Unit Titles (Management) Act 2011

Part 2.2 Executive committee—meetings and procedures 125 2.8 Meetings of executive committee 125 2.9 Quorum of executive committee 125 2.10 Voting of executive committee 126 2.11 Chairperson—meetings 126

Schedule 3 General meetings 127

Part 3.1 General meetings 127 3.1 Conduct of general meetings 127 3.2 Annual general meetings 127 3.3 First annual general meeting 128 3.4 First annual general meeting—developer to deliver records 128 3.5 General meetings other than annual general meetings 129 3.6 Notice of general meetings 129 3.7 Requirements for notice of general meetings 130 3.8 Defective notice of meetings 131 3.9 Quorum at a general meeting—owners corporation with 3 or more members 132 3.10 Notice of reduced quorum decisions and adjournments 133 3.11 Reduced quorum decisions—effect 134 3.12 Quorum at a general meeting—owners corporation with 2 members 134 3.13 Chairperson at a general meeting 135 Part 3.2 Resolutions at general meetings 136 3.14 Decision-making at general meetings 136 3.15 Ordinary resolutions 136 3.16 Special resolutions 137 3.17 Unopposed resolutions 138 3.18 Unanimous resolutions 139 3.19 Evidence of resolutions of owners corporation 140 Part 3.3 Voting at general meetings 141 3.20 Who is entitled to vote? 141

Page contents 10 Unit Titles (Management) Act 2011 3.21 General meeting—decisions about staged development 141 3.21A General meeting—decisions about defective building work 142 3.22 One vote—1 unit 142 3.23 Voting by mortgagees 143 3.24 Mortgagee voting notice—amendment and revocation 143 3.25 Evidence of mortgagee’s entitlement to vote 144 3.26 Proxy votes 145 3.27 Proxy votes—limit on developer 145 3.28 Value of votes 146 3.29 Polls 146 3.30 Voting by chairperson 147 3.31 Absentee votes 147 3.31A Alternative voting mechanism 148 3.32 People under 18 or under other legal disabilities 148 3.33 Declaration by chairperson of result of voting 148 Dictionary 150 1 About the endnotes 159 2 Abbreviation key 159 3 Legislation history 160 4 Amendment history 163 5 Earlier republications 180 6 Expired transitional or validating provisions 182

An Act to provide for the management of units plans, and for other purposes

1 Name of Act This Act is the Unit Titles (Management) Act 2011.

3 Dictionary The dictionary at the end of this Act is part of this Act. Note 1 The dictionary at the end of this Act defines certain terms used in this Act, and includes references (signpost definitions) to other terms defined elsewhere. For example, the signpost definition ‘class A unit—see the Unit Titles Act 2001, section 10.’ means that the term ‘class A unit’ is defined in that Act, section 10 and the definition applies to this Act. Note 2 A definition in the dictionary (including a signpost definition) applies to the entire Act unless the definition, or another provision of the Act, provides otherwise or the contrary intention otherwise appears (see Legislation Act, s 155 and s 156 (1)).

4 Notes A note included in this Act is explanatory and is not part of this Act. Note See the Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.

5 Offences against Act—application of Criminal Code etc Other legislation applies in relation to offences against this Act. Note 1 Criminal Code The Criminal Code, ch 2 applies to all offences against this Act (see Code, pt 2.1). The chapter sets out the general principles of criminal responsibility (including burdens of proof and general defences), and defines terms used for offences to which the Code applies (eg conduct, intention, recklessness and strict liability). Note 2 Penalty units The Legislation Act, s 133 deals with the meaning of offence penalties that are expressed in penalty units.

Preliminary Part 1

6 Objects of Act The objects of this Act are to— (a) make it clear who is responsible for managing units plans; and (b) help people who manage, or help in the management of units plans, understand and exercise their functions; and (c) assist in the resolution of disputes in relation to the management of units plans; and (d) make the law about the management of units plans easier to use generally.

7 Owners corporation The owners corporation for a units plan is responsible for managing the units plan. Note An owners corporation may be helped by 1 or more of the following: (a) the executive committee of the owners corporation; (b) a manager engaged under s 50; (c) a service contractor engaged under s 60.

Division 2.2 Owners corporation—general

8 Owners corporation—establishment (1) On the registration of a units plan, an owners corporation for the units plan is established under the name ‘The Owners—Units Plan No X ’. (2) To remove any doubt, an owners corporation continued in existence under this Act is established under this section. Note 1 An owners corporation in existence under the Unit Titles Act 2001 immediately before the commencement of s 150 (expired) is continued in existence as an owners corporation under that section. Note 2 Establish includes constitute and continue in existence (see Legislation Act, dict, pt 1, def establish). X means the number given to the units plan by the registrar-general on its registration.

9 Owners corporation—legal status (1) An owners corporation is a corporation.

(2) An owners corporation— (a) has perpetual succession; and (b) may have a common seal; and (c) may sue and be sued in its corporate name.

9A Execution of documents by owners corporation An owners corporation must execute a document in 1 of the following ways: (a) if the owners corporation has a common seal—by attaching the seal to the document— (i) as authorised by a resolution of the owners corporation; and (ii) with 2 executive members witnessing the attaching and signing the document as witnesses; (b) without using a common seal— (i) by 2 executive members, as authorised by a resolution of the owners corporation, signing the document; or (ii) if a manager for the owners corporation is delegated this function—by the manager, as authorised by a resolution of the owners corporation, signing the document. Division 2.3 Owners corporation—membership and representatives

10 Members of owners corporation (1) The members of an owners corporation for a units plan are the owners of the units. (2) If a unit is owned by 2 or more part-owners, each part-owner is a member of the owners corporation.

11 Part-owners of units—authorisation of representatives (1) This section applies if a unit is owned by 2 or more part-owners. (2) The part-owners of the unit must, by written notice to the owners corporation, authorise an individual to represent them as their agent (the part-owners’ representative) for this Act. (3) The part-owners’ representative must be one of the owners. Note If a company is a part-owner of the unit, the company’s own representative may also be authorised as the part-owners’ representative (see s 14 (Company-owned units—functions of representatives)). (4) The notice of authorisation must— (a) be given to the owners corporation within 14 days after the lodgment for registration of the instrument under which the unit first becomes owned by the part-owners; and (b) include the full name and an address for correspondence of the representative; and (c) be signed by each part-owner of the unit. (5) The part-owners of the unit may change their representative by written notice to the owners corporation. (6) The notice of change of authorisation must— (b) be signed by each part-owner of the unit. (7) The part-owners’ representative may change the address for correspondence of the representative by written notice to the owners (8) The notice of change of address must be signed by the representative. (9) This section may be enforced in the same way as a rule of the owners corporation (see section 107 (Effect of rules)).

12 Part-owners of units—functions of representatives (1) This section applies if a unit is owned by 2 or more part-owners. (2) Anything that an owner of the unit may do, or is required to do, under this Act may be done by the part-owners’ representative acting as the agent for the part-owners. (3) Any document, including a notice, that this Act requires the owners corporation or someone else to give to the part-owners may be given to the representative alone on their behalf under section 124 (Service of documents on members, interested people and occupiers). Note The owners corporation must give notice of a general meeting to the part- owners’ representative on behalf of the part-owners to comply with sch 3, s 3.6 (1) (a) (which requires notices to be given to each member of the owners corporation). (4) If a document is given to the part-owners by being given to the representative on their behalf, the representative must tell the other part-owners that the document has been given to the representative and (if asked) give them a copy of the document. (5) Subsection (4) may be enforced in the same way as a rule of the owners corporation (see section 107 (Effect of rules)). Example—s (4) and s (5) In breach of s (4), a part-owners’ representative for a unit does not tell a part-owner of the unit about a notice of a determination of general fund contribution (under s 78 (1)) given to the representative on the unit owners’ behalf. The part-owner may rely on s (5) to enforce s (4) against the representative for the unit. The relevant enforcement action is the same as for a breach of the owners corporation rules—a civil action for breach of an agreement under seal (see s 107).

13 Company-owned units—authorisation of representatives (1) This section applies if a company is the owner of a unit. Note Owner includes a part-owner (see dict).

(2) The company must, by written notice to the owners corporation, authorise an individual to represent it as its agent (the company’s representative) for this Act. (3) The company’s representative must be an officer or employee of the company. (4) The notice of authorisation must— (a) be given to the owners corporation within 14 days after the lodgment for registration of the instrument under which the company becomes an owner of the unit; and (b) include the full name and an address for correspondence of the representative; and (c) be signed on behalf of the company. (5) The company may change its representative by written notice to the (6) The notice of change of authorisation must— (b) be signed on behalf of the company. (7) The company’s representative may change the address for correspondence of the representative by written notice to the owners (8) The notice of change of address must be signed by the representative. (9) This section may be enforced in the same way as a rule of the owners corporation (see section 107 (Effect of rules)).

14 Company-owned units—functions of representatives (1) This section applies if a company is the owner of a unit. (2) Anything that the company may do, or is required to do, under this Act may be done by the company’s representative acting as the agent for the company. (3) Any document, including a notice, that this Act requires the owners corporation or someone else to give to the company may be given to the representative on its behalf under section 124 (Service of documents on members, interested people and occupiers). Note The owners corporation must give notice of a general meeting to the company’s representative on behalf of the company to comply with sch 3, s 3.6 (1) (a) (which requires notices to be given to each member of the owners corporation).

15 Evidence of representative status Evidence of any of the following facts about a part-owners’ representative or a company’s representative may be given by a certificate executed by the executive committee: (a) the fact that the authorisation of a named representative was in force on a stated date; (b) the fact that a stated address for correspondence for a representative was the latest address for correspondence for the representative notified to the corporation on a stated date.

Part 3 Functions of owners corporations

16 Owners corporation—functions (1) An owners corporation for a units plan has the following functions: (a) the enforcement of its rules; (b) the control, management and administration of the common property; (c) any other function given to the corporation under this Act or another territory law. Note 1 The executive committee of an owners corporation exercises the functions of the corporation (see s 35 (1)). The executive committee must exercise its functions in accordance with any decision made by the owners corporation at a general meeting (see s 35 (3)). Note 2 A provision of a law that gives an entity (including a person) a function also gives the entity powers necessary and convenient to exercise the function (see Legislation Act, s 196 and dict, pt 1, def entity). (2) The owners corporation must comply with all applicable laws in force in the Territory.

17 Owners corporation—general meetings Schedule 3 applies to general meetings of an owners corporation for a units plan.

19 Common property (1) An owners corporation for a units plan holds the common property as agent for— (a) if all the units are owned by the same person—the owner; or (b) in any other case—the unit owners as tenants in common in shares proportional to their unit entitlement. Note The owners corporation may, by ordinary resolution, decide to hold sustainability infrastructure installed on common property as trustee for the unit owners (see s 23 (3)). (2) The owners corporation must give all members of the corporation opportunity for the reasonable use and enjoyment of the common

20 Dealings with common property (1) An owners corporation for a units plan may, if authorised by a special resolution, on conditions and for purposes stated in the resolution— (a) grant or vary an easement over any part of the common property; or (b) take or vary an easement granted for the benefit of the common property; or (c) release an easement granted for the benefit of the common Note The owners corporation may, by ordinary resolution, grant an easement or any other right over the common property for the purpose of the installation, operation or maintenance of sustainability or utility infrastructure (see s 23 (1) (c)). (2) The owners corporation may not transfer, sublet or mortgage, at law or in equity, its interest in the common property.

(3) However, the owners corporation may sublet its interest in any part of the common property to an entity for not longer than 5 years— (a) for the purpose of a business or other activity; and coffee cart, florist, parcel locker service (b) if— (i) authorised by a special resolution; and (ii) the affected part of the common property is not the subject of a grant of special privilege under section 22; and (iii) the business or other activity carried out under the sublease does not unreasonably interfere with the reasonable use or enjoyment of any part of a unit or the common property; and Examples—unreasonable interference • restricting access to a unit • obstructing views from a unit balcony (c) subject to a condition stating that the entity must take out and maintain public liability insurance for the affected part of the common property in relation to each of the following events happening: (i) death, bodily injury or illness to anyone; (ii) loss of, or damage to, the property of anyone. (4) Public liability insurance under subsection (3) (c) must be for a total amount of liability of at least the amount agreed, in writing, by the owners corporation and the entity. (5) For section 71, an owners corporation is not carrying on business if the corporation receives income from subletting any part of the common property under subsection (3).

21 Dealings in property generally (1) An owners corporation for a units plan may, if authorised by an ordinary resolution— (a) hold property for a use in accordance with its functions; or (b) dispose of that property. (2) However, the only interests in land that an owners corporation may hold, at law or in equity, are as follows: (a) the lease of the common property; (b) an easement granted for the benefit of the common property; (c) a registered charge under section 96 securing an amount payable to the corporation; (d) an interest in the common property of a community title scheme that includes the land subdivided by the units plan.

22 Special privileges relating to common property (1) An owners corporation for a units plan may, if authorised by a special resolution, grant a special privilege for a period of less than 3 months to— (a) a unit owner; or (b) someone else with an interest in a unit. a right to the exclusive use of a pool area for a private party Note A special privilege that is granted for a period of 3 months or more must be granted by a special privilege rule (see s 112A). (2) A grant under subsection (1) may be terminated, in accordance with a special resolution, by written notice given by the owners corporation to the person to whom the grant was made.

(3) The owners corporation may only grant a special privilege under this section— (a) with the consent of the grantee of the special privilege; and (b) subject to a condition that states that the maintenance requirement is the responsibility of 1 of the following: (i) the owners corporation; (ii) the grantee. (4) A condition that states that the maintenance requirement is the responsibility of the grantee— (a) must state the type and frequency of maintenance the grantee must undertake; and (b) relieves the owners corporation of its obligations under section 24 to the extent the rule places this obligation on the grantee. (5) A grantee must not unreasonably withhold consent mentioned in subsection (3) (a).

23 Installation of sustainability and utility infrastructure on common property (1) An owners corporation for a units plan may, if authorised by an ordinary resolution— (a) approve the installation of sustainability or utility infrastructure on the common property; and (b) approve the financing of the installation of the sustainability or utility infrastructure; and (c) grant an easement or any other right over any part of the common property for the purpose of the installation, operation or maintenance of the sustainability or utility infrastructure.

(2) The owners corporation may only approve the installation, and financing, of sustainability or utility infrastructure under this section if satisfied, after considering the following, the long-term benefit of the proposed infrastructure is greater than the cost of installing and maintaining the infrastructure: (a) a site plan of the proposed infrastructure; (b) a maintenance plan for the proposed infrastructure; (c) if the proposed infrastructure is to be financed by a third party— the terms of the financing arrangements; (d) the direct and indirect costs of the proposed infrastructure; (e) the long-term environmental sustainability benefits of the proposed infrastructure; (f) any other matter prescribed by regulation. (3) The owners corporation may, by ordinary resolution, decide to hold sustainability infrastructure (including existing sustainability infrastructure) installed on common property and any income received from the operation of the infrastructure as trustee for— (a) if all the units are owned by the same person—the owner; or (b) in any other case—the unit owners as tenants in common in shares proportional to their unit entitlement. Example—income income from an electricity feed-in tariff scheme Note If the owners corporation does not decide to hold sustainability infrastructure as trustee for the unit owners, it holds the infrastructure as agent for the owners (see s 20 (1)).

(4) For section 71, an owners corporation is not carrying on business if it receives income from the operation of the sustainability infrastructure and the income is used only to pay— (a) costs, including financing costs, in relation to the installation and maintenance of the infrastructure; or (b) costs of utilities used by, or provided to, the owners corporation.

24 Maintenance obligations (1) An owners corporation for a units plan must maintain the following: (a) for a staged development—the common property included in a completed stage of the development; (b) for a development that is not a staged development—the common property; (c) other property that it holds; (d) the defined parts of any building containing class A units (whether or not the defined parts are common property); Note This does not include painting, unless the painting is required because of other maintenance (see s 26 (1)). (e) if a utility service mentioned in the Unit Titles Act 2001, section 35 (Easements given by this Act) is provided for the potential benefit of all units—facilities associated with the provision of the utility services including utility conduits; (f) any building on the common property that encroaches on a unit if the building is the subject of an easement declared under the Unit Titles Act 2001, section 36 (Easements declared by owners corporations);

(g) as authorised by a special resolution (if any)—all buildings on all class B units on the units plan. Example—par (g) a special resolution authorising the owners corporation to paint all buildings on the class B units and to carry out roofing and structural repairs to all class B units, but excluding responsibility for internal painting and minor repairs of class B units (2) For meeting its obligations under subsection (1), the owners corporation must prepare a maintenance plan taking into account the developer’s maintenance schedule (if any). (3) The maintenance plan must contain the matters prescribed by defined parts, of a building containing class A units, means— (a) the following structures in the building, if load-bearing: (i) walls; (ii) columns; (iii) footings; (iv) slabs; (v) beams; or (b) any part of a balcony on the building.

25 Developer to prepare maintenance schedule (1) The developer of a units plan must prepare a schedule for maintenance of the common property (the developer’s maintenance schedule). Note The developer must give the initial maintenance schedule to the owners corporation at the first annual general meeting of the corporation (see sch 3, s 3.4).

(2) The developer’s maintenance schedule must contain the matters prescribed by regulation. (3) The owners corporation is not required to comply with the developer’s maintenance schedule in meeting its maintenance obligations for the common property under section 24. (4) In any legal proceeding— (a) the developer’s maintenance schedule may be considered for the purpose of determining whether or not a defect in, or damage to, a building could have been avoided by taking stated action; but (b) the provision of the developer’s maintenance schedule to the owners corporation does not affect any obligations of the developer in relation to structural defects, warranties or similar matter in relation to the building.

26 Other qualifications on owners corporation’s maintenance obligations (1) An owners corporation’s obligation under section 24 (1) (d) to maintain the defined parts of a building containing class A units does not require the corporation to carry out any painting of a unit unless the painting is necessary because of other maintenance being carried out by the owners corporation. (2) If the lease of a unit or the common property is subject to a building and development provision, section 24 (1) does not apply to the owners corporation until the territory planning authority issues a certificate under the Planning Act 2023, section 368 (Certificates of compliance)— (a) for the building and development provision; and (b) for any building and development provision to which any of the other leases are subject.

defined parts, of a building containing class A units—see section 24 (4).

27 Structural defects—owners corporation may represent members (1) This section applies if a building, or the site of a building, that is part of the units or common property of a units plan, has a structural defect that affects, or is likely to affect, the support or shelter provided by that part of the building or site to another part of the building or site. (2) The owners corporation for the units plan may, by ordinary resolution, take legal action for the rectification of the structural defects if— (a) the legal action could be taken by a member of the corporation; and (b) the member does not take the legal action within a reasonable time after the defect becomes known. (3) If the owners corporation takes legal action under this section— (a) the corporation and not the member who could have taken the action is liable for the costs incurred by the corporation in taking the legal action; and (b) the corporation and not the member may take the benefit of any order for costs in the corporation’s favour in the legal action. (4) For this section, the owners corporation takes legal action if the corporation— (b) continues a proceeding.

28 Owners corporation—entry to units (1) An owners corporation for a units plan does not have a right to enter a unit in the units plan without the consent of the owner or occupier, except in accordance with this section. (2) The owners corporation may enter the unit without notice to the owner or occupier of the unit if the access is required in an emergency. Examples—emergencies 1 water is flowing from 1 unit into another unit and is causing damage 2 an external glass window in the unit is dislodged and is likely to fall (3) If entry to the unit is required to inspect or maintain the common property of the units plan, a person may enter the unit on behalf of the owners corporation if— (a) the executive committee authorises the entry, and the person to enter, by resolution; and (b) the executive committee gives the owner or occupier written notice that the entry must be allowed on a stated day. (4) A notice under subsection (3) (b) must be given to the owner or occupier not less than 7 days before the entry it relates to.

29 Work on behalf of particular unit owners or occupiers An owners corporation for a units plan may, if authorised by an ordinary resolution, enter into and carry out an agreement with an owner or occupier of a unit for— (a) the maintenance of the unit; or (b) the provision of facilities or services for the unit (or its owner or occupier).

30 Recovery of costs—agreements under s 29 (1) This section applies to an agreement for the maintenance of a unit, or the provision of facilities or services for a unit (or its owner or occupier), if— (a) the agreement is authorised under section 29; and (b) the owners corporation is not responsible for the maintenance, facilities or services under section 24. (2) The owners corporation may recover the cost of carrying out the agreement as a debt from the person with whom the agreement was entered. (3) If the agreement applies to a number of units, the amount recoverable for each unit is (unless the people with whom the agreement was entered agree in writing otherwise) as follows: (4) In subsection (3): total cost means the total cost of carrying out the agreement. total unit entitlement of relevant units means the total unit entitlement of all units that the agreement applies to. Note Unit entitlement—see the Unit Titles Act 2001, s 8.

31 Recovery of expenditure resulting from member or unit occupier’s fault (1) This section applies if an owners corporation for a units plan has in carrying out its functions incurred an expense, or carried out work, that is necessary because of— (a) a wilful or negligent act or omission of a member of the corporation, or an occupier of the member’s unit; orunitsrelevantoftentitlemenunittotal unittheoftentitlemenunit costtotal=erecoverablamount 

(b) a breach of its rules by a member of the corporation, or an occupier of the member’s unit. (2) The amount spent or the cost of the work is recoverable by the owners corporation from the member as a debt. (3) If the owners corporation recovers an amount under subsection (2) from a member for an act, omission or breach of an occupier of the member’s unit, the member may recover the amount from the occupier as a debt. expense, includes a reasonable legal expense reasonably incurred, including a legal expense relating to a proceeding in the ACAT. work, carried out by an owners corporation, means maintenance or anything else the corporation is authorised under this Act to do.

32 Unit owners etc keeping animals (1) A unit owner or occupier of a unit may keep an animal, or allow an animal to be kept, within the unit or the common property— (a) if the animal is an assistance animal; or (b) if the animal is not an assistance animal, only if— (i) if the rules of the owners corporation include a pet friendly rule—the animal is kept in accordance with the pet friendly rule; or (ii) the owners corporation consents to the animal being kept. Note Other territory laws also apply to keeping animals—for example, Animal Welfare Act 1992, Biosecurity Act 2023, Nature Conservation Act 2014 and Residential Tenancies Act 1997. (2) The owners corporation may give consent under this section with or without conditions.

Other matters Division 3.4 (3) The owners corporation— (a) must respond to any request for consent under this section and the response must— (i) be in writing; and (ii) if the request is refused—give reasons for the refusal; and (iii) if the consent is given subject to conditions—state the conditions; and (b) may delegate its decision-making power under this section to the executive committee; and (c) is taken to consent to the request if the owners corporation does not take action under paragraph (a) within 3 weeks of the day on which the request was made. Note The owners corporation may also delegate this power to the manager (see s 58 (1)). (4) The owners corporation may— (a) only withhold consent on reasonable grounds; and (b) impose reasonable conditions on the consent. Examples—par (a) 1 unacceptable risk of damage or soiling of common property that cannot be 2 unacceptable risk of nuisance to other unit owners or occupiers that cannot be 3 unacceptable risk of the animal escaping the unit unsupervised that cannot be 4 unacceptable risk to health or safety of other unit owners or occupiers or the general public that cannot be addressed through reasonable conditions 5 keeping the animal on the units plan would be contrary to a territory law Examples—par (b) 1 requiring supervision of the animal when the animal is on the common

2 requiring cleaning of any areas of the units plan that are soiled by the animal 3 requiring the unit to be secured to prevent the escape of the animal animal includes— (a) an amphibian; and (b) a bird; and (c) a fish; and (d) a mammal (other than a human being); and (e) a reptile. occupier includes a person who has entered into a residential tenancy agreement in relation to the unit even if— (a) the residential tenancy agreement has not yet started; or (b) the person has not yet taken possession of the unit; or (c) the person has not yet obtained any required consent from the lessor to keep an animal in the unit under the Residential Tenancies Act 1997.

33 Restriction on owners corporation during developer control period An owners corporation for a units plan must not, during the developer control period, do any of the following: (a) enter into a contract unless— (i) the contract is disclosed in each contract to sell a unit in the units plan; and (ii) either— (A) the contract is for a period not longer than 2 years; or

Other matters Division 3.4 (B) the ACAT authorises the corporation entering into the contract in accordance with section 33A; Note This section also applies to the engagement of a manager or service contractor under div 4.2 or div 4.3. (b) other than with the approval of the ACAT under section 33A— change the rules of the corporation; (c) approve the keeping of an animal in a unit unless the right to keep an animal was reserved in each contract to sell a unit in the units plan.

33A Developer control period—ACAT authorisation of actions (1) The owners corporation for a units plan (the applicant) may apply to the ACAT for authority to do 1 or more of the following during the developer control period: (a) enter into a contract that the corporation is otherwise prohibited from entering; (b) change the rules of the corporation. (2) The applicant must provide written notice of the application to— (a) each unit owner; and (b) if there is a mortgagee or other registered interest holder for a unit in the units plan—the mortgagee or registered interest holder. (3) The entities mentioned in subsection (2) are parties to the application. (4) The ACAT may authorise the owners corporation entering into a contract mentioned in subsection (1) (a) if the ACAT is satisfied the terms of the contract are reasonable in all the circumstances. (5) The ACAT may authorise the owners corporation changing the rules of the corporation if the ACAT is satisfied that the change is fair in the circumstances.

(6) However, this section does not apply if the developer has not entered into a contract for the sale of any of the units in the units plan.

33B Consent to building management statements for existing buildings (1) An owners corporation for a units plan for an existing relevant building may, if authorised by a special resolution, consent to an application under the Land Titles Act 1925, section 123I (Territory planning authority approval of building management statement) for— (a) approval of a building management statement; or (b) an amendment to a registered building management statement. relevant building—see the Land Titles Act 1925, section 123C (1).

Part 4 People helping the owners corporation exercise its functions

34 Executive committee—establishment On the establishment of an owners corporation, the executive committee of the corporation is established.

35 Executive committee—functions (1) The executive committee of an owners corporation exercises the functions of the corporation. (2) Without limiting subsection (1), the executive committee’s functions include the following: (a) developing matters in relation to— (i) the common property; and (ii) the strategic affairs of the owners corporation; (b) submitting matters developed under paragraph (a) to the owners corporation for consideration; (c) monitoring the owners corporation’s financial performance; (d) approving the annual financial statements and budget for presentation to the owners corporation at the corporation’s annual general meeting; (e) supervising the treasurer, secretary, manager (if any) and communications officer (if any); (f) carrying out the decisions of the owners corporation made at general meetings.

(3) The executive committee must exercise its functions— (a) as the corporation directs by resolution at a general meeting; or (b) in the absence of a resolution—as the committee considers appropriate. Note The resolution required under s (3) (a) is an ordinary resolution, unless the Act provides that the resolution should be a special, unopposed or unanimous resolution—see sch 3, s 3.14 (Decision-making at general meetings).

36 Executive committee—what it must, may and cannot do The executive committee must act in accordance with schedule 2, part 2.1.

37 Executive committee—meetings Schedule 2, part 2.2 applies to executive committee meetings.

38 Executive committee—before the first annual general meeting (1) Until the first annual general meeting of an owners corporation, the members of the executive committee are all the members of the (2) Until the first annual general meeting, the executive committee may exercise a function of the owners corporation only if authorised to do so by a special resolution.

39 Executive committee—at and from the first annual general meeting (1) This section applies to the executive committee of an owners corporation beginning at the corporation’s first annual general meeting.

(2) The number of members of the executive committee (the executive members) is decided as follows: (a) if there are only 1, 2 or 3 members of the owners corporation— each member of the owners corporation is an executive member; (b) if there are 4 or more members of the owners corporation—the members of the corporation must, at a general meeting, decide— (i) by ordinary resolution to have 3 to 7 executive members; or (ii) by special resolution to have 8 or more executive members. (3) If the number of members of the owners corporation is equal to or falls below the number of executive members as decided by the corporation, all the members of the corporation are executive members (even if not nominated or elected). (4) An executive member— (a) must be a qualified person for the units plan; and (b) is elected (if necessary) by ordinary resolution at each annual general meeting; and (c) holds office until the earlier of— (i) the next annual general meeting; and (ii) the executive member ceasing to be a qualified person. (5) An executive member (the removed member) of an owners corporation may be removed by the ordinary resolution that elects a qualified person to replace the removed member until the next annual general meeting. (6) The executive committee of an owners corporation may appoint a qualified person to fill a casual vacancy on the committee until the next annual general meeting.

(7) In this section: associate, of a manager, means— (a) a business partner of the manager; or (b) a close friend of the manager; or (c) a family member of the manager. manager—see section 49. qualified person, for a units plan, means a person (other than the manager or associate of the manager) who is— (a) the owner of a unit in the units plan; or (b) if the unit is owned by a company or 2 or more part-owners—a representative for the company or the part-owners, as the case requires. Note An adult (the principal) may appoint a person to do anything for the principal that the principal can lawfully do by an attorney (see Powers of Attorney Act 2006, s 13).

39A Executive committee—additional requirements for mixed use units plan (1) This section applies if the schedule of lease provisions under a units plan provides for— (a) at least 1 unit for residential use only; and (b) at least 1 unit for non-residential use. (2) In addition to the requirements under section 39, the executive committee of the owners corporation must include, if feasible, at least— (a) 1 member who is the owner of a unit mentioned in subsection (1) (a); and

(b) 1 member who is the owner of a unit mentioned in subsection (1) (b). (3) An owner or executive member may apply to the ACAT for an order requiring an election to be held to satisfy the requirement under

40 Executive committee—office-holders (1) The executive committee must elect— (a) a chairperson; and (b) a secretary; and (c) a treasurer. (2) The committee may elect a person to 2 or more positions.

41 Executive committee—chairperson’s functions (1) The functions of the chairperson are— (a) to chair general meetings of the owners corporation and meetings of the executive committee; and (b) to set the agenda for general meetings and executive meetings, in consultation with the secretary and owners corporation manager (if any) and in accordance with guidelines under subsection (2); and (c) to talk to the secretary, treasurer and manager (if any) about the exercise of their functions. (2) The Minister may make guidelines about items that the chairperson must include on an agenda under this section. (3) A guideline is a notifiable instrument.

42 Executive committee—secretary’s functions The functions of the secretary are— (a) on behalf of the executive committee— (i) to give notice of meetings of the executive committee and general meetings; and (ii) to prepare and send out to executive members minutes of executive meetings; and (iii) to prepare and send out to members of the owners corporation minutes of general meetings; and (iv) to keep the records of the owners corporation, other than the records mentioned in schedule 2, section 2.1 (1) (f) (which are financial records); and (b) on behalf of the executive committee, and the owners corporation, to give notices under the Act; and (c) on behalf of the owners corporation— (i) to give certificates required under the Act; and (ii) to prepare and answer correspondence; and (d) to give any other administrative support to the executive committee or owners corporation.

43 Executive committee—treasurer’s functions The functions of the treasurer are— (a) on behalf of the owners corporation, to give to each unit owner notice of— (i) a determination of general fund contributions under section 78 (1); and (ii) a determination of sinking fund contributions under section 89 (1); and

(b) on behalf of the owners corporation— (i) to pay all amounts the corporation receives into the corporation’s account in accordance with section 68 (1) (b); or (ii) if the owners corporation is exempt from section 68 (1)— to receive, acknowledge receipt of, and account for amounts paid to the corporation; and Note An owners corporation for a units plan with only 2 or 3 units may, by unopposed resolution, exempt itself from s 68 (1) (see s 68 (2)). (c) on behalf of the owners corporation, to pay amounts the corporation spends out of the corporation’s account, in accordance with section 68 (1) (c), as authorised by the executive committee; and (d) on behalf of the executive committee, to keep the records (the records) mentioned in schedule 2, section 2.1 (1) (f); and (e) if the owners corporation requires the records to be audited—to arrange for the records to be audited by a qualified auditor; and (f) to give financial reports to meetings of the executive committee to allow the committee to monitor the financial performance of the owners corporation; and (g) to prepare and certify the annual financial statements mentioned in schedule 2, section 2.2 (1).

44 Executive committee—delegation (1) An executive committee may delegate its functions to— (a) a sub-committee; or

(b) 1 or more executive members. Note A function that has been delegated by the executive committee may, despite the delegation, be exercised by the committee (see Legislation Act, s 240). For the making of delegations and the exercise of delegated functions generally, see the Legislation Act, pt 19.4. (2) An owners corporation may, by ordinary resolution, impose conditions or restrictions on its executive committee’s powers of delegation.

45 Executive committee—contractors and employees (1) An executive committee of an owners corporation may engage or employ people on the terms it considers appropriate to help in the exercise of the corporation’s functions. Note An owners corporation may engage a manager (see div 4.2) and service contractors (see div 4.3). (2) However, the executive committee may only engage a person under this section— (a) on a short-term basis; or (b) for functions other than those for which a manager or service contractor would usually be engaged to undertake. (3) An owners corporation may, by ordinary resolution, impose conditions or limitations on its executive committee’s power to engage or employ people.

46 Executive members—code of conduct An executive member must comply with the code of conduct set out in schedule 1, part 1.1.

47 Executive members—protection from liability (1) An executive member is not civilly liable for conduct engaged in honestly and without recklessness— (a) in the exercise of a function under this Act; or (b) in the reasonable belief that the conduct was in the exercise of a function under this Act. (2) Any civil liability that would, apart from this section, attach to the executive committee attaches instead to the owners corporation. conduct means an act or omission to do an act.

48 Executive committee—validity of acts An act done honestly by an executive committee is not invalid only because there was a defect or irregularity in or in relation to the member’s election or appointment.

49 Definitions—div 4.2 management contract means a contract to provide management services to an owners corporation. management services means services provided by a manager in manager means a person— (a) contracted under section 50; or (b) with whom an owners corporation has a management contract.

50 Manager—contract enter into a management contract with any of the following: (a) a person holding a licence as a real estate agent under the Agents Act 2003; Note The commissioner for fair trading may issue a conditional real estate licence to a person who acts, or intends to act, only as the manager of an owners corporation (see Agents Act 2003, s 34). (b) a member of the corporation; (c) someone else who is not a manager of another owners corporation, and whose income as manager of the corporation will not be the person’s primary source of income. (2) The management contract— (a) must state— (i) the remuneration of the manager; and (ii) the functions of the owners corporation that the manager is to exercise; and (b) may include other conditions agreed between the owners corporation and the manager. (3) Without limiting subsection (1), an owners corporation enters into a management contract if the corporation engages a person to carry out management services.

51 Manager not to be contracted for longer than 3 years (1) An owners corporation must not enter into a management contract with a manager for longer than 3 years (including any period for which the contract may be renewed or extended).

(2) If an owners corporation enters into a management contract for longer than 3 years, the contract is taken, for all purposes, to be a contract for 3 years.

52 Manager—functions A manager has— (a) the functions stated in the manager’s contract; and (b) any other function delegated to the manager under section 58.

53 Manager—transfer (1) A manager’s rights under a management contract may be transferred only if the transfer is approved by the owners corporation by ordinary (2) In deciding whether to approve the proposed transfer, the owners corporation may consider the following: (a) the character of the proposed transferee and associates of the proposed transferee; (b) the proposed transferee’s financial standing; (c) the terms of the proposed transfer; (d) the competence, qualifications and experience of the proposed transferee and associates of the proposed transferee; (e) whether the proposed transferee or associates of the proposed transferee have received, or are likely to receive, training in relation to the manager’s functions; (f) anything else relevant to the management contract. (3) The owners corporation must decide whether to approve a proposed transfer not later than 30 days after the day the corporation is asked in writing to approve the transfer.

(4) However, the owners corporation must not— (a) unreasonably withhold the approval to transfer; or transfer, other than reimbursement of legal or administrative (5) If the owners corporation has not decided whether to approve a proposed transfer within the period mentioned in subsection (3), the corporation is taken to have approved the transfer. associates of the proposed transferee means— (a) if the proposed transferee is a corporation—the corporation’s directors, substantial shareholders and principal staff; or (b) if the proposed transferee is a partnership or is in partnership— the partners and principal staff of the partnership.

54 Manager—ending contract (1) The owners corporation may end a management contract— (a) for a remedial breach if notice has been given under section 55; or (b) for misbehaviour; or (c) if the manager is an individual—if the individual— (i) becomes bankrupt or personally insolvent; or (ii) is convicted in the ACT of an offence punishable by imprisonment for at least 1 year; or (iii) is convicted outside the ACT, in Australia or elsewhere, of an offence that, if it had been committed in the ACT, would be punishable by imprisonment for at least 1 year; or

(d) if the manager is a corporation—if the corporation becomes insolvent. (2) However, before ending a management contract under subsection (1) (c) (ii) or (iii), the owners corporation must be satisfied that the conviction affects the manager’s suitability to exercise the manager’s functions. (3) The owners corporation must end a management contract— (a) if the manager is absent, other than on approved leave, for 14 consecutive days or for 28 days in any 12-month period; or (b) for physical or mental incapacity, if the incapacity substantially affects the exercise of the manager’s functions. insolvent—a corporation is taken to be insolvent if the corporation— (a) is being wound up; or (b) has had a receiver or other controller appointed; or (c) has entered into a deed of company arrangement with its creditors; or (d) is otherwise under external administration under the Corporations Act, chapter 5. remedial breach means a remedial breach under section 55.

55 Manager—remedial breaches (1) A manager commits a remedial breach if the manager— (a) fails to exercise the manager’s functions; or (b) contravenes the manager’s code of conduct; or Note See sch 1, pt 1.2 for manager’s code of conduct.

(c) while exercising the manager’s functions, is grossly negligent or engages in misconduct. (2) If the owners corporation believes on reasonable grounds that a manager has committed a remedial breach, the corporation may give the manager written notice stating— (a) that the corporation believes the manager has committed a remedial breach; and (b) details of the remedial breach committed, sufficient to allow the manager to identify— (i) the function the manager failed to exercise; or (ii) the provision of the manager’s code of conduct the corporation reasonably believes the manager contravened; or (iii) the gross negligence or misconduct; and (c) that the manager must, within 14 days after the day the notice is given to the manager— (i) give the corporation a written representation explaining why the manager’s actions do not amount to a remedial breach; or (ii) remedy the breach; and (d) that the owners corporation may end the manager’s contract if— (i) the manager does not comply with the notice; or (ii) if the manager gives a written representation explaining why the manager’s actions do not amount to a remedial breach—the corporation does not accept the manager’s representation.

56 Manager—code of conduct A manager must comply with the code of conduct set out in schedule 1, part 1.2. Note Other laws may also apply to a manager—for example, a manager who is required to be licensed as a real estate agent under the Agents Act 2003 must comply with the rules of conduct for real estate agents under the Agents Regulation 2003.

57 Manager—public liability insurance (1) A manager must take out and maintain public liability insurance in relation to all of the following events happening because of any act or omission in the management of the owners corporation by the manager: (a) death, bodily injury or illness to anyone; (b) loss of, or damage to, the property of anyone. (2) Public liability insurance under this section must be for a total amount of liability of at least the amount prescribed by regulation. (3) A manager engaged to manage 2 or more owners corporations may take out and maintain a single insurance policy for this section only if— (a) the manager’s insurer has been told that the manager manages 2 or more owners corporations; and (b) the insurance policy covers the risk in relation to each owners corporation managed by the manager.

58 Manager—delegated functions (1) The owners corporation may, in writing given to the manager, delegate to the manager any of its functions under this Act or another territory law.

(2) The executive committee may, in writing given to the manager, delegate to the manager any of its functions under this Act or another territory law. Note A function that has been delegated by the owners corporation or executive committee (a delegator) may, despite the delegation, be exercised by the delegator (see Legislation Act, s 240). For the making of delegations and the exercise of delegated functions generally, see the Legislation Act, pt 19.4.

59 Definitions—div 4.3 service contract means a contract to provide service contractor services to an owners corporation. service contractor means a person— (a) contracted under section 60; or (b) with whom an owners corporation has a service contract. service contractor services means services provided by a service contractor in exercising the contractor’s functions.

60 Service contractor—contract enter into a service contract with a person. Note Pt 9 provides for the protection of financiers of service contracts. (2) Without limiting subsection (1), an owners corporation enters into a service contract if the corporation engages a person to carry out service contractor services.

Service contractors Division 4.3 (3) However, the owners corporation must not enter into a service contract for a period longer than 3 years (including any period for which the contract may be renewed or extended) unless the contract is authorised by special resolution and made after the end of the developer control period for the units plan. (4) A service contract entered into in breach of subsection (3) is void. units plan includes part of a units plan.

61 Service contractor not to be contracted for longer than 25 years (1) An owners corporation must not enter into a service contract with a service contractor for longer than 25 years. (2) If an owners corporation enters into a service contract with a service contractor for longer than 25 years, the contract is taken, for all purposes, to be a contract for 25 years.

62 Service contractor—functions (1) A service contractor for an owners corporation helps the corporation to exercise 1 or more of the following functions in relation to the common property of the units plan: (a) managing the common property; (b) supervising use of the common property; (c) maintaining and repairing the common property. common property includes part of the common property.

63 Service contractor—transfer (1) A service contractor’s rights under a service contract may be transferred only if the transfer is approved by the owners corporation by ordinary resolution. (2) In deciding whether to approve the proposed transfer, the owners corporation may consider the following: (a) the character of the proposed transferee and associates of the proposed transferee; (b) the proposed transferee’s financial standing; (c) the terms of the proposed transfer; (d) the competence, qualifications and experience of the proposed transferee and associates of the proposed transferee; (e) whether the proposed transferee or associates of the proposed transferee have received, or are likely to receive, training in relation to the service contractor’s functions; (f) anything else relevant to the service contract. (3) The owners corporation must decide whether to approve a proposed transfer not later than 30 days after the day the corporation is asked in writing to approve the transfer. (4) However, the owners corporation must not— (a) unreasonably withhold the approval to transfer; or transfer, other than reimbursement of legal or administrative (5) If the owners corporation has not decided whether to approve a proposed transfer within the period mentioned in subsection (3), the corporation is taken to have approved the transfer.

Service contractors Division 4.3 associates of the proposed transferee means— (a) if the proposed transferee is a corporation—the corporation’s directors, substantial shareholders and principal staff; or (b) if the proposed transferee is a partnership or is in partnership— the partners and principal staff of the partnership.

64 Service contractor—ending contract (1) The owners corporation may end a service contract— (a) for a remedial breach if notice has been given under section 65; or (b) for misbehaviour; or (c) if the service contractor is an individual—if the individual— (i) becomes bankrupt or personally insolvent; or (ii) is convicted in the ACT of an offence punishable by imprisonment for at least 1 year; or (iii) is convicted outside the ACT, in Australia or elsewhere, of an offence that, if it had been committed in the ACT, would be punishable by imprisonment for at least 1 year; or (d) if the service contractor is a corporation—if the corporation becomes insolvent. (2) However, before ending a service contract under subsection (1) (c) (ii) or (iii), the owners corporation must be satisfied that the conviction affects the service contractor’s suitability to exercise the contractor’s functions.

(3) The owners corporation must end a service contract— (a) if the service contractor is absent, other than on approved leave, for 14 consecutive days or for 28 days in any 12-month period; or (b) for physical or mental incapacity, if the incapacity substantially affects the exercise of the service contractor’s functions. insolvent—a corporation is taken to be insolvent if the corporation— (a) is being wound up; or (b) has had a receiver or other controller appointed; or (c) has entered into a deed of company arrangement with its creditors; or (d) is otherwise under external administration under the Corporations Act, chapter 5. remedial breach means a remedial breach under section 65.

65 Service contractor—remedial breaches (1) A service contractor commits a remedial breach if the service contractor— (a) fails to exercise the service contractor’s functions; or (b) while exercising the service contractor’s functions, is grossly negligent or engages in misconduct. (2) If the owners corporation believes on reasonable grounds that a service contractor has committed a remedial breach, the corporation may give the service contractor written notice stating— (a) that the corporation believes the service contractor has committed a remedial breach; and

Communication officers Division 4.4 (b) details of the remedial breach committed, sufficient to allow the service contractor to identify— (i) the function the service contractor failed to exercise; or (ii) the gross negligence or misconduct; and (c) that the service contractor must, within 14 days after the day the notice is given to the service contractor — (i) give the corporation a written representation explaining why the service contractor’s actions do not amount to a remedial breach; or (ii) remedy the breach; and (d) that the owners corporation may end the service contract if— (i) the service contractor does not comply with the notice; or (ii) if the service contractor gives a written representation explaining why the service contractor’s actions do not amount to a remedial breach—the corporation does not accept the service contractor’s representation.

66 Communications officer—appointment (1) This section applies to an owners corporation for a units plan if the units plan has 7 or more units. (2) The owners corporation may, by ordinary resolution, appoint an owners corporation communications officer. Note For the making of appointments (including acting appointments), see the Legislation Act, pt 19.3. (3) Without limiting subsection (2)— (a) a person may be appointed as a communications officer whether or not the person is a member of the owners corporation; and

(b) the corporation may appoint the officer as a volunteer or may pay the officer.

67 Communications officer—function (1) A communications officer helps the owners corporation by improving communication so that conflict within the units plan is avoided, minimised or resolved. (2) To improve communication, the communications officer may do 1 or more of the following: (a) monitor communication techniques and procedures adopted by the owners corporation for internal communication between the corporation, the executive committee, unit owners and residents; (b) identify for the executive committee ways in which internal communication can be improved; (c) alert the executive committee, or committee members, if the officer becomes aware of potential conflict; (d) advise the executive committee about ways in which the risk of conflict in the units plan can be minimised; (e) be available to the executive committee, or committee members, to be consulted about any internal communication matter. (3) However, the communications officer must not try to mediate or directly resolve a dispute.

Financial functions generally Division 5.1

Division 5.1 Financial functions generally

68 Owners corporation must have bank account (1) An owners corporation for a units plan must— (a) open and maintain an account with 1 or more authorised deposit- taking institutions; and (b) pay all amounts it receives into the account; and (c) pay all amounts it spends out of the account. Note 1 An authorised deposit-taking institution is an institution (eg a bank, credit union or building society) that is authorised under the Banking Act 1959 (Cwlth), s 9 (3) (see Legislation Act, dict, pt 1). Note 2 An owners corporation may open and maintain more than 1 account. Words in the singular number include the plural (see Legislation Act, s 145 (b)). (2) An owners corporation for a units plan with only 2 or 3 units may, by unopposed resolution, exempt itself from subsection (1).

69 Owners corporation may invest (1) An owners corporation may invest its money as it considers appropriate, subject to any direction by special resolution. (2) However, an owners corporation must not invest in a mortgage of land.

70 Owners corporation may borrow An owners corporation may, if authorised by a special resolution, do 1 or more of the following: (a) borrow amounts required for the exercise of its functions;

(b) secure the repayment of amounts borrowed by it and the payment of interest on amounts borrowed by it. Note Section 20 (2) prevents the owners corporation from taking out a mortgage over the lease in the common property to secure repayment.

71 Owners corporation must not carry on business (1) An owners corporation must not carry on business except in the exercise of its functions. Note An owners corporation that receives income from subletting the common property or operating sustainability infrastructure is not carrying on business (see s 20 (5) and s 23 (4)). (2) If an owners corporation contravenes subsection (1), each executive member of the corporation at the time of the breach commits an offence. Maximum penalty: 50 penalty units. (3) It is a defence to a prosecution for an offence against subsection (2) if the defendant proves that— (a) the defendant took reasonable steps to ensure that the contravention did not happen; or (b) the contravention happened without the defendant’s knowledge. Division 5.2 Administrative, special purpose and sinking funds

72 Definitions—div 5.2 administrative fund—see section 73. expected sinking fund expenditure—see section 83. general fund, of an owners corporation, means the corporation’s administrative fund or a special purpose fund.

general fund budget—see section 75 (1). sinking fund—see section 81 (2). sinking fund contribution—see section 89 (1). sinking fund plan—see section 82 (2). special purpose fund—see section 74 (1). total general fund contribution—see section 75 (2) (a). total sinking fund contribution—see section 82 (3) (b).

73 Administrative fund An owners corporation for a units plan must establish a fund for the general administration of the corporation (an administrative fund).

74 Special purpose fund (1) An owners corporation for a units plan may, by special resolution, establish funds for particular purposes (a special purpose fund). (2) The purposes for which a special purpose fund may be used may only be changed by special resolution of the owners corporation.

75 General fund—budget corporation must, by ordinary resolution, approve a budget (the general fund budget) for the administrative fund and each special purpose fund for the financial year in which the meeting is held.

(2) The general fund budget must state for the financial year in which the annual general meeting is held— (a) an estimate of— (i) the total contributions (the total general fund contribution) to be paid into the general fund by the owners corporation’s members; and (ii) if there is a special resolution under section 78 (2) (b)—the general fund contribution payable by each unit owner, or unit owner in a particular class; and (b) an estimate of any other amounts to be paid into the general fund; and (c) an estimate of payments to be made out of the general fund including an estimate of payments necessary— (i) to maintain in good condition on a day-to-day basis the common property and any other property held by the owners corporation; and (ii) to pay for insurance premiums; and (iii) to pay for any costs incurred in getting information for a unit title rental certificate; and (iv) to pay for recurrent expenses. Examples—par (b) 1 the proceeds from the sale of any personal property of the owners corporation 2 fees paid to the owners corporation for inspection of its records and the provision of information and certificates relating to its records Examples—par (c) (i) carpet cleaning, lawnmowing services, minor expenses relating to maintenance of the common property Examples—par (c) (iv) utility service charges, accounting fees

(3) A payment out of a special purpose fund may only be included in the budget if the payment is for the purpose for which the fund was established, unless the proposed payment is authorised by special (4) The amount mentioned in subsection (2) (c) must not include transfers to the sinking fund. (5) An owners corporation is not required to obtain approval for the general fund budget in the time mentioned in this section if— (a) the annual general meeting is for an owners corporation of a retirement village; and (b) a copy of the general fund budget for a financial year is given to the residents of the village at the same time as the proposed annual budget under the Retirement Villages Act 2012, section 159 (Proposed annual budget) is given to the residents of the village; and (c) the owners corporation by ordinary resolution, approves the general fund budget in the time mentioned in the Retirement Villages Act 2012, section 162 (6).

76 General fund—what must be paid into the fund? An owners corporation for a units plan must pay the following amounts into its general fund: (a) general fund contributions paid to the owners corporation; (b) any income received from subletting any part of the common property under section 20 (3); (c) the proceeds of the disposal of any personal property of the owners corporation; (d) any fees paid to the owners corporation for inspection of its records and the provision of information and certificates relating to its records.

77 General fund—what can fund be used for? An owners corporation for a units plan may only make payments from a general fund if the payments are— (a) approved in the general fund budget; or (b) authorised by ordinary resolution.

78 General fund—contributions (1) An owners corporation for a units plan may, from time to time, determine a contribution (a general fund contribution) required from its members for the corporation’s general fund. (2) The general fund contribution payable for each unit is— (a) the proportional share for the unit of the total general fund contribution; or (b) a proportion of the total general fund contribution worked out in accordance with a method set out by special resolution. (3) A resolution under subsection (2) (b)— (a) must be fair, taking into account— (i) the structure of the unit plan; and (ii) the nature of the buildings that are part of the units or common property of the unit plan, including the features and character of the units and common property; and (iii) the purposes for which units are used, including the likely impact of that use on the common property; and (iv) the extent to which the change imposes a burden on a unit that is commensurate with the use of that unit; and (b) may provide that only stated unit owners, or unit owners in a stated class, are required to pay a particular contribution, or a contribution of a particular kind.

(4) A resolution under subsection (2) (b) may only be amended or revoked by— (a) a special resolution; or (b) an order of the ACAT. Note 1 A unit owner may apply to the ACAT for review of a special resolution under subsection (2) (b) about a method for working out general fund contributions (see s 127). Note 2 A special resolution is taken to be an alternative rule of the owners corporation (see s 108 (5)).

79 General fund—notice of contributions (1) An owners corporation for a units plan must give notice of a determination of general fund contributions to each unit owner. (2) The notice must include the following information: (a) the general fund contribution payable for the unit; (b) the general fund contributions payable for each other unit; (c) the general fund for which the contribution is required, the proportion of the contribution to be paid into each fund, and the total amount to be paid into each fund; (d) the proportion of the total general fund contribution payable for the unit and how the proportion is worked out; (e) the date when the contribution is payable, if paid in full (which must be not later than 28 days after the date of the notice); (f) if the contribution is payable by instalments—the dates when the instalments are payable; (g) how the contribution may be paid; (h) details of any discount for early payment decided by the owners corporation under section 93; (i) details of interest payable for late payment under section 94.

80 General fund—when are contributions payable? A general fund contribution is payable by a unit owner— (a) if paid in full—on the date stated in the notice; or (b) if payable by instalments—on the dates stated in the notice.

81 Sinking fund (1) This section applies if there are 4 or more units in a units plan. (2) An owners corporation for the units plan must establish and maintain a fund (the sinking fund).

82 Sinking fund plan (1) This section applies to an owners corporation for a units plan if the corporation is required to establish and maintain a sinking fund. (2) The owners corporation must approve, by ordinary resolution, a plan for the sinking fund (a sinking fund plan) for the 10-year period beginning on the first day of the financial year following the approval. Note A sinking fund plan of an existing owners corporation that was current immediately before the commencement of this division is taken to be a sinking fund plan under this Act (see s 157 (2)). The day the existing sinking fund plan is approved for this Act is the day the existing sinking fund plan was approved by the owners corporation for the Unit Titles Act 2001 (see s 157 (3) and (4)). (3) The sinking fund plan must state— (a) the expected sinking fund expenditure for at least the 10-year period of the plan; and (b) for each financial year of the plan—the total contributions (the total sinking fund contribution) required from members of the owners corporation necessary to— (i) meet the expected sinking fund expenditure for the financial year; and

(ii) reserve an appropriate amount necessary to be accumulated to meet expected sinking fund expenditure over at least the remaining years of the plan; and (c) if the owners corporation has made a special resolution under section 89 (2) (b)—the sinking fund contribution required from each unit owner, or unit owner in a particular class, for each financial year of the plan. 1 An owners corporation for a units plan estimates that the expected sinking fund expenditure for the 10-year period of its sinking fund plan is $220 000. The expenditure includes expenditure of $10 000 for each year and a ‘one-off’ amount of $120 000 in the 8th year of the plan. The owners corporation approves a total sinking fund contribution of $25 000 for each financial year of the plan to meet the expected sinking fund expenditure and to provide for a balance of $30 000 in the fund.

2 In preparing its first sinking fund plan, the owners corporation for a units plan of recently constructed townhouses estimates that the expected sinking fund expenditure for the units plan is $70 000 for the 10-year period of the plan, made up of $7 000 expected sinking fund expenditure for each financial year. Additionally, the owners corporation estimates that internal roads in the units plan will need resurfacing in 15 years time at an estimated cost of $120 000. The owners corporation decides it is necessary, in the first 10-year plan, to accumulate $80 000 to meet the expected sinking fund expenditure for the resurfacing. The owners corporation approves a total sinking fund contribution of $15 000 each year of the plan, made up of $7 000 to meet the expected sinking fund expenditure for each financial year and $8 000 to meet the expected sinking fund expenditure for the resurfacing.

83 Sinking fund plan—meaning of expected sinking fund expenditure (1) For this division, expected sinking fund expenditure means expenditure for the following purposes that the owners corporation reasonably expects will be necessary to maintain in good condition the common property and any other property it holds: (a) the painting or repainting of any building (or any part of a building) that forms part of the common property;

(b) the acquisition of new property or renewal or replacement of property that it holds; (c) the renewal, replacement or repair of fixtures and fittings that are part of the common property; (d) the renewal, replacement or repair of anything else on the common property; (e) for a building containing class A units—any purpose mentioned in paragraph (b), (c) or (d) that relates to defined parts of the building; (f) for a building on a class B unit—any maintenance mentioned in paragraph (b), (c) or (d) that is authorised by a special resolution under section 24 (1) (g); (g) any other capital expenses for which the corporation is responsible. defined parts, of a building containing class A units—see section 24 (4). property includes sustainability or utility infrastructure.

84 Sinking fund plan—when must it be approved? (1) The owners corporation for a units plan must approve a sinking fund plan not later than— (a) if the corporation is established after the commencement of this division—12 months after the day of the corporation’s 1st annual general meeting; or (b) in any other case—12 months after the day this division commences.

(2) If the owners corporation has approved a sinking fund plan under this Act, the corporation must approve a new sinking fund plan not later than 12 months before the end of the 10-year period to which the existing plan relates.

85 Sinking fund plan—review An owners corporation for a units plan must review its sinking fund plan— (a) not later than 4 years after the plan is first approved by the owners corporation (the first review); and (b) not later than the end of each 5-year period after the first review.

86 Sinking fund plan—amendment An owners corporation for a units plan may at any time, by ordinary resolution, amend its sinking fund plan to ensure that— (a) the plan reflects expected sinking fund expenditure; and (b) the total sinking fund contributions are sufficient to meet the expected sinking fund expenditure stated in the plan. An owners corporation for a units plan approves a sinking fund plan that sets a total sinking fund contribution of $15 000 for each year of the plan. Three years after approving the plan, the owners corporation finds out that major work is required to water and sewerage pipes in the common property at an estimated cost of $60 000. The owners corporation, by ordinary resolution, amends the sinking fund plan to include the additional expected sinking fund expenditure and require additional contributions of $10 000 a year for the remaining years in the plan. The total sinking fund contribution for each financial year after the amendment is $25 000.

87 Sinking fund—what must be paid into the fund? An owners corporation for a units plan must pay the following amounts into its sinking fund: (a) sinking fund contributions paid to the owners corporation;

(b) any amount received by the owners corporation that is not required or allowed to be paid into a general fund; (c) any amount authorised by an ordinary resolution to be transferred from the administrative fund to the sinking fund; (d) any amount to be transferred from a special purpose fund to the sinking fund— (i) in accordance with the purpose of the special purpose fund; or (ii) that is authorised by a special resolution.

88 Sinking fund—what can fund be used for? An owners corporation for a units plan may only make payments from its sinking fund if the payments are consistent with the sinking fund plan. Note 1 An owners corporation may at any time, by ordinary resolution, amend its sinking fund plan to ensure that the plan reflects expected sinking fund expenditure and the total sinking fund contributions are sufficient to meet the expected sinking fund expenditure stated in the plan. Note 2 Expenditure from the sinking fund for the purpose of installing sustainability or utility infrastructure must be provided for in the sinking fund plan (see s 23).

89 Sinking fund—contributions (1) An owners corporation for a units plan may determine a contribution (a sinking fund contribution) required from its members for the corporation’s sinking fund. (2) The sinking fund contribution payable for each unit for a financial year is— (a) the proportional share for the unit of the total sinking fund contribution for the financial year; or

(b) a proportion of the total sinking fund contribution worked out using a method set out by special resolution. Note Total sinking fund contribution, for a financial year—see s 82 (3) (b). Expected sinking fund expenditure—see s 83. (3) A resolution under subsection (2) (b)— (a) must be fair, taking into account— (i) the structure of the unit plan; and (ii) the nature of the buildings that are part of the units or common property of the unit plan, including the features and character of the units and common property; and (iii) the purposes for which units are used, including the likely impact of that use on the common property; and (iv) the extent to which the change imposes a burden on a unit that is commensurate with the use of that unit; and (b) may provide that only stated unit owners, or unit owners in a stated class, are required to pay a particular contribution, or a contribution of a particular kind. (4) A resolution under subsection (2) (b) may only be amended or revoked by— (a) a special resolution; or (b) an order of the ACAT. Note 1 A unit owner may apply to the ACAT for review of a special resolution under subsection (2) (b) about a method for working out sinking fund contributions (see s 127). Note 2 A special resolution is taken to be an alternative rule of the owners corporation (see s 108 (5)).

90 Sinking fund—notice of contributions (1) An owners corporation for a units plan must, within 1 month after an annual general meeting, give notice to each unit owner of the determination of sinking fund contributions for the financial year when the meeting takes place. (2) The notice must include the following information: (a) the sinking fund contribution payable for the unit; (b) the sinking fund contributions payable for each other unit; (c) the total sinking fund contribution for the financial year; (d) the proportion of the total sinking fund contribution payable for the unit and how the proportion is worked out; (e) the date when the contribution is payable, if paid in full (which must be not later than 28 days after the date of the notice); (f) if the contribution is payable by instalments—the dates when the instalments are payable; (g) how the contribution may be paid; (h) details of any discount for early payment decided by the owners corporation under section 93; (i) details of interest payable for late payment under section 94.

91 Sinking fund—when are contributions payable? A sinking fund contribution is payable by a unit owner— (a) if paid in full—on the date stated in the notice; or (b) if payable by instalments—on the dates stated in the notice.

Powers in relation to money owing to owners corporation Division 5.3

92 General and sinking funds in staged developments (1) This section applies to a general fund or sinking fund established by an owners corporation for a staged development if the development has not been completed. (2) A contribution to a fund is not payable by the owner of a unit if the unit is in an uncompleted stage of the development. (3) The owners corporation must not pay an amount from a fund in relation to an uncompleted stage of the development. Division 5.3 Powers in relation to money owing to owners corporation

93 Discounts—amounts owing decide that a stated discount applies to an amount owing to the corporation by a unit owner if— (a) the amount is paid to the corporation before the date it becomes payable; or (b) for contributions payable by instalments—if the contribution is paid— (i) in full on or before the date stated in the notice of the contribution for payment in full; or (ii) in another way stated in the resolution. contribution means a general fund contribution or a sinking fund contribution.

Division 5.3 Powers in relation to money owing to owners corporation

94 Interest—amounts owing (1) If an amount owing to an owners corporation by a unit owner is not paid on or before the date it becomes payable, unless otherwise decided by ordinary resolution, the amount bears simple interest until paid— (a) at an annual rate of 10%; or (b) at an annual rate of less than 10%, if decided by special resolution; or (c) at an annual rate of more than 10% and not more than 20%, if decided by special resolution. (2) Interest on an amount owing to the owners corporation is payable into the fund into which the amount owing is payable.

95 Recovery of amounts owing (1) If an amount owing to an owners corporation is not paid on or before the date it is payable, the corporation may recover the amount as a debt from the unit owner, together with interest under section 94. (2) If the ownership of a unit changes after an amount owing to the owners corporation becomes payable, the owner at the time the amount becomes payable and each subsequent owner are liable both separately and together for the amount, together with interest under section 94.

96 Security for unpaid amounts—declaration of charge (1) If an amount owing to the owners corporation is unpaid after it becomes payable, the corporation may declare that a charge is to be imposed over the lease of the unit to secure payment of the amount. (2) The declaration must— (a) give details of the lease of the unit to be charged; and (b) state the unpaid amount owing to the owners corporation.

Powers in relation to money owing to owners corporation Division 5.3 (3) After making the declaration, the owners corporation must— (a) lodge with the registrar-general a copy of the declaration, certified as a true copy by the executive committee; and (b) give a copy of the declaration to the unit owner and anyone else who has an interest in the unit. (4) On registration of the copy of the declaration, the amount stated in the declaration, together with interest on the amount under section 94, is a charge over the lease of the unit. (5) A registered charge under this section does not give a power of sale over the lease of the unit.

97 Security for unpaid amounts—discharge (1) This section applies if a charge declared under section 96 has been registered, and— (a) the entire amount for which the charge was declared is paid, together with interest on the amount under section 94; or (b) the owners corporation considers that the charge is no longer required. (2) The owners corporation must— (a) revoke the declaration of the charge; and (b) lodge with the registrar-general a copy of the revocation, certified as a true copy by the executive committee; and (c) give a copy of the revocation to the unit owner and anyone else who has an interest in the unit. (3) The discharge under this section of a charge takes effect on the registration of the revocation of the charge.

98 Liability of part-owners (a) a unit is owned by 2 or more part-owners; and (b) an amount is recoverable by the owners corporation from the owners. (2) The part-owners are liable separately and together for the payment of the amount. (3) As between themselves, each part-owner is liable for a part of the amount proportional to the value of the part-owner’s interest in the unit. (4) If a part-owner pays a part of the amount that is more than the part-owner’s proportional liability, the part-owner may recover the excess from the other part-owners.

99 Meaning of building and land—div 5.4 building, on the land— (a) includes— (i) any improvements and fixtures forming part of the building; and (ii) any improvements and fixtures, including site improvements, consisting entirely of common property; and (iii) anything prescribed by regulation as forming part of a building; but Examples—site improvements landscaping, paved areas

(b) does not include— (i) paint, wallpaper and temporary wall, floor and ceiling coverings; or (ii) fixtures removable by a lessee or sublessee of a unit at the end of a lease; or (iii) anything prescribed by regulation as not forming part of a building. land means— (a) land subdivided by a units plan; and (b) for a staged development—the whole of the land in the completed stages of the development.

100 Building insurance requirements (1) The responsible entity for a units plan must insure and keep insured all buildings on the land for their replacement value from time to time against all of the following risks: (a) fire, lightning, tempest, earthquake and explosion; (b) riot, civil commotion, strikes and labour disturbances; (c) malicious damage; (d) bursting, leaking and overflowing of boilers, water tanks, water pipes and associated apparatus; (e) impact of aircraft (including parts of, and objects falling from, aircraft) and of road vehicles, horses and cattle; (f) anything prescribed by regulation.

(2) The responsible entity must also insure against the costs incidental to the reinstatement or replacement of the insured building, including the cost of removing debris and the fees of architects and other professional advisers. Note If the responsible entity is an owners corporation and a developer is the only member of the owners corporation, the developer must on behalf of the owners corporation take out insurance under s (1), unless exempted under s 101. (3) A regulation may make provision in relation to an insurance policy under this section including for the following: (a) combining the policy with other insurance policies; (b) notification requirements by unit owners in relation to improvements made to units; (c) the proportion of the premium payable for the policy by particular unit owners by way of a general fund contribution; (d) valuation of the insured buildings. (4) For all purposes related to any insurance taken out by it under this section, a responsible entity is taken to have an insurable interest in the buildings on the land to the extent of their replacement value. Note 1 The owners corporation must produce its insurance policies for inspection at the request of an eligible person (see s 118). Note 2 The executive committee of the owners corporation must give certain details about the corporation’s current insurance policies at each annual general meeting (see sch 2, s 2.3). building management committee—see the Land Titles Act 1925, section 123F (1) (a).

responsible entity means— (a) if the units plan is part of a building the subject of a building management statement—the building management committee established under the statement; or (b) in any other case—the owners corporation.

100A Lodgment of insurance claims (1) This section applies to an insurance claim made in relation to a building on the land in relation to a units plan. (2) The responsible entity for the units plan must— (a) lodge the insurance claim; and (b) pay any excess payable in relation to the insurance claim. Note An expense incurred because of a wilful or negligent act or omission, or a breach of an owners corporation’s rules, by a member of the owners corporation or an occupier of the member’s unit, may be recoverable from the member as a debt (see s 31). responsible entity—see section 100 (5).

101 Exemption from building insurance requirements (1) If the replacement value of all common property buildings (or parts of buildings) on the land is less than an amount prescribed by regulation, the owners corporation may, by unanimous resolution, exempt itself from the requirement to take out building insurance under section 100 (1) for any risk stated in the exemption resolution. (2) An owners corporation for a units plan containing only class B units may, by unanimous resolution, exempt itself from the requirement to take out building insurance for any risk stated in the exemption resolution for all buildings (or parts of buildings) that are on the class B units.

(3) An exemption resolution— (a) under subsection (1)—has effect from the date of the annual general meeting when it is passed until the date of the next annual general meeting; or (b) under subsection (2)—takes effect on the registration of the resolution and continues until the day another unanimous resolution amending or revoking the exemption resolution is registered. (4) An exemption resolution under subsection (2) or a resolution amending or revoking the exemption under subsection (3) (b) must be lodged under the Land Titles (Unit Titles) Act 1970, section 27B within 3 months after the day the resolution is passed. (5) If an exemption resolution under subsection (2) or a resolution amending or revoking the exemption under subsection (3) (b) is not lodged within 3 months after the day the resolution is passed, the resolution is taken to have never been made. Note An exemption resolution under this section does not affect the requirement for an owners corporation to take out and maintain public liability insurance (see s 102).

102 Public liability insurance by owners corporation (1) An owners corporation for a units plan must take out and maintain public liability insurance in relation to all of the following events happening in relation to the common property: (a) death, bodily injury or illness of anyone; (b) loss of, or damage to, the property of anyone.

(2) Public liability insurance under subsection (1) must be for a total amount of liability of not less than an amount prescribed by Note 1 The owners corporation must produce its insurance policies for inspection at the request of an eligible person (see s 118). Note 2 The executive committee of the owners corporation must give certain details about the corporation’s current insurance policies at each annual general meeting (see sch 2, s 2.3). (3) However, the owners corporation need not comply with a requirement of this section if— (a) the units plan is part of a building the subject of a building management statement; and (b) the requirement is satisfied by insurance taken out and maintained under the building management statement.

103 Application of insurance money by owners corporation (1) If an owners corporation for a units plan receives insurance money for damage to, or destruction of, any building on the land, the corporation must, without delay, apply the insurance money to rebuilding and reinstating the building. (2) Subsection (1) applies subject to this Act, other territory laws and any order of a court. Example—other territory law If it is necessary to obtain building damage orders from the ACAT approving a building damage scheme for rebuilding and reinstating the building (see Unit Titles Act 2001, div 10.3), the owners corporation may not apply the insurance money to the rebuilding and reinstating before obtaining the orders.

104 Additional insurance—owners corporation This division does not limit the right of an owners corporation to take out additional insurance.

105 Additional insurance—unit owners This division does not limit the right of a unit owner to insure against damage to, or destruction of, the unit to the extent of its replacement value.

106 What are the rules of an owners corporation? The rules of an owners corporation are the default rules as modified by the alternative rules, if any, registered under the Land Titles (Unit Titles) Act 1970, section 27 or section 27A. Note The owners corporation may make alternative rules under s 108.

107 Effect of rules (1) There are taken to be agreements under seal between an owners corporation and each of its members, and between each member and each other member, under which the corporation and its members agree to be bound by the rules of the corporation. (2) An occupier of a unit (who is not the owner of the unit) is bound by each rule of the corporation as if the occupier were the owner of the unit except to the extent that— (a) the rule requires payments to be made to the general fund or a sinking fund; or (b) the rule provides otherwise. (3) If the unit owner does not occupy the unit, the owner is liable separately and together with an occupier of the unit for any breach of the rules of the owners corporation by the occupier, unless the owner proves that the owner took reasonable precautions and exercised appropriate care to prevent the breach. (4) An occupier of a unit who occupies the unit under a residential tenancy agreement is not bound by any rule of the owners corporation to the extent that the rule is inconsistent with the standard residential tenancy terms, other than a pet friendly rule.

residential tenancy agreement means a residential tenancy agreement under the Residential Tenancies Act 1997. standard residential tenancy terms—see the Residential Tenancies Act 1997, dictionary.

108 Owners corporation may make alternative rules (1) An owners corporation may, by special resolution, make alternative rules to modify the rules of the corporation. (2) In particular, the owners corporation of a retirement village may make alternative rules to make provision in relation to any of the following: (a) people other than residents or employees of the retirement village living in the village; (b) visitors, including overnight or short-stay guests; (c) the making of noise; (d) the parking of motor vehicles; (e) the disposal of garbage; (f) the keeping of pets; (g) gardening and landscaping; (h) the use and operation of services or facilities (including restrictions on their use); (i) security in the retirement village; (j) the external appearance of residents’ premises. (3) An alternative rule is not valid to the extent that it results in the rules— (a) being inconsistent with this Act or another territory law; or

(b) being inconsistent with a building management statement that applies to the units plan; or (c) being incompatible with a human right under the Human Rights Act 2004, or otherwise being harsh, unconscionable or oppressive; or (d) giving a function to the corporation that is not incidental or ancillary to the exercise of its functions under this Act or under a building management statement; or (e) prohibiting or restricting any dealing (including devolution, transfer, lease or mortgage) with— (i) an interest in a unit; or (ii) the equitable estate of a unit owner in the common property; or (f) prohibiting or restricting the installation, operation or maintenance of sustainability infrastructure in or on the common property or a unit; or (g) unless the alternative rule is made by unanimous resolution— being inconsistent with an order of the ACAT requiring the owners corporation to make or repeal an alternative rule; or (h) prohibiting a unit owner from keeping an animal, or allowing an animal to be kept, within the unit or the common property in any circumstances. (4) An alternative rule is not invalid under subsection (3) (a) only because it requires a person who keeps an assistance animal to produce evidence that the animal is an assistance animal. Note A unit owner or occupier is not required to obtain the consent of the owners corporation to keep an animal that is an assistance animal within the unit or common property (see s 32 (1) (a)).

(5) A special resolution under section 78 (General fund—contributions) or section 89 (Sinking fund—contributions) is taken to be an alternative rule of the owners corporation made under this section. (6) A regulation may prescribe requirements in relation to alternative rules.

108A Effect of registration of alternative rule (1) An alternative rule made by the owners corporation under section 108 takes effect— (a) on registration under the Land Titles (Unit Titles) Act 1970, section 27 or section 27A; or (b) from any later date stated in the special resolution making the rule. (2) If the alternative rule is not lodged within 3 months after the day the special resolution is passed, the resolution is taken to have never been made.

109 Breach of rules—rule infringement notice (1) This section applies if the executive committee of an owners corporation reasonably believes that— (a) the owner or occupier (the person) of a unit has contravened a provision of the corporation’s rules; and (b) the circumstances of the contravention make it likely that the contravention will continue or be repeated. (2) The owners corporation may, if authorised by an ordinary resolution of the executive committee, give the person a notice (a rule infringement notice) requiring the person to remedy the contravention.

(3) A rule infringement notice must state the following: (a) that the owners corporation believes the person is contravening, or has contravened, a provision of the rules; (b) the provision of the rules the owners corporation believes is, or was, contravened; (c) details sufficient to identify the contravention; (d) if the owners corporation believes the contravention is continuing—the period (which must be reasonable in the circumstances) within which the person must remedy the contravention; (e) if the owners corporation believes the contravention is likely to be repeated—that the person must not repeat the contravention; (f) if the person does not comply with the notice— (i) the person commits an offence; and (ii) the owners corporation may, without further notice, apply to the ACAT for an order in relation to the failure to comply with the notice. (4) If a rule infringement notice is given to a person following a request under section 111, the owners corporation must, not later than 14 days after the day the request was received, tell the person who made the request that the notice has been given.

110 Breach of rules—failure to comply with rule infringement notice (1) A person commits an offence if the person— (a) is given a rule infringement notice under section 109; and (b) does not comply with the notice.

(2) However, the person does not commit an offence under this section if, when the rule infringement notice is given to the person, the person is not contravening, or has not contravened, the provision mentioned in the notice in the way detailed for section 109 (3) (c).

111 Breach of rules—request for rule infringement notice (a) a dispute exists between the owner or occupier of a unit in a units plan (the complainant) and the owner or occupier of another unit in the units plan (the accused person); and (b) the dispute arises because the complainant reasonably believes (i) the accused person has contravened a provision of the corporation’s rules; and (ii) the circumstances of the contravention make it likely that contravention will continue or be repeated. (2) The complainant may ask the owners corporation to give the accused person a rule infringement notice for the contravention.

112 Application of Legislation Act (1) The Legislation Act applies to the rules of an owners corporation as if the rules were an Act and as if each rule were a section of an Act. (2) Terms used in the rules of an owners corporation have the same meaning as in this Act, unless the contrary intention appears.

Rules—particular matters Division 6.2

Subdivision 6.2.1 Special privileges in relation to common

112A Grant of special privileges in relation to common (1) The owners corporation may, by special resolution, make a rule granting a special privilege for a period of 3 months or more (a special privilege rule) to— (a) a unit owner; or (b) someone else with an interest in a unit in the units plan. (2) A special privilege rule must— (a) only be made with the grantee’s written consent; and (b) must include a provision that states the maintenance requirement is the responsibility of 1 of the following: (i) the owners corporation; (ii) the grantee. (3) A special privilege rule that states that the maintenance requirement is the responsibility of the grantee— (a) must state the type and frequency of maintenance the grantee must undertake; and (b) relieves the owners corporation of its obligations under section 24 (Maintenance obligations) to the extent the rule places this obligation on the grantee. (4) A special privilege rule may be made to have effect for a specific period. (5) A grantee must not unreasonably withhold consent mentioned in

(6) A special privilege rule that is registered is taken to have been validly made after a period of 2 years from the day the rule was made, or purportedly made, despite any defect or irregularity in relation to making the rule. Note A modification of the rules of the owners corporation must be registered with the registrar-general under the Land Titles (Unit Titles) Act 1970, s 27A.

112B Amendment or revocation of special privilege rule (1) A special privilege rule may only be amended or revoked— (a) by special resolution of the owners corporation; and (b) with the consent of the grantee. Note A rule granting a special privilege may also be made for a specific period and expire according to its terms (see s 112A (4)). (2) However, the grantee’s consent must not be unreasonably withheld. Subdivision 6.2.2 Rules about animals

112C Owners corporation may make pet friendly rule (1) The owners corporation may, by special resolution, make a rule allowing an owner or occupier to keep an animal, or allow an animal to be kept, within a unit or the common property without the consent of the owners corporation (a pet friendly rule). (2) A pet friendly rule may include conditions about— (a) the number and type of animals that may be kept by a unit owner or occupier under the rule; and (b) cleaning and maintenance requirements for keeping an animal under the rule; and (c) providing written notice to the owners corporation about the keeping of an animal; and

Rules—particular matters Division 6.2 (d) supervision requirements when an animal is on the common property; and (e) requirements in relation to keeping an animal secure so that it does not escape a unit unsupervised; and (f) any other matters that are reasonably necessary to ensure that an animal does not cause a nuisance or a risk to health or safety.

113 Corporate register—establishment (1) An owners corporation for a units plan must establish and maintain a register (the corporate register) that includes— (a) the information mentioned in section 114 (1) for each unit; and (b) the information mentioned in section 114 (2). (2) The corporate register may be kept in electronic form. Note The corporate register contains personal information as defined under the Privacy Act 1988 (Cwlth). The Australian Privacy Principles under that Act apply to the owners corporation in relation to the collection, use, disclosure and storage of personal information.

114 Corporate register—information to be included (1) The owners corporation for a units plan must record on the corporate register the following information for each unit: (a) if the unit is owned by 1 person—the full name and an address for correspondence of the unit owner; (b) if the unit is owned by 2 or more part-owners—the full name and address for correspondence of the part-owners’ representative and each other part-owner; (c) if the unit owner is a company—the full name and address for correspondence of the company’s representative; (d) if a mortgagee voting notice has been given for the unit—the full name and address for correspondence of the mortgagee’s representative; (e) if notified in writing to the corporation—the full name and an address for correspondence of anyone else with an interest in the unit together with details of the interest;

(f) the full name of the occupier of the unit (including the owner if the owner occupies the unit). (2) Also, the owners corporation must record on the corporate register the following information: (a) the full names of the current executive members; (b) if notified in writing to the corporation—the full name and an address for correspondence of anyone with an easement over the common property together with details of the easement; (c) if the units plan subdivides a parcel of land under a declared land sublease—the full name and an address for correspondence of the Crown lessee; (d) if the owners corporation sublets part of the common property under section 20 (3)— (i) details of the sublease; and (ii) the sublessee’s full name and an address for correspondence.

115 Corporate register—provision of information (1) A unit owner must give the owners corporation for the units plan written notice of the details of any of the following events within 14 days after the event happens: (a) the lodgment for registration, by the unit owner, of the instrument under which the person became the owner; (b) a change in the owner’s name or address for correspondence; (c) a change of occupancy of the unit;

(d) a vacancy in occupancy of the unit that is expected to be longer than a continuous period of 30 days. Note Information about representatives of units owned by 2 or more part-owners, or by a company, must be provided to the owners corporation under the following sections: • s 11 (Part-owners of units—authorisation of representatives) • s 13 (Company-owned units—authorisation of representatives). (2) Subsection (1) may be enforced in the same way as a rule of the (3) The Crown lessee for a declared land sublease must give the owners corporation for the units plan written notice of the details of any of the following events within 14 days after the event happens: (a) the Crown lessee entering into an agreement to transfer an interest in the Crown lease to someone else (the new owner); (b) the lodgment for registration of the transfer; (c) a change in the Crown lessee’s name or address for correspondence. (4) A person who has or acquires an interest in a unit or the common property, other than a unit owner, may give the owners corporation written notice of the details of the following events: (a) if the interest is in a lease of the unit or the common property— the person completing an agreement to transfer the interest to someone else; (b) the lodgment for registration of an instrument under which the person acquires the interest; (c) if the interest is not a registered interest—the person acquiring the interest; (d) a change in the full name or address for correspondence of the person;

(e) a change in the nature of the interest held by the person, including the person ceasing to have the interest. Note Information about mortgagees’ representatives must be provided to the owners corporation under the following sections: • sch 3, s 3.23 (Voting by mortgagees) • sch 3, s 3.24 (Mortgagee voting notices—amendment and revocation).

116 Corporate register—access (1) On request by an eligible person for a unit or the common property, the owners corporation for the units plan must allow the person, within 14 days after the request is received, to inspect, and take a copy of— (a) for a request by an eligible person for a unit—the information on the corporate register about the unit; and (b) for a request by an eligible person for a unit or the common property—the information on the corporate register about any easements, or subleases under section 20 (3), applying to the (2) On request by an applicant for a court order under this Act, the owners corporation must allow the applicant to inspect, and take a copy of, the names and addresses for correspondence recorded on the corporate register of each unit owner and anyone else with an interest in a unit, or the common property, that is recorded on the register. Note This is to enable the applicant for the order to comply with the requirements for service under this Act. (3) A request must be in writing accompanied by a fee fixed by the owners corporation of not more than an amount prescribed by

(4) The corporate register must be kept in a way that ensures that a person who is entitled to inspect the register does not have access to any information the person is not entitled to inspect. Examples—how to restrict access 1 if the register is kept in a book, the information could be kept on a separate page for each unit and for the common property 2 if the register is kept in a computer database, the information could be stored so that information for each unit and the common property can be separately displayed, printed out or emailed Note The corporate register contains personal information as defined under the Privacy Act 1988 (Cwlth). The Australian Privacy Principles under that Act apply to the owners corporation in relation to the collection, use, disclosure and storage of personal information. eligible person, for the common property, includes a sublessee of the common property under section 20 (3). interest, in the common property, includes a sublease under section 20 (3).

117 Names and addresses of executive members On request by an eligible person for a unit or the common property, the owners corporation must, free of charge, give the person the full names and addresses of its current executive members within 14 days after the request is received.

118 Insurance information On request by an eligible person for a unit or the common property, the owners corporation must, free of charge, allow the person to inspect, and take a copy of, the following documents within 14 days after the request is received: (a) any current insurance policy or policies taken out— (i) by the owners corporation; or

(ii) if the units plan is part of a building the subject of a building management statement—the building management committee established under the statement; (b) the receipts for all premiums paid under current policies taken out by the corporation; (c) the part of the minutes of any annual general meeting of the corporation that records any exemption resolution under section 101 (Exemptions from building insurance requirements).

119 Unit title certificates (1) An eligible person for a unit or the common property in a units plan may request the owners corporation give the person— (a) a certificate stating information about the unit or the common property suitable for disclosure to a potential buyer (a unit title sale certificate); or (b) a certificate updating information in the unit title sale certificate (a unit title sale update certificate); or (c) a certificate stating information about the unit or the common property suitable for disclosure to a potential tenant (a unit title rental certificate). (2) However, an eligible person may only request a unit title sale update certificate within 4 months after the day a unit title sale certificate is given to the person. (3) The owners corporation must, within the required period after the day the request is received, give the person the requested certificate. (4) A unit title rental certificate expires 5 years after the day it is given to the person. (5) The Minister may determine information that must be included in any of the following (the determined information): (a) a unit title sale certificate;

(b) a unit title sale update certificate; (c) a unit title rental certificate. (6) A request under this section must be in writing and accompanied by a fee fixed by the owners corporation of not more than an amount determined by the Minister. (7) A determination under subsection (5) or (6) is a disallowable instrument. (8) In this section: eligible person, for a unit, includes a person who enters into a contract for sale of the unit. Note Eligible person—see the dictionary. required period means— (a) for a unit title sale certificate or unit title sale update certificate—14 days; and (b) for a unit title rental certificate— (i) if the owners corporation has the determined information—14 days; and (ii) if the owners corporation does not have the determined information—6 weeks. tenant—see the Residential Tenancies Act 1997, section 6.

119A Unit title rental certificate information (a) the Minister determines information that must be included in a unit title rental certificate under section 119 (5) (c); and (b) the owners corporation does not have the determined information.

(2) The owners corporation must— (a) take reasonable steps to get the information; and (b) pay any costs incurred in getting the information. Example—s (2) arranging and paying the cost of an inspection and report about ceiling insulation in the units plan Note If an owners corporation fails to comply with a request for a unit title rental certificate, each executive member of the corporation commits an offence (see s 121).

119B Updating unit title rental certificate information (a) an owners corporation gives a person a unit title rental certificate under section 119 (3) in relation to a unit; and (b) within 5 years after the day the certificate is given to the person, the owners corporation becomes aware of a change in any of the information in the certificate; and (c) the name of the person to whom the certificate was given continues to be recorded in the corporate register in relation to the unit. (2) The owners corporation must notify the person, in writing, of the changed information.

120 Acting on information in unit title certificate (1) If a person acts honestly on a matter stated in a unit title certificate, then, in an action by or against the owners corporation, the corporation is estopped, as against that person, from denying the truth of that or any other matter stated in the certificate.

unit title certificate means any of the following: (a) a unit title sale certificate; (b) a unit title sale update certificate; (c) a unit title rental certificate.

120A Access to owners corporation records (1) An eligible person for a unit or the common property in a units plan may ask to inspect the records of an owners corporation. (2) The owners corporation must, within 14 days after the day the request is received, allow the person— (a) to inspect— (i) the information on the corporate register; and (ii) any other records held by the corporation; and (b) to take copies of any document inspected. (3) If a dispute exists, the owners corporation may withhold from inspection any documents subject to legal professional privilege in relation to the dispute. (4) A request under this section must be in writing and accompanied by a fee fixed by the owners corporation of not more than an amount determined by the Minister. (5) A determination under subsection (4) is a disallowable instrument. eligible person, for a unit, includes a person who enters into a contract for sale of the unit. Note Eligible person—see the dictionary.

121 Offence—failure to provide information, certificate or access to owners corporation records (1) If an owners corporation for a units plan fails to comply with a request under this part for information, a unit title certificate or access to the corporation’s records, each executive member of the corporation at the time of the failure commits an offence. Maximum penalty: 50 penalty units. (2) It is a defence to a prosecution for an offence against subsection (1) if the defendant proves that— (a) the person making the request, when asked by someone acting for the owners corporation, did not give the corporation reasonable grounds to believe that the person was an eligible person; or (b) the defendant took reasonable steps to ensure that the request (c) the failure to comply with the request happened without the defendant’s knowledge. unit title certificate—see section 120 (2).

122 Owners corporation name, address and letterbox (1) An owners corporation for a units plan must ensure that a notice showing the name of the corporation, and the address shown on the units plan for the service of documents, is continuously displayed in a conspicuous place on the land, unless— (a) the address shown on the units plan for the service of documents is the postal address of a building on the land; and

(b) the corporation provides a letterbox on the land under Maximum penalty: 1 penalty unit. (2) If the address shown on the units plan for the service of documents is the postal address of a building on a land, the owners corporation must ensure that a letterbox suitable for postal delivery, showing the name of the corporation in clear and legible characters, is continuously available in a conspicuous and accessible place on the land. Maximum penalty: 1 penalty unit. (3) If an owners corporation changes its address for service of documents, it must lodge notice of the change with the registrar-general in a form approved by the registrar-general under the Land Titles Act 1925.

123 Service of documents on owners corporation For this Act and the Unit Titles Act 2001 (including an application for a court order under either Act) a document may be served on an owners corporation by— (a) if the address for service is the postal address of a building on the land—placing it in the letterbox mentioned in section 122 (2); or (b) serving it in another way approved by the corporation by ordinary resolution. Note The methods of service provided for in this section are in addition to methods of service provided for in the Legislation Act, pt 19.5.

124 Service of documents on members, interested people and occupiers (1) For this Act and the Unit Titles Act 2001 (including an application for a court order under either Act) a document may be served on a unit owner or anyone else with an interest in a unit or the common property on a units plan by— (a) sending it by prepaid post as a letter to the relevant address for correspondence recorded on the corporate register; or (b) if the latest address for correspondence recorded in the corporate register is the postal address of a building or unit on the land— placing it in a letterbox for mail addressed to the building or unit; or (c) serving it in another way directed by the person to be served. Note The methods of service provided for in this section are in addition to methods of service provided for in the Legislation Act, pt 19.5. (2) If a unit is owned by 2 or more part-owners, and a document is required or permitted to be served on the owner, service of the document under this section on the part-owners’ representative is sufficient. (3) If an owner of a unit is a company, and a document is required or permitted to be served on the company, service of the document under this section on the company’s representative is sufficient. (4) If a mortgagee voting notice is current for a unit, and a document is required or permitted to be served on the mortgagee, service of the document under this section on the mortgagee’s representative is sufficient. (5) If a unit has an occupier who is not an owner of the unit, and a document is required or permitted to be served on the occupier, the document may be served on the occupier— (a) by putting it in a letterbox for mail addressed to the unit; or

(b) by giving it personally to the occupier; or (c) by serving it in another way directed by the occupier. (6) For this section, an interest in the common property includes a sublease under section 20 (3).

125 Disputes—generally (1) This section applies to a dispute between 2 or more of the following: (a) the owners corporation for a units plan; (b) the executive committee; (c) an owner or occupier of a unit in the units plan; (d) the manager (if any) for the owners corporation; (e) a service contractor for the owners corporation; (f) an executive member. (2) A party to the dispute may apply to the ACAT for an order in relation to another party if the application relates to the dispute.

126 Disputes involving the owners corporation—particular matters (1) This section applies to the following disputes between the people mentioned in relation to the dispute: (a) a dispute relating to keeping an animal or allowing an animal to be kept in a unit between— (i) the owners corporation; and (ii) an owner or occupier of a unit; (b) a dispute relating to the return by a former manager of owners corporation property between— (i) the owners corporation; and (ii) the former manager. (2) A party to the dispute may apply to the ACAT for an order in relation to the other party if the application relates to the dispute.

(3) To avoid doubt, only a party mentioned in this section in relation to a particular dispute may apply to the ACAT in relation to the dispute. Tony is in dispute with his neighbour, Fabian, about the pets Fabian keeps in his unit. The owners corporation is also in dispute with Fabian about the pets. Only the owners corporation can apply to the ACAT for an order against Fabian in relation to the dispute. former manager means a person who was the manager for the owners

127 Disputes about rules—general (1) A unit owner may apply to the ACAT for an order declaring that an alternative rule is invalid on the grounds that— (a) the owners corporation does not have the power to make the rule; or (b) the rule contravenes section 108 (3); or (c) there was irregularity in the process for making the rule; or (d) for an alternative rule about the method used to work out the proportion payable by the unit owner of the total general fund contribution under section 78 or the total sinking fund contribution under section 89—the rule is not fair; or (e) for an alternative rule about the method used to work out the proportion payable by the unit owner of the total general fund contribution under section 78 or the total sinking fund contribution under section 89—the rule is no longer fair due to a change in circumstances related to the use of the unit or the Examples—change in circumstances of use 1 change in use of a unit from laundromat to office with the result that the unit now uses significantly less water

2 new restrictions on access to, or use of, common property such as restricting access to a swimming pool to specified unit owners only (2) An application under subsection (1) (c) or (d) must be made within— (a) 3 months after the day the special resolution making the alternative rule is passed by the owners corporation; or (b) any longer period the ACAT considers reasonable in the circumstances, provided the period is not more than 12 months after the day the special resolution making the rule is passed by the owners corporation.

128 Disputes about rules—special privilege rules (1) An owners corporation may apply to the ACAT for an order declaring that a grantee has unreasonably withheld consent— (a) to making a special privilege rule under section 112A; or (b) to amending or revoking a special privilege rule under section 112B. (2) A grantee may apply to the ACAT for an order declaring that the owners corporation— (a) has unreasonably refused to make a special privilege rule under section 112A; or (b) has imposed unreasonable maintenance obligations on the grantee under section 112A (3) (a); or (c) has unreasonably refused to amend or revoke a special privilege rule under section 112B. grantee includes a prospective grantee.

129 Kinds of ACAT orders (1) The ACAT may make the following orders: (a) an order requiring a party to do, or refrain from doing, a stated thing; (b) an order requiring a party to exercise a function under this Act; (c) an order requiring an owners corporation to do a stated thing that is ancillary to a function of the corporation under this Act; (d) an order requiring a person to pay to the Territory or someone else an amount of not more than $1 000; (e) a declaration— (i) that a general meeting or executive committee meeting is void for irregularity; or (ii) that a resolution of a general meeting or executive committee meeting is void for irregularity; or (iii) that a rule of the owners corporation is invalid— (A) because the owners corporation does not have the power to make the rule; or (B) under section 108 (3); or (C) for irregularity; or (iv) for an application made under section 127 (1) (d)—that the rule is invalid on the ground that the method in the resolution used to work out the proportion of fund contributions to be paid by each unit owner is not fair; (f) an order repealing or amending a resolution of a general meeting or executive committee based on a merits review of the resolution by the ACAT;

(g) an order giving effect to an unsuccessful motion for a resolution of a general meeting (either as originally proposed or as amended by the ACAT) if the ACAT is satisfied after a merits review of the motion that opposition to the motion was unreasonable; (h) an order requiring stated accounts of an owners corporation to be audited, whether by a stated person or a person of a stated kind; (i) an order allowing an applicant to examine records of the owners corporation; (j) an order requiring an owners corporation to make or repeal a rule and register a copy of the resolution making or repealing the rule; (k) an order appointing an administrator to exercise all or stated functions of the owners corporation, the executive committee or an office-holder in the committee; (l) if the dispute relates to a unit owner or occupier keeping an animal, or allowing an animal to be kept, within the unit and the ACAT considers that the animal causes a nuisance to the owner or occupier of another unit, or unreasonably interferes with the use or enjoyment of another unit or of the common property— (i) an order to remove the animal from the premises within a stated time; or (ii) any other order the ACAT considers will end the nuisance or the unreasonable interference with use or enjoyment. (2) The ACAT may make any other order it considers reasonably necessary or convenient to resolve a dispute under this part.

(3) A declaration by the ACAT under subsection (1) (e) (iii) or (iv) that a rule is invalid— (a) has effect as if the rule were repealed by special resolution of the owners corporation on the day the declaration is made; and (b) must be lodged by the owners corporation with the registrar-general for the registration of alternative rules under the Land Titles (Unit Titles) Act 1970, section 27A. (4) In considering whether to make an order in relation to a special privilege in relation to common property, the ACAT must have regard to— (a) the interests of all unit owners in the use and enjoyment of their unit and the common property; and (b) the rights and reasonable expectations of a person deriving or anticipating a benefit under a special privilege in relation to the (5) This section does not limit the orders the ACAT may make in relation to a dispute under this part.

Protection of financiers for service contracts Part 9

Part 9 Protection of financiers for service contracts

130 Meaning of financed service contract and financier—pt 9 In this part: financed service contract means a service contract financed by a financier under section 131. financier—see section 131.

131 Who is a financier for a service contract? (1) A person is a financier for a service contract if— (a) the person— (i) is a financial institution; or (ii) in the ordinary course of the person’s business, supplies, or might reasonably be expected to supply, finance for business acquisitions, using charges over contracts for security; or (iii) if the contract exists immediately before the commencement of this part—at the time the finance was supplied for a business acquisition using a charge over the contract for security, was a person mentioned in subparagraph (ii); and (b) a service contractor for the contract and the person give written notice signed by each of them to the owners corporation that the person is a financier for the contract. (2) A person stops being a financier for a service contract if the person gives the owners corporation written notice withdrawing the notice given under subsection (1).

(3) A notice under subsection (2) may be given without the service contractor’s agreement.

132 Financed service contract—notice of change The owners corporation for a units plan must give the financier for a financed service contract written notice of— (a) any change made to the contract by the corporation and the service contractor; or (b) any arrangement entered into by the corporation and the service contractor that affects the contract.

133 Financed service contract—limitation on ending (1) The owners corporation for a units plan may end a financed service contract only if— (a) the corporation gives the financier written notice that the corporation has the right to end the contract; and (b) when the notice is given to the financier, the corporation has the right to end the contract; and (c) the corporation gives the notice to the financier not less than 21 days before the day the contract is ended. (2) However, the owners corporation may not end the financed service contract if, under an arrangement between the financier and the service contractor, the financier has given the corporation notice under section 134. (3) Subsection (2) does not stop the owners corporation ending a service contract for something done or not done after the financier started to act under the contract. (4) This section does not stop a financed service contract ending by agreement between the owners corporation, service contractor and financier.

Protection of financiers for service contracts Part 9

134 Financed service contract—person authorised to act for financier (1) The financier for a financed service contract may take the following action: (a) act under the contract in place of the contractor; (b) appoint a receiver, or a receiver and manager, for the contract. (2) However, the financier may only take action under subsection (1) if— (a) the financier has given written notice to the owners corporation of the financier’s intention to take the action; and (b) at the time the notice is given to the owners corporation, the corporation— (i) has not given the financier notice under section 133 (1) (c); or (ii) has given and withdrawn the notice to the financier. (3) The financier may authorise a person to act for the financier for subsection (1) (a) if— (a) the person is not the service contractor or an associate of the contractor; and (b) the owners corporation approves the person. (4) In deciding whether to approve a person under subsection (3), the owners corporation— (a) must act reasonably in the circumstances and decide as soon as practicable; and (b) may only consider— (i) the person’s character; and (ii) the person’s competence, qualifications and experience.

(5) However, the owners corporation must not— (a) unreasonably withhold the person’s approval; or person, other than reimbursement of legal or administrative

135 Financed service contract—agreement between owners corporation and financier prohibited (1) A financier for a financed service contract must not enter into an agreement or other arrangement with the owners corporation under the contract for a matter relating to— (a) the financier’s role for the contract; or (b) arrangements between the financier and service contractor under which the financier is acting, or may act, under the contract in the contractor’s place; or (c) the operation of this part in relation to the contract. (2) An agreement or arrangement to which this section applies is void to the extent it contravenes this section.

Administrators Part 10 Interested parties Division 10.1

Division 10.1 Interested parties

136 Who may apply for an administration order? Any of the following people (an interested party) may apply to the ACAT for an order under division 10.2 (an administration order) in relation to the administration of an owners corporation: (a) the corporation; (b) a creditor of the corporation; (c) a unit owner, or anyone else with an interest in a unit, or the common property, that is recorded in the corporate register; (d) the director-general, on behalf of the Territory.

137 ACAT appearances and service of applications (1) An interested party has a right to appear on an application by another interested party for an administration order. (2) The applicant must serve a copy of the application on every other interested party, except the creditors (or the other creditors) of the owners corporation and the director-general. Note The applicant may serve the application on an interested person at the person’s address for correspondence shown on the corporate register. Other forms of service are also permitted. See s 124. (3) The owners corporation must serve all its creditors with a copy of the application— (a) if the owners corporation is the applicant—after making the application; or (b) in any other case—on being served with a copy of the application. (4) An interested party may be represented by a lawyer or someone else.

(5) The registrar of the ACAT must give a copy of an application to the director-general, unless the director-general is the applicant.

138 Appointment of administrator (1) On an application by an interested party, the ACAT may, by order, appoint the person named in the application to be administrator of the owners corporation on the terms about remuneration and anything else it considers appropriate. Note For the making of appointments (including acting appointments), see the Legislation Act, pt 19.3. (2) The ACAT may make an order appointing an administrator only if satisfied that the administrator consents to the order. (3) In an order appointing an administrator, the ACAT may give any directions it considers appropriate for giving notice of the order to the administrator, the registrar-general and the owners corporation. (4) The remuneration of an administrator of an owners corporation and the expenses incurred in the exercise of the administrator’s functions under this Act are taken to be expenditure incurred by the corporation.

139 Removal or replacement of administrator (1) On an application by an interested party, the ACAT may, by order, remove or replace an administrator. (2) In an order removing or replacing an administrator, the ACAT may give any directions it considers appropriate for giving notice of the order to the registrar-general and the owners corporation.

140 Functions of administrator (1) The administrator of an owners corporation has all the functions of the corporation to the exclusion of the corporation and its executive committee.

Administrators Part 10 Appointment, removal and functions Division 10.2 (2) However, an order of the ACAT under subsection (3) is required for an administrator to do anything that is required by this Act to be authorised by an unopposed or unanimous resolution. (3) On application by an interested party, the ACAT may make any order it considers appropriate about the exercise of the administrator’s functions, including, for example, an order mentioned in

141 Delegation by administrator The administrator of an owners corporation may delegate the administrator’s functions to anyone else. Note A function that has been delegated by the administrator may, despite the delegation, be exercised by the administrator (see Legislation Act, s 240). For the making of delegations and the exercise of delegated functions generally, see the Legislation Act, pt 19.4.

142 Mortgage insurance of unit If the interest of a unit owner is subject to a mortgage, the owner may take out 1 or more policies of insurance (a mortgage insurance policy) for indemnity against liability under the mortgage arising out of damage to, or destruction of, the unit.

143 Payment under mortgage insurance policies (1) If a mortgage insurance policy is in force for a unit, the insurer is liable to pay to a mortgagee whose interest is noted on the policy the least of the following amounts: (a) the amount insured as stated in the policy; (b) the amount of the loss; (c) the amount sufficient, at the date of the loss, to discharge the mortgage noted on the policy. (2) If the interests of 2 or more mortgagees are noted on the policy, subsection (1) applies to the mortgagees in their order of registered priority.

144 Transfer of mortgagee’s interest to insurer (1) Payment by the insurer to a mortgagee under section 143 does not entitle the unit owner to a discharge of the mortgage. (2) On payment by the insurer to a mortgagee under section 143— (a) if the amount paid equals the amount necessary to discharge the mortgage—the insurer is entitled to obtain from the mortgagee a transfer of the mortgage; or

Miscellaneous Part 11 Miscellaneous Division 11.2 (b) if the amount paid is less than the amount necessary to discharge the mortgage—the insurer is entitled to obtain from the mortgagee a transfer of an undivided share of the mortgagee’s interest in the mortgage that bears to that interest the same proportion as the amount paid bears to the amount that was owing under the mortgage immediately before the payment.

145 Determination of fees (1) The Minister may determine fees for this Act (other than fees that this Act provides are to be fixed by an owners corporation). (2) A determination is a disallowable instrument.

146 Approved forms (1) The Minister may approve forms for this Act. (2) If the Minister approves a form for a particular purpose, the approved form must be used for that purpose. (3) An approved form is a notifiable instrument.

147 Regulation-making power (1) The Executive may make regulations for this Act. (2) A regulation may— (a) exempt a units plan from the application of a provision of this Act; or (b) for schedule 3, section 3.31A (Alternative voting mechanism)— prescribe or prohibit a method or process that may be agreed by an owners corporation for voting on a matter.

Note Power to make a statutory instrument (including a regulation) includes power to make different provision in relation to different matters or different classes of matters, and to make an instrument that applies differently by reference to stated exceptions or factors (see Legislation Act, s 48). (3) A regulation may create offences and fix maximum penalties of not more than 60 penalty units for the offences.

Executive committees—code of conduct Part 1.1 (see s 46 and s 56)