Owners Corporations Act 2006 PDF

**Owners Corporations Act 2006** **No. 69 of 2006** Version incorporating amendments as at\ 1 January 2025 **table of provisions** *Section Page* Part 1---Introductory 1 1 Purposes 1 2 Commencement 1 3 Definitions 1 Part 2---Functions and powers of owners corporation 9 Division 1---Functions and powers of owners corporation 9 4 Functions of owners corporation 9 5 Owners corporation must act in good faith 10 *6* Powers of owners corporation 10 7 The five tiers of owners corporations 11 7A Owners corporation for 2-lot subdivision (tier five owners corporations) 12 8 Services only owners corporation (tier five owners corporations) 12 9 Power to employ or engage persons 13 10 Execution of documents by owners corporation 13 11 Management of owners corporation and power to delegate 13 Division 2---Powers relating to services 15 *12* Provision of services to members and occupiers 15 13 Owners corporation not to carry on business 15 Division 3---Powers relating to property 15 *14* Leasing or licensing of the common property 15 15 Power to obtain lease or licence over land 15 16 Power to acquire and dispose of personal property 15 17 Owners corporation must not mortgage or charge common property 16 17A Water on common property 16 Division 4---Power to commence legal proceeding 16 18 Power to commence legal proceeding 16 Division 5---The common seal 17 18A Owners corporation not required to have or use common seal 17 19 The common seal 17 20 When can the common seal be used? 18 21 Who must witness the use of the common seal? 18 22 Judicial notice of use of common seal 19 Part 3---Financial management 20 Division 1---Financial powers 20 23 Owners corporation may levy annual fees 20 23A Owners corporation may levy fees in relation to insurance 21 24 Extraordinary fees and charges 22 25 Power to borrow money 23 26 Power to invest 23 27 Bank account 23 28 Liability of lot owners 23 29 Penalty interest on arrears 24 30 Recovery of money owed 24 31 Fee notice 25 32 Final notice 25 Division 2---Accounts and audit 26 33 Financial records 26 34 Financial statements 26 35 Audit of financial statements of owners corporations 27 35A Exemption from requirement to audit financial statements 29 Division 3---Maintenance plan 29 36 Maintenance plan 29 37 What must a maintenance plan contain? 29 38 When does a maintenance plan have effect? 30 39 Report on approved maintenance plan 30 Division 4---Maintenance fund 30 40 Establishment of maintenance fund 30 42 Payments into maintenance fund 31 43 Payments from maintenance fund 31 44 Extraordinary payments from maintenance fund 32 45 Extraordinary payments for urgent matters 32 Division 5---Asset management 33 46 Owners corporation to repair and maintain common property 33 47 Owners corporation must repair and maintain services 33 47A Lot owners must not repair, alter or maintain common property or services 34 48 Lots not properly maintained 34 49 Cost of repairs, maintenance or other works 35 *50* When can an owners corporation authorise a person to enter a lot? 36 *51* What notice of entry must be given? 36 52 Significant alteration to common property requires special resolution 37 53 Upgrading of common property 37 Division 5A---Disposal of goods abandoned on common property 38 53A Owners corporation may dispose of goods abandoned on common property 38 53B Notice of intention to dispose of goods abandoned on common property 39 53C Removal of goods to safe place 39 53D Disposal of goods 40 53E Owners corporation not liable in relation to disposed goods 40 Division 6---Insurance 40 54 What is an insurable building? 40 55 Members may take out insurance 41 56 Owners corporation has insurable interest 41 57 Amount payable under owners corporation insurance 41 58 Insurance if lot mortgaged 42 *59* Reinstatement and replacement insurance 43 60 Public liability insurance 44 61 Insurance for lots in multi-level developments 44 61A Insurance for multiple single dwellings on a plan of subdivision 46 *62* Owners corporation may have additional insurance 46 *63* Insurance not required where there is no common property 46 *64* Insurance not required where another owners corporation has insured 46 65 Valuation of buildings 46 Part 4---Meetings and decisions of owners corporation 48 Division 1---First meeting of owners corporation 48 *66* When must the first meeting be held? 48 67 What documents must be provided at the first meeting? 48 67A What must be disclosed at the first meeting? 50 67B Contract entered into by applicant for registration of the plan of subdivision prior to first meeting 50 67C Minutes of first meetings 51 68 Obligations of initial owner 51 Division 2---Annual general meeting 53 *69* Annual general meeting 53 *70* Who may convene annual general meetings? 53 71 Agenda for annual general meeting 53 72 Notice of annual general meetings 54 Division 3---Special general meetings 55 *73* What is a special general meeting? 55 74 Who can convene a special general meeting? 55 75 Agenda for special general meeting 56 76 Notice of special general meetings 56 Division 4---Procedure at general meetings 57 77 Quorum for a general meeting 57 *78* Can a general meeting proceed even without a quorum? 57 79 Who chairs the general meeting? 58 80 Procedure at meeting 59 *81* Minutes of meetings 59 82 Owners corporation may require certain matters to be dealt with at general meetings 60 Division 5---Ballots 60 *83* Who can arrange a ballot? 60 84 How can a ballot be conducted? 61 85 Notice of ballot 61 86 Resolution by ballot 61 Division 6---Voting 62 87 One vote for each lot 62 **88** **Voting** on a resolution of the owners corporation by ballot 63 89 Voting on a resolution of the owners corporation at a meeting 63 89A Does the chairperson have a casting vote? 64 89B Can a lot owner vote if fees are unpaid? 64 89C Proxies 65 89D Restriction on number of lot owners on behalf of whom a proxy may vote on a resolution 67 89E Revocation of a proxy 67 89F Voting under power of attorney 67 89G Person must not require or demand that a lot owner give authorisation to vote under power of attorney or proxy 68 89H Term of contract of sale limiting voting rights void 69 Division 7---Decisions of owners corporation 69 *90* Resolutions by meeting or ballot 69 95 What is a unanimous resolution? 69 96 What is a special resolution? 70 97 Interim special resolutions 70 Division 8---Office-holders 72 98 Chairperson of owners corporation 72 99 Secretary 72 Part 5---Committees 73 *100* Election of committee 73 101 Functions and powers of committee 73 102 Delegation by committee 73 *103* Membership of committees 73 *104* Casual vacancies on a committee 74 *105* Chairperson of committee 75 106 Acting chairperson 75 107 Secretary of committee 75 108 How can a meeting of a committee be called? 76 109 Notice of meetings 76 110 Co-opted members 77 111 Ballots 77 *112* Proceedings of committee 78 113 Resolutions of committee to be resolutions of owners corporation 79 114 Minutes 79 115 Committee to report 80 116 Sub-committees 80 117 Duties of members of committees and sub‑committees 80 118 Immunity of committee members 81 Part 6---Managers 82 119 Appointment and removal of manager 82 119A Contract of appointment of manager 83 120 Functions of manager where there is a committee 84 121 Functions of the manager where there is no committee 85 122 Duties of manager 85 122A Manager must disclose beneficial relationship with supplier 87 122B Manager must disclose commission, payment or other benefit 90 123 Immunity of volunteer manager 90 124 Delegation 91 125 VCAT may appoint manager 91 126 Report 91 127 Manager to return records 92 Part 7---Duties and rights of lot owners and occupiers 93 *128* Compliance with laws 93 *129* Care of lots 93 *130* Care of common property 93 131 Overhanging eaves 93 *132* Right to decorate interior walls, floors and ceilings 93 133 Notice of planning and building applications and plans of subdivision 94 *134* Address of new owners 94 *135* Address of absent owners 94 *136* Advice to occupiers 95 137 Duties of occupiers of lots 95 Part 8---Rules of the owners corporation 96 138 Power to make rules 96 138A Power to make rules regarding proxies 96 138B Power to make rules regarding external alterations and other works affecting lot owners 96 139 Model rules 98 140 Rules to be of no effect if inconsistent with law 98 141 Who is bound by the rules? 98 141A Occupier to ensure guests comply with rules 99 142 Recording of rules 99 143 Rules to be given to lot owners 100 Part 8A---Retirement villages 101 143A Application 101 143B Fees 101 143C Maintenance fees 102 143D Obligation of initial owner of retirement village land 102 143E Appointment of the manager of an owners corporation 102 143F Rules of owners corporation of retirement villages 102 Part 9---Records 104 Division 1---Keeping of records 104 144 Keeping of records 104 145 How long must records be kept? 105 146 Availability of records 105 Division 2---Owners corporation register 105 147 Owners corporation register 105 148 What must be kept on the owners corporation register? 106 149 In what form must the register be kept? 107 150 Availability of register 107 Division 3---Owners corporation certificate 108 *151* Owners corporation certificate 108 Part 10---Dispute resolution 111 Division 1---Complaints and procedures 111 152 Complaints 111 153 Decision whether to take action in respect of alleged breach 111 154 Notice of decision not to take action 112 155 Notice to rectify breach 113 156 What if the person does not rectify the breach? 113 157 Final notice 114 158 How may notice be given? 115 159 Report to annual general meeting 115 Division 1A---Complaints and procedures--- conduct of short-stay occupants 116 159A Complaints---conduct of short-stay occupant 116 159B Decision whether to take action in respect of alleged breach by a short-stay occupant 118 159C Notice of decision not to take action---complaint about conduct of short-stay occupant 119 159D Notice to rectify breach---complaint about conduct of short-stay occupant 119 159E What if the person does not rectify the breach? 120 159F Report to annual general meeting 120 Division 2---Powers of Director 121 160 Making a complaint 121 161 Conciliation and mediation 121 Part 11---Applications to VCAT 123 Division 1---Owners corporation disputes 123 162 VCAT may hear and determine disputes 123 163 Who may apply to VCAT in relation to a dispute? 123 164 VCAT may dismiss application 124 165 What orders can VCAT make? 124 166 Penalty for breach of rules 127 167 What must VCAT consider? 127 168 Monetary orders 128 169 Notice to Business Licensing Authority 129 Division 1A---Short-stay accommodation disputes---conduct of short stay occupants 129 169A VCAT may hear and determine short-stay accommodation disputes 129 169B Who may apply to VCAT in relation to a short-stay accommodation dispute? 129 169C What orders can VCAT make? 130 169D Prohibition order 130 169E Loss of amenity compensation order 132 169F What must VCAT consider? 133 169G Civil penalty for breach by short-stay occupant 134 169H Joint and several liability of short-stay provider and short-stay occupant 134 Division 1B---Proceedings commenced, prosecuted, defended or discontinued by lot owner on behalf of owners corporation 136 169I Lot owner may apply to VCAT to commence, prosecute, defend or discontinue any proceeding on behalf of owners corporation 136 169J VCAT may make order authorising lot owner to commence, prosecute, defend or discontinue proceeding 137 Division 2---Exemption orders 137 170 Owners corporation may apply to VCAT for exemption 137 171 VCAT may make exemption order 138 Division 3---Restriction of access to records 138 172 Application to VCAT to restrict access to information 138 Division 4---Appointment of administrator 139 173 Application for appointment of administrator 139 174 Appointment of administrator 139 175 Remuneration of administrator 139 176 Powers and responsibilities of administrator 139 177 Administrator to act in good faith 140 Part 12---Registration of managers 141 Division 1---Managers to be registered 141 178 Offence to act as manager without being registered 141 179 Eligibility for registration 141 180 Application for registration 142 181 Further information 143 182 Registration 143 182A Permission to be registered as manager despite criminal record 144 183 Annual registration fee and statement 145 184 Extension of time 145 185 Failure to lodge annual statement 146 185A Professional indemnity insurance 146 186 Automatic cancellation of registration 146 186A Permission to continue to be registered as manager despite criminal record 148 186B Conditions on permission 149 187 Death, disability etc. of registered manager 150 188 If details given in application or annual statement change 151 189 Offence to supply false or misleading information 152 190 Cancellation of registration if false information is given 152 191 Application for review 152 Division 2---Register of managers 153 192 Register of managers 153 193 Purposes of register of managers 153 194 What must the register of managers contain? 153 195 Inspection of register of managers 155 196 Removal of information from register of managers 155 197 Duty of Licensing Registrar 155 Division 3---General 155 198 Provision of information for the purposes of this Act 155 Part 13---General 157 199 Application of Australian Consumer Law and Fair Trading Act 2012 157 200 Approved forms 158 200A Manner in which documents may be given to or served on owners corporation 158 201 Money to be paid to Victorian Property Fund 159 202 Certain provisions of contracts void 160 203 Who may commence a proceeding for offences? 160 203A Infringement notices 160 204 Regulation-making powers 161 205 Transitional and savings provisions 163 Part 14---Transitional and savings provisions---Owners Corporations and Other Acts Amendment Act 2021 164 206 Definitions 164 207 Requirement to have maintenance plan 164 208 Term of contract of appointment void 164 209 Financial statements 165 210 Review of amendments made by 2021 Act 165 Schedules 167 Schedule 1---Power to make rules of owners corporation 167 Schedule 2---Transitional and savings provisions 170 Endnotes 174 1 General information 174 2 Table of Amendments 176 3 Explanatory details 179 **Version No.** **021** **Owners Corporations Act 2006** **No. 69 of 2006** Version incorporating amendments as at\ 1 January 2025 **The Parliament of Victoria enacts as follows:** Part 1---Introductory 1 Purposes The main purposes of this Act are--- \(a) to provide for the management, powers and functions of owners corporations; and \(b) to provide for appropriate mechanisms for the resolution of disputes relating to owners corporations; and \(c) to amend the **Subdivision Act 1988** in relation to the creation of owners corporations. 2 Commencement \(1) Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed. \(2) If a provision of this Act does not come into operation before 31 December 2007, it comes into operation on that day. 3 Definitions In this Act--- S. 3 def. of *agent provider* inserted by No. 34/2018 s. 4. ***agent provider*** means a person who, for a fee, arranges and manages short-stay accommodation on behalf of a lot owner, lessee or sub-lessee; ***amend*** in relation to a rule, includes add to or replace; ***approved form*** means form approved by the Director under section 200; ***bank account*** means an account with an authorised deposit-taking institution within the meaning of the Banking Act 1959 of the Commonwealth; ***building*** includes--- \(a) a structure and part of a building or a structure; and \(b) walls, out-buildings, service installations and other appurtenances of a building; and \(c) a boat or a pontoon which is permanently moored or fixed to land; S. 3 def. of *Building Code of Australia* inserted by No. 34/2018 s. 4. ***Building Code of Australia*** has the same meaning as it has in section 3(1) of the **Building Act 1993**; ***business day*** means a day that is not--- \(a) a Saturday or Sunday; or \(b) a public holiday appointed under the **Public Holidays Act 1993**; ***Business Licensing Authority*** means the Business Licensing Authority established under the **Business Licensing Authority Act 1998**; ***common property*** means land shown as common property on a plan of subdivision or a plan of strata or cluster subdivision; ***Council*** means the Council of the municipal district in which the land in the plan is located; ***CPA Australia*** means CPA Australia A.C.N. 008 392 452; S. 3 def. of *Director* amended by No. 21/2012 s. 239(Sch. 6 item 33.1). ***Director*** has the same meaning as it has in the **Australian Consumer Law and Fair Trading Act 2012**; ***externally administered body corporate*** has the same meaning as it has in the Corporations Act; ***function*** includes duty and authority; S. 3 def. of *guest* inserted by No. 4/2021 s. 3(1). ***guest*** does not include a contractor or a tradesperson engaged by the occupier of a lot; S. 3 def. of *hotel and resort management contract* inserted by No. 4/2021 s. 3(1). ***hotel and resort management contract*** means, in relation to a hotel, resort or serviced apartment complex on land affected by an owners corporation--- \(a) a letting agreement to provide an on‑site letting manager (being a manager who lives at the hotel, resort or serviced apartment complex who manages letting of accommodation at the hotel, resort or complex); or \(b) a common property agreement (including but not limited to a lease or a licence) to use common property for the purposes of--- \(i) operating an on-site letting business at the hotel, resort or serviced apartment complex; or **Example** Office, storage area or reception area. \(ii) providing caretaking services at the hotel, resort or serviced apartment complex; or \(c) a building maintenance or facilities management agreement to provide caretaking services at the hotel, resort or serviced apartment complex; or \(d) any prescribed agreement or prescribed class of agreement relating to the management of a hotel, resort or serviced apartment complex by a third party; S. 3 def. of ***inspector*** amended by No. 21/2012 s. 239(Sch. 6 item 33.2). ***inspector*** means an inspector appointed under the **Australian Consumer Law and Fair Trading Act 2012**; ***land*** includes buildings and airspace; ***land affected by an owners corporation*** means the lots the owners for the time being of which are members of the owners corporation together with the common property for which the owners corporation is responsible; ***Licensing Registrar*** means the Registrar of the Business Licensing Authority appointed under the **Business Licensing Authority Act 1998**; ***limited owners corporation*** has the same meaning as it has in the **Subdivision Act 1988**; ***lot*** has the same meaning as it has in the **Subdivision Act 1988**; ***lot affected by an owners corporation*** means a lot the owner for the time being of which is a member of the owners corporation; ***lot entitlement*** in relation to a lot affected by an owners corporation, means a number specified in the plan as the lot entitlement for that lot, expressing the extent of the lot owner\'s interest in any common property affected by the owners corporation; ***lot liability*** in relation to a lot affected by an owners corporation, means a number specified in the plan as the lot liability for that lot, expressing the proportion of the administrative and general expenses of the owners corporation which the lot owner is obliged to pay; ***lot owner***, in relation to an owners corporation, means an owner of a lot affected by the owners corporation; S. 3 def. of *non--occupiable lot* inserted by No. 4/2021 s. 3(1). ***non-occupiable lot*** means--- \(a) a car park; or \(b) a storage locker; or \(c) a lot that is not ordinarily used for residential or business purposes; S. 3 def. of *occupiable lot* inserted by No. 4/2021 s. 3(1). ***occupiable lot*** means a lot that is ordinarily used for residential or business purposes; S. 3 def. of *ordinary resolution* inserted by No. 2/2008 s. 12(1). ***ordinary resolution*** means a resolution other than a special resolution or a unanimous resolution; ***owner*** has the same meaning as it has in the **Subdivision Act 1988**; ***owners corporation*** means a body corporate which is incorporated by registration of a plan of subdivision or a plan of strata or cluster subdivision; ***owners corporation register*** means the register kept by an owners corporation in accordance with section 147; ***plan of subdivision*** has the same meaning as plan has in the **Subdivision Act 1988**; S. 3 def. of *police officer* inserted by No. 37/2014 s. 10(Sch. 121.1). ***police officer*** has the same meaning as in the **Victoria Police Act 2013**; S. 3 def. of *prescribed owners corporation* repealed by No. 4/2021 s. 3(2). \* \* \* \* \* ***Register*** means the Register under the **Transfer of Land Act 1958**; ***registered manager*** means a manager registered under Part 6; ***Registrar*** has the same meaning as it has in the **Transfer of Land Act 1958**; ***rules*** in relation to an owners corporation, means the rules of the owners corporation for the time being in force; S. 3 def. of *services only owners corporation* inserted by No. 4/2021 s. 3(1). ***services only owners corporation*** means an owners corporation for a subdivision that has no land or building that is designated as the common property and either--- \(a) the initial owner of the subdivision has arranged for a utility company to install common meters that are designated as the common property; or \(b) the subdivision has a common supply or common service that is unmetered; S. 3 def. of *short-stay accommo-dation* inserted by No. 34/2018 s. 4. ***short-stay accommodation*** means accommodation provided under a short-stay accommodation arrangement; S. 3 def. of ***short-stay accommo-dation arrangement*** inserted by No. 34/2018 s. 4, amended by No. 40/2024 s. 24. ***short-stay accommodation arrangement*** means a lease or licence for a continuous period of less than 28 days to occupy a lot or part of a lot affected by an owners corporation that is--- \(a) in a building wholly classified as\ a Class 2 building in Part A3.2 of Volume One of the Building Code\ of Australia; or \(b) in the case of a building where only part of that building is classified as\ a Class 2 building in Part A3.2 of Volume One of the Building Code of Australia---in that part of the building; S. 3 def. of *short-stay occupant* inserted by No. 34/2018 s. 4. ***short-stay occupant*** means a person who occupies a lot or part of a lot under a short-stay accommodation arrangement; S. 3 def. of *short-stay provider* inserted by No. 34/2018 s. 4. ***short-stay provider*** means--- \(a) the owner of a lot or part of a lot that is leased or licensed by the owner to a person under a short-stay accommodation arrangement; or \(b) a lessee or sub-lessee of the owner of\ a lot or part of a lot that is leased or licensed by the lessee or sub-lessee to\ a person under a short-stay accommodation arrangement; or \(c) an agent provider; S. 3 def. of *tier five owners corporation* inserted by No. 4/2021 s. 3(1). ***tier five owners corporation*** has the meaning given by section 7(6); S. 3 def. of *tier four owners corporation* inserted by No. 4/2021 s. 3(1). ***tier four owners corporation*** has the meaning given by section 7(5); S. 3 def. of *tier one owners corporation* inserted by No. 4/2021 s. 3(1). ***tier one owners corporation*** has the meaning given by section 7(2); S. 3 def. of *tier three owners corporation* inserted by No. 4/2021 s. 3(1). ***tier three owners corporation*** has the meaning given by section 7(4); S. 3 def. of *tier two owners corporation* inserted by No. 4/2021 s. 3(1). ***tier two owners corporation*** has the meaning given by section 7(3); S. 3 def. of\ *2--lot subdivision* inserted by No. 4/2021 s. 3(1). ***2-lot subdivision*** means an owners corporation comprising of 2 occupiable lots; ***unlimited owners corporation*** has the same meaning as it has in the **Subdivision Act 1988**. Part 2---Functions and powers of owners corporation Division 1---Functions and powers of owners corporation 4 Functions of owners corporation An owners corporation has the following functions--- \(a) to manage and administer the common property; \(b) to repair and maintain--- \(i) the common property; \(ii) the chattels, fixtures, fittings and services related to the common property or its enjoyment; \(iii) equipment and services for which an easement or right exists for the benefit of the land affected by the owners corporation or which are otherwise for the benefit of all or some of the land affected by the owners corporation; \(c) to take out, maintain and pay premiums on insurance required or permitted by any Act or by Part 3 and any other insurance the owners corporation considers appropriate; \(d) to keep an owners corporation register; \(e) to provide an owners corporation certificate in accordance with Division 3 of Part 9 when requested; \(f) to carry out any other functions conferred on the owners corporation by--- \(i) this Act or the regulations under this Act; or \(ii) the **Subdivision Act 1988** or the regulations under that Act; \(iii) any other law; or \(iv) the rules of the owners corporation. Note to s. 4 amended by No. 4/2021 s. 4. 5 Owners corporation must act in good faith An owners corporation in carrying out its functions and powers--- \(a) must act honestly and in good faith; and \(b) must exercise due care and diligence. *6* Powers of owners corporation An owners corporation has--- \(a) all the powers conferred on the owners corporation by--- \(i) this Act or the regulations; or S. 6(a)(ii) amended by No. 36/2011 s. 14. \(ii) the **Subdivision Act 1988** or the regulations under that Act; or \(iii) any other law; or \(iv) the rules of the owners corporation; and \(b) all other powers that are necessary to enable it to perform its functions. S. 7 substituted by No. 4/2021 s. 5. 7 The five tiers of owners corporations \(1) For the purposes of this Act, an owners corporation falls within one of 5 tiers as specified in this section. \(2) A tier one owners corporation is an owners corporation that consists of more than 100 occupiable lots and is not a services only owners corporation. \(3) A tier two owners corporation is an owners corporation that consists of 51 to 100 occupiable lots and is not a services only owners corporation. \(4) A tier three owners corporation is an owners corporation that consists of 10 to 50 occupiable lots and is not a services only owners corporation. \(5) A tier four owners corporation is an owners corporation that consists of 3 to 9 occupiable lots and is not a services only owners corporation. \(6) A tier five owners corporation is--- \(a) an owners corporation for a 2-lot subdivision; or \(b) a services only owners corporation. \(7) If an owners corporation consists of less than 10 occupiable lots and more than\ 50 non-occupiable lots, the tier into which the owners corporation falls is to be determined in accordance with subsections (2) and (3) as if a reference in those subsections to an occupiable lot were a reference to a non‑occupiable lot. \(8) If an owners corporation consists solely of non‑occupiable lots, the tier into which the owners corporation falls is to be determined in accordance with subsections (2) to (6) as if a reference in those subsections to an occupiable lot were a reference to a non‑occupiable lot. S. 7A inserted by No. 4/2021 s. 5. 7A Owners corporation for 2-lot subdivision (tier five owners corporations) \(1) An owners corporation for a 2-lot subdivision is exempt from compliance with--- \(a) sections 18, 31, 32, 59, 60, 61, 61A, 62, 65, 89A, 89B, 95, 96 and 97; and \(b) Divisions 2, 3 and 4 of Part 3; and \(c) Divisions 1, 2, 3, 4 and 5 of Part 4; and \(d) Divisions 1 and 2 of Part 9; and \(e) Division 1 of Part 10. \(2) In any provision of this Act or any other Act as it applies in relation to an owners corporation for a 2-lot subdivision, a reference to--- \(a) a unanimous resolution means a resolution passed by the total votes for those lots; and \(b) a special resolution means a unanimous resolution. S. 8 substituted by No. 4/2021 s. 5. 8 Services only owners corporation (tier five owners corporations) A services only owners corporation is exempt from compliance with--- \(a) the provisions specified in section 7A(1); and \(b) the following provisions--- \(i) sections 48, 49, 50, 51, 61A, 129, 133 and 135; \(ii) Division 8 of Part 4; \(iii) Division 3 of Part 9. 9 Power to employ or engage persons An owners corporation may appoint or employ persons to assist the owners corporation in carrying out its functions. S. 10 substituted by No. 4/2021 s. 6. 10 Execution of documents by owners corporation \(1) An owners corporation may, in its own name or on behalf of its members, execute any document or do anything necessary or convenient to enable it to carry out its functions, powers, rights and obligations. \(2) A document executed or any thing done under subsection (1) has effect as if the document was executed or the thing was done by the members of the owners corporation. \(3) An owners corporation may authorise a document to be executed by at least 2 lot owners of separate lots who--- \(a) sign the document; and \(b) print on the document--- \(i) each lot owner\'s full name and address; and \(ii) a statement that each lot owner is a lot owner or a director of a body corporate that is a lot owner. S. 11 substituted by No. 36/2011 s. 5. 11 Management of owners corporation and power to delegate \(1) An owners corporation is to be managed by or under the direction of the lot owners. \(2) Subject to subsection (3), an owners corporation may, by instrument or by resolution at a general meeting, delegate any power or function of the owners corporation to--- \(a) the committee of the owners corporation; \(b) the manager of the owners corporation; \(c) a lot owner; \(d) the chairperson of the owners corporation; \(e) the secretary of the owners corporation; \(f) an employee of the owners corporation. \(3) An owners corporation must not delegate any of the following powers or functions under subsection (2)--- \(a) a power or function that requires a unanimous resolution, a special resolution or a resolution at a general meeting; \(b) the power of delegation under that subsection. \(4) A resolution under subsection (2) is only effective if it is recorded in the minutes of the general meeting. \(5) If no delegation is in force under subsection (2)(a), the committee of the owners corporation is delegated all powers and functions that may be exercised by the owners corporation, except for--- \(a) those powers and functions set out in subsection (3); and \(b) those matters which must be determined at a general meeting under section 82. \(6) Subsection (1) does not give rise to any fiduciary duties or directors\' duties on the part of lot owners. Division 2---Powers relating to services *12* Provision of services to members and occupiers \(1) An owners corporation, by special resolution, may decide--- \(a) to provide a service to lot owners or occupiers of lots or the public; or \(b) to enter into agreements for the provision of services to lot owners or occupiers of lots. \(2) An owners corporation may require a lot owner or occupier to whom a service has been provided to pay for the cost of providing the service to the lot owner or occupier. 13 Owners corporation not to carry on business \(1) An owners corporation must not carry on a business. \(2) An owners corporation may participate in or be a member of another body that carries on a business. Division 3---Powers relating to property *14* Leasing or licensing of the common property By special resolution, an owners corporation may lease or license the whole or any part of the common property to a lot owner or other person. 15 Power to obtain lease or licence over land By special resolution, an owners corporation may obtain a lease or licence over any land (including Crown land) whether or not in the plan. 16 Power to acquire and dispose of personal property \(1) An owners corporation may acquire or hold personal property for the use of lot owners or other persons. \(2) An owners corporation may lease personal property to a lot owner or other person. \(3) An owners corporation may dispose of personal property. \(4) An owners corporation may obtain a licence for personal property for the use of lot owners or other persons. 17 Owners corporation must not mortgage or charge common property An owners corporation must not mortgage or otherwise charge common property. S. 17A inserted by No. 4/2021 s. 7. 17A Water on common property \(1) Any rainwater or other water that falls, occurs or flows on the common property (otherwise than in a waterway or a bore) is taken to be part of the common property. \(2) For the purposes of section 8(4)(c) of the **Water Act 1989**, an owners corporation is the occupier of land to the extent that the land is common property. \(3) In this section, ***waterway*** and ***bore*** have the same meanings as in section 3(1) of the **Water Act 1989**. Pt 2 Div. 4 (Heading) amended by No. 4/2021 s. 8. Division 4---Power to commence legal proceeding S. 18 substituted by No. 4/2021 s. 9. 18 Power to commence legal proceeding \(1) Subject to subsection (2), an owners corporation must not commence any legal proceeding unless it is authorised by special resolution to do so. \(2) If a matter is within the civil jurisdictional limit of the Magistrates\' Court and an owners corporation is authorised to do so by ordinary resolution, the owners corporation may commence any legal proceeding in--- \(a) the Magistrates\' Court; or \(b) VCAT or any other tribunal; or \(c) a court of another State or a Territory that corresponds to the Magistrates\' Court. Division 5---The common seal S. 18A inserted by No. 4/2021 s. 10. 18A Owners corporation not required to have or use common seal \(1) An owners corporation is not required to have or use a common seal. \(2) Section 19 applies only to an owners corporation that has a common seal. \(3) Sections 20, 21 and 22 apply only to an owners corporation that has a common seal and uses the common seal on a document. \(4) An owners corporation that has a common seal under sections 19, 20, 21 and 22 may, by ordinary resolution, determine that the common seal is no longer required and can be destroyed. 19 The common seal S. 19(1) amended by No. 1/2010 s. 21(1). \(1) The common seal of an owners corporation must include the name of the owners corporation and the plan of subdivision number of the plan that created the owners corporation. \(2) The common seal must be kept as directed by the owners corporation. S. 19(3) inserted by No. 1/2010 s. 21(2). \(3) Despite subsection (1), a common seal that existed prior to the commencement of section 21 of the **Consumer Affairs Legislation Amendment Act 2010** is not invalid solely because it does not include the subdivision plan number. 20 When can the common seal be used? S. 20(1) amended by No. 1/2010 s. 22. \(1) The common seal of an owners corporation must not be used on a document unless its use for that purpose has been authorised by this Act, regulations made under this Act or a resolution of the owners corporation. \(2) The resolution to authorise the use of the common seal must be recorded--- \(a) in the minutes of the general meeting; and \(b) if the owners corporation keeps a common seal register, in that register. 21 Who must witness the use of the common seal? \(1) The use of the common seal on a document must be witnessed by at least 2 persons who are owners of separate lots and are members of the owners corporation. \(2) Despite subsection (1), in the case of an owners corporation with only one lot owner, the use of the seal must be witnessed by the lot owner. S. 21(2A) inserted by No. 63/2010 s. 77(3), amended by No. 4/2021 s. 11. (2A) Despite subsection (1), the sealing of an owners corporation certificate may be witnessed by--- \(a) the registered manager; or \(b) the chairperson of the owners corporation elected under section 98. \(3) If a lot owner is a corporation, a director of the corporation may witness the document on behalf of the corporation. \(4) Each lot owner or director who witnesses the use of the common seal must record next to the seal that he or she has witnessed the use of the seal by--- \(a) signing his or her name; and \(b) printing in full his or her name and address; and \(c) stating that he or she is a lot owner or a director of the corporation that is a lot owner. 22 Judicial notice of use of common seal All courts must take judicial notice of the common seal of the owners corporation on a document and, until the contrary is proved, must presume that the seal was properly used. Part 3---Financial management Division 1---Financial powers S. 23 (Heading) amended by No. 4/2021 s. 12(1). 23 Owners corporation may levy annual fees \(1) An owners corporation may set annual fees to cover--- \(a) general administration; and \(b) maintenance and repairs; and \(c) insurance; and \(d) other recurrent obligations of the owners corporation. \(2) If the owners corporation has an approved maintenance plan, the annual fees must include fees that are--- \(a) designated for the purpose of the maintenance plan; and \(b) sufficient to allow the maintenance plan to be implemented. S. 23(3) substituted by No. 4/2021 s. 12(2). \(3) Subject to subsection (3A), the annual fees set must be based on lot liability. S. 23(3A) inserted by No. 78/2013 s. 3, substituted by No. 4/2021 s. 12(2). (3A) The owners corporation may levy an additional annual fee on a lot owner if--- \(a) the owners corporation has incurred additional costs arising from the particular use of the lot by the lot owner; and \(b) an annual fee set on the basis of the lot liability of the lot owner would not adequately take account of those additional costs. S. 23(3B) inserted by No. 4/2021 s. 12(2). (3B) Any additional annual fees under subsection (3A) must be levied on the basis that the lot owner of the lot that benefits more from the use of the lot pays more. S. 23(4) amended by No. 4/2021 s. 12(3). \(4) The owners corporation may determine the times for payment of annual fees. S. 23A inserted by No. 4/2021 s. 13. 23A Owners corporation may levy fees in relation to insurance \(1) In addition to the annual fees levied under section 23, an owners corporation may levy fees to cover the costs of the premium for reinstatement and replacement insurance taken out in accordance with Division 6 of Part 3. \(2) The fees levied under subsection (1) must be based on lot entitlement. \(3) An owners corporation may levy a lot owner a fee to cover the cost of any of the following--- \(a) an excess amount or an increased premium resulting from or attributable to an insurance claim, if the claim is caused by a culpable or wilful act or the gross negligence of--- \(i) a lot owner; or \(ii) a lot owner\'s lessee; or \(iii) a guest of a lot owner or a guest of a lot owner\'s lessee; \(b) damage to the common property that is caused by a lot owner or a lot owner\'s lessee where either--- \(i) the damage is not covered by insurance; or \(ii) the cost of the damage is less than the excess amount that would have been payable on an insurance claim in relation to the damage; \(c) an excess amount on an insurance claim if the claim solely relates to a lot owner\'s lot. \(4) The owners corporation may determine the times for payment of fees levied under subsection (1) or (3). S. 24 (Heading) amended by No. 4/2021 s. 14(1). 24 Extraordinary fees and charges \(1) An owners corporation may levy special fees and charges designed to cover extraordinary items of expenditure. S. 24(2) substituted by No. 78/2013 s. 4, amended by No. 4/2021 s. 14(2). \(2) Subject to subsection (2A), the fees and charges must be based on lot liability. S. 24(2A) inserted by No. 78/2013 s. 4, amended by No. 4/2021 s. 14(3). (2A) Fees and charges for extraordinary items of expenditure relating to repairs, maintenance or other works that are carried out wholly or substantially for the benefit of some or one, but not all, of the lots affected by the owners corporation must be levied on the basis that the lot owner of the lot that benefits more pays more. S. 24(2B) inserted by No. 4/2021 s. 14(4). (2B) The owners corporation may levy special fees and charges on a lot owner relating to repairs, maintenance and other works arising from the particular use of a lot by the lot owner. \(3) The owners corporation may determine the times for payment of the special fees and charges. \(4) A special resolution is required when exercising a power under subsection (1) if the amount involved is more than twice the total amount of the current annual fees set under section 23. S. 24(5) amended by No. 4/2021 s. 14(5). \(5) Subsection (4) does not apply if the fees and charges are levied to pay for or recoup the cost of repairs or maintenance carried out to any part of the property for which the owners corporation is responsible where immediate expenditure is or was necessary to ensure safety or to prevent significant loss or damage to persons or property. 25 Power to borrow money \(1) An owners corporation may borrow money--- S. 25(1)(a) amended by No. 2/2008 s. 12(2). \(a) by ordinary resolution, if the amount borrowed does not exceed the amount of the current annual fees of the owners corporation set under section 23; or \(b) by special resolution in any other case. \(2) An owners corporation may repay money borrowed. 26 Power to invest An owners corporation may invest money. 27 Bank account \(1) An owners corporation may establish and operate bank accounts. \(2) Each bank account must be established in the name of the owners corporation. \(3) All fees levied by an owners corporation under this Part must be paid into a bank account of the owners corporation or of the manager of the owners corporation. 28 Liability of lot owners \(1) The owners for the time being and any purchaser in possession of, and any person entitled to receive the rents and profits from, a lot are liable to pay any outstanding fees, charge, contribution or amount owing to the owners corporation in respect of that lot. S. 28(2) amended by No. 4/2021 s. 15(1). \(2) Subject** **to sections 24, 49 and 53, a lot owner is not liable to pay or contribute to the funds of the owners corporation a proportion of any amount required to discharge a liability of the owners corporation exceeding the lot owner\'s lot liability. S. 28(3) repealed by No. 4/2021 s. 15(2). \* \* \* \* \* 29 Penalty interest on arrears S. 29(1) amended by No. 1/2010 s. 23(1). \(1) If authorised by a resolution at a general meeting, an owners corporation may charge interest on any amount payable by a lot owner to the owners corporation that is still outstanding after the due date for payment. \(2) The rate of interest charged must not exceed the maximum rate of interest payable under the **Penalty Interest Rates Act 1983**. \(3) The owners corporation may waive the payment of interest in a particular case. S. 29(4) inserted by No. 1/2010 s. 23(2). \(4) The owners corporation must report to the annual general meeting on any decision under subsection (3) to waive or not to waive the payment of interest in a particular case and the reasons for that decision. 30 Recovery of money owed \(1) Subject to subsection (2), an owners corporation may recover any money owed to the owners corporation in any court of competent jurisdiction as a debt due to the owners corporation. \(2) Sections 31 and 32 and Division 1 of Part 11 apply to the recovery of money owed to the owners corporation by a lot owner. 31 Fee notice \(1) The owners corporation must give notice to a lot owner in the approved form of any fees and charges due and payable by the lot owner to the owners corporation (the ***fee notice***). \(2) The fee notice must--- \(a) state that the lot owner has an obligation to pay the fees and charges within 28 days after the date of the notice; and \(b) (if applicable) state that interest at the rate specified in the notice will be payable in respect of any overdue fees and charges; and \(c) include details of the dispute resolution process that applies under the rules in respect of disputed fees and charges. 32 Final notice S. 32(1) amended by No. 4/2021 s. 16. \(1) If the money owing is not paid within 28 days after the date of the fee notice, the owners corporation may give a final notice in the approved form to the lot owner. \(2) The final notice must--- \(a) state that the lot owner has an obligation to pay the overdue fees and charges and interest immediately; and \(b) (if applicable) state--- \(i) the interest that is payable in respect of the overdue fees and charges at the date of the final notice; and \(ii) the amount of interest that will accrue daily until the payment of the overdue fees and charges; and \(c) state that the owners corporation intends to take action under Part 11 to recover the amount due if the overdue fees and charges and interest owing are not paid within 28 days after the date the final notice is given. Division 2---Accounts and audit 33 Financial records \(1) An owners corporation must keep proper accounts that--- \(a) cover all income and expenditure of the owners corporation and assets and liabilities of the owners corporation; and \(b) provide for the making of true and fair view reports of the financial situation of the owners corporation. \(2) An owners corporation that has an approved maintenance plan must keep separate accounts for its maintenance fund. S. 34 substituted by No. 4/2021 s. 17. 34 Financial statements \(1) An owners corporation that is a tier one owners corporation, a tier two owners corporation or a tier three owners corporation must prepare annual financial statements for presentation at the general meeting of the owners corporation in accordance with the Australian Accounting Standards. \(2) A tier four owners corporation must prepare annual financial statements for any financial year in which it levies annual fees. \(3) In this section, ***Australian Accounting Standards*** has the same meaning as in the **Associations Incorporation Reform Act 2012**. S. 35 amended by Nos 2/2008 s. 13, 36/2011 s. 6, substituted by No. 4/2021 s. 18. 35 Audit of financial statements of owners corporations \(1) A tier one owners corporation must, after the end of each financial year, cause its financial statements to be audited by--- \(a) a registered company auditor; or \(b) a firm of registered company auditors; or \(c) a person who is--- \(i) a member of CPA Australia, the Institute of Public Accountants or Chartered Accountants Australia and New Zealand; and \(ii) authorised to conduct the audit by CPA Australia, the Institute of Public Accountants or Chartered Accountants Australia and New Zealand. \(2) A tier two owners corporation must, after the end of each financial year, cause its financial statements to be reviewed by an independent person who is a member of, and holds a current practising certificate from--- \(a) CPA Australia; or \(b) the Institute of Public Accountants; or \(c) Chartered Accountants Australia and New Zealand. \(3) Despite subsection (2), a tier two owners corporation, at its annual general meeting, may resolve that its financial statements are to be audited after the end of the financial year in accordance with subsection (1). \(4) A tier three owners corporation, at its annual general meeting, may resolve that its financial statements are to be audited in accordance with subsection (1) or reviewed by an independent person in accordance with subsection (2) after the end of the financial year. \(5) A tier four owners corporation, or a tier five owners corporation, at its annual general meeting, may resolve that its financial statements are to be audited in accordance with subsection (1) or reviewed by an independent person in accordance with subsection (2) after the end of the financial year. \(6) A person who audits the financial statements of an owners corporation must provide the owners corporation with a written report of the audit. \(7) A person who conducts a review of the financial statements of an owners corporation must provide the owners corporation with a written report of the review. \(8) A person must not be engaged to audit or review the financial statements of an owners corporation under this section if the person has a direct or indirect personal or financial interest in the owners corporation. S. 35A inserted by No. 4/2021 s. 18. 35A Exemption from requirement to audit financial statements \(1) A tier one owners corporation may apply in writing to the Director for an exemption from the requirement to audit its financial statements under section 35(1). \(2) The Director may grant an exemption under subsection (1) subject to any conditions the Director thinks fit. \(3) The Director, at any time, by notice in writing, may vary or revoke an exemption granted under subsection (2). Division 3---Maintenance plan S. 36 substituted by No. 4/2021 s. 19. 36 Maintenance plan \(1) A tier one owners corporation or a tier two owners corporation must prepare and approve a maintenance plan for the property for which it is responsible. \(2) A tier three owners corporation, a tier four owners corporation or a tier five owners corporation may prepare and approve a maintenance plan for the property for which it is responsible. 37 What must a maintenance plan contain? \(1) The maintenance plan must set out--- \(a) the major capital items anticipated to require repair and replacement within the next 10 years; and \(b) the present condition or state of repair of those items; and \(c) when those items or components of those items will need to be repaired or replaced; and \(d) the estimated cost of the repair and replacement of those items or components; and \(e) the expected life of those items or components once repaired or replaced; and \(f) any other prescribed information. S. 37(1A) inserted by No. 4/2021 s. 20. (1A) An owners corporation may, by ordinary resolution, amend an approved maintenance plan. \(2) In this section--- ***major capital item*** includes--- \(a) a lift; or \(b) an air conditioning plant; or \(c) a heating plant; or \(d) an item of a prescribed class. 38 When does a maintenance plan have effect? \(1) A maintenance plan does not have effect unless it is approved by the owners corporation. \(2) In approving a maintenance plan, an owners corporation may set conditions for the payment of money out of the maintenance fund. 39 Report on approved maintenance plan The owners corporation must report to the annual general meeting in relation to the implementation of its approved maintenance plan. Division 4---Maintenance fund 40 Establishment of maintenance fund An owners corporation that has an approved maintenance plan must establish a maintenance fund in the name of the owners corporation. S. 41 repealed by No. 4/2021 s. 21. \* \* \* \* \* S. 42 amended by No. 4/2021 s. 22(2) (ILA s. 39B(1)). 42 Payments into maintenance fund \(1) If an owners corporation has established a maintenance fund, the following must be paid into that fund--- S. 42(1)(a) amended by No. 4/2021 s. 22(1). \(a) any part of the annual fees that is designated as being for the purpose of the approved maintenance plan; S. 42(1)(b) amended by No. 4/2021 s. 22(1). \(b) any amounts received under an insurance policy in respect of the damage or destruction of property covered by the approved maintenance plan; \(c) any interest earned on the investment of the money in the fund; \(d) any amounts of a prescribed kind; \(e) any amounts of a kind determined by the owners corporation. S. 42(2) inserted by No. 4/2021 s. 22(2). \(2) The owners corporation must, by ordinary resolution, determine the amount of the annual fees that under subsection (1)(a) must be paid into the fund. S. 42(3) inserted by No. 4/2021 s. 22(2). \(3) The amount determined under subsection (2) must be adequate to fund the approved maintenance plan. S. 43 amended by No. 2/2008 s. 12(2). 43 Payments from maintenance fund Subject to any conditions specified in the regulations and an ordinary resolution of the owners corporation, money may be paid out of the maintenance fund at any time in accordance with the approved maintenance plan. S. 44 amended by No. 4/2021 s. 23. 44 Extraordinary payments from maintenance fund Money may also be paid out of the maintenance fund other** **than in accordance with the approved maintenance plan if the owners corporation by special resolution approves the payment. 45 Extraordinary payments for urgent matters \(1) Subject to this section, money may also be paid out of the maintenance fund for an urgent matter. \(2) For the purposes of subsection (1), an urgent matter includes where payments are required--- \(a) to comply with an order of a court or VCAT; \(b) to repair or maintain any part of the property for which the owners corporation is responsible where there are reasonable grounds to believe that an immediate expenditure is necessary to ensure safety or prevent significant loss or damage to persons or property; S. 45(2)(c) amended by No. 4/2021 s. 24. \(c) to repair any part of the property for which the owners corporation is responsible where the need for the repairs could not have been reasonably foreseen in preparing the approved maintenance plan; \(d) to enable the owners corporation to obtain adequate insurance for the property that the owners corporation is required to insure. \(3) Expenditure under this section must not exceed--- \(a) the amount necessary for the purpose for which it is expended; or \(b) any limitation imposed by the owners corporation on expenditure under this section. \(4) Expenditure under this section must comply with any other restrictions or requirements imposed by the owners corporation. \(5) The owners corporation must report to the lot owners on any expenditure under this section as soon as possible after the expenditure is made. Division 5---Asset management 46 Owners corporation to repair and maintain common property An owners corporation must repair and maintain--- \(a) the common property; and \(b) the chattels, fixtures, fittings and services related to the common property or its enjoyment. 47 Owners corporation must repair and maintain services \(1) An owners corporation must repair and maintain a service in or relating to a lot that is for the benefit of more than one lot and the common property. \(2) An owners corporation may, at the request and expense of a lot owner, repair and maintain a service in or relating to a lot if it is impracticable for the lot owner to repair or maintain that service. \(3) In this section--- ***service*** includes a service for which an easement or right is implied over the land affected by the owners corporation or for the benefit of each lot and any common property by section 12(2) of the **Subdivision Act 1988**. support, shelter or protection; passage or provision of water, sewerage, drainage, gas, electricity, garbage, air or any other service of whatever nature (including telephone, radio, television and data transmission); rights of way; full, free and uninterrupted access to and use of light for windows, doors or other openings; maintenance of overhanging eaves. S. 47A inserted by No. 4/2021 s. 25. 47A Lot owners must not repair, alter or maintain common property or services \(1) This section is subject to section 56 of the **Equal Opportunity Act 2010**. \(2) A lot owner must not repair, alter or maintain--- \(a) the common property of the owners corporation; or \(b) a service in or relating to a lot that is for the benefit of more than one lot or the common property. \(3) Subsection (2) does not apply if a lot owner has been expressly authorised by the owners corporation to carry out the repairs and maintenance in accordance with section 46 or 47 as an agent of the owners corporation. 48 Lots not properly maintained \(1) If a lot owner has refused or failed to carry out repairs, maintenance or other works to the lot owner\'s lot that are required because--- \(a) the outward appearance or outward state of repair of the lot is adversely affected; or \(b) the use and enjoyment of the lots or common property by other lot owners is adversely affected--- the owners corporation may serve a notice on the lot owner requiring the lot owner to carry out the necessary repairs, maintenance or other works. \(2) If a lot owner has been served with a notice under subsection (1), the lot owner must carry out the repairs, maintenance or other works required by the notice within 28 days of the service of the notice. \(3) If a lot owner has been served with a notice under subsection (1) and has not complied with the notice within the required time, the owners corporation may carry out the necessary repairs, maintenance or other works to the lot. S. 48(4) inserted by No. 78/2013 s. 5. \(4) An owners corporation may recover as a debt from a lot owner the cost of repairs, maintenance or other works carried out under subsection (3). S. 49 substituted by No. 78/2013 s. 6. 49 Cost of repairs, maintenance or other works S. 49(1) amended by No. 4/2021 s. 26. \(1) An owners corporation may recover as a debt the cost of repairs, maintenance or other works carried out wholly or substantially for the benefit of one or some, but not all, of the lots affected by the owners corporation from the lot owners. \(2) The amount payable by the lot owners is to be calculated on the basis that the lot owner of the lot that benefits more pays more. \(3) The works referred to in this section may be to the common property or a lot. S. 50 amended by No. 4/2021 s. 27 (ILA s. 39B(1)). *50* When can an owners corporation authorise a person to enter a lot? \(1) An owners corporation may authorise a person to enter a lot or a building on a lot on its behalf to carry out repairs, maintenance or other works in accordance with section 47(1), 47(2) or 48(3). S. 50(2) inserted by No. 4/2021 s. 27. \(2) An owners corporation may authorise a person to enter a lot or a building on a lot where necessary to carry out repairs, maintenance or other works on its behalf on the common property. *51* What notice of entry must be given? \(1) The owners corporation must give at least 7 days\' notice in writing to the occupier of a lot of its intention to enter the lot unless--- \(a) the occupier agrees to a lesser time; or \(b) there is an emergency. S. 51(2) substituted by No. 45/2018 s. 376. \(2) Despite subsection (1), if the lot is occupied under a residential rental agreement within the meaning of the **Residential Tenancies Act 1997**, the owners corporation must give the same notice to the occupier as that required to be given by a residential rental provider under section 85 of that Act. S. 51(2A) inserted by No. 4/2021 s. 28. (2A) On receiving notice given in accordance with this section, the occupier of the lot must grant entry to the lot or a building on the lot to a person authorised by the owners corporation under section 50. \(3) In this section--- ***emergency*** includes--- \(a) an interruption to gas, water, electricity, telephone, drainage, sewerage or a similar service; and \(b) a leak or a similar problem requiring prompt attention; and \(c) cracking or a similar structural problem likely to affect the immediate safety of a building or any person. 52 Significant alteration to common property requires special resolution An owners corporation must not make a significant alteration to the use or appearance of the common property unless--- \(a) the alteration is--- S. 52(a)(i) amended by No. 2/2008 s. 12(2). \(i) first approved by a special resolution of the owners corporation; or \(ii) permitted by the maintenance plan; or \(iii) agreed to under section 53; or \(b) there are reasonable grounds to believe that an immediate alteration is necessary to ensure safety or to prevent significant loss or damage. 53 Upgrading of common property \(1) An owners corporation may by special resolution approve the carrying out of upgrading works for the common property and the levying of fees on lot owners for that purpose. S. 53(1A) inserted by No. 78/2013 s. 7. (1A) Subject to subsection (1B), the fees must be based on lot liability. S. 53(1B) inserted by No. 78/2013 s. 7. (1B) Fees for upgrading works carried out wholly or substantially for the benefit of some or one, but not all, of the lots affected by the owners corporation must be levied on the basis that the lot owner of the lot that benefits more pays more. \(2) In this section ***upgrading works*** means building works for the upgrading, renovation or improvement of the common property where--- \(a) the total cost of the works is estimated to be more than twice the total amount of the current annual fees; or \(b) the works require a planning permit or a building permit before they can be carried out--- but does not include works that are provided for in an approved maintenance plan or works referred to in section 4(b). Pt 3 Div. 5A (Heading and ss 53A--53E) inserted by No. 4/2021 s. 29. Division 5A---Disposal of goods abandoned on common property S. 53A inserted by No. 4/2021 s. 29. 53A Owners corporation may dispose of goods abandoned on common property \(1) An owners corporation may dispose of the goods abandoned on the common property in accordance with this Division. \(2) Sections 60 to 65 and 73 to 76 of the **Australian Consumer Law and Fair Trading Act 2012** apply to the disposal of abandoned goods by an owners corporation as if--- \(a) a reference to uncollected goods were a reference to the abandoned goods; and \(b) a reference to the receiver were a reference to the owners corporation; and \(c) a reference to the provider were a reference to the person who abandoned the goods. S. 53B inserted by No. 4/2021 s. 29. 53B Notice of intention to dispose of goods abandoned on common property \(1) A notice of the owners corporation\'s intention to dispose of abandoned goods must be in writing and include--- \(a) the plan number and address of the owners corporation; and \(b) a description of the goods; and \(c) an address at which the goods may be collected; and \(d) a statement that on or after a specified date the goods will be disposed of by the owners corporation unless the goods are collected; and \(e) a statement that the owners corporation will retain from the proceeds of sale of the goods an amount not exceeding the cost to dispose of the goods. \(2) A notice of intention may be given to the person who abandoned the goods personally or left at, or sent by post to, the person\'s last known address. \(3) A notice to a person with a publicly registered interest in the abandoned goods is taken to have been given if it has been sent by post to the person\'s address in the register in which the interest is registered. \(4) In this section, ***publicly registered interest*** has the same meaning as in the **Australian Consumer Law and Fair Trading Act 2012**. S. 53C inserted by No. 4/2021 s. 29. 53C Removal of goods to safe place Before disposing of the goods, an owners corporation may move the goods to a safe place, if--- \(a) the goods block reasonable access to a lot or the common property; and \(b) the owners corporation has made a reasonable attempt to locate or communicate with the person who abandoned the goods in order to give the person a notice of intention to dispose of abandoned goods. S. 53D inserted by No. 4/2021 s. 29. 53D Disposal of goods An owners corporation must not dispose of the goods if--- \(a) a dispute exists between the person who abandoned the goods and the owners corporation in relation to the goods; and \(b) an application has been made to VCAT by the owners corporation in relation to the dispute. S. 53E inserted by No. 4/2021 s. 29. 53E Owners corporation not liable in relation to disposed goods An owners corporation that disposes of goods under this Division is not liable in relation to the goods by reason of the disposal. Division 6---Insurance 54 What is an insurable building? In this Division--- S. 54 def. of *building* amended by No. 1/2010 s. 24(1)(2). ***building*** includes any building on the plan of subdivision and--- \(a) any improvements and fixtures forming part of the building; and (ab) any shared services; and \(b) anything prescribed as forming part of a building--- but does not include--- \(c) carpet and temporary floor, wall and ceiling coverings; or \(d) fixtures removable by a lessee at the end of a lease; or \(e) anything prescribed as not forming part of a building; S. 54 def. of *shared services* inserted by No. 1/2010 s. 24(3). ***shared services*** includes any pipes or cables used to provide services including water, electricity, gas and telecommunications to the building that are shared with a person other than the owners corporation or any of its members. 55 Members may take out insurance Nothing in this Act or the regulations limits the right of a lot owner to effect a policy of insurance in respect of destruction of or damage to the lot owner\'s lot or the lot owner\'s interest in the common property. 56 Owners corporation has insurable interest An owners corporation must be taken to have an insurable interest in the land affected by the owners corporation. 57 Amount payable under owners corporation insurance In calculating any amount payable under an insurance policy taken out by an owners corporation, any amount payable under an insurance policy taken out by a lot owner over that lot or the lot owner\'s interest in the common property must be disregarded. 58 Insurance if lot mortgaged \(1) If an owners corporation has taken out an insurance policy over the land affected by the owners corporation, a mortgagee of a lot affected by the owners corporation must not require the lot owner to take out an insurance policy over the lot and the lot owner\'s interest in the common property unless--- \(a) the mortgagee\'s interest is noted on the owners corporation\'s policy; and \(b) the sum insured in respect of the lot and interest in the common property under the owners corporation\'s policy is less than the sum owing under the mortgage and the extra insurance is for the amount of the difference. \(2) A requirement that contravenes subsection (1) is void. \(3) The following provisions apply where an owner\'s corporation has taken out an insurance policy and the lot owner has mortgaged the lot owner\'s lot and interest in the common property and the mortgagee\'s interest is noted on the policy--- \(a) if the lot owner\'s property is damaged or destroyed and is not to be reinstated, the insurer must pay to the mortgagee the amount owing under the mortgage (up to the sum insured in respect of the lot and interest in the common property) and, if there is a surplus, pay the balance to the lot owner; \(b) if the owner\'s property is damaged or destroyed and is to be reinstated, the insurer must pay for the reinstatement up to the sum insured in respect of the lot and interest in the common property. *59* Reinstatement and replacement insurance \(1) An owners corporation must take out reinstatement and replacement insurance for all buildings on the common property in accordance with this Division. \(2) The insurance required under subsection (1) is insurance for damage to property under which the owners corporation insures for--- \(a) the cost necessary to replace, repair or rebuild the property to a condition substantially the same, but not better or more extensive than its condition when new; and \(b) the payment of expenses necessarily and reasonably incurred in the removal of debris and the remuneration of architects and other persons whose services are necessary, being incidental to the replacement, repair or rebuilding of the damaged property. S. 59(2A) inserted by No. 1/2010 s. 25. (2A) The insurance required under subsection (1) includes reinstatement and replacement insurance for the owners corporation\'s portion of any shared services. \(3) The owners corporation must ensure that the insurance required under subsection (1) includes--- \(a) a provision that the interests of mortgagees are noted; and \(b) a provision that a mortgagee whose interest is noted shall be given the notices that are required under section 59 of the Insurance Contracts Act 1984 of the Commonwealth at the same time that those notices are given to the insured; and \(c) a provision that the insurer cannot avoid the whole contract for breach of a condition of the contract unless the breach is by the owners corporation or all lot owners, but the insurer has a right of indemnity against those lot owners who breach the contract. 60 Public liability insurance \(1) An owners corporation must take out public liability insurance for the common property in accordance with this section. \(2) The public liability insurance required under subsection (1) is insurance for any liability of the owners corporation to pay compensation in respect of--- \(a) any bodily injury to or death or illness of a person; and \(b) any damage to or loss of property--- which is sustained as a result of an occurrence or happening in connection with the common property. S. 60(3) amended by No. 4/2021 s. 30. \(3) The owners corporation must ensure that, in the insurance which the owners corporation has under subsection (2), the limit of liability is a minimum of \$20 000 000, or if another amount is prescribed, that other amount, in any one claim and in the aggregate during any one period of insurance. 61 Insurance for lots in multi-level developments \(1) If a building on a plan of subdivision is located above or below common property, a reserve or a lot, the owners corporation must take out the following insurance in respect of all lots in the plan--- \(a) reinstatement and replacement insurance for all buildings on each lot in accordance with section 59; and \(b) public liability insurance in accordance with section 60--- as if any reference in those sections to common property were a reference to those lots. S. 61(2) substituted by No. 2/2008 s. 14. \(2) Subsection (1) does not apply to--- \(a) a single-storey building; or \(b) a plan of subdivision that was registered under the **Cluster Titles Act 1974** or the **Strata Titles Act 1967** unless one or more lots in the plan is located above another lot in the plan. S. 61(3) inserted by No. 4/2021 s. 31. \(3) If a plan of subdivision has separate buildings and either--- \(a) one or more of those buildings is a multi-level development and each multi-level development has its own owners corporation (including a tier one owners corporation); or \(b) one of those buildings is a multi-level development with its own owners corporation (including a tier one owners corporation)--- the owners corporation of the multi-level development must only take out reinstatement and replacement insurance and public liability insurance in respect of the multi-level development on the plan of subdivision for which that owners corporation is liable. S. 61A inserted by No. 4/2021 s. 32. 61A Insurance for multiple single dwellings on a plan of subdivision An owners corporation on a plan of subdivision for multiple single dwellings with common property may, by unanimous resolution, resolve that the lot owner of each single dwelling is responsible to insure their lot. S. 62 amended by No. 2/2008 s. 12(3). *62* Owners corporation may have additional insurance An owners corporation may, by ordinary resolution, resolve to insure any additional insurable interest--- \(a) in the land affected by the owners corporation; and \(b) relating to the performance of its functions. *63* Insurance not required where there is no common property By unanimous resolution, an owners corporation may resolve that, if there is no common property, each lot owner must arrange for the lot owner\'s own insurance. *64* Insurance not required where another owners corporation has insured This Division does not apply to an owners corporation if the land affected by the owners corporation is affected by another owners corporation which has the insurance required by this Division. 65 Valuation of buildings S. 65(1) substituted by No. 4/2021 s. 33. \(1) An owners corporation must obtain a valuation of all buildings that it is liable to insure. S. 65(1A) inserted by No. 4/2021 s. 33. (1A) An owners corporation of a multi-level development referred to in section 61(3) must only obtain a valuation of the multi‑level development on the plan of subdivision for which it is liable to insure. \(2) The valuation must be obtained every 5 years or earlier as determined by the owners corporation. \(3) The owners corporation must present the valuer\'s report at the next general meeting after it is received. Part 4---Meetings and decisions of owners corporation Division 1---First meeting of owners corporation *66* When must the first meeting be held? The applicant for registration of a plan of subdivision which provides for the creation of an owners corporation must convene the first meeting of the owners corporation within 6 months of the registration of the plan. S. 67 amended by No. 4/2021 s. 34(3) (ILA s. 39B(1)). 67 What documents must be provided at the first meeting? \(1) At the first meeting of the owners corporation the applicant for registration of the plan of subdivision must provide all of the following for the purposes of the owners corporation--- \(a) the owners corporation register; \(b) any accounts or records made on behalf of the owners corporation; \(c) books to enable the owners corporation to keep the necessary minutes, accounts and other records; S. 67(1)(d) substituted by No. 4/2021 s. 34(1). \(d) a maintenance plan; S. 67(1)(da) inserted by No. 11/2023 s. 55. (da) a building manual approved by a relevant building surveyor under section 41B(1) of the **Building Act 1993**; \(e) a copy of the plan of subdivision and all related building plans, planning documents and other similar documents; \(f) a copy of this Act and the regulations and the **Subdivision Act 1988** and the regulations under that Act; \(g) any contracts, leases and licences binding on or benefiting the owners corporation; \(h) any insurance policies in force in relation to the property, including any insurance policy taken out under section 9AAA of the **Sale of Land Act 1962**; \(i) the names of the companies, tradespeople or suppliers who provided a warranty or other guarantee on any matter for which the owners corporation is responsible and copies of those warranties and guarantees; S. 67(1)(j) substituted by No. 4/2021 s. 34(2). \(j) the building maintenance manual; S. 67(1)(k) inserted by No. 4/2021 s. 34(2). \(k) an asset register; S. 67(1)(l) inserted by No. 4/2021 s. 34(2). \(l) copies of any warranties or, if copies are not able to be provided, details of any warranties; S. 67(1)(m) inserted by No. 4/2021 s. 34(2). \(m) copies of any specifications, reports, certificates, permits, notices or orders in relation to the plan of subdivision. S. 67(2) inserted by No. 4/2021 s. 34(3). \(2) For the purposes of section 67(1)(l), a warranty must be assigned to the owners corporation if--- \(a) the warranty holder is the sole beneficiary of the terms of the warranty; and \(b) the warranty is capable of being assigned to the owners corporation. S. 67A inserted by No. 4/2021 s. 35. 67A What must be disclosed at the first meeting? At the first meeting of the owners corporation the applicant for registration of the plan of subdivision must disclose--- \(a) any relationship with the manager of the owners corporation; and \(b) any immediate or future financial transactions that will, or will foreseeably, arise out of the relationship with the manager of the owners corporation and any specific benefits which flow to the applicant for registration as a result of that relationship. S. 67B inserted by No. 4/2021 s. 35. 67B Contract entered into by applicant for registration of the plan of subdivision prior to first meeting \(1) If the applicant for registration of the plan of subdivision appoints a third party manager prior to the first meeting of the owners corporation, the contract of appointment of the third party manager expires at that first meeting. \(2) If the applicant for registration of the plan of subdivision enters into any other contract (other than a contract of appointment) that relates to the owners corporation and benefits the applicant for registration, any term of that contract must not exceed 3 years in duration, unless the term is in a contract that is a hotel and resort management contract that complies with the prescribed requirements (if any). \(3) In this section--- ***third party manager*** means a person appointed as the manager who is neither an initial owner or a lot owner of the owners corporation. S. 67C inserted by No. 4/2021 s. 35. 67C Minutes of first meetings \(1) The owners corporation must arrange for minutes to be kept of the first meeting of the owners corporation. \(2) The minimum information to be recorded in the minutes for the first meeting is the information referred to in section 81(2). \(3) Any disclosure made under section 67A must be recorded in the minutes of the first meeting. 68 Obligations of initial owner \(1) Subject to subsection (3), the initial owner of land affected by an owners corporation must act honestly and in good faith and with due care and diligence in the interests of the owners corporation in exercising any rights under this Act. \(2) Subject to subsections (3) and (4), the initial owner of land affected by an owners corporation must take all reasonable steps to enforce any domestic building contract (within the meaning of the **Domestic Building Contracts Act 1995**) entered into by the initial owner in respect of land in the plan of subdivision providing for the creation of the owners corporation. S. 68(3) amended by No. 4/2021 s. 36(1). \(3) Subsections (1) and (2) apply to an initial owner only while the initial owner is the owner of a lot to which is, or the lots to which are, attached the majority of the lot entitlements of the lots affected by the owners corporation and only until the end of the period of 10 years following the registration of the plan of subdivision. \(4) Subsection (2) applies only to the enforcement of a breach of contract--- \(a) to the extent that it relates to the common property affected by the owners corporation; and \(b) of which the initial owner is aware or ought reasonably to be aware. S. 68(4A) inserted by No. 4/2021 s. 36(2). (4A) The initial owner of land affected by an owners corporation or an associate of the initial owner must not--- \(a) be appointed as the manager of the owners corporation; or \(b) vote on any resolution of the owners corporation that relates to a defect in or on a building on the plan of subdivision. S. 68(4B) inserted by No. 4/2021 s. 36(2). (4B) The initial owner of land affected by an owners corporation must not--- \(a) propose an annual budget of the owners corporation that is unreasonable or unsustainable; or \(b) designate as a private lot what normally would be common property or services; or \(c) receive any payment from the manager of the owners corporation in relation to the manager\'s contract of appointment. S. 68(5) substituted by No. 4/2021 s. 36(3). \(5) In this section--- ***associate***, of the initial owner, means--- \(a) a director of the initial owner; or \(b) an employee or agent of the initial owner; or \(c) a spouse, domestic partner, parent, brother, sister or child of the initial owner or the initial owner\'s representative; or \(d) a child of the spouse or domestic partner of the initial owner or the initial owner\'s representative; ***initial owner*** means the person who was the applicant for the registration of the plan of subdivision. Division 2---Annual general meeting *69* Annual general meeting \(1) An owners corporation must have an annual general meeting if it receives or pays out money in any financial year. \(2) The time between the annual general meetings must not exceed 15 months. *70* Who may convene annual general meetings? \(1) The first meeting of an owners corporation convened under section 66 is the first annual general meeting. \(2) All other annual general meetings must be convened by--- \(a) the chairperson of the owners corporation; or \(b) the secretary of the owners corporation; or \(c) the manager of the owners corporation, acting on the authority of the committee; or \(d) in the absence of a committee, the manager of the owners corporation or a lot owner. 71 Agenda for annual general meeting \(1) The person convening an annual general meeting must prepare an Agenda setting out the matters to be dealt with at the annual general meeting. \(2) The matters to be dealt with at the annual general meeting must include--- \(a) the election of a committee, if the owners corporation is to have a committee; \(b) the appointment of a manager, if applicable; \(c) the provision of details of the insurance held by the owners corporation; \(d) the provision of details of fees fixed by the owners corporation during the year; \(e) the consideration of the financial statements of the owners corporation; \(f) the consideration of the proposed annual budget of the owners corporation; \(g) the making of any delegations; S. 71(2)(h) amended by No. 1/2010 s. 26(a). \(h) the consideration of any report under section 29(4), 39, 65(3), 115 or 126 or under section 159 in relation to disputes dealt with under Part 10; S. 71(2)(i) inserted by No. 1/2010 s. 26(b). \(i) the tabling and consideration of the minutes of the previous annual general meeting. 72 Notice of annual general meetings \(1) The person convening an annual general meeting must give notice in writing of the meeting to each lot owner at least 14 days before the meeting. \(2) The notice must include the following--- \(a) the date, time and place of the meeting; and \(b) the Agenda for the meeting; and \(c) the text of any special resolution or unanimous resolution to be moved at the meeting; and \(d) the financial statements of the owners corporation; and \(e) the proposed annual budget of the owners corporation; and S. 72(2)(f) amended by No. 1/2010 s. 27(1). \(f) a statement that the lot owner has the right to appoint a proxy; S. 72(2)(g) inserted by No. 1/2010 s. 27(2). \(g) any report to be considered at the meeting under section 71(2)(h); and S. 72(2)(h) inserted by No. 1/2010 s. 27(2). \(h) the minutes of the previous annual general meeting. Division 3---Special general meetings *73* What is a special general meeting? A special general meeting is a meeting of an owners corporation other than an annual general meeting. 74 Who can convene a special general meeting? A special general meeting may be convened by--- \(a) the chairperson of the owners corporation; or \(b) the secretary of the owners corporation; or \(c) a lot owner nominated by lot owners whose lot entitlements total at least 25% of all lot entitlements for the land affected by the owners corporation; or \(d) the manager of the owners corporation--- \(i) acting on the authority of the committee; or \(ii) if nominated by lot owners whose lot entitlements total at least 25% of all lot entitlements for the land affected by the owners corporation; or \(iii) in the absence of a committee. 75 Agenda for special general meeting \(1) The person convening a special general meeting must prepare an Agenda setting out the matters to be dealt with at the special general meeting. \(2) If the person convening the meeting has been nominated under section 74(c) or 74(d)(ii), the Agenda must be in accordance with an Agenda approved by the relevant lot owners when making their nominations. 76 Notice of special general meetings \(1) The person convening a special general meeting must give notice in writing of the meeting to each lot owner at least 14 days before the meeting. Note to s. 76(1) amended by No. 4/2021 s. 37. \(2) The notice must include the following--- \(a) the date, time and place of the meeting; and \(b) the Agenda for the meeting; and \(c) the text of any special resolution or unanimous resolution to be moved at the meeting; and \(d) a statement that the lot owner has the right to appoint a proxy. Division 4---Procedure at general meetings S. 77 amended by No. 4/2021 s. 38. 77 Quorum for a general meeting A quorum for a general meeting is at least 50% of the total number of lots or if 50% of the total number of lots is not available the quorum is at least 50% of the total lot entitlement. *78* Can a general meeting proceed even without a quorum? \(1) Subject to subsection (4), if there is not a quorum, the general meeting may proceed but all resolutions are interim resolutions. S. 78(1A) inserted by No. 4/2021 s. 39. (1A) Subject to subsections (1B) and (1C), the manager of an owners corporation may pass an interim resolution at a general meeting of the owners corporation if no lot owner is present (whether in person or by proxy) at the meeting. S. 78(1B) inserted by No. 4/2021 s. 39. (1B) The manager must not pass an interim resolution under subsection (1) that--- \(a) affects the contract of appointment of the manager; or \(b) involves an amount that is greater than 10% of the annual budget of the owners corporation; or \(c) if the annual budget has not been set for the relevant year, involves an amount that is greater than 10% of the annual budget of the owners corporation for the previous year. S. 78(1C) inserted by No. 4/2021 s. 39. (1C) An owners corporation, by ordinary resolution, may exclude or alter the power of the manager to make an interim resolution under subsection (1A). \(2) Notice of all interim resolutions and the minutes of the meeting at which the interim resolution is made must be forwarded to all lot owners within 14 days of the meeting. \(3) The minutes must be accompanied by a notice setting out the effect of subsection (4). \(4) Interim resolutions become resolutions of the owners corporation--- \(a) subject to paragraphs (b) and (c), 29 days from the date of the interim resolution; or \(b) if notice of a special general meeting is given within that 29 day period and the meeting is held within 28 days after the notice is given, only if confirmed at that meeting; or \(c) if notice of a special general meeting is given within that 29 day period and the meeting is not held within 28 days after the notice is given, at the end of that 28 day period. \(5) An interim resolution cannot be made under this section in respect of a matter requiring a unanimous resolution or a special resolution. S. 79 substituted by No. 2/2008 s. 15. 79 Who chairs the general meeting? \(1) The lot owners present at a general meeting may elect one of their number or the manager of the owners corporation to chair the meeting. \(2) If the chairperson of the owners corporation is present at a general meeting and an election under subsection (1) has not been made, the chairperson chairs the meeting. Note to s. 79(2) inserted by No. 1/2010 s. 28. 80 Procedure at meeting \(1) A lot owner may participate in a general meeting in person, by teleconferencing in accordance with the regulations, by proxy or in another manner provided for by the regulations. \(2) Subject to this Act and the regulations, the procedure at a general meeting is in the discretion of the owners corporation. *81* Minutes of meetings \(1) The owners corporation must arrange for minutes to be kept of general meetings. \(2) The minimum information to be recorded in the minutes for each general meeting is--- \(a) the date, time and place of the meeting; and \(b) the names of lot owners present; and \(c) the names of lot owners who have provided proxies; and \(d) the names of proxies present; and \(e) the voting on any resolutions; and \(f) the text of all resolutions of the owners corporation made at the general meeting. 82 Owners corporation may require certain matters to be dealt with at general meetings An owners corporation may, by ordinary resolution at a general meeting, determine that a matter or type of matter that may be determined by ordinary resolution may be determined only by ordinary resolution of the owners corporation at a general meeting. Note to s. 82 inserted by No. 1/2010 s. 29. Division 5---Ballots *83* Who can arrange a ballot? A ballot of an owners corporation may be arranged by--- \(a) the chairperson of the owners corporation; or \(b) the secretary of the owners corporation; or \(c) a lot owner nominated by lot owners whose lot entitlements total at least 25% of all lot entitlements for the land affected by the owners corporation; or \(d) the manager of the owners corporation--- \(i) acting on the authority of the committee; or \(ii) if nominated by lot owners whose lot entitlements total at least 25% of all lot entitlements for the land affected by the owners corporation; or \(iii) in the absence of a committee. 84 How can a ballot be conducted? A ballot may be conducted by post or by telephone, facsimile, the Internet or other electronic communication. 85 Notice of ballot \(1) The person arranging a ballot must give notice in writing of the ballot to each lot owner at least 14 days before the closing date for the ballot. Note to s. 85(1) amended by No. 4/2021 s. 40(1). \(2) The notice must include the following--- S. 85(2)(a) substituted by No. 4/2021 s. 40(2). \(a) the closing date for the ballot, being--- \(i) 14 days after the date of the notice; or \(ii) if the matter that is the subject of the ballot is urgent, less than 14 days after the date of the notice; and \(b) the ballot document containing the motion, including the text of any resolution to be voted on in the ballot; and \(c) a statement that the lot owner has the right to appoint a proxy. 86 Resolution by ballot S. 86(1) repealed by No. 4/2021 s. 41(1). \* \* \* \* \* \(2) A resolution of the owners corporation by ballot is made as follows--- \(a) matters requiring an ordinary resolution must be passed by a majority of the votes returned by the closing date but the number of votes returned must be not less than the number needed for a quorum in accordance with section 77; \(b) other matters must be passed by a special resolution or unanimous resolution, as appropriate. Note to s. 86(2) inserted by No. 4/2021 s. 41(2). \(3) If a ballot is arranged by a person nominated by lot owners, the lot owners must give the owners corporation all information necessary to enable it to keep records of the ballot. Pt 4 Div. 6 (Heading and ss 87--89) amended by Nos 2/2008 s. 16, 36/2011 s. 7, substituted as Pt 4 Div. 6 (Heading and ss 87--89H) by No. 4/2021 s. 42. Division 6---Voting S. 87 substituted by No. 4/2021 s. 42. 87 One vote for each lot For any resolution of an owners corporation, there is to be one vote for each lot, whether the resolution is voted on--- \(a) at a meeting; or \(b) by ballot. S. 88 substituted by No. 4/2021 s. 42. **88 Voting** on a resolution of the owners corporation by ballot A person may vote on a resolution of the owners corporation by ballot by completing the ballot form and forwarding it to the secretary of the owners corporation in accordance with the rules of the owners corporation. S. 89 substituted by No. 4/2021 s. 42. 89 Voting on a resolution of the owners corporation at a meeting \(1) Subject to subsection (3), a person may vote on a resolution of the owners corporation at a meeting by a show of hands or in another prescribed manner, unless the meeting resolves otherwise. \(2) Any matter (other than a matter requiring a special resolution or a unanimous resolution) must be determined at a meeting by a simple majority of votes cast at the meeting. \(3) At a meeting, a lot owner may (either in person or by proxy) before or after the vote is taken for an ordinary resolution, require that a poll be taken based on one vote for each unit of lot entitlement. \(4) Voting in a poll under subsection (3) must be by written vote. \(5) If a poll is required after the vote is taken at a meeting, the decision on a matter determined by a simple majority of votes cast at the meeting has no effect and the decision on that matter is the decision of the poll. \(6) A person who participates in a meeting by a teleconference or another prescribed manner is taken to be present in person at the meeting. S. 89A inserted by No. 4/2021 s. 42. 89A Does the chairperson have a casting vote? \(1) The chairperson of the owners corporation has a second vote or the casting vote on a resolution of the owners corporation if--- \(a) the voting on the resolution is equal; and \(b) the chairperson is a lot owner or authorised to vote on behalf of a lot owner as a proxy. \(2) If the voting on a resolution is equal and the chairperson does not exercise a casting vote, the resolution of the owners corporation is taken to not be passed. S. 89B inserted by No. 4/2021 s. 42. 89B Can a lot owner vote if fees are unpaid? \(1) A lot owner who is in arrears for any amount owed to an owners corporation is not entitled to vote (either in person, by ballot or by proxy) on a resolution of the owners corporation unless the amount in arrears is paid in full. \(2) Despite subsection (1), a lot owner who is in arrears for any amount owed to an owners corporation may vote on any matter where a special resolution or unanimous resolution is required. \(3) For the purposes of subsection (1), the amount in arrears is taken to be paid in full if it is paid to the owners corporation--- \(a) in cash; or \(b) otherwise, not less than 4 business days--- before the lot owner is required to vote on the resolution. S. 89C inserted by No. 4/2021 s. 42. 89C Proxies \(1) A lot owner may authorise a person in writing to be the lot owner\'s proxy in any of the following capacities--- \(a) to attend, speak or vote on behalf of the lot owner at a meeting of the owners corporation; \(b) to vote on behalf of the lot owner at a ballot; \(c) to represent the lot owner on a committee of the owners corporation. \(2) Despite subsection (1)(c), a lot owner who is a member of the committee of the owners corporation must not authorise a person to act as a proxy to represent the lot owner on the committee unless that person is also a member of the committee. \(3) An authorisation under subsection (1) must--- \(a) be in the prescribed form; and \(b) authorise an individual; and \(c) be delivered to the secretary of the owners corporation. \(4) An authorisation may set out how a proxy is to vote on particular matters and is effective from the beginning of the first meeting of the owners corporation held after the date that the authorisation is delivered to the secretary of the owners corporation. \(5) An authorisation must not be transferred by a person who is authorised as a proxy to another person. \(6) An authorisation lapses--- \(a) 12 months after it is given by a lot owner; or \(b) if an earlier date is specified in the authorisation, on that date. \(7) A person who is not a lot owner but who is the proxy of a lot owner may not vote on any matter that affects that person relating to--- \(a) the delegation of powers and functions of an owners corporation under section 11; or \(b) the appointment, payment or removal of the manager of an owners corporation under Part 6. \(8) A person authorised to act as a proxy must act honestly, in good faith and exercise due care and diligence. \(9) A contract of appointment of the manager of an owners corporation made in contravention of subsection (7)(b) is void unless it is affirmed by the owners corporation by special resolution. \(10) If a lot owner is in arrears for any amount of fees or other amount owing to the owners corporation, the lot owner must not--- \(a) vote as a proxy on behalf of another lot owner at a meeting of the owners corporation; or \(b) represent another lot owner as a proxy on a committee of the owners corporation. S. 89D inserted by No. 4/2021 s. 42. 89D Restriction on number of lot owners on behalf of whom a proxy may vote on a resolution \(1) A person must not vote as a proxy on a resolution at a meeting of the owners corporation--- \(a) on behalf of more than one lot owner---if there are 20 or less occupiable lots on the plan of subdivision; or \(b) on behalf of more than 5% of the lot owners---if there are more than 20 occupiable lots on the plan of subdivision. \(2) Subsection (1) does not apply if--- \(a) the lot owners for whom the person is authorised to vote on behalf of are members of that person\'s family; or \(b) the person votes as a proxy in the prescribed circumstances. S. 89E inserted by No. 4/2021 s. 42. 89E Revocation of a proxy \(1) A lot owner may, at any time--- \(a) revoke an authorisation of a proxy under this section by written notice given to the secretary of the owners corporation; and \(b) vote at a meeting or in a ballot instead of the proxy. \(2) A notice of revocation under subsection (1) takes effect on the date that the notice is given to the secretary. S. 89F inserted by No. 4/2021 s. 42. 89F Voting under power of attorney \(1) A person acting under a power of attorney may vote on behalf of a lot owner at a general meeting or in a ballot of the owners corporation if this is authorised under the power of attorney. \(2) Despite sub

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