (a)                                                               20

      Omit "the address for service of notices on the body corporate".                 21

      Insert instead "an address recorded under subsection (1) (b1) or (b2)".          22

[4]   Section 22 (2) (b)                                                               23

      Omit the paragraph. Insert instead:                                              24
                   (b) record the copy of the current consolidated by-laws and the     25
                        relevant special resolution accompanying a notification        26
                        under section 48 of the Strata Schemes Management Act          27
                        1996, and                                                      28




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                    Strata Legislation Amendment Bill 2010

Schedule 2          Amendment of other Acts




[5]   Section 22 (2A)                                                                         1
      Insert after section 22 (2):                                                            2

             (2A)      If a recording is made in accordance with subsection (2) (b), the      3
                       Registrar is to remove from the Register the copy of the previous      4
                       by-laws for the strata scheme concerned and all previous               5
                       recordings relating to notifications under section 48 of the Strata    6
                       Schemes Management Act 1996 for that strata scheme.                    7

[6]   Section 23 Folio where there is common property                                         8

      Omit section 23 (2) (b). Insert instead:                                                9
                   (b) the address of the body corporate for the service of                  10
                         documents and the address of the chairperson for the                11
                         service of a summons or other legal process if there is no          12
                         strata managing agent, and                                          13
                 (b1) the name and business address of the strata managing                   14
                         agent if an agent is appointed, and                                 15

[7]   Section 23 (2) (e)                                                                     16

      Omit "the address for service of notices on the body corporate".                       17

      Insert instead "an address recorded under paragraph (b) or (b1)".                      18

[8]   Section 23 (2) (f)                                                                     19

      Omit the paragraph. Insert instead:                                                    20
                   (f) record the copy of the current consolidated by-laws and the           21
                        relevant special resolution accompanying a notification              22
                        under section 48 of the Strata Schemes Management Act                23
                        1996, and                                                            24

[9]   Section 23 (2A)                                                                        25

      Insert after section 23 (2):                                                           26

             (2A)      If a recording is made in accordance with subsection (2) (f), the     27
                       Registrar is to remove from the Register the copy of the previous     28
                       by-laws for the strata scheme concerned and all previous              29
                       recordings relating to notifications under section 48 of the Strata   30
                       Schemes Management Act 1996 for that strata scheme.                   31




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Strata Legislation Amendment Bill 2010

Amendment of other Acts                                                  Schedule 2




2.2 Strata Schemes (Leasehold Development) Act 1986 No 219                                 1

[1]   Section 7 Registration of strata plans                                               2

      Omit section 7 (2A) (a). Insert instead:                                             3
                   (a) the address of the proposed body corporate for the service          4
                        of documents and the address of the chairperson for the            5
                        service of a summons or other legal process if there is no         6
                        strata managing agent, and                                         7
                 (a1) the name and business address of the strata managing                 8
                        agent if an agent is appointed, and                                9

[2]   Section 25 Folio where no common property                                           10

      Omit section 25 (1) (b). Insert instead:                                            11
                   (b) the name of the body corporate, and                                12
                 (b1) the address of the body corporate for the service of                13
                         documents and the address of the chairperson for the             14
                         service of a summons or other legal process if there is no       15
                         strata managing agent, and                                       16
                 (b2) the name and business address of the strata managing                17
                         agent if an agent is appointed, and                              18

[3]   Section 25 (2) (a)                                                                  19

      Omit "the address for service of notices on the body corporate".                    20

      Insert instead "an address recorded under subsection (1) (b1) or (b2)".             21

[4]   Section 25 (2) (b)                                                                  22

      Omit the paragraph. Insert instead:                                                 23
                   (b) record the copy of the current consolidated by-laws and the        24
                        relevant special resolution accompanying a notification           25
                        under section 48 of the Strata Schemes Management Act             26
                        1996, and                                                         27

[5]   Section 25 (2A)                                                                     28

      Insert after section 25 (2):                                                        29

            (2A)    If a recording is made in accordance with subsection (2) (b), the     30
                    Registrar is to remove from the Register the copy of the previous     31
                    by-laws for the strata scheme concerned and all previous              32
                    recordings relating to notifications under section 48 of the Strata   33
                    Schemes Management Act 1996 for that strata scheme.                   34




                                                                             Page 21
                    Strata Legislation Amendment Bill 2010

Schedule 2          Amendment of other Acts




[6]   Section 27 Folio where there is common property                                         1
      Omit section 27 (2) (b). Insert instead:                                                2
                   (b) the address of the body corporate for the service of                   3
                         documents and the address of the chairperson for the                 4
                         service of a summons or other legal process if there is no           5
                         strata managing agent, and                                           6
                 (b1) the name and business address of the strata managing                    7
                         agent if an agent is appointed, and                                  8

[7]   Section 27 (2) (e)                                                                      9

      Omit "the address for service of notices on the body corporate".                       10

      Insert instead "an address recorded under paragraph (b) or (b1)".                      11

[8]   Section 27 (2) (f)                                                                     12

      Omit the paragraph. Insert instead:                                                    13
                   (f) record the copy of the current consolidated by-laws and the           14
                        relevant special resolution accompanying a notification              15
                        under section 48 of the Strata Schemes Management Act                16
                        1996, and                                                            17

[9]   Section 27 (2A)                                                                        18

      Insert after section 27 (2):                                                           19

             (2A)      If a recording is made in accordance with subsection (2) (f), the     20
                       Registrar is to remove from the Register the copy of the previous     21
                       by-laws for the strata scheme concerned and all previous              22
                       recordings relating to notifications under section 48 of the Strata   23
                       Schemes Management Act 1996 for that strata scheme.                   24




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