47ARestrictions on powers of corporation

47A Restrictions on powers of corporation (1) Notwithstanding anything contained elsewhere in this Act, a corporation shall not, during the initial period: (a) amend, rescind or add to its articles, or make articles in the place of articles rescinded, in such a manner that a right is conferred or an obligation is imposed on one or more, but not all, proprietors or in respect of one or more, but not all, units; (b) alter common property forming part of a building, or erect a structure, on the common property; or (c) borrow moneys or give securities,

Unit Titles Act 1975 62 unless the doing of that thing is authorised by an order of the Tribunal. (2) Without affecting any other remedy available against an original proprietor, where a corporation contravenes subsection (1): (a) the original proprietor is liable for any loss suffered by the corporation or a proprietor as a result of the contravention; and (b) the corporation or a proprietor may recover from the original proprietor, as damages for breach of statutory duty, any loss suffered by it or him, unless: (c) the contravention occurred without the knowledge of the original proprietor; (d) the original proprietor was not in a position to influence the conduct of the corporation in relation to the contravention; or (e) the original proprietor, being in such a position, used all due diligence to prevent the contravention. (3) In this section initial period means the period commencing on the day on which the corporation is constituted and ending on the day on which there are proprietors of units the subject of the units plan (other than the original proprietor) the sum of whose unit entitlements is not less than one third of the aggregate unit entitlement.