68Layered schemes

68 Layered schemes (1) A scheme is a layered scheme if: (a) it is not a subsidiary scheme of another scheme; and (b) it is a higher scheme of 1 or more other schemes. The scheme land of the layered scheme therefore consists of the following: (a) the scheme land of all its subsidiary schemes; (b) the common property of the layered scheme; (c) any other unit of the layered scheme. (2) The following are the member schemes of the layered scheme: (a) the layered scheme;

Unit Title Schemes Act 2009 41 (b) each subsidiary scheme of the layered scheme. (3) Except as otherwise provided by this Act, a member scheme must operate independently of another member scheme. Notes for subsection (3) 1 A decision of the body corporate of a subsidiary scheme is not normally required to be endorsed by the body corporate of a higher scheme unless it is specifically required under this Act. 2 Provisions of this Act that might affect the general rule in this subsection include sections 11(3), 13(2), 29(6) and 52(1)(a). 3 The member schemes are not required to have the same management module and by-laws. See sections 94(6) and 95(4). 69 How layered schemes are formed A layered scheme may be formed only in 1 of the following ways: (a) the progressive development of a basic scheme into a layered scheme; (b) the amalgamation of 2 or more basic schemes to form a layered scheme under section 71; (c) the formation of a subsidiary scheme from the subdivision of a unit of a basic scheme otherwise than as part of the progressive development of the basic scheme; (d) the formation of a subsidiary scheme from additional lots acquired for a basic scheme; (e) as otherwise provided by the regulations. Example for section 69 Diagram 69.1 shows how a layered scheme is formed as a result of the progressive development of a basic scheme (Scheme A). Unit 2 of Scheme A is subdivided to form a subsidiary scheme (Scheme B). Scheme A then becomes a layered scheme.

Unit Title Schemes Act 2009 42 Diagram 69.1 – Layered scheme formed from a basic scheme