Part 3The strata corporation

Part 3—The strata corporation Division 1—Constitution of strata corporation 18—Name of strata corporation (1) The name of a strata corporation is "Strata Corporation No.                      Incorporated" (the number being the number of the deposited strata plan). (2) The abbreviation "Inc." may be used in place of the word "Incorporated". (3) The strata corporation must have a common seal bearing its name. (4) All the unit holders of the units are members of the strata corporation. 19—Articles of strata corporation (1) Subject to this section, the articles of a strata corporation will be as set out in Schedule 3. (2) A strata corporation may by special resolution— (a) adopt articles in substitution for those set out in Schedule 3; or (b) revoke or vary articles previously so adopted. (3) A resolution under subsection (2) has no effect until a copy of the resolution certified in the prescribed manner and accompanied (where appropriate) by the substituted articles, or the variation to the articles, is lodged with the Registrar-General. (3a) The articles of a strata corporation may impose a penalty, not exceeding the prescribed amount, for contravention of, or failure to comply with, any articles. (3b) The following provisions apply in relation to a penalty imposed on a person for contravention of, or failure to comply with, articles: (a) the penalty is (despite section 29 of the Acts Interpretation Act 1915) payable to the strata corporation in accordance with this subsection; (b) subject to the making of an application under paragraph (e), the penalty is payable by the person on the date specified for payment in a notice served by the corporation on the person; (c) the notice must— (i) be in writing in the form prescribed by regulation; and (ii) specify the amount of the penalty payable and a date for payment (being not less than 60 days after the notice is served); (d) the penalty payable under the notice is recoverable by the strata corporation as a debt and, in the case of a notice served on a unit holder, may be recovered by the strata corporation as if it were a contribution payable to the strata corporation under section 27 (and interest will be payable on the penalty amount in the same way as if it were such a contribution); (e) the person may, within 60 days after service of the notice, apply to the Magistrates Court for revocation of the notice and the Court must grant the application if either— (i) the Court is not satisfied that the person committed the contravention or failure alleged in the notice; or (ii) the Court is satisfied that the contravention or failure alleged in the notice is trifling; (f) the strata corporation is a party to an application under paragraph (e) and bears the onus of proving, on the balance of probabilities, that the person committed the contravention, or failure alleged in the notice; (g) if an application is made in accordance with paragraph (e), the penalty specified in the notice is not payable unless the application for revocation is withdrawn or otherwise discontinued by the applicant or is dismissed or refused by the Court (and, in such a case, the penalty will be payable on the date on which the application is so withdrawn, discontinued, dismissed or refused or on the date for payment specified in the notice, whichever occurs later). (3c) A person's contravention of, or failure to comply with, articles will, for the purposes of this section, be regarded as trifling if, and only if, the person establishes that the circumstances surrounding the commission of the contravention or failure were such that he or she ought to be excused from the imposition of a penalty on the ground that— (a) there were compelling humanitarian or safety reasons for the conduct that allegedly constituted the contravention or failure; or (b) the person could not, in all the circumstances, reasonably have averted committing the contravention or failure; or (c) the conduct allegedly constituting the contravention or failure was merely a technical, trivial or petty instance of a contravention of or failure to comply with the relevant articles. (3d) The regulations may make further provision in relation to enforcement of the articles of a strata corporation. (4) The articles of a strata corporation cannot— (a) prevent or restrict alienation of a unit by a unit holder; or (b) prevent or restrict a unit holder from leasing or granting rights of occupation in respect of a unit; or (c) prevent an occupier of a unit who has a disability from keeping a relevant animal at the unit, or restrict the use of a relevant animal by the occupier if the relevant animal is trained to assist the occupier in respect of the disability; or (d) prevent a visitor to a unit who has a disability from using a relevant animal trained to assist the visitor in respect of the disability. (5) In this section— prescribed amount, in relation to a penalty imposed under articles of a strata corporation, means— (a) if the strata scheme only includes units that are used, or are intended to be used, solely or predominantly for business or commercial purposes—$2 000; or (b) in any other case—$500. 19A—Certain articles may be struck out by Court (1) Any articles that— (a) reduce the value of a unit; or (b) unfairly discriminate against a unit holder, may be struck out by order of the Magistrates Court or the District Court on an application made under Part 3A. (2) An application referred to in subsection (1) can only be made by a person who was a unit holder when the articles came into force and must be made within 3 months after the person (or either or any of the unit holders where the unit is held by 2 or more persons) first knew, or could reasonably be expected to have known, that the articles had been made. (3) For the purposes of this section, a reference to a unit holder includes a person who has contracted to purchase the unit. 20—Binding character of the articles (1) The articles of a strata corporation are binding on— (a) the corporation; and (b) the unit holders; and (c) insofar as they affect the use of units or the common property—occupiers of units who are not unit holders. (2) A unit holder or mortgagee in possession of a unit must take reasonable steps to ensure that an occupier of the unit who is not a unit holder complies with the articles of the strata corporation. 21—Unit holders are guarantors of strata corporation's liabilities (1) If a strata corporation defaults in payment of a pecuniary liability, the liability is enforceable against the unit holders jointly and severally. (2) The unit holders have amongst themselves a right of contribution determined by reference to the respective unit entitlements of the various units. 22—Restriction of payment by strata corporation to its members (1) Except as authorised by or under this Act, or by order of the Court, a strata corporation must not make any payment to any of its members. (2) Subsection (1) does not prevent— (a) reasonable payments to a member for services provided to the strata corporation by that member; (b) the reimbursement of costs or expenses incurred by a member on behalf of the strata corporation. 23—Officers of strata corporation (1) A strata corporation must have the following officers: (a) a presiding officer (to preside at meetings of the corporation); and (b) a secretary; and (c) a treasurer. (1a) Unless all of the units comprised in the strata scheme consist of non-residential premises, the officers of a strata corporation must be unit holders. (2) Any two or more of the above offices may be held simultaneously by the same person. (3) Until the first appointments are made to the above offices, they will be held by the original proprietor (or, if the original proprietor is a body corporate, by its nominee or in the absence of a nominee, by its secretary). (4) Appointments to the above offices must be made by the strata corporation at a general meeting of the corporation. (5) A strata corporation must not allow any of the above offices to remain vacant for more than six months. (6) A strata corporation may appoint or engage a person to assist any person appointed under this section as an officer of the corporation. 24—Contractual formalities A strata corporation contracts as follows: (a) a contract may be entered into under the common seal of the corporation; or (b) a contract may be entered into by an officer or agent authorised by the corporation to enter into the contract on its behalf.