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This is a Bill, not an Act. For current law, see the Acts databases.
Strata Legislation Amendment Bill
2011
No , 2011
A Bill for
An Act to amend the Strata Schemes Management Act 1996 in relation to the
obligations of owners corporations, executive committees and owners and occupiers
of lots, procedures for meetings and the finances of strata schemes; and for other
purposes.
Clause 1 Strata Legislation Amendment Bill 2011
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the Strata Legislation Amendment Act 2011. 3
2 Commencement 4
This Act commences on the date of assent to this Act. 5
Page 2
Strata Legislation Amendment Bill 2011
Amendment of Strata Schemes Management Act 1996 No 138 Schedule 1
Schedule 1 Amendment of Strata Schemes 1
Management Act 1996 No 138 2
[1] Section 25A 3
Insert after section 25: 4
25A Code of conduct for members of executive committee 5
(1) The code of conduct in Schedule 1A applies to each member of 6
the executive committee of an owners corporation. 7
(2) Nothing in this section prevents the regulations prescribing 8
further provisions as a code of conduct for members of the 9
executive committee of an owners corporation. 10
Note. Section 246 (2) (n) and (o) enable regulations to be made with 11
respect to a code of conduct for members of an executive committee of 12
an owners corporation and in relation to breaches of such codes of 13
conduct and of Schedule 1A. 14
[2] Sections 27A and 27B 15
Insert after section 27: 16
27A Prohibition on certain persons holding position of strata 17
managing agent 18
(1) The following persons may not be appointed as a strata managing 19
agent of a strata scheme during the relevant period: 20
(a) the original owner, 21
(b) if the original owner is a corporation: 22
(i) a corporation that, within the meaning of the 23
Corporations Act 2001 of the Commonwealth, is a 24
related body corporate of the original owner, or 25
(ii) a corporation that holds shares in the original owner 26
or in a related body corporate of the original owner, 27
(c) if the original owner is an individual: 28
(i) a corporation that employs the original owner, or 29
(ii) a corporation in respect of which the original owner 30
holds shares, or 31
(iii) a corporation in respect of which the original owner 32
occupies a position of authority, 33
(d) a builder who has carried out prescribed building work for 34
the strata scheme. 35
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Strata Legislation Amendment Bill 2011
Schedule 1 Amendment of Strata Schemes Management Act 1996 No 138
(2) If an owners corporation or executive committee of a strata 1
scheme becomes aware after the appointment of a person as a 2
strata managing agent of the scheme that the person cannot hold 3
the position of agent because of subsection (1), the owners 4
corporation or executive committee must terminate the strata 5
managing agent's appointment as soon as possible. 6
(3) An owners corporation or executive committee may terminate 7
the appointment of a strata managing agent in accordance with 8
this section whether or not the instrument of appointment of the 9
strata managing agent provides for termination under this section 10
and any such termination does not constitute a breach of contract. 11
(4) No person is entitled to compensation or damages as a result of 12
the termination of the appointment of a strata managing agent in 13
accordance with this section. 14
(5) Nothing in this section: 15
(a) requires the termination of the appointment of a strata 16
managing agent who is a person referred to in 17
subsection (1) if the relevant period has expired, or 18
(b) affects the validity of any function exercised by a person 19
referred to in subsection (1) in the capacity of a strata 20
managing agent during the relevant period if the person's 21
appointment as strata managing agent had not been 22
terminated before the exercise of the function. 23
(6) In this section: 24
prescribed building work means any building work that: 25
(a) is required to be completed for the issue of a strata 26
certificate in relation to a strata scheme under the Strata 27
Schemes (Freehold Development) Act 1973 or the Strata 28
Schemes (Leasehold Development) Act 1986, and 29
(b) is residential building work or specialist work for which a 30
contractor licence is required under the Home Building Act 31
1989. 32
relevant period means: 33
(a) in relation to a person referred to in subsection (1) (a)(c), 34
the period ending 10 years from the completion of all the 35
prescribed building work for the strata scheme concerned, 36
and 37
(b) in relation to a person referred to in subsection (1) (d), the 38
period ending 10 years from the completion of the 39
prescribed building work carried out by the person for the 40
strata scheme concerned. 41
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Strata Legislation Amendment Bill 2011
Amendment of Strata Schemes Management Act 1996 No 138 Schedule 1
(7) This section does not apply to a strata scheme unless all the lots 1
in the scheme are used principally for residential purposes. 2
27B Requirement to disclose certain connections 3
(1) For the purposes of this section, each of the following persons is 4
a relevant person in relation to a strata scheme: 5
(a) the original owner, 6
(b) a caretaker appointed for the strata scheme, 7
(c) a person who is a party to a contract with the owners 8
corporation, 9
(d) a letting agent for the owner of any lot within the strata 10
scheme, being a person who carries on the business of 11
acting as the agent of the owner for the purposes of 12
securing, negotiating or enforcing (including collecting 13
rents or tariffs for) leases or other occupancies in respect 14
of the lot or part of the lot, 15
(e) a builder who carried out prescribed building work (within 16
the meaning of section 27A) in relation to the strata 17
scheme. 18
(2) Before accepting an appointment as a strata managing agent of a 19
strata scheme, a person must disclose in writing to the owners 20
corporation the following information: 21
(a) any connection that the person has with a relevant person, 22
(b) the nature and extent of the connection, 23
(c) the nature and extent of the relevant person's connection 24
with the strata scheme. 25
Maximum penalty: 55 penalty units. 26
(3) It is a defence to a prosecution for an offence against 27
subsection (2) if the defendant establishes that, when accepting 28
the appointment as strata managing agent, the defendant did not 29
know, and could not reasonably be expected to have known, that 30
the defendant was connected with a relevant person. 31
(4) As soon as possible after a strata managing agent of a strata 32
scheme becomes aware, or ought reasonably to have become 33
aware, that the agent is connected with a relevant person, the 34
agent must disclose in writing to the owners corporation the 35
following information: 36
(a) any connection that the agent has with the relevant person, 37
(b) the date on which the connection commenced, 38
(c) the nature and extent of the connection, 39
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Strata Legislation Amendment Bill 2011
Schedule 1 Amendment of Strata Schemes Management Act 1996 No 138
(d) the nature and extent of the relevant person's connection 1
with the strata scheme. 2
Maximum penalty: 55 penalty units. 3
(5) It is a defence to a prosecution for an offence against 4
subsection (2) or subsection (4) for a failure to disclose the 5
information referred to in subsection (2) (c) or (4) (d), 6
respectively, if the defendant establishes that the defendant did 7
not know, and could not reasonably be expected to have known, 8
the information required to be disclosed. 9
(6) If an owners corporation or executive committee of a strata 10
scheme becomes aware after the appointment of a strata 11
managing agent for the scheme that the agent is connected with a 12
relevant person, the owners corporation or the executive 13
committee may terminate the appointment of the agent. 14
(7) An owners corporation or executive committee may terminate 15
the appointment of a strata managing agent in accordance with 16
this section whether or not the instrument of appointment of the 17
strata managing agent provides for termination under this section 18
and any such termination does not constitute a breach of contract. 19
(8) No person is entitled to compensation or damages as a result of 20
the termination of the appointment of a strata managing agent in 21
accordance with this section. 22
(9) This section does not apply to a strata scheme unless all the lots 23
in the scheme are used principally for residential purposes. 24
[3] Section 40D 25
Insert after section 40C: 26
40D Prohibition on certain persons holding position of caretaker 27
(1) The following persons may not be appointed as a caretaker for a 28
strata scheme: 29
(a) the original owner, 30
(b) a person (referred to in this section as the contractor) with 31
whom the owners corporation entered into a contract 32
during the initial period for the supply of goods or services, 33
or both, to the owners corporation for a period greater than 34
2 years, 35
(c) if the original owner or contractor is a corporation: 36
(i) a corporation that, within the meaning of the 37
Corporations Act 2001 of the Commonwealth, is a 38
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Strata Legislation Amendment Bill 2011
Amendment of Strata Schemes Management Act 1996 No 138 Schedule 1
related body corporate of the original owner or 1
contractor, or 2
(ii) a corporation that holds shares in the original owner 3
or contractor or in a related body corporate of the 4
original owner or contractor, 5
(d) if the original owner or contractor is an individual: 6
(i) a corporation that employs the original owner or 7
contractor, or 8
(ii) a corporation in respect of which the original owner 9
or contractor holds shares, or 10
(iii) a corporation in respect of which the original owner 11
or contractor occupies a position of authority. 12
(2) If an owners corporation for a strata scheme becomes aware after 13
the appointment of a caretaker for the scheme that the caretaker 14
is a person referred to in subsection (1), the owners corporation 15
must: 16
(a) terminate the caretaker's appointment, and 17
(b) determine whether a new caretaker is to be appointed. 18
(3) The action required to be taken by the owners corporation under 19
subsection (2) is to be taken: 20
(a) at the general meeting of the owners corporation at which 21
the owners corporation becomes aware that the caretaker is 22
a person referred to in subsection (1), or 23
(b) if the owners corporation becomes aware that the caretaker 24
is a person referred to in subsection (1) otherwise than at a 25
general meeting, at the next general meeting after the 26
owners corporation becomes so aware. 27
(4) An owners corporation may terminate the appointment of a 28
caretaker in accordance with this section whether or not the 29
caretaker agreement provides for termination under this section 30
and any such termination does not constitute a breach of contract. 31
(5) No person is entitled to compensation or damages as a result of 32
the termination of the appointment of a caretaker in accordance 33
with this section. 34
(6) This section does not apply to a strata scheme unless all the lots 35
in the scheme are used principally for residential purposes. 36
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Strata Legislation Amendment Bill 2011
Schedule 1 Amendment of Strata Schemes Management Act 1996 No 138
[4] Section 71 What money can be paid out of the sinking fund? 1
Insert after section 71 (1) (a): 2
(a1) payments to meet expenses for which a contribution to the 3
sinking fund has been levied under section 76 (4), or 4
[5] Section 76 Owners corporation to set levy for contributions to 5
administrative and sinking funds 6
Insert "or the sinking fund (as the case may be)" after "administrative fund" in 7
section 76 (4). 8
[6] Section 76 (6) and (7) 9
Insert after section 76 (5): 10
(6) Despite any other provision of this Act, if a quorum is not present 11
as required by clause 12 (5) of Schedule 2 at an adjourned annual 12
general meeting of the owners corporation at which the amounts 13
to be levied as contributions to the administrative fund and 14
sinking fund are to be determined, those amounts are taken to 15
have been determined to be the same amounts as the 16
contributions last determined, increased to take account of the 17
relevant Consumer Price Index. 18
(7) For the purposes of subsection (6), the relevant Consumer Price 19
Index is the Consumer Price Index (All Groups Index) for 20
Sydney last issued by the Australian Statistician before the date 21
of the adjourned annual general meeting. 22
[7] Section 87 What other insurance must an owners corporation take out? 23
Omit "$10,000,000" from section 87 (2). Insert instead "$20,000,000". 24
[8] Section 98 What must be recorded or included in the strata roll? 25
Insert "or included" after "recorded" in section 98 (2). 26
[9] Section 98 (2) (f)(j) 27
Insert after section 98 (2) (e): 28
(f) a copy of each licence granted by the owners corporation 29
for the use of common property and that is in force, 30
(g) copies of plans and approvals for all building work that has 31
been carried out on the common property, 32
(h) copies of plans and approvals of building work that has 33
been carried out on any other property in the strata scheme 34
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Strata Legislation Amendment Bill 2011
Amendment of Strata Schemes Management Act 1996 No 138 Schedule 1
if those plans and approvals can lawfully be obtained or 1
required by the owners corporation, 2
(i) details of each loan to the owners corporation, 3
(j) a copy of each special resolution passed for the purposes 4
of section 65A. 5
[10] Section 98 (3) 6
Insert after section 98 (2): 7
(3) The strata roll must contain an index of all documents held by the 8
owners corporation that are required to be recorded or included 9
in the strata roll. 10
[11] Sections 117A and 117B 11
Insert after section 117: 12
117A Owner and occupier liable for damage to common property 13
caused by occupier 14
(1) The owner and occupier of a lot are jointly and severally liable 15
for damage caused to the common property by the occupier. 16
(2) The owner of a lot is entitled to be indemnified by an occupier of 17
the lot for any amount of damage caused to the common property 18
by the occupier in respect of which the owner is liable under 19
subsection (1). 20
117B Owner and occupier not to permit overcrowding 21
The owner and occupier of a lot must not permit more persons 22
over the age of 18 years to reside on the lot than the number 23
obtained by multiplying by 2 the number of rooms in the lot that 24
were constructed for the purpose of bedrooms or sleeping areas. 25
[12] Chapter 5 Disputes and orders of Adjudicators and Tribunal 26
Insert under the heading General orders for settlement of disputes after the 27
matter relating to section 139 in the introductory note: 28
To settle disputes concerning a Person bound by the contract 183C
strata development contract
To settle disputes or rectify Person bound by the statement 183D
complaints concerning
management of a building or its
site subject to a strata
management statement
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Strata Legislation Amendment Bill 2011
Schedule 1 Amendment of Strata Schemes Management Act 1996 No 138
[13] Chapter 5, introductory note 1
Omit the matter relating to orders appointing strata managing agents. 2
Insert instead: 3
Orders appointing strata managing agents and terminating appoint-
ments
To appoint strata managing Person who obtained order 162
agent under this Act that imposed
duty on owners corporation or
office holder of executive
committee that has not been
complied with
Person having estate or interest
in lot or, in the case of leasehold
strata scheme, lease of lot
Authority having benefit of
positive covenant that imposes
duty on owners corporation
Judgment creditor to whom
owners corporation owes
judgment debt
To terminate appointment of Owners corporation 162
strata managing agent Owner of lot
[14] Chapter 5, Part 4, Division 10, heading 4
Insert "and terminating appointments" after "agents". 5
[15] Section 162 Orders appointing strata managing agent to exercise certain 6
functions or terminating appointment of strata managing agent 7
Insert after section 162 (2): 8
(2A) Order terminating appointment of strata managing agent 9
An Adjudicator may by order terminate the appointment of a 10
strata managing agent. 11
[16] Section 162 (3A) 12
Insert at the end of section 162 (3A) (d): 13
, or 14
(e) a strata managing agent's appointment should be 15
terminated because the agent is a person referred to in 16
section 27A (1). 17
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Strata Legislation Amendment Bill 2011
Amendment of Strata Schemes Management Act 1996 No 138 Schedule 1
[17] Section 162 (7) 1
Insert "(other than an order under subsection (2A))" after "under this section". 2
[18] Section 162 (8) 3
Insert after section 162 (7): 4
(8) An application for an order under subsection (2A) may be made 5
only by the owners corporation or the owner of a lot in the strata 6
scheme concerned. 7
[19] Sections 183C and 183D 8
Insert after section 183B: 9
183C Orders relating to strata development contracts 10
(1) The Tribunal may make an order to settle a dispute in relation to 11
a strata development contract, but only if: 12
(a) the strata development contract provides for the reference 13
of disputes to the Tribunal or makes no provision for 14
settling disputes, or 15
(b) in a case where the strata development contract provides 16
for some other method of settling disputes, the Tribunal is 17
of the opinion that the method provided for in the contract 18
has been tried and has not resulted in the settlement of the 19
dispute concerned. 20
(2) An application for an order under this section may be made only 21
by a person who is bound by the strata development contract. 22
183D Orders relating to strata management statements 23
(1) The Tribunal may make an order to settle a dispute, or rectify a 24
complaint, concerning the management of a building or its site 25
that is subject to a strata management statement, but only if: 26
(a) the strata management statement provides for the reference 27
of disputes or complaints to the Tribunal, or 28
(b) in a case where the strata management statement does not 29
so provide, the Tribunal is of the opinion that the method 30
of settling such disputes or rectifying such complaints 31
provided for in the statement has been tried and has not 32
resulted in the settlement of the dispute or rectification of 33
the complaint concerned. 34
(2) An application for an order under this section may be made only 35
by a person who is bound by the strata management statement. 36
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Strata Legislation Amendment Bill 2011
Schedule 1 Amendment of Strata Schemes Management Act 1996 No 138
[20] Section 198 Contempt of Tribunal 1
Omit "5 penalty units" wherever occurring in section 198 (1) and (2). 2
Insert instead "50 penalty units". 3
[21] Section 201A 4
Insert after section 201: 5
201A Failure to comply with order of Tribunal or Adjudicator 6
(1) A person who is subject to an order under this Chapter must not 7
contravene the order. 8
Maximum penalty: 200 penalty units. 9
(2) A person is not liable to any penalty in respect of an offence 10
under this section if the person has been ordered to pay a civil 11
penalty under section 202 in respect of the same contravention. 12
[22] Chapter 7, Part 1A, heading 13
Omit the heading. Insert instead: 14
Part 1A Legal services provided to owners 15
corporation 16
[23] Section 230B 17
Insert after section 230A: 18
230B Requirement to disclose certain connections 19
(1) Before undertaking to provide any legal services to an owners 20
corporation, a legal practitioner must disclose in writing to the 21
owners corporation if the practitioner is connected with the 22
original owner. 23
Maximum penalty: 55 penalty units. 24
(2) It is a defence to a prosecution for an offence against 25
subsection (1) if the defendant establishes that, when undertaking 26
to perform those legal services, the defendant did not know, and 27
could not reasonably be expected to have known, that the 28
defendant was connected with the original owner. 29
(3) As soon as possible after a legal practitioner who is providing 30
legal services to an owners corporation becomes aware, or ought 31
reasonably to have become aware, that the practitioner is 32
connected with the original owner, the practitioner must disclose 33
in writing to the owners corporation any connection that the 34
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Strata Legislation Amendment Bill 2011
Amendment of Strata Schemes Management Act 1996 No 138 Schedule 1
person has with the original owner and the date when the 1
connection commenced. 2
Maximum penalty: 55 penalty units. 3
(4) If an owners corporation or executive committee of a strata 4
scheme becomes aware after engaging a legal practitioner to 5
provide legal services in relation to the scheme that the 6
practitioner is connected with the original owner, the owners 7
corporation is, within 42 days, to determine at a general meeting 8
whether the practitioner's engagement should be terminated and 9
a different practitioner engaged. 10
(5) Subsection (4) does not prevent the owners corporation or 11
executive committee from terminating the engagement of the 12
legal practitioner at any time for any other reason. 13
(6) The termination of the engagement of a legal practitioner in 14
accordance with this section does not constitute a breach of 15
contract and no person is entitled to compensation or damages as 16
a result of the termination. 17
[24] Section 235 Service of documents on an owners corporation 18
Omit section 235 (1). Insert instead: 19
(1) A summons or other legal process may be served on an owners 20
corporation by doing both of the following: 21
(a) posting it, by prepaid mail, to the owners corporation at the 22
address recorded in the folio of the Register as the address 23
for the service of documents on the owners corporation, 24
(b) posting it, by prepaid mail, to the owners corporation at the 25
address of the strata scheme concerned (if different to the 26
address referred to in paragraph (a)) or leaving it in the 27
letterbox of the owners corporation. 28
[25] Section 236 Service of documents by owners corporation and others 29
Insert after section 236 (6): 30
(7) Service of certain documents by electronic means 31
A notice or other document that is required to be given to a person 32
under this Act by an owners corporation or an executive 33
committee may be given to the person by electronic means, but 34
only if the person has given the owners corporation an e-mail 35
address for the service of notices under this Act and the notice is 36
sent to that address. 37
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Strata Legislation Amendment Bill 2011
Schedule 1 Amendment of Strata Schemes Management Act 1996 No 138
[26] Section 239 Change of owners corporation's address 1
Insert "and other documents" after "notices" in section 239 (1). 2
[27] Section 246 Regulations 3
Insert after section 246 (2) (l): 4
(m) the procedures to be observed by the chairperson and 5
secretary in relation to meetings of the owners corporation 6
and by persons presiding at such meetings, 7
(n) a code of conduct for the chairperson, secretary or 8
treasurer of an owners corporation or the members of the 9
executive committee of an owners corporation, 10
(o) breaches of any provision of a code of conduct referred to 11
in Schedule 1A or prescribed by the regulations. 12
[28] Section 246 (2A) 13
Insert after section 246 (2): 14
(2A) A regulation relating to the matter referred to in 15
subsection (2) (m), (n) or (o) may apply, adopt or incorporate by 16
reference wholly or partly, and with or without modification, any 17
published document as in force at a particular time or as in force 18
from time to time. 19
[29] Schedule 1A 20
Insert before Schedule 1: 21
Schedule 1A Code of conduct for members of 22
executive committee 23
(Sections 25A and 246 (2) (o)) 24
1 Commitment to acquiring understanding of Act, including this 25
code 26
A member of an executive committee must have a commitment 27
to acquiring an understanding of this Act, including this code of 28
conduct, relevant to the member's role on the committee. 29
2 Honesty, fairness and confidentiality 30
(1) A member of an executive committee must act honestly and 31
fairly in performing the member's duties as such a member. 32
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Strata Legislation Amendment Bill 2011
Amendment of Strata Schemes Management Act 1996 No 138 Schedule 1
(2) A member of an executive committee must not unfairly or 1
unreasonably disclose information held by the owners 2
corporation, including information about an owner of a lot, unless 3
authorised or required by law to do so. 4
3 Acting in owners corporation's best interests 5
A member of an executive committee must act in the best 6
interests of the owners corporation in performing the member's 7
duties as such a member, unless it is unlawful to do so. 8
4 Complying with Act and this code 9
A member of an executive committee must take reasonable steps 10
to ensure the member complies with this Act, including this code, 11
in performing the member's duties as such a member. 12
5 Nuisance 13
A member of an executive committee must not: 14
(a) cause a nuisance on the common property of the strata 15
scheme, or 16
(b) otherwise behave in a way that unreasonably affects a 17
person's lawful use or enjoyment of a lot or common 18
property. 19
6 Conflict of interest 20
A member of an executive committee must disclose to the 21
committee any conflict of interest the member may have in a 22
matter before the committee. 23
[30] Schedule 2 Meetings and procedure of owners corporation 24
Insert after clause 10 (8): 25
(8A) For the purposes of subclause (8), payment by means of a cheque 26
of an amount owing is taken to have been made before a meeting 27
only if the cheque was received at least 5 clear working days 28
before the meeting and no notice has been received by the time of 29
the meeting of the cheque having been dishonoured. 30
[31] Schedule 2, clause 19 (2A) 31
Insert after clause 19 (2): 32
(2A) In the case of a poll demanded after a vote has been taken, the 33
demand may be made no later than the completion of 34
consideration of the next item on the agenda if one or more items 35
on the agenda remain to be considered. 36
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Strata Legislation Amendment Bill 2011
Schedule 1 Amendment of Strata Schemes Management Act 1996 No 138
[32] Schedule 2, clause 31 (1) 1
Omit "An". Insert instead "Subject to subclause (1A), an". 2
[33] Schedule 2, clause 31 (1A) 3
Insert after clause 31 (1): 4
(1A) An owners corporation may vary the time at which the annual 5
general meeting is required to be held by resolution passed at a 6
general meeting so long as: 7
(a) the variation results in an annual general meeting being 8
held in each year, and 9
(b) the time for holding the meeting has not already been 10
varied by order of an Adjudicator under section 152. 11
[34] Schedule 2, clauses 33A and 33B 12
Insert after clause 33: 13
33A Notice of general meeting including proposal relating to by-laws 14
Notice of a general meeting that includes a form of motion to 15
amend, repeal or substitute a by-law must include a report 16
prepared by the proponent of the motion explaining the intent of 17
the proposed amendment, repeal or substitution of the by-law. 18
33B Notice of general meeting to include disclosures 19
Notice of a general meeting must include a copy of any disclosure 20
made to the owners corporation by a strata managing agent under 21
section 27B, or a legal practitioner under section 230B, since the 22
last general meeting. 23
[35] Schedule 2, clause 34 (b1) 24
Insert after clause 34 (b): 25
(b1) include proposed estimates of amounts needed to be 26
credited to the administrative and sinking funds as referred 27
to in section 75 and proposed amounts of contributions 28
based on the proposed estimates, and 29
[36] Schedule 3 Constitution of executive committee of the owners 30
corporation and meetings of executive committee 31
Omit "or caretaker" wherever occurring in clause 3A (1), (3) and (4). 32
Insert instead ", caretaker or strata managing agent". 33
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Amendment of Strata Schemes Management Act 1996 No 138 Schedule 1
[37] Schedule 3, clause 3A (1A)(1D) 1
Insert after clause 3A (1): 2
(1A) A person who is elected as a member of the executive committee 3
after failing to make a disclosure in accordance with 4
subclause (1) in relation to that election is guilty of an offence. 5
Maximum penalty: 55 penalty units. 6
(1B) A member of the executive committee is guilty of an offence in 7
relation to each occasion on which the member votes on a matter 8
being considered by the executive committee after failing to 9
make a disclosure in accordance with subclause (1) or (4). 10
Maximum penalty: 55 penalty units. 11
(1C) If an owners corporation becomes aware after the election of a 12
member of the executive committee that the member is connected 13
with the original owner, caretaker or strata managing agent, the 14
owners corporation must: 15
(a) declare the member's position vacant, and 16
(b) determine whether a new member of the executive 17
committee is to be elected. 18
(1D) The action required to be taken by the owners corporation under 19
subclause (1C) is to be taken: 20
(a) at the general meeting at which the owners corporation 21
becomes aware that the member is connected with the 22
original owner, caretaker or strata managing agent, or 23
(b) if the owners corporation becomes aware that the member 24
is connected with the original owner, caretaker or strata 25
managing agent otherwise than at a general meeting, at the 26
next general meeting after the owners corporation 27
becomes so aware. 28
[38] Schedule 3, clause 3A (3A)(3D) 29
Insert after clause 3A (3): 30
(3A) A person who is appointed to act in the place of a member of the 31
executive committee after failing to make a disclosure in 32
accordance with subclause (3) in relation to that appointment is 33
guilty of an offence. 34
Maximum penalty: 55 penalty units. 35
(3B) A person who is appointed to act in the place of a member of the 36
executive committee is guilty of an offence in relation to each 37
occasion on which the person votes on a matter being considered 38
by the executive committee as a member of the executive 39
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Strata Legislation Amendment Bill 2011
Schedule 1 Amendment of Strata Schemes Management Act 1996 No 138
committee after failing to make a disclosure in accordance with 1
subclause (3) or (4). 2
Maximum penalty: 55 penalty units. 3
(3C) If an executive committee becomes aware after the appointment 4
of a person to act in the place of a member of the executive 5
committee that the person is connected with the original owner, 6
caretaker or strata managing agent, the executive committee 7
must: 8
(a) withdraw its consent to the person's appointment, and 9
(b) determine whether to give consent to the appointment of a 10
different person to act in the place of the member of the 11
executive committee. 12
(3D) The action required to be taken by the executive committee under 13
subclause (3C) is to be taken: 14
(a) at the meeting of the executive committee at which the 15
committee becomes aware that the person concerned is 16
connected with the original owner, caretaker or strata 17
managing agent, or 18
(b) if the executive committee becomes aware that the person 19
concerned is connected with the original owner, caretaker 20
or strata managing agent otherwise than at a meeting of the 21
executive committee, at the next meeting of the executive 22
committee after the executive committee becomes so 23
aware. 24
[39] Schedule 3, clause 3A (4) 25
Insert at the end of the subclause: 26
Maximum penalty: 55 penalty units. 27
[40] Schedule 3, clause 6A 28
Insert after clause 6: 29
6A Notice of executive committee meeting to include disclosures 30
Notice of an executive committee meeting must include a copy of 31
any disclosure made to the owners corporation by a strata 32
managing agent under section 27B, or a legal practitioner under 33
section 230B, since the last executive committee meeting. 34
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Strata Legislation Amendment Bill 2011
Amendment of Strata Schemes Management Act 1996 No 138 Schedule 1
[41] Schedule 3, clause 17A 1
Insert after clause 17: 2
17A Transaction of meetings by telephone etc 3
The executive committee may, if it thinks fit, transact any of its 4
business at a meeting at which members (or some members) 5
participate by telephone, closed-circuit television or other means, 6
but only if any member who speaks on a matter before the 7
meeting can be heard by the other members and each other person 8
who is present at the meeting and entitled to attend. 9
[42] Schedule 4 Savings, transitional and other provisions 10
Insert at the end of clause 1 (1): 11
Strata Legislation Amendment Act 2011 12
[43] Schedule 4 13
Insert at the end of the Schedule with appropriate Part and clause numbers: 14
Part Provisions consequent on enactment of 15
Strata Legislation Amendment Act 2011 16
Definitions 17
(1) In this Part: 18
amending Act means the Strata Legislation Amendment Act 19
2011. 20
(2) In this Part, a reference to a provision of this Act is a reference to 21
that provision as inserted or amended by the amending Act. 22
Strata rolls 23
A requirement to record or include a document or information on 24
the strata roll that is imposed by an amendment to section 98 by 25
the amending Act extends to recording or including any such 26
document that was created before the commencement of the 27
amendment and any such information that related to an event that 28
occurred before that commencement if the document or 29
information is reasonably available. 30
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Strata Legislation Amendment Bill 2011
Schedule 1 Amendment of Strata Schemes Management Act 1996 No 138
Strata managing agents, caretakers and other appointments 1
(1) If a strata managing agent who is a person referred to in 2
section 27A (1) was appointed before the commencement of that 3
subsection: 4
(a) section 27A extends to the appointment of the strata 5
managing agent, and 6
(b) section 27A (2) is to be read as enabling the owners 7
corporation to terminate the strata managing agent's 8
appointment after that commencement rather than as 9
requiring the owners corporation to terminate the 10
appointment as soon as possible after becoming aware that 11
the agent was a person referred to in section 27A (1). 12
(2) Section 27B (2) is to be read as requiring a person who held the 13
position of strata managing agent immediately before the 14
commencement of that subsection to disclose, within 60 days 15
after that commencement, any connection with a relevant person 16
of which the agent was aware, or ought reasonably to have been 17
aware, before that commencement. 18
(3) A requirement in section 40D (2) to terminate a caretaker's 19
appointment: 20
(a) extends to caretakers appointed before the commencement 21
of that subsection, and 22
(b) is to be read as a requirement to terminate the appointment 23
within 60 days after the commencement of that subsection 24
if the owners corporation or executive committee became 25
aware before that commencement that the caretaker was a 26
person referred to in section 40D (1). 27
(4) Section 230B (3) is to be read as requiring a legal practitioner 28
who was providing legal services to an owners corporation 29
immediately before the commencement of that subsection to 30
disclose, within 60 days after that commencement, any 31
connection with the original owner of which the practitioner was 32
aware, or ought reasonably to have been aware, before that 33
commencement. 34
(5) A requirement in section 230B (4) in relation to the engagement 35
of a legal practitioner: 36
(a) extends to practitioners engaged before the 37
commencement of that subsection, and 38
(b) is to be read as a requirement to convene and hold a general 39
meeting within 60 days after the commencement of that 40
subsection if the owners corporation or executive 41
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Strata Legislation Amendment Bill 2011
Amendment of Strata Schemes Management Act 1996 No 138 Schedule 1
committee became aware before that commencement that 1
the practitioner was connected to the original owner. 2
Meetings and procedure 3
(1) Clause 10 (8A) of Schedule 2 does not apply to a payment made 4
by means of a cheque before the commencement of that 5
subclause. 6
(2) Clauses 33A, 33B and 34 (b1) of Schedule 2 and clause 6A of 7
Schedule 3 do not apply to notices sent before the 8
commencement of those provisions. 9
Insurance 10
The amendment made to section 87 by the amending Act does not 11
apply to an owners corporation until the next renewal of the 12
insurance required under that section occurring after the 13
commencement of that amendment. 14
Owner's and occupier's liability for damage to common property 15
Section 117A does not apply to or in respect of any damage to 16
common property occurring before the commencement of that 17
section. 18
Page 21
Strata Legislation Amendment Bill 2011
Schedule 2 Amendment of Strata Schemes Management Regulation 2010
Schedule 2 Amendment of Strata Schemes 1
Management Regulation 2010 2
Schedule 8 Forms 3
Omit the matter relating to item 17 in Form 1 (including the direction 4
immediately preceding the item). 5
Insert instead: 6
Item 17 must be completed if the strata scheme is required to 7
pay to any other person or body any amount relating to a 8
matter not included in the estimates of actual and expected 9
expenditure prepared under section 75 of the Act. 10
17 Amount payable to any other person or body not provided for in 11
the estimates prepared under section 75 of the Act 12
Name of person or body ........................................
Brief statement as to the purpose of the payment:
...............................................................................................................
...............................................................................................................
If next payment known: Amount Date Due
.......... ..........
Amount (if any) outstanding ........................................
Amount (if any) in credit ........................................
Page 22
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