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RESORTS AND OTHER ACTS AMENDMENT BILL 2009

          Queensland



Resorts and Other Acts
Amendment Bill 2009

 


 

 

Queensland Resorts and Other Acts Amendment Bill 2009 Contents Page Part 1 Preliminary 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Part 2 Amendment of Iconic Queensland Places Act 2008 3 Act amended in pt 2 and schedule . . . . . . . . . . . . . . . . . . . . . . . . 18 4 Amendment of s 42 (Application of div 3). . . . . . . . . . . . . . . . . . . 18 Part 3 Amendment of Integrated Resort Development Act 1987 5 Act amended in pt 3 and schedule . . . . . . . . . . . . . . . . . . . . . . . . 19 6 Amendment of s 2 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . 19 7 Insertion of new s 3A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3A References to standard module . . . . . . . . . . . . . . . . . 19 8 Amendment of s 4 (Application for approval of scheme) . . . . . . . 19 9 Amendment of s 9 (Application for amendment of approved scheme) ........................................ 20 10 Replacement of ss 10 and 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 10 Members to be notified of proposed amendment. . . . 20 11 Requirements for application . . . . . . . . . . . . . . . . . . . 21 11 Amendment of s 12 (Minister to consider application) . . . . . . . . . 21 12 Insertion of new section 13A . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 13A Minor variation of site boundaries . . . . . . . . . . . . . . . 22 13 Amendment of s 27 (The site) . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 14 Amendment of s 44 (Subdivision by building units or group titles plan) ............................................ 23 15 Amendment of s 45 (Approval of building units or group titles plan) ......................................... 24

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 16 Amendment of s 59 (Subdivision of secondary lots within residential precincts) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 17 Amendment of s 61 (Approval by local government) . . . . . . . . . . 24 18 Amendment of s 101 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . 24 19 Amendment of s 103 (Member's nominee) . . . . . . . . . . . . . . . . . 25 20 Amendment of s 106 (Meetings of primary thoroughfare body corporate) .................................... 25 21 Amendment of s 113 (Miscellaneous powers of primary thoroughfare body corporate). . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 22 Amendment of s 116 (Duties of primary thoroughfare body corporate) ........................................ 26 23 Amendment of s 123 (Constitution of executive committee) . . . . 26 24 Insertion of new s 123A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 123A Code of conduct for voting members of executive committee ............................. 27 25 Amendment of s 124 (Vacation of office of member of executive committee) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 26 Insertion of new s 126A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 126A Conflict of interest of executive committee member [SM, s 53] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 27 Insertion of new ss 129A and 129B . . . . . . . . . . . . . . . . . . . . . . . 29 129A Protection of executive committee members from liability ............................. 29 129B Protection of body corporate and executive committee from liability for defamation . . . . . . . . . . . . 29 28 Amendment of s 130 (Primary thoroughfare body corporate manager) ........................................ 31 29 Insertion of new pt 8, div 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Division 1A Proxies for principal bodies corporate at general meetings of primary thoroughfare bodies corporate 133A Application of div 1A. . . . . . . . . . . . . . . . . . . . . . . . . . 32 133B Appointment [SM, s 107] . . . . . . . . . . . . . . . . . . . . . . 32 133C Form of proxy [SM, s 108] . . . . . . . . . . . . . . . . . . . . . 32 133D Use of proxy [SM, s 109] . . . . . . . . . . . . . . . . . . . . . . 33 133E Special provisions about proxy use [SM, s 110]. . . . . 34 133F Offence [SM, s 111] . . . . . . . . . . . . . . . . . . . . . . . . . . 35 30 Amendment of s 138 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . 35 31 Replacement of s 140 (Member's nominee). . . . . . . . . . . . . . . . . 35 140 Member's nominee . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Page 2

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 140A When original owner can not be nominee for subsidiary body corporate . . . . . . . . . . . . . . . . . . . . . 36 32 Amendment of s 143 (Meetings of principal body corporate). . . . 37 33 Amendment of s 148 (Miscellaneous powers of principal body corporate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 34 Amendment of s 151 (Duties of principal body corporate) . . . . . . 38 35 Amendment of s 158 (Constitution of executive committee) . . . . 38 36 Insertion of new s 158A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 158A Code of conduct for voting members of executive committee ........................... 39 37 Amendment of s 159 (Vacation of office of member of executive committee) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 38 Insertion of new s 161A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 161A Conflict of interest of executive committee member [SM, s 53] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 39 Insertion of new ss 164A and 164B . . . . . . . . . . . . . . . . . . . . . . . 41 164A Protection of executive committee members from liability ................................ 41 164B Protection of body corporate and executive committee from liability for defamation . . . . . . . . . . . . 41 40 Amendment of s 165 (Principal body corporate manager). . . . . . 42 41 Insertion of new pt 8, divs 3A and 3B. . . . . . . . . . . . . . . . . . . . . . 43 Division 3A Proxies for general meetings of principal bodies corporate 168A Application of div 3A. . . . . . . . . . . . . . . . . . . . . . . . . . 43 168B Appointment [SM, s 107] . . . . . . . . . . . . . . . . . . . . . . 44 168C Form of proxy [SM, s 108] . . . . . . . . . . . . . . . . . . . . . 44 168D Use of proxy [SM, s 109] . . . . . . . . . . . . . . . . . . . . . . 45 168E Special provisions about proxy use [SM, s 110]. . . . . 46 168F Offence [SM, s 111] . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Division 3B Accounts and audit 168G Application of div 3B. . . . . . . . . . . . . . . . . . . . . . . . . . 47 168H Accounts [SM, s 154] . . . . . . . . . . . . . . . . . . . . . . . . . 47 168I Audit [SM, s 155] . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 42 Amendment of s 173 (Application of div 3 to expanded principal body corporate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 43 Insertion of new pt 8, div 5 and new pt 8A . . . . . . . . . . . . . . . . . . 50 Page 3

 


 

Resorts and Other Acts Amendment Bill 2009 Contents Division 5 Removal from office of voting members of executive committees for breach of code of conduct 175A Application of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 175B Notice for breach of code of conduct [SM, s 34]. . . . . 50 175C Removal of voting member at general meeting [SM, s 35] .............................. 51 Part 8A Conduct of body corporate managers, service contractors and letting agents Division 1 Preliminary 175D Definitions for pt 8A . . . . . . . . . . . . . . . . . . . . . . . . . . 52 175E Meaning of financier for a letting agent's contract . . . 53 175F Meaning of letting agent and letting agent business . 54 175G Meaning of service contractor for approved scheme or part .............................. 55 Division 2 Codes of conduct 175H Code of conduct for body corporate manager and caretaking service contractor . . . . . . . . . . . . . . . . . . . 55 175I Code of conduct for letting agent . . . . . . . . . . . . . . . . 56 Division 3 Required transfer of management rights for contravention of code of conduct Subdivision 1 Preliminary 175J Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 175K Effect of div 3 on other provisions . . . . . . . . . . . . . . . 57 Subdivision 2 Transfer of management rights 175L Code contravention notice . . . . . . . . . . . . . . . . . . . . . 57 175M Grounds for requiring transfer . . . . . . . . . . . . . . . . . . 58 175N Requirement for transfer. . . . . . . . . . . . . . . . . . . . . . . 58 175O Transfer--letting agent's choice of transferee. . . . . . . 58 175P Giving financier copy of transfer notice . . . . . . . . . . . 59 175Q Transfer--body corporate's choice of transferee . . . . 60 175R Terms of service contract on transfer . . . . . . . . . . . . . 61 Subdivision 3 Replacement of letting agent authorisation and service contract 175S Replacement of letting agent authorisation and service contract in particular circumstances . . . . . . . 61 Subdivision 4 Reviewing terms of letting agent's service contract 175T Reviewing terms of service contract. . . . . . . . . . . . . . 63 Page 4

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 175U Review criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 175V Giving copy of review advice to letting agent and prospective buyer of management rights . . . . . . . . . . 64 Subdivision 5 Disputes about transfer of management rights 175W CCT jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Division 4 Disputes about contractual matters 175X CCT jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Division 5 Termination of appointment, engagement or authorisation 175Y Termination for failure to comply with remedial action notice [SM, s 131] . . . . . . . . . . . . . . . . . . . . . . 65 44 Amendment of s 177 (Minor non-compliance with development control by-laws) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 45 Replacement of s 179A (Dealing with disputes). . . . . . . . . . . . . . 68 Division 1 Resolution of particular disputes 179A Dealing with particular disputes under Building Units and Group Titles Act 1980 . . . . . . . . . . . . . . . . 68 179B Dealing with matter relating to development control by-law .................................. 69 179C Internal dispute resolution processes to be used before application . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Division 2 Other matters 179D Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 46 Insertion of new pt 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Part 12 Transitional provisions for Resorts and Other Acts Amendment Act 2009 Division 1 Preliminary 184 Definitions for pt 12. . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Division 2 Bodies corporate 185 Existing number of committee members may continue until effective day . . . . . . . . . . . . . . . . . . . . . 72 186 Deferred application of particular provisions . . . . . . . 72 187 Application of code of conduct for existing voting members of executive committees . . . . . . . . . . . . . . . 73 188 Auditing accounts for first annual general meeting after effective day . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 189 End of appointment of original owner of secondary lot as nominee for subsidiary body corporate. . . . . . . 74 Division 3 Body corporate managers, service contractors and letting agents Page 5

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 190 Deferred application of particular provisions . . . . . . . 75 191 Application of code of conduct for existing managers and contractors .............. 75 192 Application of code of conduct for existing letting agents .............................. 76 193 Existing term of appointment for body corporate manager ................................ 76 47 Amendment of sch 2 (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . 76 48 Insertion of new schs 2­6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Schedule 2 Requirements for notices of proposed scheme amendments 1 Requirements for placing notice on subject land . . . . 80 Schedule 3 Election of executive committee members of body corporate 1 Definitions for sch 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 82 2 Election of members of executive committee [SM, s 15] ............................ 82 3 Nomination procedures for election of executive committee other than at first annual general meeting [SM, s 16] ............................ 83 4 Requirements for nominations [SM, s 18] . . . . . . . . . 84 5 Conduct of elections for executive committee by secret ballot [SM, s 21]. . . . . . . . . . . . . . . . . . . . . . . . 85 6 Conduct of elections for executive committee by open ballot [SM, s 22]. . . . . . . . . . . . . . . . . . . . . . . . . 88 7 Election of ordinary members of executive committee [SM, s 23] . . . . . . . . . . . . . . . . . . . . . . . . . 90 8 Conduct of ballot--general requirements [SM, s 24] . 90 9 Conduct of ballot--scrutiny of votes [SM, s 25] . . . . . 91 10 Conduct of ballot--deciding executive member positions [SM, s 26] . . . . . . . . . . . . . . . . . . . . . . . . . . 92 11 Conduct of ballot--deciding ordinary member positions [SM, s 27] . . . . . . . . . . . . . . . . . . . . . . . . . . 93 12 Conduct of ballot--declaration of voting results [SM, s 28] ............................. 95 Schedule 4 Code of conduct for voting members of executive committees 1 Commitment to acquiring understanding of Act, including this code ...................... 96 2 Honesty, fairness and confidentiality . . . . . . . . . . . . . 96 Page 6

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 3 Acting in best interests of body corporate and persons with estate or interest in lots . . . . . . . . . . . . . 96 4 Complying with Act and this code . . . . . . . . . . . . . . . 97 5 Conflict of interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Schedule 5 Code of conduct for body corporate managers and caretaking service contractors 1 Knowledge of Act, including code . . . . . . . . . . . . . . . 98 2 Honesty, fairness and professionalism . . . . . . . . . . . . 98 3 Skill, care and diligence . . . . . . . . . . . . . . . . . . . . . . . 98 4 Acting in body corporate's best interests . . . . . . . . . . 99 5 Keeping body corporate informed of developments . . 99 6 Ensuring employees comply with Act and code . . . . . 99 7 Fraudulent or misleading conduct . . . . . . . . . . . . . . . 99 8 Unconscionable conduct . . . . . . . . . . . . . . . . . . . . . . 99 9 Conflict of duty or interest. . . . . . . . . . . . . . . . . . . . . . 100 10 Goods and services to be supplied at competitive prices ............................... 100 11 Body corporate manager to demonstrate keeping of particular records ..................... 100 Schedule 6 Code of conduct for letting agents 1 Honesty, fairness and professionalism . . . . . . . . . . . . 101 2 Skill, care and diligence . . . . . . . . . . . . . . . . . . . . . . . 101 3 Acting in body corporate's and individual lot owner's best interests ......................... 101 4 Ensuring employees comply with Act and code . . . . . 101 5 Fraudulent or misleading conduct . . . . . . . . . . . . . . . 102 6 Unconscionable conduct . . . . . . . . . . . . . . . . . . . . . . 102 7 Nuisance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 8 Goods and services to be supplied at competitive prices .............................. 102 Part 4 Amendment of Liquor Act 1992 49 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 50 Amendment of s 9 (Ordinary trading hours) . . . . . . . . . . . . . . . . . 103 51 Amendment of s 12 (Exemptions) . . . . . . . . . . . . . . . . . . . . . . . . 103 52 Amendment of s 71B (Authority of industrial canteen licence). . . 105 53 Insertion of new pt 12, div 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Division 9 Transitional provision for Resorts and Other Acts Amendment Act 2009 Page 7

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 296 Approved hours for commercial special facility licence 105 Part 5 Amendment of Mixed Use Development Act 1993 54 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 55 Amendment of s 79 (Lodgement of building units or group titles plan) ........................................... 106 56 Amendment of s 80 (Approval of building units or group titles plan) ......................................... 106 57 Amendment of s 101 (Subdivision by building units or group titles plan) ........................................ 107 58 Amendment of s 102 (Approval of building units or group titles plan) .......................................... 107 Part 6 Amendment of Sanctuary Cove Resort Act 1985 59 Act amended in pt 6 and schedule . . . . . . . . . . . . . . . . . . . . . . . . 107 60 Amendment of s 4 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . . 107 61 Insertion of new ss 4A­4C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 4A Meaning of approved use for a zone . . . . . . . . . . . . . 112 4B Meaning of proposed use plan of the site or adjacent site ......................... 113 4C References to standard module . . . . . . . . . . . . . . . . . 113 62 Amendment of s 5 (The site) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 63 Replacement of ss 7 and 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 7 Proposed use plan of the site. . . . . . . . . . . . . . . . . . . 114 64 Amendment of s 9 (Town planning provisions). . . . . . . . . . . . . . . 116 65 Amendment of s 10 (Initial subdivision within the site). . . . . . . . . 117 66 Amendment of s 12A (The adjacent site) . . . . . . . . . . . . . . . . . . . 118 67 Replacement of ss 12C and 12D . . . . . . . . . . . . . . . . . . . . . . . . . 119 12C Proposed use plan of the adjacent site . . . . . . . . . . . 119 68 Amendment of s 12E (Town planning provisions) . . . . . . . . . . . . 121 69 Amendment of s 12F (Initial subdivision within the adjacent site) 122 70 Insertion of new pt 2AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Part 2AA Amendments by application to Minister 12I Amendment applications . . . . . . . . . . . . . . . . . . . . . . 123 12J Members to be notified of proposed amendment. . . . 124 12K Requirements for application . . . . . . . . . . . . . . . . . . . 125 12L Minister to consider application . . . . . . . . . . . . . . . . . 126 12M Decision on application . . . . . . . . . . . . . . . . . . . . . . . 126 12N Minor variation of site boundaries . . . . . . . . . . . . . . . 126 Page 8

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 12O Approval of change of use for zone . . . . . . . . . . . . . . 127 12P Approval of amendment of relevant plan . . . . . . . . . . 128 71 Amendment of s 15 (Subdivision of secondary lots) . . . . . . . . . . 128 72 Amendment of s 15A (Plan of survey where variation of boundary approved) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 73 Amendment of s 20 (Subdivision of land where wholly or partly submerged) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 74 Amendment of s 21A (Subdivision of land outside residential zones) .......................................... 130 75 Amendment of s 22 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . 131 76 Replacement of s 24 (Member's nominee). . . . . . . . . . . . . . . . . . 132 24 Member's nominee . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 24A When original owner can not be nominee for subsidiary body corporate . . . . . . . . . . . . . . . . . . . . . 133 77 Amendment of s 27 (Meetings of principal body corporate). . . . . 134 78 Amendment of s 32 (Miscellaneous powers of principal body corporate) ...................................... 134 79 Amendment of s 33 (Duties of principal body corporate) . . . . . . . 134 80 Amendment of s 41 (Constitution of executive committee) . . . . . 135 81 Insertion of new s 41A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 41A Code of conduct for voting members of executive committee ........................... 136 82 Amendment of s 42 (Vacation of office of member of executive committee) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 83 Insertion of new s 44A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 44A Conflict of interest of executive committee member [SM, s 53] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 84 Amendment of s 47A (Principal body corporate manager) . . . . . 137 85 Insertion of new ss 47A and 47AA . . . . . . . . . . . . . . . . . . . . . . . . 138 47A Protection of executive committee members from liability .............................. 138 47AA Protection of body corporate and executive committee from liability for defamation . . . . . . . . . . . . 139 86 Insertion of new pt 3, divs 2B­2D. . . . . . . . . . . . . . . . . . . . . . . . . 140 Division 2B Proxies for general meetings of principal body corporate 47B Application of div 2B. . . . . . . . . . . . . . . . . . . . . . . . . . 140 47C Appointment [SM, s 107] . . . . . . . . . . . . . . . . . . . . . . 140 47D Form of proxy [SM, s 108] . . . . . . . . . . . . . . . . . . . . . 141 Page 9

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 47E Use of proxy [SM, s 109] . . . . . . . . . . . . . . . . . . . . . . 142 47F Special provisions about proxy use [SM, s 110]. . . . . 143 47G Offence [SM, s 111] . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Division 2C Accounts and audit 47H Application of div 2C. . . . . . . . . . . . . . . . . . . . . . . . . . 144 47I Accounts [SM, s 154] . . . . . . . . . . . . . . . . . . . . . . . . . 144 47J Audit [SM, s 155] . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Division 2D Removal from office of voting members of executive committee for breach of code of conduct 47K Notice for breach of code of conduct [SM, s 34]. . . . . 146 47L Removal of voting member at general meeting [SM, s 35] ............................ 147 87 Amendment of s 60 (Establishment of pedestrian mall) . . . . . . . . 148 88 Replacement of s 64A (Maintenance etc. of canals) . . . . . . . . . . 148 64A Maintenance etc. of canals. . . . . . . . . . . . . . . . . . . . . 148 89 Amendment of s 64B (Surrender of secondary thoroughfare as canal) ........................................... 148 90 Amendment of s 65 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . 149 91 Amendment of s 67 (Member's nominee) . . . . . . . . . . . . . . . . . . 149 92 Amendment of s 70 (Meetings of primary thoroughfare body corporate) ...................................... 150 93 Amendment of s 76 (Miscellaneous powers of primary thoroughfare body corporate). . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 94 Amendment of s 77 (Duties of primary thoroughfare body corporate) ....................................... 150 95 Amendment of s 85 (Constitution of executive committee) . . . . . 151 96 Insertion of new s 85A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 85A Code of conduct for voting members of executive committee ........................... 152 97 Amendment of s 86 (Vacation of office of member of executive committee) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 98 Insertion of new s 88A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 88A Conflict of interest of executive committee member [SM, s 53] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 99 Amendment of s 91A (Primary thoroughfare body corporate manager) ...................................... 154 100 Insertion of new ss 91A and 91AA . . . . . . . . . . . . . . . . . . . . . . . . 154 91A Protection of executive committee members from liability .............................. 155 Page 10

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 91AA Protection of body corporate and executive committee from liability for defamation . . . . . . . . . . . . 155 101 Insertion of new pt 5, divs 2B and 2C. . . . . . . . . . . . . . . . . . . . . . 156 Division 2B Proxies for principal body corporate at general meetings of primary thoroughfare body corporate 91B Application of div 2B. . . . . . . . . . . . . . . . . . . . . . . . . . 156 91C Appointment [SM, s 107] . . . . . . . . . . . . . . . . . . . . . . 157 91D Form of proxy [SM, s 108] . . . . . . . . . . . . . . . . . . . . . 157 91E Use of proxy [SM, s 109] . . . . . . . . . . . . . . . . . . . . . . 158 91F Special provisions about proxy use [SM, s 110]. . . . . 159 91G Offence [SM, s 111] . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Division 2C Removal from office of voting members of executive committee for breach of code of conduct 91H Notice for breach of code of conduct [SM, s 34]. . . . . 160 91I Removal of voting member at general meeting [SM, s 35] ............................ 161 102 Insertion of new pt 5A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Part 5A Conduct of body corporate managers, service contractors and letting agents Division 1 Preliminary 94A Definitions for pt 5A . . . . . . . . . . . . . . . . . . . . . . . . . . 162 94B Meaning of financier for a letting agent's contract . . . 163 94C Meaning of letting agent and letting agent business . 164 94D Meaning of service contractor for resort or part . . . . . 164 Division 2 Codes of conduct 94E Code of conduct for body corporate manager and caretaking service contractor . . . . . . . . . . . . . . . . . . . 165 94F Code of conduct for letting agent . . . . . . . . . . . . . . . . 166 Division 3 Required transfer of management rights for contravention of code of conduct Subdivision 1 Preliminary 94G Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 94H Effect of div 3 on other provisions . . . . . . . . . . . . . . . 166 Subdivision 2 Transfer of management rights 94I Code contravention notice . . . . . . . . . . . . . . . . . . . . . 167 94J Grounds for requiring transfer . . . . . . . . . . . . . . . . . . 167 94K Requirement for transfer. . . . . . . . . . . . . . . . . . . . . . . 168 Page 11

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 94L Transfer--letting agent's choice of transferee. . . . . . . 168 94M Giving financier copy of transfer notice . . . . . . . . . . . 169 94N Transfer--body corporate's choice of transferee . . . . 169 94O Terms of service contract on transfer . . . . . . . . . . . . . 170 Subdivision 3 Replacement of letting agent authorisation and service contract 94P Replacement of letting agent authorisation and service contract in particular circumstances . . . . . . . 171 Subdivision 4 Reviewing terms of letting agent's service contract 94Q Reviewing terms of service contract. . . . . . . . . . . . . . 172 94R Review criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 94S Giving copy of review advice to letting agent and prospective buyer of management rights . . . . . . . . . . 174 Subdivision 5 Disputes about transfer of management rights 94T CCT jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 Division 4 Disputes about contractual matters 94U CCT jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 Division 5 Termination of appointment, engagement or authorisation 94V Termination for failure to comply with remedial action notice [SM, s 131] . . . . . . . . . . . . . . . . . . . . . . 175 103 Amendment of s 96 (Minor noncompliance with development control by-laws) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 104 Amendment of s 97 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . 178 105 Amendment of s 102 (Construction of floating dwelling houses and special dwelling houses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 106 Amendment of s 103 (Application of laws of the State) . . . . . . . . 179 107 Replacement of s 104A (Dealing with disputes). . . . . . . . . . . . . . 179 Division 1 Resolution of particular disputes 104A Dealing with particular disputes under Building Units and Group Titles Act 1980 . . . . . . . . . . . . . . . . 179 104B Dealing with matter relating to development control by-law .................................. 180 104C Internal dispute resolution processes to be used before application . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Division 2 Other matters 104D Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 108 Insertion of new pt 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Page 12

 


 

Resorts and Other Acts Amendment Bill 2009 Contents Part 10 Transitional provisions for Resorts and Other Acts Amendment Act 2009 Division 1 Preliminary 113 Definitions for pt 10. . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Division 2 Changes to zones 114 References to proposed use plan of site . . . . . . . . . . 183 115 References to proposed use plan of adjacent site . . . 183 116 Former floating dwelling house zone . . . . . . . . . . . . . 183 117 Transitional amendment of initial plan of survey of site to reflect new zone boundaries . . . . . . . . . . . . . . 184 118 Transitional amendment of initial plan of survey of adjacent site to reflect new zone boundaries . . . . . . . 185 119 Transitional amendment of other plans of survey or group title plans to reflect new zone boundaries . . . . 185 Division 3 Bodies corporate 120 Existing number of committee members may continue until effective day . . . . . . . . . . . . . . . . . . . . . 186 121 Deferred application of particular provisions . . . . . . . 186 122 Application of code of conduct for existing voting members of executive committees . . . . . . . . . . . . . . . 187 123 Auditing accounts for first annual general meeting after evaluation day . . . . . . . . . . . . . . . . . . . . . . . . . . 187 124 End of appointment of original owner of secondary lot as nominee for subsidiary body corporate. . . . . . . 187 Division 4 Body corporate managers, service contractors and letting agents 125 Deferred application of particular provisions . . . . . . . 188 126 Application of code of conduct for existing managers and contractors . . . . . . . . . . . . . . . . . . . . . 189 127 Application of code of conduct for existing letting agents .............................. 189 128 Existing term of appointment for body corporate manager ............................... 189 109 Amendment of sch A (Uses permitted within zones) . . . . . . . . . . 190 110 Replacement of schs B­E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Schedule 1 Names of and uses for zones Part 1 Names of zones Part 2 Uses for zones Part 3 Definitions of uses for zones Page 13

 


 

Resorts and Other Acts Amendment Bill 2009 Contents Schedule 2 Requirements for notices of proposed amendments 1 Requirements for placing notice on subject land . . . . 194 Schedule 3 Election of executive committee members of body corporate 1 Definitions for sch 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 195 2 Election of members of executive committee [SM, s 15] ........................... 196 3 Nomination procedures for election of executive committee other than at first annual general meeting [SM, s 16] ............................. 196 4 Requirements for nominations [SM, s 18] . . . . . . . . . 197 5 Conduct of elections for executive committee by secret ballot [SM, s 21]. . . . . . . . . . . . . . . . . . . . . . . . 198 6 Conduct of elections for executive committee by open ballot [SM, s 22]. . . . . . . . . . . . . . . . . . . . . . . . . 201 7 Election of ordinary members of executive committee [SM, s 23] . . . . . . . . . . . . . . . . . . . . . . . . . 203 8 Conduct of ballot--general requirements [SM, s 24] . 203 9 Conduct of ballot--scrutiny of votes [SM, s 25] . . . . . 204 10 Conduct of ballot--deciding executive member positions [SM, s 26] . . . . . . . . . . . . . . . . . . . . . . . . . . 205 11 Conduct of ballot--deciding ordinary member positions [SM, s 27] . . . . . . . . . . . . . . . . . . . . . . . . . . 206 12 Conduct of ballot--declaration of voting results [SM, s 28] ............................. 208 Schedule 4 Code of conduct for voting members of executive committees 1 Commitment to acquiring understanding of Act, including this code . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 2 Honesty, fairness and confidentiality . . . . . . . . . . . . . 209 3 Acting in best interests of body corporate and persons with estate or interest in lots . . . . . . . . . . . . . 209 4 Complying with Act and this code . . . . . . . . . . . . . . . 210 5 Conflict of interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Schedule 5 Code of conduct for body corporate managers and caretaking service contractors 1 Knowledge of Act, including code . . . . . . . . . . . . . . . 211 2 Honesty, fairness and professionalism . . . . . . . . . . . . 211 3 Skill, care and diligence . . . . . . . . . . . . . . . . . . . . . . . 211 4 Acting in body corporate's best interests . . . . . . . . . . 212 Page 14

 


 

Resorts and Other Acts Amendment Bill 2009 Contents 5 Keeping body corporate informed of developments . . 212 6 Ensuring employees comply with Act and code . . . . . 212 7 Fraudulent or misleading conduct . . . . . . . . . . . . . . . 212 8 Unconscionable conduct . . . . . . . . . . . . . . . . . . . . . . 212 9 Conflict of duty or interest. . . . . . . . . . . . . . . . . . . . . . 213 10 Goods and services to be supplied at competitive prices ............................. 213 11 Body corporate manager to demonstrate keeping of particular records . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 Schedule 6 Code of conduct for letting agents 1 Honesty, fairness and professionalism . . . . . . . . . . . . 214 2 Skill, care and diligence . . . . . . . . . . . . . . . . . . . . . . . 214 3 Acting in body corporate's and individual lot owner's best interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 4 Ensuring employees comply with Act and code . . . . . 214 5 Fraudulent or misleading conduct . . . . . . . . . . . . . . . 215 6 Unconscionable conduct . . . . . . . . . . . . . . . . . . . . . . 215 7 Nuisance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 8 Goods and services to be supplied at competitive prices ............................. 215 Schedule 7 Zones of the site Schedule 8 Zones of the adjacent site Schedule 9 Dictionary Schedule Minor and consequential amendments . . . . . . . . . . . . . . . . . . 219 Iconic Queensland Places Act 2008. . . . . . . . . . . . . . . . . . . . . . . 219 Integrated Resort Development Act 1987 . . . . . . . . . . . . . . . . . . 219 Sanctuary Cove Resort Act 1985 . . . . . . . . . . . . . . . . . . . . . . . . . 220 Page 15

 


 

 

2009 A Bill for An Act to amend the Iconic Queensland Places Act 2008, the Integrated Resort Development Act 1987, the Liquor Act 1992, the Mixed Use Development Act 1993 and the Sanctuary Cove Resort Act 1985 for particular purposes

 


 

Resorts and Other Acts Amendment Bill 2009 Part 1 Preliminary [s 1] The Parliament of Queensland enacts-- 1 Part 1 Preliminary 2 Clause 1 Short title 3 This Act may be cited as the Resorts and Other Acts 4 Amendment Act 2009. 5 Clause 2 Commencement 6 The following provisions of this Act commence on a day to be 7 fixed by proclamation-- 8 (a) part 6; 9 (b) the schedule, to the extent it amends the Sanctuary Cove 10 Resort Act 1985. 11 Part 2 Amendment of Iconic 12 Queensland Places Act 2008 13 Clause 3 Act amended in pt 2 and schedule 14 This part and the schedule amend the Iconic Queensland 15 Places Act 2008. 16 Clause 4 Amendment of s 42 (Application of div 3) 17 Section 42, `development application for'-- 18 omit, insert-- 19 `development application, other than a building development 20 application, for'. 21 Page 18

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 5] Part 3 Amendment of Integrated 1 Resort Development Act 1987 2 Clause 5 Act amended in pt 3 and schedule 3 This part and the schedule amend the Integrated Resort 4 Development Act 1987. 5 Clause 6 Amendment of s 2 (Definitions) 6 Section 2, `schedule 2'-- 7 omit, insert-- 8 `schedule 7'. 9 Clause 7 Insertion of new s 3A 10 Part 1-- 11 insert-- 12 `3A References to standard module 13 `(1) In this Act, the information included in square brackets after a 14 section heading is a reference to a similar section of the Body 15 Corporate and Community Management (Standard Module) 16 Regulation 2008. 17 `(2) The brackets and information do not form part of this Act.'. 18 Clause 8 Amendment of s 4 (Application for approval of scheme) 19 Section 4-- 20 insert-- 21 `(1B) For subsection (1A), to remove any doubt, it is declared that 22 an application under division 2 to amend an approved scheme 23 by varying the boundaries of the site of the approved scheme 24 is not an application for scheme approval.'. 25 Page 19

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 9] Clause 9 Amendment of s 9 (Application for amendment of 1 approved scheme) 2 Section 9-- 3 insert-- 4 `(2) To remove any doubt, it is declared that an application may be 5 made under this division to amend an approved scheme by 6 varying the boundaries of the site of the approved scheme.'. 7 Clause 10 Replacement of ss 10 and 11 8 Sections 10 and 11-- 9 omit, insert-- 10 `10 Members to be notified of proposed amendment 11 `(1) Before making the application, the primary thoroughfare body 12 corporate must-- 13 (a) give a written notice to each of the members of the 14 primary thoroughfare body corporate and each of the 15 members of the principal body corporate stating-- 16 (i) the nature of the proposed amendment; and 17 (ii) a description of each lot to which the proposed 18 amendment relates; and 19 (iii) that a member may give the primary thoroughfare 20 body corporate written submissions about the 21 proposed amendment within a stated period (the 22 notification period) of at least 30 business days 23 after the notice is given; and 24 (b) place, on the subject land, a notice stating-- 25 (i) a brief summary of the nature of the proposed 26 amendment and each lot to which the amendment 27 relates; and 28 (ii) the notification period for giving written 29 submissions about the proposed amendment; and 30 Page 20

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 11] (iii) the name and contact details of a person authorised 1 by the primary thoroughfare body corporate to give 2 information about the proposed amendment. 3 `(2) The notice under subsection (1)(b) must-- 4 (a) be of a type, and placed on the subject land in the way 5 required, under schedule 2; and 6 (b) remain on the subject land during the notification 7 period. 8 `11 Requirements for application 9 `The application must include-- 10 (a) a written statement confirming that-- 11 (i) a written notice was given to the members under 12 section 10(1)(a), including the days the notice was 13 given; and 14 (ii) a notice was placed on the subject land under 15 section 10(1)(b) and (2), including the period 16 during which the notice was on the land; and 17 (b) a copy of the notice given under section 10(1)(a); and 18 (c) all written submissions given to the primary 19 thoroughfare body corporate under section 10(1)(a)(iii); 20 and 21 (d) other matters, if any, the Minister considers necessary 22 for deciding the application.'. 23 Clause 11 Amendment of s 12 (Minister to consider application) 24 Section 12-- 25 insert-- 26 `(2) The Minister must give the Governor in Council-- 27 (a) the application; and 28 Page 21

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 12] (b) a written notice stating details of the consultation, if any, 1 under subsection (1), including-- 2 (i) who the Minister consulted; and 3 (ii) the results of the consultation.'. 4 Clause 12 Insertion of new section 13A 5 After section 13-- 6 insert-- 7 `13A Minor variation of site boundaries 8 `(1) This section applies to an application to amend an approved 9 scheme by varying the boundaries of the site of the approved 10 scheme. 11 `(2) The Governor in Council may approve the amendment only 12 if-- 13 (a) the Governor in Council considers-- 14 (i) the proposed variation of the site boundaries is of a 15 minor nature; and 16 Example of a variation that may be of a minor nature-- 17 a variation of part of a site boundary to realign it with a 18 thoroughfare within the site 19 (ii) the total area of the site will not be materially 20 changed because of the variation; and 21 (b) neither the aggregate number of the lots nor the 22 aggregate voting entitlements under the approved 23 scheme will be changed because of the variation; and 24 (c) each affected land owner has given the owner's written 25 consent to the variation. 26 `(3) If the Governor in Council approves the amendment, section 8 27 applies to the local government and chief executive for 28 making an appropriate notation of the approved scheme as 29 amended as if the reference in that section to the approved 30 scheme were a reference to the approved scheme as amended. 31 Page 22

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 13] `(4) In this section-- 1 affected land owner means the owner of land that-- 2 (a) is outside the site and is proposed under the amendment 3 application to be within the site; or 4 (b) is within the site and is proposed under the amendment 5 application to be outside the site.'. 6 Clause 13 Amendment of s 27 (The site) 7 (1) Section 27(1), `The site'-- 8 omit, insert-- 9 `Subject to subsection (2), the site'. 10 (2) Section 27(3), `subsection (2)'-- 11 omit, insert-- 12 `subsection (3)'. 13 (3) Section 27(2) to (4)-- 14 renumber as section 27(3) to (5). 15 (4) Section 27-- 16 insert-- 17 `(2) If the approved scheme is amended under part 2, division 2 by 18 varying the boundaries of the site, the site of the approved 19 scheme consists of all land within the boundaries of the site 20 set out in the approved scheme as amended.'. 21 Clause 14 Amendment of s 44 (Subdivision by building units or 22 group titles plan) 23 Section 44-- 24 insert-- 25 `(6) A group titles plan must also be accompanied by a diagram 26 showing the name and numbering, or proposed name and 27 numbering, of each road that is, or is to be, on the primary 28 Page 23

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 15] thoroughfare, or the part of the primary thoroughfare, shown 1 on the plan.'. 2 Clause 15 Amendment of s 45 (Approval of building units or group 3 titles plan) 4 Section 45(1)(a)-- 5 insert-- 6 `(iii) the diagram mentioned in section 44(6); and'. 7 Clause 16 Amendment of s 59 (Subdivision of secondary lots within 8 residential precincts) 9 Section 59-- 10 insert-- 11 `(8) A group titles plan lodged under subsection (4) must also be 12 accompanied by a diagram showing the name and numbering, 13 or proposed name and numbering, of each road that is, or is to 14 be, on-- 15 (a) the primary thoroughfare, or part of the primary 16 thoroughfare, shown on the plan; and 17 (b) each secondary thoroughfare, or part of a secondary 18 thoroughfare, shown on the plan.'. 19 Clause 17 Amendment of s 61 (Approval by local government) 20 Section 61(1)(a), after `59(5)'-- 21 insert-- 22 `and the diagram mentioned in section 59(8)'. 23 Clause 18 Amendment of s 101 (Interpretation) 24 Section 101, definition special resolution, `special resolution 25 means'-- 26 omit, insert-- 27 Page 24

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 19] `special resolution, for a general meeting of a primary 1 thoroughfare body corporate, means'. 2 Clause 19 Amendment of s 103 (Member's nominee) 3 (1) Section 103(1)(a), from `a body corporate' to `group titles 4 plan'-- 5 omit, insert-- 6 `a subsidiary body corporate'. 7 (2) Section 103-- 8 insert-- 9 `(4) A person appointed under this section by a subsidiary body 10 corporate must represent the subsidiary body corporate-- 11 (a) in the way the subsidiary body corporate directs; and 12 (b) subject to paragraph (a), in a way that is in the best 13 interests of the subsidiary body corporate.'. 14 Clause 20 Amendment of s 106 (Meetings of primary thoroughfare 15 body corporate) 16 Section 106(7), after `apply'-- 17 insert-- 18 `and the application of the Building Units and Group Titles 19 Act 1980, schedule 2, part 2 is subject to schedule 3 and 20 schedule 7, definition ordinary resolution'. 21 Clause 21 Amendment of s 113 (Miscellaneous powers of primary 22 thoroughfare body corporate) 23 Section 113-- 24 insert-- 25 `(f) employ staff to perform its functions.'. 26 Page 25

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 22] Clause 22 Amendment of s 116 (Duties of primary thoroughfare 1 body corporate) 2 Section 116(1)(e)-- 3 omit, insert-- 4 `(e) keep-- 5 (i) for at least 10 years after their creation or receipt 6 by or for the primary thoroughfare body 7 corporate-- 8 (A) minutes of its meetings, including particulars 9 of motions passed at the meetings; and 10 (B) proper books of account for amounts 11 received or paid by the primary thoroughfare 12 body corporate showing the items for which 13 the amounts were received or paid; and 14 (ii) for at least 2 years after their creation or receipt by 15 or for the primary thoroughfare body corporate-- 16 voting tally sheets or other records showing votes 17 for motions and election ballots related to its 18 meetings; and'. 19 Clause 23 Amendment of s 123 (Constitution of executive 20 committee) 21 (1) Section 123(4), `3 members'-- 22 omit, insert-- 23 `5 members'. 24 (2) Section 123(5)-- 25 omit, insert-- 26 `(5) If there are more than 5 members of the primary thoroughfare 27 body corporate, the executive committee must consist of at 28 least 5 persons and not more than the number of members of 29 the primary thoroughfare body corporate, as decided by the 30 primary thoroughfare body corporate.'. 31 (3) Section 123(6), `(if any)'-- 32 Page 26

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 24] omit. 1 (4) Section 123(6), `more than 3'-- 2 omit, insert-- 3 `more than 5'. 4 (5) Section 123(7)-- 5 omit, insert-- 6 `(6A) The election of the chairperson, secretary, treasurer and any 7 other members of the executive committee at a general 8 meeting of the primary thoroughfare body corporate must be 9 conducted under schedule 3. 10 `(7) A person is eligible for election as chairperson, secretary or 11 treasurer, or as another member of the executive committee, 12 only if the person-- 13 (a) is an individual who-- 14 (i) is a member of the primary thoroughfare body 15 corporate; or 16 (ii) has been nominated for election by a member of 17 the primary thoroughfare body corporate; and 18 (b) does not owe a relevant body corporate debt in relation 19 to a lot or lots owned by the person.'. 20 Clause 24 Insertion of new s 123A 21 After section 123-- 22 insert-- 23 `123A Code of conduct for voting members of executive 24 committee 25 `(1) The code of conduct in schedule 4 applies to each person (a 26 voting member) who is-- 27 (a) a member of the executive committee; and 28 (b) entitled to vote at general meetings of the primary 29 thoroughfare body corporate. 30 Page 27

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 25] `(2) On becoming a voting member of the committee, the person is 1 taken to have agreed to comply with the code of conduct.'. 2 Clause 25 Amendment of s 124 (Vacation of office of member of 3 executive committee) 4 (1) Section 124(1)(i)-- 5 renumber as section 124(1)(j). 6 (2) Section 124(1)-- 7 insert-- 8 `(i) if the person is removed from office by ordinary 9 resolution of the primary thoroughfare body corporate 10 under division 5; or'. 11 Clause 26 Insertion of new s 126A 12 After section 126-- 13 insert-- 14 `126A Conflict of interest of executive committee member 15 [SM, s 53] 16 `(1) A member of the executive committee must disclose to a 17 meeting of the committee the member's direct or indirect 18 interest in an issue being considered, or about to be 19 considered, by the committee if the interest could conflict 20 with the appropriate performance of the member's duties 21 about the consideration of the issue. 22 `(2) If a member required under subsection (1) to disclose an 23 interest in an issue is a voting member of the executive 24 committee, the member is not entitled to vote on a motion 25 involving the issue. 26 `(3) A person who holds the proxy of a member of the executive 27 committee must disclose to a meeting of the executive 28 committee the proxy holder's direct or indirect interest in an 29 issue being considered, or about to be considered, by the 30 executive committee if the interest could conflict with the 31 Page 28

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 27] appropriate performance of the proxy holder's duties about 1 the consideration of the issue. 2 `(4) A proxy holder required under subsection (3) to disclose an 3 interest in an issue must not vote as the proxy on a motion 4 involving the issue. 5 `(5) A person who holds the proxy of a member of the executive 6 committee must disclose to a meeting of the executive 7 committee the member's direct or indirect interest in an issue 8 being considered, or about to be considered, by the executive 9 committee if the proxy holder is aware that the member, if 10 present, would be required under subsection (1) to disclose 11 the interest. 12 `(6) A proxy holder required under subsection (5) to disclose an 13 interest in an issue must not vote as the proxy on a motion 14 involving the issue.'. 15 Clause 27 Insertion of new ss 129A and 129B 16 After section 129-- 17 insert-- 18 `129A Protection of executive committee members from 19 liability 20 `(1) A member of the executive committee is not civilly liable for 21 an act done or omission made in good faith and without 22 negligence in performing the person's role as a member of the 23 committee. 24 `(2) In this section-- 25 act done or omission made does not include the publication 26 of defamatory matter as mentioned in section 129B(1). 27 `129B Protection of body corporate and executive 28 committee from liability for defamation 29 `(1) This section applies if-- 30 Page 29

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 27] (a) the executive committee publishes required material for 1 a general meeting of the primary thoroughfare body 2 corporate; and 3 (b) the required material contains defamatory matter. 4 `(2) Each of the following is not liable for defamation because of 5 the publication-- 6 (a) the primary thoroughfare body corporate; 7 (b) the committee, or a member of the committee, other 8 than a member of the committee who submitted the 9 document containing the defamatory matter. 10 `(3) In this section-- 11 member of the committee includes the body corporate 12 manager acting under a delegation under section 130(2). 13 prescribed motion means any of the following-- 14 (a) a motion to give a member of the executive committee a 15 notice under section 175B(1); 16 (b) a motion mentioned in section 175C(2)(a) to remove a 17 member of the executive committee from office; 18 (c) a motion to give a letting agent a code contravention 19 notice; 20 (d) a motion to require a letting agent to transfer the letting 21 agent's management rights for an approved scheme or 22 part of an approved scheme under section 175N; 23 (e) a motion to terminate a person's appointment as a body 24 corporate manager, engagement as a service contractor 25 or authorisation as a letting agent under section 175Y. 26 required material, for a general meeting of the primary 27 thoroughfare body corporate, means any of the following 28 required under this Act to be published for the meeting-- 29 (a) a prescribed motion submitted other than by or for the 30 committee for the general meeting; 31 (b) the substance of a prescribed motion mentioned in 32 paragraph (a); 33 Page 30

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 28] (c) notice of a prescribed motion mentioned in paragraph 1 (a) or another document required to accompany the 2 motion, prepared by the submitter of the motion.'. 3 Clause 28 Amendment of s 130 (Primary thoroughfare body 4 corporate manager) 5 (1) Section 130(1), `subsection (3)'-- 6 omit, insert-- 7 `subsections (3), (5), (6) and (7)'. 8 (2) Section 130(6)-- 9 renumber as section 130(8). 10 (3) Section 130(5)-- 11 omit, insert-- 12 `(5) The term of appointment of the body corporate manager (after 13 allowing for any rights or options of extension or renewal, 14 whether provided for in the instrument of appointment or 15 subsequently agreed to) must not be longer than 3 years. 16 Example-- 17 The appointment of a body corporate manager begins on 1 January 2009 18 and is for a term of 3 years. The appointment can not end later than 31 19 December 2011. 20 `(6) If the term of appointment purports to be longer than 3 years, 21 it is taken to be 3 years. 22 `(7) To remove any doubt, it is declared that at the end of the term 23 of appointment of a person as the body corporate manager-- 24 (a) the appointment expires; and 25 (b) the person can not act again as the body corporate 26 manager without a new appointment.'. 27 Clause 29 Insertion of new pt 8, div 1A 28 Part 8-- 29 insert-- 30 Page 31

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 29] `Division 1A Proxies for principal bodies 1 corporate at general meetings of 2 primary thoroughfare bodies 3 corporate 4 `133A Application of div 1A 5 `This division applies to the appointment and use of a proxy to 6 represent a principal body corporate that is a member of a 7 primary thoroughfare body corporate at a general meeting of 8 the primary thoroughfare body corporate. 9 `133B Appointment [SM, s 107] 10 `(1) Subject to subsection (2), the principal body corporate may 11 appoint a proxy to act for the body corporate at the general 12 meeting. 13 `(2) The appointment of a proxy is effective only if the principal 14 body corporate or the holder of the proxy gives, by hand, post 15 or facsimile, a properly completed proxy form to the secretary 16 of the primary thoroughfare body corporate before-- 17 (a) the start of the meeting where the proxy is to be 18 exercised; or 19 (b) if the primary thoroughfare body corporate has fixed an 20 earlier time by which proxies must be given (that can 21 not, however, be earlier than 24 hours before the time 22 fixed for the meeting)--the earlier time. 23 `133C Form of proxy [SM, s 108] 24 `A proxy under this division-- 25 (a) must be in the approved form; and 26 (b) must be in the English language; and 27 (c) can not be irrevocable; and 28 Page 32

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 29] (d) can not be transferred by the holder of the proxy to a 1 third person; and 2 (e) lapses at the end of the primary thoroughfare body 3 corporate's financial year or at the end of a shorter 4 period stated in the proxy; and 5 (f) may be given by any person who has the right to vote at 6 a general meeting; and 7 (g) subject to the limitations contained in this division, may 8 be given to any individual; and 9 (h) must appoint a named individual. 10 `133D Use of proxy [SM, s 109] 11 `(1) A member of the primary thoroughfare body corporate who is 12 the proxy for the principal body corporate may vote both in 13 the member's own right and also as proxy of the principal 14 body corporate. 15 `(2) A vote by proxy must not be exercised on behalf of the 16 principal body corporate at the general meeting-- 17 (a) if the person appointed to represent the principal body 18 corporate under section 103(1) is personally present at 19 the meeting, unless the person consents at the meeting; 20 or 21 (b) on a particular motion, if a written or electronic vote has 22 been exercised on the motion on behalf of the principal 23 body corporate; or 24 (c) on a ballot for the election of a member of the executive 25 committee, or for otherwise choosing a member of the 26 executive committee; or 27 (d) for voting for a special resolution prohibiting, wholly or 28 partly, the use of proxies at executive committee 29 meetings or general meetings; or 30 (e) for voting for a majority resolution; or 31 (f) on a motion approving-- 32 Page 33

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 29] (i) the appointment, engagement or authorisation of a 1 person as the body corporate manager, a service 2 contractor or a letting agent; or 3 (ii) the amendment or termination of an appointment, 4 engagement or authorisation mentioned in 5 subparagraph (i); or 6 (g) on a motion decided by secret ballot. 7 `(3) A proxy may be exercised by-- 8 (a) the proxy holder voting in a show of hands at a general 9 meeting; or 10 (b) the proxy holder completing a written or electronic vote 11 on a motion before the start of, or at, the general 12 meeting. 13 `133E Special provisions about proxy use [SM, s 110] 14 `(1) The principal body corporate can not be prevented by contract 15 from exercising a vote at the general meeting, and can not be 16 required by contract to make someone else the body 17 corporate's proxy for voting at the general meeting. 18 `(2) A proxy can not be exercised for the principal body corporate 19 by-- 20 (a) the original owner of an initial lot or secondary lot; or 21 (b) a body corporate manager for-- 22 (i) the primary thoroughfare body corporate; or 23 (ii) the principal body corporate; or 24 (iii) a subsidiary body corporate of the primary 25 thoroughfare body corporate or principal body 26 corporate; or 27 (c) an associate of a person mentioned in paragraph (a) or 28 (b), unless the associate is 1 of the proprietors 29 constituting a subsidiary body corporate of the principal 30 body corporate. 31 Page 34

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 30] `133F Offence [SM, s 111] 1 `A person must not exercise a proxy, or otherwise purport to 2 vote on behalf of the principal body corporate, at the general 3 meeting of the primary thoroughfare body corporate knowing 4 that the person does not have the right to exercise the proxy or 5 otherwise vote on behalf of the principal body corporate. 6 Maximum penalty--100 penalty units.'. 7 Clause 30 Amendment of s 138 (Interpretation) 8 (1) Section 138-- 9 insert-- 10 `nominee, of a member of a principal body corporate, see 11 section 140(1).'. 12 (2) Section 138, definition special resolution, `special resolution 13 means'-- 14 omit, insert-- 15 `special resolution, for a general meeting of a principal body 16 corporate, means'. 17 Clause 31 Replacement of s 140 (Member's nominee) 18 Section 140-- 19 omit, insert-- 20 `140 Member's nominee 21 `(1) This section applies to a member of a principal body corporate 22 for appointing a person (a nominee) to represent and vote on 23 behalf of the member at meetings of the principal body 24 corporate. 25 `(2) A subsidiary body corporate of the principal body corporate-- 26 (a) must appoint a nominee at its annual general meeting; 27 and 28 (b) otherwise, may appoint a nominee from time to time. 29 Page 35

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 31] `(3) A member of the principal body corporate, other than a 1 subsidiary body corporate, may appoint a nominee from time 2 to time. 3 `(4) Subject to section 140A, a nominee appointed by a subsidiary 4 body corporate must be a member of the subsidiary body 5 corporate. 6 `(5) The appointment of a nominee has no effect until written 7 notice of the appointment is received by the secretary of the 8 principal body corporate. 9 `(6) A nominee appointed by a subsidiary body corporate must 10 represent the subsidiary body corporate-- 11 (a) in the way the subsidiary body corporate directs; and 12 (b) subject to subparagraph (a), in a way that is in the best 13 interests of the subsidiary body corporate. 14 `(7) The appointment of a nominee for a member ends when the 15 first of the following happens-- 16 (a) the end of 1 year after the appointment; 17 (b) the secretary of the principal body corporate receives 18 written notice of-- 19 (i) the cancellation of the nominee's appointment; or 20 (ii) the appointment of another nominee for the 21 member. 22 `(8) A written notice under subsection (5) or (7)(b) must be 23 signed-- 24 (a) for an appointment or cancellation made by a subsidiary 25 body corporate--by the chairperson and secretary of the 26 subsidiary body corporate; or 27 (b) otherwise--by the member. 28 `140A When original owner can not be nominee for 29 subsidiary body corporate 30 `(1) This section applies if more than 50% of the lots created by 31 the registration of a group titles plan or building units plan 32 Page 36

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 32] subdividing a secondary lot are no longer owned by the 1 original owner of the secondary lot. 2 `(2) The subsidiary body corporate created by the registration of 3 the plan can not appoint as its nominee-- 4 (a) the original owner; or 5 (b) an associate (an ineligible associate) of the original 6 owner who is not 1 of the proprietors constituting the 7 subsidiary body corporate. 8 `(3) If the original owner or an ineligible associate of the original 9 owner is already a nominee for the subsidiary body 10 corporate-- 11 (a) a general meeting of the subsidiary body corporate must 12 be held within 2 months; and 13 (b) if it is not sooner ended, the owner's or associate's 14 appointment as the nominee ends at the next general 15 meeting of the subsidiary body corporate.'. 16 Clause 32 Amendment of s 143 (Meetings of principal body 17 corporate) 18 Section 143(7), after `apply'-- 19 insert-- 20 `and the application of the Building Units and Group Titles 21 Act 1980, schedule 2, part 2 is subject to schedule 3 and 22 schedule 7, definition ordinary resolution'. 23 Clause 33 Amendment of s 148 (Miscellaneous powers of principal 24 body corporate) 25 Section 148-- 26 insert-- 27 `(e) employ staff to perform its functions.'. 28 Page 37

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 34] Clause 34 Amendment of s 151 (Duties of principal body corporate) 1 Section 151(1)(e)-- 2 omit, insert-- 3 `(e) keep-- 4 (i) for at least 10 years after their creation or receipt 5 by or for the principal body corporate-- 6 (A) minutes of its meetings, including particulars 7 of motions passed at the meetings; and 8 (B) proper books of account for amounts 9 received or paid by the principal body 10 corporate showing the items for which the 11 amounts were received or paid; and 12 (ii) for at least 2 years after their creation or receipt by 13 or for the principal body corporate--voting tally 14 sheets or other records showing votes for motions 15 and election ballots related to its meetings; and'. 16 Clause 35 Amendment of s 158 (Constitution of executive 17 committee) 18 (1) Section 158(4), `3 members'-- 19 omit, insert-- 20 `5 members'. 21 (2) Section 158(6)-- 22 omit, insert-- 23 `(6) If there are more than 5 members of the principal body 24 corporate, the executive committee must consist of at least 5 25 persons and not more than the number of members of the 26 principal body corporate, as decided by the principal body 27 corporate.'. 28 (3) Section 158(7), `(if any)'-- 29 omit. 30 (4) Section 158(7), `more than 3'-- 31 Page 38

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 36] omit, insert-- 1 `more than 5'. 2 (5) Section 158(8)-- 3 omit, insert-- 4 `(7A) The election of the chairperson, secretary, treasurer and any 5 other members of the executive committee at a general 6 meeting of the principal body corporate must be conducted 7 under schedule 3. 8 `(8) A person is eligible for election as chairperson, secretary or 9 treasurer, or as another member of the executive committee, 10 only if the person-- 11 (a) is an individual who is-- 12 (i) a member of the principal body corporate; or 13 (ii) a nominee of a member of the principal body 14 corporate; and 15 (b) does not owe a relevant body corporate debt in relation 16 to a lot or lots owned by the person.'. 17 Clause 36 Insertion of new s 158A 18 After section 158-- 19 insert-- 20 `158A Code of conduct for voting members of executive 21 committee 22 `(1) The code of conduct in schedule 4 applies to each person (a 23 voting member) who is-- 24 (a) a member of the executive committee; and 25 (b) entitled to vote at general meetings of the principal body 26 corporate. 27 `(2) On becoming a voting member of the executive committee, 28 the person is taken to have agreed to comply with the code of 29 conduct.'. 30 Page 39

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 37] Clause 37 Amendment of s 159 (Vacation of office of member of 1 executive committee) 2 (1) Section 159(1)(i)-- 3 renumber as section 159(1)(j). 4 (2) Section 159(1)-- 5 insert-- 6 `(i) if the person is removed from office by ordinary 7 resolution of the principal body corporate under division 8 5; or'. 9 Clause 38 Insertion of new s 161A 10 After section 161-- 11 insert-- 12 `161A Conflict of interest of executive committee member 13 [SM, s 53] 14 `(1) A member of the executive committee must disclose to a 15 meeting of the committee the member's direct or indirect 16 interest in an issue being considered, or about to be 17 considered, by the committee if the interest could conflict 18 with the appropriate performance of the member's duties 19 about the consideration of the issue. 20 `(2) If a member required under subsection (1) to disclose an 21 interest in an issue is a voting member of the committee, the 22 member is not entitled to vote on a motion involving the issue. 23 `(3) A person who holds the proxy of a member of the committee 24 must disclose to a meeting of the committee the proxy 25 holder's direct or indirect interest in an issue being 26 considered, or about to be considered, by the committee if the 27 interest could conflict with the appropriate performance of the 28 proxy holder's duties about the consideration of the issue. 29 `(4) A proxy holder required under subsection (3) to disclose an 30 interest in an issue must not vote as the proxy on a motion 31 involving the issue. 32 Page 40

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 39] `(5) A person who holds the proxy of a member of the committee 1 must disclose to a meeting of the committee the member's 2 direct or indirect interest in an issue being considered, or 3 about to be considered, by the committee if the proxy holder 4 is aware that the member, if present, would be required under 5 subsection (1) to disclose the interest. 6 `(6) A proxy holder required under subsection (5) to disclose an 7 interest in an issue must not vote as the proxy on a motion 8 involving the issue.'. 9 Clause 39 Insertion of new ss 164A and 164B 10 After section 164-- 11 insert-- 12 `164A Protection of executive committee members from 13 liability 14 `(1) A member of the executive committee is not civilly liable for 15 an act done or omission made in good faith and without 16 negligence in performing the person's role as a member of the 17 committee. 18 `(2) In this section-- 19 act done or omission made does not include the publication 20 of defamatory matter as mentioned in section 164B(1). 21 `164B Protection of body corporate and executive 22 committee from liability for defamation 23 `(1) This section applies if-- 24 (a) the executive committee publishes required material for 25 a general meeting of the principal body corporate; and 26 (b) the required material contains defamatory matter. 27 `(2) Each of the following is not liable for defamation because of 28 the publication-- 29 (a) the principal body corporate; 30 Page 41

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 40] (b) the committee, or a member of the committee, other 1 than a member of the committee who submitted the 2 document containing the defamatory matter. 3 `(3) In this section-- 4 member of the committee includes the body corporate 5 manager acting under a delegation under section 165(2). 6 prescribed motion means any of the following-- 7 (a) a motion to give a member of the executive committee a 8 notice under section 175B(1); 9 (b) a motion mentioned in section 175C(2)(a) to remove a 10 member of the executive committee from office; 11 (c) a motion to give a letting agent a code contravention 12 notice; 13 (d) a motion to require a letting agent to transfer the letting 14 agent's management rights for an approved scheme or 15 part of an approved scheme under section 175N; 16 (e) a motion to terminate a person's appointment as a body 17 corporate manager, engagement as a service contractor 18 or authorisation as a letting agent under section 175Y. 19 required material, for a general meeting of the principal body 20 corporate, means any of the following required under this Act 21 to be published for the meeting-- 22 (a) a prescribed motion submitted other than by or for the 23 executive committee for the general meeting; 24 (b) the substance of a prescribed motion mentioned in 25 paragraph (a); 26 (c) notice of a prescribed motion mentioned in paragraph 27 (a) or another document required to accompany the 28 motion, prepared by the submitter of the motion.'. 29 Clause 40 Amendment of s 165 (Principal body corporate manager) 30 (1) Section 165(1), `subsection (3)'-- 31 omit, insert-- 32 Page 42

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 41] `subsections (3), (5), (6) and (7)'. 1 (2) Section 165(6)-- 2 renumber as section 165(8). 3 (3) Section 165(5)-- 4 omit, insert-- 5 `(5) The term of appointment of the body corporate manager (after 6 allowing for any rights or options of extension or renewal, 7 whether provided for in the instrument of appointment or 8 subsequently agreed to) must not be longer than 3 years. 9 Example-- 10 The appointment of a body corporate manager begins on 1 January 2009 11 and is for a term of 3 years. The appointment can not end later than 31 12 December 2011. 13 `(6) If the term of appointment purports to be longer than 3 years, 14 it is taken to be 3 years. 15 `(7) To remove any doubt, it is declared that at the end of the term 16 of appointment of a person as the body corporate manager-- 17 (a) the appointment expires; and 18 (b) the person can not act again as the body corporate 19 manager without a new appointment.'. 20 Clause 41 Insertion of new pt 8, divs 3A and 3B 21 Part 8-- 22 insert-- 23 `Division 3A Proxies for general meetings of 24 principal bodies corporate 25 `168A Application of div 3A 26 `This division applies to the appointment and use of a proxy to 27 represent a member of a principal body corporate at a general 28 meeting of the principal body corporate. 29 Page 43

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 41] `168B Appointment [SM, s 107] 1 `(1) Subject to subsections (2) to (5), a person entitled to vote at 2 the general meeting may appoint a proxy to act for the person 3 at the general meeting. 4 `(2) The principal body corporate may by special resolution 5 prohibit the use of proxies-- 6 (a) for particular things described in the special resolution; 7 or 8 (b) altogether. 9 `(3) An appointment under subsection (1) has effect subject to the 10 operation of a special resolution under subsection (2). 11 `(4) A person must not hold-- 12 (a) if there are 20 or more lots for which there are voting 13 entitlements for the meeting--proxies greater in number 14 than 5% of the lots; or 15 (b) if there are fewer than 20 lots for which there are voting 16 entitlements for the meeting--more than 1 proxy. 17 `(5) The appointment of a proxy is effective only if the person or 18 the holder of the proxy gives, by hand, post or facsimile, a 19 properly completed proxy form to the secretary of the 20 principal body corporate before-- 21 (a) the start of the meeting where the proxy is to be 22 exercised; or 23 (b) if the principal body corporate has fixed an earlier time 24 by which proxies must be given (that can not, however, 25 be earlier than 24 hours before the time fixed for the 26 meeting)--the earlier time. 27 `168C Form of proxy [SM, s 108] 28 `A proxy under this division-- 29 (a) must be in the approved form; and 30 (b) must be in the English language; and 31 Page 44

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 41] (c) can not be irrevocable; and 1 (d) can not be transferred by the holder of the proxy to a 2 third person; and 3 (e) lapses at the end of the principal body corporate's 4 financial year or at the end of a shorter period stated in 5 the proxy; and 6 (f) may be given by any person who has the right to vote at 7 a general meeting; and 8 (g) subject to the limitations contained in this division, may 9 be given to any individual; and 10 (h) must appoint a named individual. 11 `168D Use of proxy [SM, s 109] 12 `(1) A member of the principal body corporate (member A) who is 13 the proxy for another member of the principal body corporate 14 (member B) may vote both in member A's own right and also 15 as proxy of member B. 16 `(2) If at least 1 co-owner of a lot is present at the meeting, a proxy 17 given by another co-owner of the lot is of no effect. 18 `(3) A vote by proxy must not be exercised at the general 19 meeting-- 20 (a) if the member who gave the proxy is personally present 21 at the meeting, unless the member consents at the 22 meeting; or 23 (b) on a particular motion, if the person who gave the proxy 24 has exercised a written or electronic vote on the motion; 25 or 26 (c) on a ballot for the election of a member of the executive 27 committee, or for otherwise choosing a member of the 28 executive committee; or 29 (d) for voting for a special resolution prohibiting, wholly or 30 partly, the use of proxies at executive committee 31 meetings or general meetings; or 32 Page 45

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 41] (e) for voting for a majority resolution; or 1 (f) on a motion approving-- 2 (i) the appointment, engagement or authorisation of a 3 person as the body corporate manager, a service 4 contractor or a letting agent; or 5 (ii) the amendment or termination of an appointment, 6 engagement or authorisation mentioned in 7 subparagraph (i); or 8 (g) on a motion decided by secret ballot. 9 `(4) A proxy may be exercised by-- 10 (a) the proxy holder voting in a show of hands at a general 11 meeting; or 12 (b) the proxy holder completing a written or electronic vote 13 on a motion before the start of, or at, the general 14 meeting. 15 `168E Special provisions about proxy use [SM, s 110] 16 `(1) A member of the principal body corporate can not be 17 prevented by contract from exercising a vote at the general 18 meeting, and can not be required by contract to make 19 someone else the member's proxy for voting at the general 20 meeting. 21 `(2) A proxy can not be exercised for someone else by-- 22 (a) the original owner of a secondary lot; or 23 (b) a body corporate manager for-- 24 (i) the primary thoroughfare body corporate; or 25 (ii) the principal body corporate; or 26 (iii) a subsidiary body corporate of the primary 27 thoroughfare body corporate or principal body 28 corporate; or 29 (c) an associate of a person mentioned in paragraph (a) or 30 (b), unless the associate is 1 of the proprietors 31 Page 46

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 41] constituting a subsidiary body corporate of the principal 1 body corporate. 2 `168F Offence [SM, s 111] 3 `A person must not exercise a proxy, or otherwise purport to 4 vote on behalf of another person, at the general meeting of the 5 principal body corporate knowing that the person does not 6 have the right to exercise the proxy or otherwise vote on 7 behalf of the other person. 8 Maximum penalty--100 penalty units. 9 `Division 3B Accounts and audit 10 `168G Application of div 3B 11 `This division applies to a principal body corporate for 12 preparing a statement of accounts under section 151(1)(f). 13 `168H Accounts [SM, s 154] 14 `(1) The statement of accounts may be prepared on a cash or 15 accrual basis. 16 `(2) If the accounts are prepared on a cash basis, they must include 17 disclosure of the following-- 18 (a) the total amounts paid to the fund established under 19 section 151(1)(i) and the account established under 20 section 151(1)(k); 21 (b) total contributions in arrears; 22 (c) balances for all financial institution accounts and 23 investments; 24 (d) all outstanding receipts and payments. 25 `(3) If the accounts are prepared on an accrual basis, they must 26 show the assets and liabilities of the principal body corporate 27 Page 47

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 41] at the end of the financial year for which the accounts are 1 prepared. 2 `(4) The statement of accounts must include-- 3 (a) the corresponding figures for the previous financial 4 year; and 5 (b) disclosure of all remuneration, allowances or expenses 6 paid to members of the executive committee, identifying 7 the total amounts paid to each member during the 8 financial year under the following categories-- 9 (i) remuneration or allowances; 10 (ii) expenses, split up into travelling, accommodation, 11 meal and other expenses. 12 `(5) A copy of the statement of accounts must accompany the 13 notice of the annual general meeting first happening after the 14 end of the financial year for which the accounts are prepared. 15 `168I Audit [SM, s 155] 16 `(1) The principal body corporate must have its statement of 17 accounts for each financial year of the body corporate audited 18 by an auditor. 19 `(2) The auditor to be appointed must be agreed to by ordinary 20 resolution of the principal body corporate. 21 `(3) The motion for agreeing to the auditor to be appointed-- 22 (a) must be included in the agenda for the general meeting 23 at which the motion is to be considered; and 24 (b) must include the name of the auditor proposed to be 25 appointed. 26 `(4) Also, the body corporate may, by ordinary resolution-- 27 (a) resolve to have its accounting records audited for a 28 particular period or a particular project; and 29 (b) appoint an auditor for the audit. 30 Page 48

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 41] `(5) A member of the executive committee, the body corporate 1 manager, or an associate of a member of the executive 2 committee or body corporate manager, can not be appointed 3 to audit the accounting records or the statement of accounts of 4 the principal body corporate. 5 `(6) On finishing an audit of the principal body corporate's 6 statement of accounts for a financial year, the auditor must 7 give a certificate-- 8 (a) stating whether the statement of accounts gives a true 9 and fair view of the principal body corporate's financial 10 affairs; and 11 (b) if the statement of accounts does not give a true and fair 12 view of the principal body corporate's financial 13 affairs--identifying the deficiencies in the statement. 14 `(7) A copy of the auditor's certificate must accompany the notice 15 of the next annual general meeting held after the certificate is 16 given. 17 `(8) In this section-- 18 auditor means-- 19 (a) a person who is a registered company auditor; or 20 (b) a person who-- 21 (i) is a member of-- 22 (A) CPA Australia and entitled to use the letters 23 `CPA' or `FCPA'; or 24 (B) the Institute of Chartered Accountants in 25 Australia and entitled to use the letters `CA' 26 or `FCA'; or 27 (C) the National Institute of Accountants and 28 entitled to use the letters `MNIA', `FNIA', 29 `PNA' or `FPNA'; and 30 (ii) has a total of 2 years auditing experience, whether 31 or not continuous.'. 32 Page 49

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 42] Clause 42 Amendment of s 173 (Application of div 3 to expanded 1 principal body corporate) 2 (1) Section 173, heading, `div 3'-- 3 omit, insert-- 4 `particular provisions'. 5 (2) Section 173, `Division 3 applies'-- 6 omit, insert-- 7 `Divisions 3, 3A, 3B and 5 apply'. 8 Clause 43 Insertion of new pt 8, div 5 and new pt 8A 9 Part 8-- 10 insert-- 11 `Division 5 Removal from office of voting 12 members of executive committees 13 for breach of code of conduct 14 `175A Application of div 5 15 `This division applies to a primary thoroughfare body 16 corporate or principal body corporate for removing a voting 17 member of its executive committee for a breach of the code of 18 conduct. 19 `175B Notice for breach of code of conduct [SM, s 34] 20 `(1) If the body corporate believes a voting member of its 21 executive committee has breached the code of conduct for the 22 member, the body corporate may decide, by ordinary 23 resolution, to give the member a written notice stating each of 24 the following-- 25 (a) that the body corporate believes the member has 26 breached a stated provision of the code of conduct; 27 Page 50

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] (b) details sufficient to identify the breach in not more than 1 600 words; 2 (c) that the member may give any other member of the body 3 corporate, within the stated period of at least 21 days 4 after the member is given the notice, a written response 5 to the notice in not more than 600 words; 6 (d) that, if asked by the member, the body corporate will 7 pay the member all postage charges and copying 8 expenses reasonably incurred by the member in giving a 9 written response under paragraph (c) to any other 10 member of the body corporate; 11 (e) that the body corporate is to consider a motion to 12 remove the member from office for the breach at the 13 next general meeting of the body corporate called after 14 the period mentioned in paragraph (c) ends. 15 `(2) If asked by the member, the body corporate must pay the 16 member all postage charges and copying expenses reasonably 17 incurred by the member in giving a written response under 18 subsection (1)(c) to any other member of the body corporate. 19 `175C Removal of voting member at general meeting 20 [SM, s 35] 21 `(1) This section applies if-- 22 (a) the body corporate gives a voting member of its 23 executive committee a notice under section 175B(1); 24 and 25 (b) the period mentioned in section 175B(1)(c) for the 26 notice has ended. 27 `(2) The body corporate must-- 28 (a) include on the agenda of the next general meeting of the 29 body corporate, called after the period mentioned in 30 section 175B(1)(c) ends, a motion to remove the 31 member from office for breaching the code of conduct; 32 and 33 Page 51

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] (b) attach to the agenda a copy of-- 1 (i) the notice; and 2 (ii) if the body corporate has received a response from 3 the member under section 175B(1)(c)--the 4 response. 5 `(3) The member may be removed from office, by ordinary 6 resolution of the body corporate, at the next general meeting. 7 `Part 8A Conduct of body corporate 8 managers, service contractors 9 and letting agents 10 `Division 1 Preliminary 11 `175D Definitions for pt 8A 12 `In this part-- 13 caretaking service contractor, for an approved scheme or part 14 of an approved scheme, means a service contractor for the 15 approved scheme or part who is also-- 16 (a) a letting agent for the approved scheme or part; or 17 (b) an associate of the letting agent. 18 letting agent authorisation, for a letting agent, means an 19 authorisation given by a primary thoroughfare body corporate 20 or principal body corporate to the letting agent to conduct a 21 letting agent business for an approved scheme or part of an 22 approved scheme. 23 management rights, of a letting agent for an approved scheme 24 or part of an approved scheme, means-- 25 (a) the letting agent business for the approved scheme or 26 part, including the letting agent's authorisation; and 27 Page 52

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] (b) the business conducted by the letting agent under a 1 service contract for the approved scheme or part, 2 including the service contract; and 3 (c) the letting agent's interest in a lot used for conducting a 4 business mentioned in paragraph (a) or (b); and 5 (d) any right of the letting agent to use and occupy a part of 6 the common property for a business mentioned in 7 paragraph (a) or (b). 8 reviewable terms, for a service contract, means the terms of 9 the contract that provide for-- 10 (a) the functions and powers of the relevant letting agent as 11 a service contractor; or 12 (b) the remuneration payable to the relevant letting agent as 13 a service contractor. 14 review advice, about a service contract, means written advice 15 about whether the contract's reviewable terms-- 16 (a) are currently fair and reasonable; and 17 (b) if the reviewable terms are not currently fair and 18 reasonable--how the reviewable terms should be 19 changed to ensure they are fair and reasonable. 20 service contract means a contract entered into with a person 21 for the engagement of the person as a service contractor for an 22 approved scheme or part of an approved scheme. 23 `175E Meaning of financier for a letting agent's contract 24 `(1) A person is a financier for a contract under which a letting 25 agent is authorised by a body corporate if the letting agent and 26 the person give written notice signed by each of them to the 27 body corporate that the person is a financier for the contract. 28 `(2) A person stops being a financier for the contract if the person 29 gives the body corporate a written notice withdrawing the 30 notice given under subsection (1). 31 Page 53

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] `(3) A notice under subsection (2) may be given without the letting 1 agent's agreement. 2 `(4) However, a person is a financier for the contract only if-- 3 (a) the person is a financial institution; or 4 (b) the person, in the ordinary course of the person's 5 business, supplies, or might reasonably be expected to 6 supply, finance for business acquisitions, using charges 7 over contracts as the whole or part of the person's 8 security for supplying the finance; or 9 (c) at the time the person supplied finance for a business 10 acquisition using a charge over the contract as the whole 11 or part of the person's security, the person was a person 12 to whom paragraph (b) would have applied. 13 `175F Meaning of letting agent and letting agent business 14 `(1) A person is a letting agent for an approved scheme or part of 15 an approved scheme if the person is authorised by the primary 16 thoroughfare body corporate or principal body corporate to 17 conduct a letting agent business for the approved scheme or 18 part. 19 `(2) A person conducts a letting agent business for an approved 20 scheme or part of an approved scheme if-- 21 (a) the person conducts, subject to the Property Agents and 22 Motor Dealers Act 2000, the business of acting as the 23 agent of the owners of 1 or more lots included in the 24 approved scheme or part; and 25 (b) the owners choose to use the person's services for 26 securing, negotiating or enforcing (including collecting 27 rents or tariffs for) leases or other occupancies of lots 28 included in the approved scheme or part. 29 `(3) It is not relevant to the identification of a person as a letting 30 agent under this section that the person also conducts an 31 ancillary business or other activity. 32 Page 54

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] Examples of ancillary businesses or activities-- 1 video hire, linen hire, agency for tour operator 2 `175G Meaning of service contractor for approved scheme 3 or part 4 `A person is a service contractor for an approved scheme or 5 part of an approved scheme if-- 6 (a) the person is engaged by the primary thoroughfare body 7 corporate or principal body corporate to supply services 8 to the body corporate for the benefit of the common 9 property or lots included in the approved scheme or part; 10 and 11 (b) the person is not an employee of the primary 12 thoroughfare body corporate or principal body 13 corporate; and 14 (c) the services do not include administrative services; and 15 (d) the term of the engagement is at least 1 year. 16 Examples of services that might be provided by a service contractor-- 17 caretaking services, pool cleaning services 18 `Division 2 Codes of conduct 19 `175H Code of conduct for body corporate manager and 20 caretaking service contractor 21 `(1) The code of conduct in schedule 5 applies to-- 22 (a) a body corporate manager appointed by a primary 23 thoroughfare body corporate or principal body corporate 24 in performing obligations under the person's 25 appointment; and 26 (b) a caretaking service contractor engaged by the primary 27 thoroughfare body corporate or principal body corporate 28 for an approved scheme or part of an approved scheme 29 Page 55

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] in performing obligations under the person's 1 engagement. 2 `(2) Compliance with the provisions of the code is taken to be a 3 condition of the instrument of appointment or the contract 4 providing for the person's engagement. 5 `(3) If there is an inconsistency between a provision of the code 6 and a provision in the instrument of appointment or contract, 7 the provision of the code prevails. 8 `(4) In this section-- 9 instrument of appointment, in relation to a person's 10 appointment as a body corporate manager, includes a contract 11 or other document relating to the appointment. 12 `175I Code of conduct for letting agent 13 `The code of conduct in schedule 6 applies to a letting agent 14 authorised by a primary thoroughfare body corporate or 15 principal body corporate to conduct a letting agent business 16 for an approved scheme or part of an approved scheme. 17 `Division 3 Required transfer of management 18 rights for contravention of code of 19 conduct 20 `Subdivision 1 Preliminary 21 `175J Application of div 3 22 `(1) This division applies for transferring the management rights 23 of a letting agent authorised by a primary thoroughfare body 24 corporate or principal body corporate to conduct a letting 25 agent business for an approved scheme or a part of an 26 approved scheme. 27 `(2) However, this division does not apply to a letting agent for 28 conducting a letting agent business or a part of a letting agent 29 Page 56

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] business for an approved scheme or part of an approved 1 scheme for which a serviced strata arrangement or scheme 2 under the Corporations Act is in operation. 3 `175K Effect of div 3 on other provisions 4 `The provisions of a letting agent authorisation or service 5 contract providing for its transfer or termination are void to 6 the extent the provisions are inconsistent with this division. 7 `Subdivision 2 Transfer of management rights 8 `175L Code contravention notice 9 `(1) The body corporate must, if required by an ordinary resolution 10 decided by secret ballot, give the letting agent a signed notice 11 under this section (a code contravention notice). 12 `(2) The code contravention notice must state-- 13 (a) that the body corporate believes the letting agent has 14 contravened, or is contravening, a provision of the code 15 of conduct for-- 16 (i) letting agents; or 17 (ii) body corporate managers and caretaking service 18 contractors; and 19 (b) the provision the body corporate believes has been, or is 20 being, contravened; and 21 (c) details sufficient to identify the contravention; and 22 (d) a reasonable period within which the letting agent must 23 remedy the contravention; and 24 (e) that the body corporate may, without further notice, give 25 the letting agent a transfer notice if-- 26 (i) the letting agent does not comply with the code 27 contravention notice; or 28 Page 57

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] (ii) the body corporate reasonably believes the letting 1 agent, after being given the notice, has contravened 2 a provision of a code mentioned in paragraph (a). 3 `175M Grounds for requiring transfer 4 `The body corporate may require the transfer of the letting 5 agent's management rights under this division only if the 6 requirement is based on either of the following grounds-- 7 (a) the letting agent failed to comply with a code 8 contravention notice; 9 (b) the body corporate reasonably believes the letting agent, 10 after being given the notice, contravened a provision of 11 the code of conduct for-- 12 (i) letting agents; or 13 (ii) body corporate managers and caretaking service 14 contractors. 15 `175N Requirement for transfer 16 `The letting agent must transfer the letting agent's 17 management rights for the approved scheme or part if-- 18 (a) a ground under section 175M exists for the body 19 corporate to require the transfer; and 20 (b) the body corporate-- 21 (i) by majority resolution decided by secret ballot 22 requires the transfer; and 23 (ii) gives written notice of the requirement (the 24 transfer notice) to the letting agent. 25 `175O Transfer--letting agent's choice of transferee 26 `(1) The letting agent must transfer the management rights-- 27 (a) within the following period after the transfer notice is 28 given to the letting agent-- 29 Page 58

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] (i) if section 175T does not apply--9 months; 1 (ii) if section 175T applies--11 months; and 2 (b) to a person, other than an associate of the letting agent, 3 chosen by the letting agent and approved by the body 4 corporate. 5 `(2) For deciding whether to approve a person under subsection 6 (1)(b), the body corporate-- 7 (a) must act reasonably and as quickly as practicable; and 8 (b) may have regard only to the person's-- 9 (i) character; and 10 (ii) financial standing; and 11 (iii) competence, qualifications and experience. 12 `(3) However, the body corporate must not-- 13 (a) unreasonably withhold approval of the person; or 14 (b) require or receive a fee or other consideration for 15 approving the person, other than reimbursement for 16 legal expenses reasonably incurred by the body 17 corporate in relation to a request for the approval. 18 Maximum penalty for subsection (3)--50 penalty units. 19 `(4) If the letting agent transfers the management rights to a person 20 who is not approved by the body corporate, the transfer is of 21 no effect. 22 `175P Giving financier copy of transfer notice 23 `When the body corporate gives the transfer notice to the 24 letting agent, the body corporate must give a copy of it to each 25 person who is a financier for the contract under which the 26 letting agent is authorised as the letting agent. 27 Page 59

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] `175Q Transfer--body corporate's choice of transferee 1 `(1) If the letting agent does not transfer the management rights as 2 required under section 175O, the letting agent must transfer 3 the management rights-- 4 (a) to a replacement letting agent chosen by the executive 5 committee of the body corporate and named in a written 6 notice given by the committee to the letting agent; and 7 (b) at the price stated in the notice; and 8 (c) within the period, of at least 2 months after the notice is 9 given, stated in the notice. 10 `(2) The price stated must be 1 of the following-- 11 (a) the average of 2 valuations, obtained by the body 12 corporate from 2 independent registered valuers, stating 13 the value of the management rights; 14 (b) the highest bid for the management rights, excluding a 15 bid by the letting agent or an associate of the letting 16 agent, made at an auction-- 17 (i) conducted at the request of the body corporate; and 18 (ii) of which at least 60 days notice was given; 19 (c) the highest amount tendered, excluding by tender by the 20 letting agent or an associate of the letting agent, for the 21 management rights after reasonable efforts made by the 22 body corporate to market the management rights for at 23 least 60 days. 24 `(3) The letting agent must pay the body corporate, from the 25 proceeds of the sale, the reasonable costs incurred by the body 26 corporate under subsection (2). 27 Note-- 28 If the letting agent does not transfer the management rights as required 29 under this section, it is a ground for giving the letting agent a remedial 30 action notice under section 175Y. 31 Page 60

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] `175R Terms of service contract on transfer 1 `(1) This section applies to a service contract (the transferred 2 service contract) transferred to a person (the transferee) 3 under section 175O or 175Q. 4 `(2) Unless the body corporate and transferee agree otherwise, the 5 terms of the transferred service contract are-- 6 (a) the terms applying to the service contract under 7 subsection (3); or 8 (b) if subsection (3) does not apply--the terms applying to 9 the service contract immediately before the transfer (the 10 existing terms). 11 `(3) The terms of the transferred service contract are the existing 12 terms as changed under a review advice about the contract 13 if-- 14 (a) the review advice states how the contract's reviewable 15 terms should be changed to ensure they are fair and 16 reasonable; and 17 (b) the body corporate gave the letting agent a copy of the 18 review advice as required under section 175V(1). 19 `Subdivision 3 Replacement of letting agent 20 authorisation and service contract 21 `175S Replacement of letting agent authorisation and 22 service contract in particular circumstances 23 `(1) This section applies if the remainder of the term of the letting 24 agent's authorisation (the transferred authorisation), 25 including any rights or options of extension or renewal, is less 26 than 7 years when transferred to a person (the transferee) 27 under this division. 28 Example-- 29 A letting agent's authorisation is given for a term of 5 years with 4 rights 30 of renewal of 5 years each and 5 years have expired. The remainder of 31 the term is therefore 20 years and this section does not apply. 32 Page 61

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] `(2) On the transfer-- 1 (a) the transferred authorisation and any service contract 2 (the transferred service contract) forming part of the 3 transferred management rights terminate; and 4 (b) the body corporate must-- 5 (i) authorise the transferee to conduct a letting agent 6 business for the approved scheme or part; and 7 (ii) if a service contract formed part of the transferred 8 management rights--engage the transferee as a 9 service contractor. 10 `(3) The authorisation and engagement must be given for a term of 11 9 years starting immediately after the transfer. 12 `(4) Subject to subsection (3)-- 13 (a) the authorisation must be given on the terms applying to 14 the transferred authorisation immediately before the 15 transfer; and 16 (b) unless the body corporate and transferee agree 17 otherwise, the engagement must be given on-- 18 (i) the terms applying to the transferred service 19 contract under subsection (5); or 20 (ii) if subsection (5) does not apply--the terms 21 applying to the transferred service contract 22 immediately before the transfer (the existing 23 terms). 24 `(5) The engagement must be given on the existing terms of the 25 transferred service contract as changed under a review advice 26 about the contract if-- 27 (a) the review advice states how the contract's reviewable 28 terms should be changed to ensure they are fair and 29 reasonable; and 30 (b) the body corporate gave the letting agent a copy of the 31 review advice as required under section 175V(1). 32 Page 62

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] `Subdivision 4 Reviewing terms of letting agent's 1 service contract 2 `175T Reviewing terms of service contract 3 `(1) This section applies if-- 4 (a) the letting agent's management rights include a service 5 contract; and 6 (b) when the body corporate passes the majority resolution 7 mentioned in section 175N, the body corporate also 8 passes, by ordinary resolution, a motion (a review 9 motion) that a review advice about the service contract 10 be obtained. 11 `(2) Within 1 month after the review motion is passed, the body 12 corporate must obtain the review advice from an independent 13 appropriate person. 14 Example of an independent appropriate person-- 15 a person who, in the ordinary course of the person's business, has 16 knowledge of the functions and powers of service contractors and the 17 remuneration for performing the functions and powers 18 `(3) The review advice must be based on the review criteria stated 19 in section 175U. 20 `(4) This section applies to the contract even if the contract also 21 provides for either or both of the following-- 22 (a) the letting agent's engagement as a body corporate 23 manager; 24 (b) the letting agent's authorisation as a letting agent. 25 `175U Review criteria 26 `(1) The review criteria are each of the following-- 27 (a) the appropriateness of the reviewable terms for 28 achieving a fair and reasonable balance between the 29 interests of the body corporate and the service 30 contractor; 31 Page 63

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] (b) whether the reviewable terms impose conditions that-- 1 (i) are unreasonably difficult to comply with; or 2 (ii) are not necessary and reasonable for the protection 3 of the legitimate interests of the body corporate or 4 the service contractor; 5 (c) the consequences of complying with, or contravening, 6 the reviewable terms and whether the consequences are 7 unfairly harsh or beneficial to the body corporate or the 8 service contractor; 9 (d) whether the reviewable terms are appropriate for the 10 approved scheme; 11 (e) the term of the engagement as service contractor and the 12 period of the term remaining. 13 `(2) The review criterion mentioned in subsection (1)(d) is to be 14 applied having regard, in particular, to the nature, features and 15 characteristics of the approved scheme. 16 `175V Giving copy of review advice to letting agent and 17 prospective buyer of management rights 18 `(1) Within 14 days after obtaining the review advice, the body 19 corporate must give a copy of it to the letting agent. 20 `(2) If requested by a prospective buyer of the letting agent's 21 management rights, the body corporate must give a copy of 22 the review advice to the prospective buyer. 23 `Subdivision 5 Disputes about transfer of 24 management rights 25 `175W CCT jurisdiction 26 `A dispute about the transfer, under this division, of a letting 27 agent's management rights may be dealt with by the 28 Commercial and Consumer Tribunal under the Commercial 29 and Consumer Tribunal Act 2003. 30 Page 64

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] `Division 4 Disputes about contractual matters 1 `175X CCT jurisdiction 2 `(1) This section applies to a dispute about a claimed or 3 anticipated contractual matter about-- 4 (a) the appointment or engagement of a person as a body 5 corporate manager or caretaking service contractor for 6 an approved scheme or part of an approved scheme; or 7 (b) the authorisation of a person as a letting agent for an 8 approved scheme or part of an approved scheme. 9 `(2) A party to the dispute may apply under the Commercial and 10 Consumer Tribunal Act 2003 for an order of the Commercial 11 and Consumer Tribunal to resolve the dispute. 12 `Division 5 Termination of appointment, 13 engagement or authorisation 14 `175Y Termination for failure to comply with remedial 15 action notice [SM, s 131] 16 `(1) A primary thoroughfare body corporate or principal body 17 corporate may terminate a person's appointment as a body 18 corporate manager or engagement as a service contractor if 19 the person or, if the person is a corporation, a director of the 20 corporation-- 21 (a) engages in misconduct, or is grossly negligent, in 22 carrying out functions required under the appointment 23 or engagement; or 24 (b) fails to carry out duties under the appointment or 25 engagement; or 26 (c) contravenes-- 27 (i) for a body corporate manager--the code of 28 conduct for body corporate managers and 29 caretaking service contractors; or 30 Page 65

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] (ii) for a service contractor who is a caretaking service 1 contractor--the code of conduct for body 2 corporate managers and caretaking service 3 contractors or the code of conduct for letting 4 agents. 5 `(2) Also, the body corporate may terminate a person's 6 authorisation as a letting agent if-- 7 (a) the person or, if the person is a corporation, a director of 8 the corporation-- 9 (i) engages in misconduct, or is grossly negligent, in 10 carrying out obligations, if any, under the 11 authorisation; or 12 (ii) fails to carry out duties under the authorisation; or 13 (iii) contravenes the code of conduct for letting agents 14 or, for a caretaking service contractor, the code of 15 conduct for body corporate managers and 16 caretaking service contractors; or 17 (b) the person-- 18 (i) has been given a transfer notice requiring transfer 19 of the person's management rights; and 20 (ii) has not transferred the management rights as 21 required under section 175Q. 22 `(3) The body corporate may act under subsection (1) or (2) only 23 if-- 24 (a) the body corporate has given the manager, contractor or 25 agent a remedial action notice; and 26 (b) the manager, contractor or agent fails to comply with the 27 remedial action notice within the period stated in the 28 notice; and 29 (c) the termination is approved by ordinary resolution of the 30 body corporate; and 31 (d) for the termination of a person's engagement as a 32 caretaking service contractor or authorisation as a 33 Page 66

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 43] letting agent--the motion to approve the termination is 1 decided by secret ballot. 2 `(4) In this section-- 3 remedial action notice means a written notice stating each of 4 the following-- 5 (a) that the body corporate believes the person to whom the 6 notice is given has acted-- 7 (i) for a body corporate manager or service 8 contractor--in a way mentioned in subsection (1); 9 or 10 (ii) for a letting agent--in a way mentioned in 11 subsection (2); 12 (b) details of the action sufficient to identify-- 13 (i) the misconduct or gross negligence the body 14 corporate believes has happened; or 15 (ii) the duties the body corporate believes have not 16 been carried out; or 17 (iii) the provision of the code of conduct the body 18 corporate believes has been contravened; or 19 (iv) if subsection (2)(b) applies, the contravention of 20 the code contravention notice or the relevant 21 provision of the code of conduct that was the 22 ground for requiring the transfer of the person's 23 management rights under section 175M; 24 (c) that the person must, within the reasonable period of at 25 least 14 days stated in the notice-- 26 (i) remedy the misconduct or gross negligence; or 27 (ii) carry out the duties; or 28 (iii) remedy the contravention; 29 (d) that if the person does not comply with the notice in the 30 stated period, the body corporate may terminate the 31 person's appointment, engagement or authorisation as a 32 Page 67

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 44] body corporate manager, service contractor or letting 1 agent.'. 2 Clause 44 Amendment of s 177 (Minor non-compliance with 3 development control by-laws) 4 (1) Section 177(1), `that member of'-- 5 omit, insert-- 6 `an affected person with'. 7 (2) Section 177(2), `is'-- 8 omit, insert-- 9 `must be'. 10 (3) Section 177-- 11 insert-- 12 `(4) In this section-- 13 affected person means any of the following-- 14 (a) the member of the principal body corporate making the 15 request under subsection (1); 16 (b) the proprietor, mortgagee in possession, lessee or 17 occupier of the land or lot to which the request relates.'. 18 Clause 45 Replacement of s 179A (Dealing with disputes) 19 Section 179A-- 20 omit, insert-- 21 `Division 1 Resolution of particular disputes 22 `179A Dealing with particular disputes under Building 23 Units and Group Titles Act 1980 24 `(1) Subject to subsection (2), a dispute about the operation of this 25 Act or the rights and obligations of persons under this Act 26 Page 68

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 45] may be dealt with under the Building Units and Group Titles 1 Act 1980, part 5. 2 `(2) However, this section-- 3 (a) does not apply to a dispute or matter mentioned in 4 section 175W, 175X or 179B; and 5 (b) is subject to section 179C. 6 `179B Dealing with matter relating to development control 7 by-law 8 `(1) The Commercial and Consumer Tribunal may deal with a 9 matter relating to-- 10 (a) the application of a development control by-law for an 11 approved scheme to a person mentioned in subsection 12 (2)(b) or (c); or 13 (b) a contravention or alleged contravention of a 14 development control by-law for an approved scheme. 15 `(2) Each of the following persons may apply to the tribunal to 16 deal with a matter under subsection (1) if the person has 17 standing to make the application-- 18 (a) the principal body corporate for the approved scheme; 19 (b) a subsidiary body corporate of the principal body 20 corporate; 21 (c) a proprietor or occupier of, or a person having an estate 22 or interest in, a lot in a residential precinct in the 23 approved scheme. 24 `(3) For subsection (2), a person has standing to make the 25 application if the person is directly and materially affected by 26 the matter to which the application relates. 27 Example-- 28 A proprietor of a lot in a residential precinct in an approved scheme 29 alleges the amenity of the lot has been, or will be, adversely affected by 30 Page 69

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 45] development authorised under a development control by-law in an 1 adjoining residential precinct in the scheme. 2 `(4) This section is subject to section 179C. 3 `179C Internal dispute resolution processes to be used 4 before application 5 `(1) This section applies to-- 6 (a) a referee for deciding an application for an order under 7 the Building Units and Group Titles Act 1980, part 5 8 relating to a dispute about a matter mentioned in section 9 179A; and 10 (b) the Commercial and Consumer Tribunal for deciding an 11 application about a matter mentioned in section 179B. 12 `(2) The referee or tribunal must not decide the application unless 13 the referee or tribunal is satisfied the applicant has made 14 reasonable attempts to resolve the dispute or matter by using 15 internal dispute resolution processes. 16 Examples of internal dispute resolution processes-- 17 · the parties to a dispute communicating with each other 18 · the applicant writing to the executive committee for the relevant 19 principal body corporate 20 · the applicant causing a motion to be presented for consideration at a 21 general meeting of the relevant principal body corporate 22 `Division 2 Other matters 23 `179D Associates 24 `(1) For this Act, a person is associated with someone else if-- 25 (a) a relationship of a type to which this section applies 26 exists between them; or 27 (b) a series of relationships of a type to which this section 28 applies can be traced between them through another 29 person or other persons. 30 Page 70

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 46] `(2) This section applies to relationships of the following types-- 1 (a) marriage or de facto partnership; 2 (b) the relationship of ascendant and descendant (including 3 the relationship of parent and child) or the relationship 4 of persons who have a parent or grandparent in 5 common; 6 (c) business partnership; 7 (d) the relationship of employer and employee; 8 (e) a fiduciary relationship; 9 (f) the relationship of persons, 1 of whom is accustomed, or 10 under an obligation (whether formal or informal), to act 11 in accordance with the directions, instructions or wishes 12 of the other; 13 (g) the relationship of a corporation and executive officer of 14 the corporation; 15 (h) the relationship of a corporation and a person who is in a 16 position to control or substantially influence the 17 corporation's conduct. 18 `(3) Despite subsection (2)(e) and (f), the owner of an initial lot, 19 secondary lot or a lot on a group titles plan or building units 20 plan and a letting agent for an approved scheme or part of an 21 approved scheme are not associated merely because of their 22 relationship as owner and letting agent. 23 `(4) In this section-- 24 executive officer, of a corporation, means a person who is 25 concerned with, or takes part in, the corporation's 26 management, whether or not the person is a director or the 27 person's position is given the name of executive officer.'. 28 Clause 46 Insertion of new pt 12 29 After section 183-- 30 insert-- 31 Page 71

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 46] `Part 12 Transitional provisions for 1 Resorts and Other Acts 2 Amendment Act 2009 3 `Division 1 Preliminary 4 `184 Definitions for pt 12 5 `In this part-- 6 commencement means the commencement of this section. 7 effective day means the day that is 6 months after the 8 commencement. 9 `Division 2 Bodies corporate 10 `185 Existing number of committee members may 11 continue until effective day 12 `(1) This section applies if-- 13 (a) a primary thoroughfare body corporate or principal body 14 corporate has more than 5 members; and 15 (b) the number (the existing number) of members of the 16 executive committee of the body corporate is less than 5. 17 `(2) Despite section 123(5) or 158(6), the executive committee 18 may continue to consist of the existing number of members. 19 `(3) This section stops applying at the beginning of the effective 20 day. 21 `186 Deferred application of particular provisions 22 `The following provisions do not apply until the effective 23 day-- 24 (a) sections 123A and 158A and schedule 4; 25 Page 72

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 46] (b) part 8, divisions 1A, 3A, 3B and 5. 1 Editor's note-- 2 · sections 123A (Code of conduct for voting members of executive 3 committee) and 158A (Code of conduct for voting members of 4 executive committee) and schedule 4 (Code of conduct for voting 5 members of executive committees) 6 · part 8, divisions 1A (Proxies for principal bodies corporate at 7 general meetings of primary thoroughfare bodies corporate), 3A 8 (Proxies for general meetings of principal bodies corporate), 3B 9 (Accounts and audit) and 5 (Removal from office of voting 10 members of executive committees for breach of code of conduct) 11 `187 Application of code of conduct for existing voting 12 members of executive committees 13 `(1) This section applies to a person who, before the effective day, 14 was a voting member of the executive committee of a primary 15 thoroughfare body corporate or principal body corporate. 16 `(2) The code of conduct for voting members of the executive 17 committee applies to the person only in relation to acts done 18 or omissions made on or after the effective day. 19 `188 Auditing accounts for first annual general meeting 20 after effective day 21 `(1) This section applies if-- 22 (a) before the effective day-- 23 (i) a principal body corporate authorised a person to 24 prepare a statement of accounts under section 25 151(1)(f) for adoption at the body corporate's 26 annual general meeting; and 27 (ii) the person started to prepare the statement of 28 accounts; and 29 (b) the annual general meeting has not happened. 30 `(2) Section 168I does not apply for auditing the statement of 31 accounts for the period to which the authorisation relates. 32 Page 73

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 46] `189 End of appointment of original owner of secondary 1 lot as nominee for subsidiary body corporate 2 `(1) This section applies if-- 3 (a) before the commencement-- 4 (i) a subsidiary body corporate under a building units 5 or group titles plan appointed as its nominee, under 6 section 140, the original owner of the secondary lot 7 subdivided by the plan or an ineligible associate of 8 the original owner; and 9 (ii) the original owner ceased to own more than 50% 10 of the lots; and 11 (b) immediately before the commencement, the original 12 owner or associate was still the nominee for the 13 subsidiary body corporate. 14 `(2) Despite section 140A, the original owner's or associate's 15 appointment as the nominee for the subsidiary body corporate 16 ends when the first of the following happens-- 17 (a) the beginning of the effective day; 18 (b) the secretary of the principal body corporate receives a 19 written notice under section 140(7)(b) of-- 20 (i) the cancellation of the appointment; or 21 (ii) the appointment of another nominee for the 22 subsidiary body corporate. 23 `(3) In this section-- 24 ineligible associate see section 140A(2)(b). 25 subsidiary body corporate, under a building units or group 26 titles plan subdividing a secondary lot within a residential 27 precinct, means the body corporate created by the registration 28 of the plan. 29 Page 74

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 46] `Division 3 Body corporate managers, service 1 contractors and letting agents 2 `190 Deferred application of particular provisions 3 `The following provisions do not apply until the effective 4 day-- 5 (a) part 8A, divisions 2, 3, 4 and 5; 6 (b) schedules 5 and 6. 7 Editor's note-- 8 · Part 8A (Conduct of body corporate managers, service contractors 9 and letting agents), divisions 2 (Codes of conduct), 3 (Required 10 transfer of management rights for contravention of code of 11 conduct), 4 (Disputes about contractual matters) and 5 (Termination 12 of appointment, engagement or authorisation) 13 · schedules 5 (Code of conduct for body corporate managers and 14 caretaking service contractors) and 6 (Code of conduct for letting 15 agents) 16 `191 Application of code of conduct for existing 17 managers and contractors 18 `(1) This section applies to a person who, before the effective 19 day-- 20 (a) was appointed as the body corporate manager of a 21 primary thoroughfare body corporate or principal body 22 corporate; or 23 (b) was engaged as a caretaking service contractor for an 24 approved scheme or part of an approved scheme. 25 `(2) The code of conduct for body corporate managers and 26 caretaking service contractors applies to the person only in 27 relation to acts done or omissions made on or after the 28 effective day. 29 Page 75

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 47] `192 Application of code of conduct for existing letting 1 agents 2 `(1) This section applies to a person who, before the effective day, 3 was a letting agent for an approved scheme or part of an 4 approved scheme. 5 `(2) The code of conduct for letting agents applies to the person 6 only in relation to acts done or omissions made on or after the 7 effective day. 8 `193 Existing term of appointment for body corporate 9 manager 10 `(1) This section applies if-- 11 (a) before the commencement, a body corporate manager 12 was appointed for-- 13 (i) a primary thoroughfare body corporate under 14 section 130; or 15 (ii) a principal body corporate under section 165; and 16 (b) the term of the appointment has not ended. 17 `(2) The term of the appointment ends on the day provided for in 18 the instrument of appointment. 19 `(3) For subsection (2), the term of the appointment provided for 20 in the instrument of appointment includes rights or options of 21 extension or renewal provided for in the instrument of 22 appointment. 23 `(4) This section applies despite sections 130(5) and (6) and 24 165(5) and (6).'. 25 Clause 47 Amendment of sch 2 (Dictionary) 26 (1) Schedule 2-- 27 insert-- 28 `associate, of a person, means someone else with whom the 29 person is associated under section 179D. 30 Page 76

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 47] body corporate, for schedule 3, see schedule 3, section 1. 1 body corporate manager-- 2 (a) of a primary thoroughfare body corporate--means a 3 person appointed by the body corporate under section 4 130; or 5 (b) of a principal body corporate--means a person 6 appointed by the body corporate under section 165. 7 candidate, for schedule 3, see schedule 3, section 1. 8 caretaking service contractor see section 175D. 9 code contravention notice see section 175L(1). 10 code of conduct means-- 11 (a) for a voting member of the executive committee of a 12 primary thoroughfare body corporate or principal body 13 corporate--the code in schedule 4; or 14 (b) for a body corporate manager or caretaking service 15 contractor--the code in schedule 5; or 16 (c) for a letting agent--the code in schedule 6. 17 Commercial and Consumer Tribunal means the tribunal of 18 that name established under the Commercial and Consumer 19 Tribunal Act 2003. 20 eligibility category, for schedule 3, see schedule 3, section 1. 21 executive committee, for schedule 3, see schedule 3, section 22 1. 23 executive member, for schedule 3, see schedule 3, section 1. 24 financial year-- 25 (a) for a primary thoroughfare body corporate, means a 26 period in relation to which the body corporate is 27 required under section 116(1)(f) to prepare a statement 28 of accounts; or 29 (b) for a principal body corporate, means a period in 30 relation to which the body corporate is required under 31 section 151(1)(f) to prepare a statement of accounts. 32 Page 77

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 47] financier, for a letting agent's contract, see section 175E. 1 Integrated Planning Act means the Integrated Planning Act 2 1997. 3 letting agent see section 175F(1). 4 letting agent authorisation see section 175D. 5 letting agent business see section 175F(2). 6 majority resolution, for a duly convened general meeting of a 7 primary thoroughfare body corporate or principal body 8 corporate, means a resolution on a motion-- 9 (a) for which only 1 written vote may be exercised, other 10 than by proxy, for each lot mentioned in the relevant 11 body corporate roll; and 12 (b) that is passed only if the votes counted for the motion 13 are more than 50% of the lots for which persons are 14 entitled to vote on the motion. 15 management rights, of a letting agent for an approved scheme 16 or part of an approved scheme, see section 175D. 17 nominee, for a member of a principal body corporate, see 18 section 140(1). 19 ordinary member, for schedule 3, see schedule 3, section 1. 20 ordinary resolution, for a duly convened general meeting of a 21 primary thoroughfare body corporate or principal body 22 corporate, means a resolution that is passed by the members 23 of the body corporate whose voting entitlements total more 24 than 50% of the total of all voting entitlements recorded in the 25 relevant body corporate roll. 26 original owner, of an initial or secondary lot that has been 27 subdivided by a building unit or group titles plan, means the 28 person who was the registered owner of the lot immediately 29 before it was subdivided by the plan. 30 relevant body corporate debt means a following amount owed 31 by a person to a subsidiary body corporate-- 32 (a) a contribution or instalment of a contribution; 33 Page 78

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 47] (b) a penalty for not paying a contribution or instalment of a 1 contribution by the date for payment; 2 (c) another amount associated with the ownership of a lot. 3 Examples of another amount-- 4 · an annual payment for parking under an exclusive use 5 by-law made by the subsidiary body corporate 6 · an amount owing to the subsidiary body corporate for lawn 7 mowing services arranged by the subsidiary body corporate 8 on behalf of the person 9 reviewable terms, for a service contract, see section 175D. 10 review advice, about a service contract, see section 175D. 11 service contract see section 175D. 12 service contractor, for an approved scheme or part of an 13 approved scheme, see section 175G. 14 special resolution-- 15 (a) for a general meeting of a primary thoroughfare body 16 corporate, see section 101; or 17 (b) for a general meeting of a principal body corporate, see 18 section 138. 19 subject land, in relation to an application for amendment of 20 an approved scheme under part 2, division 2, means each 21 precinct, or other land within the site, to which the application 22 relates. 23 subsidiary body corporate-- 24 (a) of, or in relation to, a primary thoroughfare body 25 corporate, means any of the following bodies corporate 26 that are members of the primary thoroughfare body 27 corporate-- 28 (i) the principal body corporate; 29 (ii) a body corporate created by the registration of a 30 building units plan or group titles plan; or 31 (b) of, or in relation to, a principal body corporate, means a 32 body corporate created by the registration of a building 33 Page 79

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] units plan or group titles plan that is a member of the 1 principal body corporate. 2 transfer notice, for part 8A, see section 175N(b)(ii). 3 voting member-- 4 (a) of the executive committee of a primary thoroughfare 5 body corporate--see section 123A(1); or 6 (b) of the executive committee of a principal body 7 corporate--see section 158A(1).'. 8 (2) Schedule 2-- 9 renumber as schedule 7. 10 Clause 48 Insertion of new schs 2­6 11 After schedule 1-- 12 insert-- 13 `Schedule 2 Requirements for notices of 14 proposed scheme amendments 15 section 10(2) 16 `1 Requirements for placing notice on subject land 17 `(1) This section applies for placing a notice under section 18 10(1)(b) on subject land. 19 `(2) The notice must be-- 20 (a) placed on, or within 1.5m of, the road frontage for the 21 land; and 22 (b) mounted at least 300mm above ground level; and 23 (c) positioned so that it is visible from the road; and 24 (d) made of weatherproof material; and 25 (e) not less than 1200mm x 900mm. 26 Page 80

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `(3) The lettering on the notice must be-- 1 (a) for lettering in a heading--at least 50mm in height and 2 in a bold style; or 3 (b) for lettering in a subheading--at least 25mm in height 4 and in a bold style; or 5 (c) for lettering not mentioned in paragraphs (a) and (b)--at 6 least 25mm in height, of regular weight and in sentence 7 case. 8 `(4) Each sentence in the notice must start on a new line. 9 `(5) If the land has more than 1 road frontage, a notice must be 10 placed on each road frontage for the land. 11 `(6) The primary thoroughfare body corporate must maintain the 12 notice from the day it is placed on the land until the end of the 13 notification period stated in the notice. 14 `(7) In this section-- 15 road frontage, for subject land, means-- 16 (a) the boundary between the land and any road adjoining 17 the land; or 18 (b) if the only access to the land is across other land--the 19 boundary between the other land and any road adjoining 20 the other land at the point of access. 21 Page 81

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `Schedule 3 Election of executive 1 committee members of 2 body corporate 3 sections 123(6A) and 158(7A) 4 `1 Definitions for sch 3 5 `In this schedule-- 6 body corporate means a primary thoroughfare body corporate 7 or principal body corporate. 8 candidate see section 4(3)(a). 9 eligibility category, for a candidate, means the category of 10 person mentioned in section 123(7) or 158(8) to which the 11 candidate belongs. 12 executive committee means the executive committee of a 13 primary thoroughfare body corporate or principal body 14 corporate. 15 executive member, of an executive committee, means the 16 chairperson, secretary or treasurer of the committee. 17 ordinary member, of an executive committee, means a 18 member, other than an executive member, of the committee. 19 `2 Election of members of executive committee 20 [SM, s 15] 21 `(1) Unless otherwise provided under this schedule, the election of 22 a member of the executive committee of a body corporate 23 must be by ballot. 24 Note-- 25 See, for example, section 7 (Election of ordinary members of executive 26 committee). 27 Page 82

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `(2) A ballot for membership of the executive committee must be a 1 secret ballot unless the body corporate decides by ordinary 2 resolution that the election be held by open ballot. 3 `(3) The value of any vote able to be cast for a lot included in an 4 approved scheme or a part of an approved scheme for 5 choosing a member of the executive committee is the same as 6 the value of the vote able to be cast for each other lot included 7 in the approved scheme or part. 8 `3 Nomination procedures for election of executive 9 committee other than at first annual general meeting 10 [SM, s 16] 11 `(1) This section states how individuals are nominated for election 12 at the body corporate's annual general meeting, other than the 13 first annual general meeting, as a voting member of the 14 executive committee. 15 `(2) The secretary must serve a notice on each member of the body 16 corporate-- 17 (a) inviting nomination for the members of the executive 18 committee; and 19 (b) stating that a nominated person is not eligible to be a 20 voting member of the executive committee if, when the 21 members of the executive committee are chosen, the 22 person owes a relevant body corporate debt in relation to 23 a lot or lots owned by the person. 24 `(3) The notice must be given at least 3 weeks before, but not 25 earlier than 6 weeks before, the end of the body corporate's 26 financial year. 27 `(4) Nominations must comply with section 4 and must be given to 28 the secretary by the end of the body corporate's financial year. 29 `(5) As soon as practicable after receiving a nomination under this 30 section from a candidate for election, the secretary must 31 forward written notice to the candidate acknowledging the 32 nomination has been received. 33 Page 83

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `4 Requirements for nominations [SM, s 18] 1 `(1) Each member of the body corporate may nominate 1 person 2 for election as a voting member of the executive committee. 3 `(2) A nomination must be made by written notice and-- 4 (a) if the nomination is from a member of the body 5 corporate who is an individual nominating himself or 6 herself--must be signed and dated by the member; or 7 (b) if the nomination is from a member of the body 8 corporate other than a member to whom paragraph (a) 9 applies-- 10 (i) must be signed and dated by the nominated person; 11 and 12 (ii) must be countersigned by the appropriate 13 authorising person. 14 `(3) A nomination must contain each of the following details-- 15 (a) the family name and either the first given name or other 16 name or abbreviation by which the nominated person 17 (the candidate) is generally known; 18 (b) the position or positions the candidate is nominated for; 19 (c) the eligibility category for the candidate; 20 (d) if the candidate is not a member of the body corporate or 21 a person appointed by a subsidiary body corporate under 22 section 103 or 140-- 23 (i) the candidate's residential or business address; and 24 (ii) the name of the member who nominated the 25 candidate; 26 (e) details of any payment to be made to, or to be sought by, 27 the candidate from the body corporate for the candidate 28 carrying out the duties of a member of the executive 29 committee. 30 Example of a payment-- 31 payment of the candidate's expenses for travelling to executive 32 committee meetings 33 Page 84

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `(4) In this section-- 1 appropriate authorising person, for a nomination from a 2 member of the body corporate, means-- 3 (a) if the member is an individual--the member; or 4 (b) if the member is a subsidiary body corporate--the 5 person appointed by the member under section 103 or 6 140; or 7 (c) if the member is a corporation other than a subsidiary 8 body corporate--a director, secretary or other nominee 9 of the corporation. 10 `5 Conduct of elections for executive committee by 11 secret ballot [SM, s 21] 12 `(1) This section states how a secret ballot under this schedule 13 must be held. 14 `(2) After nominations close, the secretary must prepare ballot 15 papers for each of the following for which a ballot is 16 required-- 17 (a) chairperson; 18 (b) secretary; 19 (c) treasurer; 20 (d) the ordinary members of the executive committee. 21 `(3) Each ballot must be conducted separately. 22 `(4) However, the separate ballots mentioned in subsection (3) 23 may, but need not, appear on the one document. 24 `(5) For each ballot, the secretary must, if satisfied the 25 nominations comply with this schedule, state the names of the 26 properly nominated candidates in alphabetical order of family 27 name, showing-- 28 (a) after each name, a blank space for voting purposes; and 29 (b) the eligibility category for each candidate; and 30 Page 85

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] (c) if a candidate is not a member of the body corporate or a 1 person appointed by a subsidiary body corporate under 2 section 103 or 140-- 3 (i) the candidate's residential or business address; and 4 (ii) the name of the member who nominated the 5 candidate; and 6 (d) details of any payment to be made to, or to be sought by, 7 a candidate from the body corporate for the candidate 8 carrying out the duties of an executive committee 9 member. 10 `(6) The secretary must forward, with the notices for the annual 11 general meeting-- 12 (a) the ballot papers; and 13 (b) an envelope marked `ballot paper'; and 14 (c) either of the following-- 15 (i) a separate particulars envelope; 16 (ii) a particulars tab that forms part of the ballot paper 17 envelope but that a person may detach without 18 unsealing or otherwise opening the ballot paper 19 envelope. 20 `(7) To vote, a person must-- 21 (a) for a ballot for the position of chairperson, secretary or 22 treasurer--place a mark in the space opposite the name 23 of the candidate the person wishes to vote for; and 24 (b) for a ballot for the ordinary members' positions--place 25 a mark in each of the spaces opposite the names of 26 however many candidates the person wishes to vote for; 27 and 28 (c) place the ballot paper in the ballot paper envelope 29 supplied by the secretary and seal it; and 30 (d) if a separate particulars envelope is supplied--place the 31 sealed ballot paper envelope in the separate envelope 32 and seal it; and 33 Page 86

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] (e) complete the separate particulars envelope or particulars 1 tab by signing and dating the envelope or tab, and 2 inserting the following information on the envelope or 3 tab-- 4 (i) the name of the member for whom the vote is 5 exercised; 6 (ii) the name of the person having the right to vote for 7 the member; 8 (iii) the basis for the person's right to vote; and 9 (f) give the completed particulars envelope with the ballot 10 paper envelope enclosed, or the ballot paper envelope 11 with the completed particulars tab attached, to the 12 secretary, or forward the envelope to the secretary so 13 that the secretary receives it, before or at the annual 14 general meeting. 15 `(8) When a ballot is held-- 16 (a) a voter who has not submitted a vote for the ballot may 17 ask the secretary for a ballot paper, ballot paper 18 envelope and particulars envelope or tab, and vote in the 19 way this section provides; and 20 (b) a voter who wishes to withdraw a vote already made for 21 the ballot and submit a replacement vote, may, if the 22 particulars envelope, or the ballot paper envelope with 23 particulars tab attached, for the vote already made can 24 be readily identified and withdrawn, ask the secretary 25 for a ballot paper, ballot paper envelope and particulars 26 envelope or tab, and vote in the way this section 27 provides. 28 `(9) All completed ballot papers received before the annual 29 general meeting ends are to be held in the custody of the 30 secretary. 31 Page 87

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `6 Conduct of elections for executive committee by 1 open ballot [SM, s 22] 2 `(1) This section states how an open ballot under this schedule 3 must be held. 4 `(2) After nominations close, the secretary must prepare ballot 5 papers for each of the following for which a ballot is 6 required-- 7 (a) chairperson; 8 (b) secretary; 9 (c) treasurer; 10 (d) the ordinary members of the executive committee. 11 `(3) Each ballot must be conducted separately. 12 `(4) However, the separate ballots may, but need not, appear on 13 the one document. 14 `(5) For each ballot, the secretary must, if satisfied the 15 nominations comply with section 4, list the names of the 16 properly nominated candidates in alphabetical order of family 17 name, showing-- 18 (a) after each name, a blank space for voting purposes; and 19 (b) the eligibility category for each candidate; and 20 (c) if the candidate is not a member of the body corporate or 21 a person appointed by a subsidiary body corporate under 22 section 103 or 140-- 23 (i) the candidate's residential or business address; and 24 (ii) the name of the member who nominated the 25 candidate; and 26 (d) details of any payment to be made to, or to be sought by, 27 the candidate from the body corporate for the candidate 28 carrying out the duties of an executive committee 29 member. 30 `(6) The secretary must forward the ballot papers, and an envelope 31 marked `ballot paper' self-addressed to the secretary, with the 32 notices for the annual general meeting. 33 Page 88

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `(7) To vote, a person must-- 1 (a) for a ballot for the position of chairperson, secretary or 2 treasurer--place a mark in the space opposite the name 3 of the candidate the person wishes to vote for; and 4 (b) for a ballot for the ordinary members' positions--place 5 a mark in each of the spaces opposite the names of 6 however many candidates the person wishes to vote for; 7 and 8 (c) sign each ballot paper the voter completes; and 9 (d) on each completed ballot paper, write the name of the 10 member for whom the vote is exercised; and 11 (e) if the ballot paper is not completed at the annual general 12 meeting-- 13 (i) place the ballot paper in the ballot paper envelope 14 supplied by the secretary; and 15 (ii) seal the envelope, and write on the back of the 16 envelope the name mentioned in paragraph (d); and 17 (iii) give the ballot paper envelope to the secretary, or 18 forward it to the secretary so that the secretary 19 receives it, before or at the annual general meeting; 20 and 21 (f) if the ballot paper is completed at the annual general 22 meeting--give the ballot paper to the secretary before or 23 at the meeting. 24 `(8) When a ballot is held-- 25 (a) a voter who has not submitted a vote for the ballot may 26 ask the secretary for a ballot paper, and vote in the way 27 this section provides; and 28 (b) a voter who wishes to withdraw a vote already made for 29 the ballot and submit a replacement vote, may, if the 30 vote already made can be readily identified and 31 withdrawn, ask the secretary for a ballot paper and vote 32 in the way this section provides. 33 Page 89

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `(9) All completed ballot papers received before the annual 1 general meeting ends are to be held in the custody of the 2 secretary. 3 `7 Election of ordinary members of executive 4 committee [SM, s 23] 5 `(1) A person nominated as an ordinary member of the executive 6 committee becomes an ordinary member of the committee 7 under section 11 on the basis of the nomination unless it is 8 necessary to have a ballot. 9 `(2) It is necessary to have a ballot for ordinary members of the 10 executive committee if the number of persons nominated for 11 ordinary member positions (other than a person who becomes 12 an executive member of the executive committee), plus the 13 number of executive members of the executive committee, is 14 more than the required number of members for the executive 15 committee. 16 `8 Conduct of ballot--general requirements [SM, s 24] 17 `(1) Any items of business about the election of members of the 18 executive committee that are on the agenda for an annual 19 general meeting must be conducted as the last items of 20 business for the meeting. 21 `(2) The election of members takes effect immediately after the 22 close of the meeting at which they are elected. 23 `(3) The ballots for the positions on the executive committee for 24 which ballots are required must be conducted in the following 25 order-- 26 · chairperson 27 · secretary 28 · treasurer 29 · ordinary members. 30 Page 90

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `(4) Each ballot may proceed to the count only after the person 1 chairing the meeting has allowed enough time for votes to be 2 cast and announced the close of the ballot. 3 `(5) Each candidate for a ballot, and any scrutineer appointed by 4 the candidate, may watch the count. 5 `(6) The secretary must pass any ballot papers, particulars 6 envelopes and ballot paper envelopes for the ballot to the 7 person chairing the meeting for counting. 8 `9 Conduct of ballot--scrutiny of votes [SM, s 25] 9 `(1) If a ballot for positions on the executive committee is an open 10 ballot, the person chairing the meeting must-- 11 (a) confirm, by a scrutiny of the details on the back of each 12 ballot paper envelope or each ballot paper itself, that the 13 ballot paper is the vote of a person who has the right to 14 vote in the election; and 15 (b) if a ballot paper is in a ballot paper envelope--take the 16 ballot paper out of the envelope. 17 `(2) If a ballot for positions on the executive committee is a secret 18 ballot, the person chairing the meeting must-- 19 (a) confirm, by a scrutiny of the details on each particulars 20 envelope or particulars tab, that the ballot paper is the 21 vote of a person who has the right to vote in the election; 22 and 23 (b) take the ballot paper envelope out of the particulars 24 envelope, or detach the particulars tab from the ballot 25 paper envelope; and 26 (c) place the ballot paper envelope in a receptacle in open 27 view of the meeting; and 28 (d) after paragraph (c) has been complied with for all ballot 29 paper envelopes, randomly mix the envelopes; and 30 (e) take each ballot paper out of its envelope. 31 Page 91

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `(3) The person chairing the meeting must record the count of 1 votes in each ballot in the minutes of the meeting. 2 `(4) The person chairing the meeting may delegate a function 3 under subsection (1) or (2) in relation to a ballot for a position 4 on the executive committee to a person attending the meeting 5 who is not a candidate for the position and who the person 6 chairing the meeting considers has sufficient independence. 7 `10 Conduct of ballot--deciding executive member 8 positions [SM, s 26] 9 `(1) If only 1 person is nominated for the position of chairperson, 10 secretary or treasurer, the person chairing the meeting, if 11 satisfied the nomination complies with this schedule, must 12 declare the person to have been elected unopposed. 13 `(2) If, for the position of chairperson, secretary or treasurer, there 14 has been no nomination, the person chairing the meeting-- 15 (a) must invite nominations for the position at the meeting; 16 and 17 (b) must accept nominations that are made in either of the 18 following ways-- 19 (i) by members of the body corporate who are 20 personally present or represented at the meeting; 21 (ii) in writing, by members of the body corporate not 22 personally present or represented at the meeting. 23 `(3) A member of the body corporate may nominate, under 24 subsection (2), not more than 1 person for the position. 25 `(4) To remove any doubt, it is declared that the member may 26 make the nomination whether or not the member made a 27 nomination under section 3 for an ordinary member's position 28 on the executive committee. 29 `(5) If more than 1 person has nominated for a position, a ballot is 30 conducted, and the person who receives the highest number of 31 votes is declared elected. 32 Page 92

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `(6) If, on a counting of votes, 2 or more persons each receive an 1 identical number of votes, and no other candidate receives a 2 higher number of votes, the result must be decided between 3 the 2 or more persons by chance in the way the meeting 4 decides. 5 `11 Conduct of ballot--deciding ordinary member 6 positions [SM, s 27] 7 `(1) The positions of the ordinary members of the executive 8 committee are decided only after the executive member 9 positions on the executive committee are filled. 10 `(2) A person's nomination for a position as an ordinary member 11 has no effect if the person is elected as an executive member 12 of the executive committee, even if the person's name appears 13 on a ballot for ordinary members forwarded before the 14 meeting. 15 `(3) If the number of candidates nominated for ordinary member 16 positions, plus the number of executive members of the 17 executive committee, is not more than the required number of 18 members for the executive committee, the person chairing the 19 meeting, if satisfied the nominations for the ordinary member 20 positions comply with this schedule, must declare the 21 candidates to have been elected as ordinary members. 22 `(4) However, if the number of candidates nominated for ordinary 23 member positions, plus the number of executive members of 24 the executive committee, is less than the required number of 25 members for the executive committee, the person chairing the 26 meeting must invite nominations at the meeting for the 27 number of ordinary member positions necessary to bring the 28 total number of all executive committee members to not more 29 than the required number of members for the executive 30 committee. 31 `(5) The person chairing the meeting-- 32 (a) must invite nominations for the position or positions at 33 the meeting; and 34 Page 93

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] (b) must accept nominations that are made in either of the 1 following ways-- 2 (i) by members of the body corporate who are 3 personally present or represented at the meeting; 4 (ii) in writing, by members of the body corporate not 5 personally present or represented at the meeting. 6 `(6) A member of the body corporate may nominate, under 7 subsection (5), not more than 1 person for all ordinary 8 member positions for which nominations are invited. 9 `(7) To remove any doubt, it is declared that the member may 10 make the nomination whether or not the member made a 11 nomination under section 3 for a position on the executive 12 committee. 13 `(8) If the number of candidates nominated for ordinary member 14 positions, plus the number of executive members of the 15 executive committee, is more than the required number of 16 members for the executive committee, the person chairing the 17 meeting must proceed with the scrutiny of the ballot papers 18 relating to the ordinary member positions. 19 `(9) The persons who receive the highest numbers of votes, in 20 descending order until the executive committee numbers the 21 required number of members for the executive committee, 22 must be declared elected as the ordinary members. 23 `(10) If, on a counting of votes, 2 or more persons each receive an 24 identical number of votes and the number of persons to be 25 elected would be exceeded if the 2 or more persons were 26 declared elected, the result of the ballot must be decided 27 between the 2 or more persons by chance in the way the 28 meeting decides. 29 `(11) For the counting of votes for positions of ordinary members of 30 the executive committee on ballot papers completed before 31 the annual general meeting, a mark against the name of each 32 person who has already been elected to an executive member 33 position is void. 34 Page 94

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `12 Conduct of ballot--declaration of voting results 1 [SM, s 28] 2 `(1) The person chairing an annual general meeting must declare 3 the result of an election. 4 `(2) When declaring the result of an election, the person chairing 5 the meeting must state the number of votes cast for each 6 candidate. 7 `(3) The number of votes cast for each candidate must be recorded 8 in the minutes of the meeting. 9 `(4) The voting tally sheet kept for the meeting must include, for 10 each ballot that is an open ballot under section 6-- 11 (a) a list of the votes, identified by the name of the member 12 on whose behalf the votes were cast, rejected as 13 informal; and 14 (b) for each vote rejected--the reason for the rejection; and 15 (c) the total number of votes counted for each candidate. 16 `(5) The voting tally sheet kept for the meeting must include, for 17 each ballot that is a secret ballot under section 5-- 18 (a) a list of the votes, identified by the name of the member 19 on whose behalf the votes were cast, rejected from the 20 count before the enclosing ballot paper envelopes were 21 opened; and 22 (b) a list of the votes taken out of ballot paper envelopes for 23 counting, but rejected as informal; and 24 (c) for each vote rejected--the reason for the rejection; and 25 (d) the total number of votes counted for each candidate. 26 `(6) The voting tally sheet may be inspected at the meeting by any 27 of the following persons-- 28 (a) a person who is a voter for the meeting; 29 (b) a candidate; 30 (c) the returning officer, if any, appointed by the body 31 corporate for the meeting; 32 Page 95

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] (d) the person chairing the meeting; 1 (e) a scrutineer appointed by a candidate under section 8. 2 `Schedule 4 Code of conduct for voting 3 members of 4 executive committees 5 sections 123A and 158A and schedule 7, definition code of conduct 6 `1 Commitment to acquiring understanding of Act, 7 including this code 8 `A voting member of the executive committee of a primary 9 thoroughfare body corporate or principal body corporate must 10 have a commitment to acquiring an understanding of this Act, 11 including this code of conduct, relevant to the member's role 12 on the executive committee. 13 `2 Honesty, fairness and confidentiality 14 `(1) The voting member must act honestly and fairly in performing 15 the member's functions as a voting member. 16 `(2) The voting member must not unfairly or unreasonably 17 disclose information held by the body corporate, including 18 information about an owner of a lot, unless authorised or 19 required by law to do so. 20 `3 Acting in best interests of body corporate and 21 persons with estate or interest in lots 22 `Unless it is unlawful to do so, the voting member must, in 23 performing the member's functions as a voting member, act in 24 the best interests of-- 25 Page 96

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] (a) the body corporate; and 1 (b) either-- 2 (i) for a voting member of the executive committee of 3 the primary thoroughfare body corporate--the 4 proprietors and occupiers of, and other persons 5 having an estate or interest in, the lots in the 6 approved scheme; or 7 (ii) for a voting member of the executive committee of 8 the principal body corporate--the proprietors and 9 occupiers of, and other persons having an estate or 10 interest in, the lots in the residential precincts in 11 the approved scheme. 12 `4 Complying with Act and this code 13 `The voting member must take reasonable steps to ensure the 14 member complies with this Act, including this code, in 15 performing the member's functions as a voting member. 16 `5 Conflict of interest 17 `The voting member must disclose to the executive committee 18 any conflict of interest the member may have in a matter 19 before the executive committee. 20 Page 97

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `Schedule 5 Code of conduct for body 1 corporate managers 2 and caretaking service 3 contractors 4 section 175H and schedule 7, definition code of conduct 5 `1 Knowledge of Act, including code 6 `A body corporate manager or caretaking service contractor 7 appointed or engaged by the primary thoroughfare body 8 corporate or principal body corporate must have a good 9 working knowledge and understanding of this Act, including 10 this code of conduct, relevant to the person's functions. 11 `2 Honesty, fairness and professionalism 12 `(1) The body corporate manager or caretaking service contractor 13 must act honestly, fairly and professionally in performing the 14 person's functions under the person's appointment or 15 engagement. 16 `(2) The body corporate manager must not attempt to unfairly 17 influence the outcome of an election for the executive 18 committee of the body corporate. 19 `3 Skill, care and diligence 20 `The body corporate manager or caretaking service contractor 21 must exercise reasonable skill, care and diligence in 22 performing the person's functions under the person's 23 appointment or engagement. 24 Page 98

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `4 Acting in body corporate's best interests 1 `The body corporate manager or caretaking service contractor 2 must act in the best interests of the body corporate unless it is 3 unlawful to do so. 4 `5 Keeping body corporate informed of developments 5 `The body corporate manager or caretaking service contractor 6 must keep the body corporate informed of any significant 7 development or issue about an activity carried out for the body 8 corporate. 9 `6 Ensuring employees comply with Act and code 10 `The body corporate manager or caretaking service contractor 11 must take reasonable steps to ensure an employee of the 12 person complies with this Act, including this code, in 13 performing the person's functions under the person's 14 appointment or engagement. 15 `7 Fraudulent or misleading conduct 16 `The body corporate manager or caretaking service contractor 17 must not engage in fraudulent or misleading conduct in 18 performing the person's functions under the person's 19 appointment or engagement. 20 `8 Unconscionable conduct 21 `The body corporate manager or caretaking service contractor 22 must not engage in unconscionable conduct in performing the 23 person's functions under the person's appointment or 24 engagement. 25 Examples of unconscionable conduct-- 26 · taking unfair advantage of the person's superior knowledge relative 27 to the body corporate 28 · requiring the body corporate to comply with conditions that are 29 unlawful or not reasonably necessary 30 Page 99

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] · exerting undue influence on, or using unfair tactics against, the 1 body corporate or the owner of a lot in the approved scheme 2 `9 Conflict of duty or interest 3 `The body corporate manager or caretaking service contractor 4 for an approved scheme or part of an approved scheme must 5 not accept an appointment or engagement (the second 6 appointment or engagement) if doing so will place the 7 person's functions or interests for the approved scheme or part 8 in conflict with the person's functions or interests for 9 obligations under the second appointment or engagement. 10 Example of a second appointment or engagement-- 11 an appointment as the body corporate manager or an engagement as a 12 caretaking service contractor for another approved scheme 13 `10 Goods and services to be supplied at competitive 14 prices 15 `The body corporate manager or caretaking service contractor 16 must take reasonable steps to ensure goods and services the 17 person obtains for or supplies to the body corporate are 18 obtained or supplied at competitive prices. 19 `11 Body corporate manager to demonstrate keeping of 20 particular records 21 `If the body corporate or its executive committee gives the 22 body corporate manager a written request to show that the 23 manager has kept the body corporate records as required 24 under this Act, the manager must comply with the request 25 within the reasonable period stated in the request. 26 Page 100

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `Schedule 6 Code of conduct for letting 1 agents 2 section 175I and schedule 7, definition code of conduct 3 `1 Honesty, fairness and professionalism 4 `A letting agent for an approved scheme or part of an 5 approved scheme must act honestly, fairly and professionally 6 in conducting the letting agent's business under the letting 7 agent's authorisation. 8 `2 Skill, care and diligence 9 `The letting agent must exercise reasonable skill, care and 10 diligence in conducting the letting agent business under the 11 letting agent's authorisation. 12 `3 Acting in body corporate's and individual lot owner's 13 best interests 14 `Unless it is unlawful to do so, the letting agent must, as far as 15 practicable, act in the best interests of-- 16 (a) the body corporate that has given the letting agent's 17 authorisation; and 18 (b) individual owners of lots in the approved scheme or 19 part. 20 `4 Ensuring employees comply with Act and code 21 `The letting agent must take reasonable steps to ensure an 22 employee of the letting agent complies with this Act, 23 including this code, in conducting the letting agent business 24 under the letting agent's authorisation. 25 Page 101

 


 

Resorts and Other Acts Amendment Bill 2009 Part 3 Amendment of Integrated Resort Development Act 1987 [s 48] `5 Fraudulent or misleading conduct 1 `The letting agent must not engage in fraudulent or misleading 2 conduct in conducting the letting agent business under the 3 letting agent's authorisation. 4 `6 Unconscionable conduct 5 `The letting agent must not engage in unconscionable conduct 6 in conducting the letting agent business under the letting 7 agent's authorisation. 8 Examples of unconscionable conduct-- 9 · taking unfair advantage of the person's position as letting agent 10 relative to the body corporate or the owner of a lot in the approved 11 scheme 12 · exerting undue influence on, or using unfair tactics against, the 13 body corporate or the owner of a lot in the approved scheme 14 `7 Nuisance 15 `The letting agent must not-- 16 (a) cause a nuisance or hazard on the site; or 17 (b) interfere unreasonably with the use or enjoyment of a lot 18 in the approved scheme; or 19 (c) interfere unreasonably with the use or enjoyment of the 20 common property by a person who is lawfully on the 21 common property; or 22 (d) otherwise behave in a way that unreasonably affects a 23 person's lawful use or enjoyment of a lot or common 24 property. 25 `8 Goods and services to be supplied at competitive 26 prices 27 `The letting agent must take reasonable steps to ensure goods 28 and services the letting agent obtains for or supplies to the 29 body corporate are obtained or supplied at competitive 30 prices.'. 31 Page 102

 


 

Resorts and Other Acts Amendment Bill 2009 Part 4 Amendment of Liquor Act 1992 [s 49] Part 4 Amendment of Liquor Act 1992 1 Clause 49 Act amended 2 This part amends the Liquor Act 1992. 3 Clause 50 Amendment of s 9 (Ordinary trading hours) 4 Section 9(1A)-- 5 omit, insert-- 6 `(1A) Subject to subsections (2) and (3), on any day other than Good 7 Friday or Christmas Day, the ordinary trading hours of 8 licensed premises are between 10a.m. and 12 midnight, unless 9 the premises are any of the following-- 10 (a) premises to which a producer/wholesaler licence relates; 11 (b) premises to which an industrial canteen licence relates; 12 (c) an airport or casino to which a commercial special 13 facility licence relates.'. 14 Clause 51 Amendment of s 12 (Exemptions) 15 (1) Section 12(2)(j)(iv)-- 16 omit, insert-- 17 `(iv) the quantity of the liquor is not more than 2L and, 18 if the liquor includes spirits, the quantity of spirits 19 is not more than 1L; and'. 20 (2) Section 12(2)(j)(v), from `more'-- 21 omit, insert-- 22 `more than 75% of the gift's sale price or a lesser amount 23 prescribed under a regulation; and'. 24 (3) Section 12(2)-- 25 insert-- 26 Page 103

 


 

Resorts and Other Acts Amendment Bill 2009 Part 4 Amendment of Liquor Act 1992 [s 51] `(k) a sale of liquor in a retirement village to a person who is 1 a resident of the retirement village or an adult guest of a 2 resident if the quantity of liquor sold to the person is not 3 more than 2 standard drinks in a day; 4 (l) a sale of liquor by a hairdresser or a barber to an adult 5 client if-- 6 (i) the sale takes place at the premises where the 7 hairdresser or barber conducts his or her business 8 as part of the hairdressing or barber services 9 provided to the client; and 10 (ii) the liquor is consumed on the premises; and 11 (iii) the quantity of the liquor sold to the client is not 12 more than 2 standard drinks in a day; and 13 (iv) the liquor is not sold or consumed on Christmas 14 Day, Good Friday or before 1p.m. on Anzac Day; 15 (m) a sale of liquor by a limousine licensee to an adult 16 passenger of a limousine if-- 17 (i) the sale takes part during the journey for which the 18 limousine was hired; and 19 (ii) the liquor is consumed inside the limousine; and 20 (iii) the quantity of the liquor sold to the passenger is 21 not more than 2 standard drinks in a day; and 22 (iv) the liquor is not sold or consumed on Christmas 23 Day, Good Friday, before 1p.m. on Anzac Day, or 24 on any other day between 5a.m. and 10a.m.'. 25 (4) Section 12(4)-- 26 insert-- 27 `limousine see the Transport Operations (Passenger 28 Transport) Act 1994, schedule 3. 29 limousine licensee means the holder of a limousine service 30 licence under the Transport Operations (Passenger Transport) 31 Act 1994. 32 Page 104

 


 

Resorts and Other Acts Amendment Bill 2009 Part 4 Amendment of Liquor Act 1992 [s 52] resident, of a retirement village, see the Retirement Villages 1 Act 1999, section 9. 2 retirement village see the Retirement Villages Act 1999, 3 section 5. 4 standard drink means a drink containing not more than 5 12.5mL of ethyl alcohol (ethanol).'. 6 Clause 52 Amendment of s 71B (Authority of industrial canteen 7 licence) 8 Section 71B(1), after `off the premises'-- 9 insert-- 10 `, during the times stated in the licence'. 11 Clause 53 Insertion of new pt 12, div 9 12 Part 12-- 13 insert-- 14 `Division 9 Transitional provision for Resorts 15 and Other Acts Amendment Act 16 2009 17 `296 Approved hours for commercial special facility licence 18 `(1) This section applies to a commercial special facility licence 19 if-- 20 (a) the licence does not relate to an airport or a casino; and 21 (b) immediately before the commencement of this section, 22 the licensee was authorised under the licence to sell 23 liquor on the licensed premises between 5a.m. and 24 10a.m. 25 `(2) Despite section 64(1), the licence does not authorise the sale 26 of liquor between 5a.m. and 10a.m. 27 Page 105

 


 

Resorts and Other Acts Amendment Bill 2009 Part 5 Amendment of Mixed Use Development Act 1993 [s 54] `(3) However, subsection (2) does not apply to the licence to the 1 extent that the licensee is authorised to sell liquor between 2 7a.m. and 10a.m. under an extended trading hours approval or 3 an extended hours permit. 4 `(4) Despite any other Act or law, no compensation is payable by 5 the State to any person because of the operation of subsection 6 (2).'. 7 Part 5 Amendment of Mixed Use 8 Development Act 1993 9 Clause 54 Act amended 10 This part amends the Mixed Use Development Act 1993. 11 Clause 55 Amendment of s 79 (Lodgement of building units or 12 group titles plan) 13 Section 79-- 14 insert-- 15 `(5) A group titles plan must also be accompanied by a diagram 16 showing the name and numbering, or proposed name and 17 numbering, of each road that is, or is to be, on the primary 18 thoroughfare, or the part of the primary thoroughfare, shown 19 on the plan.'. 20 Clause 56 Amendment of s 80 (Approval of building units or group 21 titles plan) 22 Section 80(1)(b)-- 23 insert-- 24 `(iii) the diagram mentioned in section 79(5).'. 25 Page 106

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 57] Clause 57 Amendment of s 101 (Subdivision by building units or 1 group titles plan) 2 Section 101-- 3 insert-- 4 `(7) A group titles plan must also be accompanied by a diagram 5 showing the name and numbering, or proposed name and 6 numbering, of each road that is, or is to be, on-- 7 (a) the community thoroughfare, or the part of the 8 community thoroughfare, shown on the plan; and 9 (b) each precinct thoroughfare, or part of a precinct 10 thoroughfare, shown on the plan.'. 11 Clause 58 Amendment of s 102 (Approval of building units or group 12 titles plan) 13 Section 102(1)(b)-- 14 insert-- 15 `(iii) the diagram mentioned in section 101(7).'. 16 Part 6 Amendment of Sanctuary Cove 17 Resort Act 1985 18 Clause 59 Act amended in pt 6 and schedule 19 This part and the schedule amend the Sanctuary Cove Resort 20 Act 1985. 21 Clause 60 Amendment of s 4 (Interpretation) 22 (1) Section 4, heading-- 23 omit, insert-- 24 Page 107

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 60] `4 Definitions'. 1 (2) Section 4, definitions Albert Shire Council, proposed use 2 plan, proposed use plan of the adjacent site, residential zone 3 and zone-- 4 omit. 5 (3) Section 4-- 6 insert-- 7 `adjacent site see section 12A. 8 approved use, for a zone, see section 4A. 9 associate, of a person, means someone else with whom the 10 person is associated under section 104D. 11 body corporate, for schedule 3, see schedule 3, section 1. 12 body corporate manager-- 13 (b) of the principal body corporate--means a person 14 appointed by the body corporate under section 47AB; or 15 (b) of the primary thoroughfare body corporate--means a 16 person appointed by the body corporate under section 17 91AB. 18 canal see the Coastal Protection and Management Act 1995, 19 schedule. 20 candidate, for schedule 3, see schedule 3, section 1. 21 caretaking service contractor see section 94A. 22 code contravention notice see section 94I(1). 23 code of conduct means-- 24 (a) for a voting member of the executive committee of the 25 primary thoroughfare body corporate or principal body 26 corporate--the code in schedule 4; or 27 (b) for a body corporate manager or caretaking service 28 contractor--the code in schedule 5; or 29 (c) for a letting agent--the code in schedule 6. 30 Page 108

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 60] Commercial and Consumer Tribunal means the tribunal of 1 that name established under the Commercial and Consumer 2 Tribunal Act 2003. 3 eligibility category, for schedule 3, see schedule 3, section 1. 4 executive committee, for schedule 3, see schedule 3, section 5 1. 6 executive member, for schedule 3, see schedule 3, section 1. 7 financial year-- 8 (a) for the principal body corporate, see section 22; or 9 (b) for the primary thoroughfare body corporate, see section 10 65. 11 financier, for a letting agent's contract, see section 94B. 12 former Albert Shire Council means the local government of 13 that name that was constituted under the Local Government 14 Act 1993 or its successors in law. 15 Integrated Planning Act means the Integrated Planning Act 16 1997. 17 letting agent see section 94C(1). 18 letting agent authorisation see section 94A. 19 letting agent business see section 94C(2). 20 local government means the local government for the local 21 government area in which the site and adjacent site are 22 situated. 23 majority resolution, for a duly convened general meeting of 24 the primary thoroughfare body corporate or principal body 25 corporate, means a resolution on a motion-- 26 (a) for which only 1 written vote may be exercised, other 27 than by proxy, for each lot mentioned in the relevant 28 body corporate roll; and 29 (b) that is passed only if the votes counted for the motion 30 are more than 50% of the lots for which persons are 31 entitled to vote on the motion. 32 Page 109

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 60] management rights, of a letting agent for the resort or part of 1 the resort, see section 94A. 2 nominee, of a member of the principal body corporate, see 3 section 24(1). 4 ordinary member, for schedule 3, see schedule 3, section 1. 5 ordinary resolution, for a duly convened general meeting of 6 the primary thoroughfare body corporate or principal body 7 corporate, means a resolution that is passed by the members 8 of the body corporate whose voting entitlements total more 9 than 50% of the total of all voting entitlements recorded in the 10 relevant body corporate roll. 11 original owner, of a secondary lot that has been subdivided by 12 a building unit or group titles plan, see section 22. 13 proposed use plan-- 14 (a) for the site--see section 4B(1); or 15 (b) for the adjacent site--see section 4B(2). 16 relevant body corporate debt means a following amount owed 17 by a person to a subsidiary body corporate-- 18 (a) a contribution or instalment of a contribution; 19 (b) a penalty for not paying a contribution or instalment of a 20 contribution by the date for payment; 21 (c) another amount associated with the ownership of a lot. 22 Examples of another amount-- 23 · an annual payment for parking under an exclusive use 24 by-law made by the subsidiary body corporate 25 · an amount owing to the subsidiary body corporate for lawn 26 mowing services arranged by the subsidiary body corporate 27 on behalf of the person 28 relevant plan see section 12I(2). 29 residential zone means any of the following zones-- 30 (a) General Residential Zone; 31 (b) Harbour 1 Residential Zone; 32 Page 110

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 60] (c) Harbour, River and Waterfront Residential Zone. 1 resort means Sanctuary Cove Resort. 2 reviewable terms, for a service contract, see section 94A. 3 review advice, about a service contract, see section 94A. 4 service contract see section 94A. 5 service contractor, for the resort or part of the resort, see 6 section 94D. 7 site see section 5. 8 subject land, in relation to an amendment application under 9 part 2AA, means each zone, or other land within the resort, to 10 which the application relates. 11 subsidiary body corporate-- 12 (a) of, or in relation to, the primary thoroughfare body 13 corporate, means-- 14 (i) the principal body corporate; or 15 (ii) a body corporate created by the registration of a 16 building units plan or group titles plan that is a 17 member of the primary thoroughfare body 18 corporate; or 19 (b) of, or in relation to, the principal body corporate, means 20 a body corporate created by the registration of a building 21 units plan or group titles plan that is a member of the 22 principal body corporate. 23 transfer notice, for part 5A, see section 94K(b)(ii). 24 use, for a zone, means a use mentioned in schedule 1, part 2. 25 voting member-- 26 (a) of the executive committee of the principal body 27 corporate--see section 41A(1); or 28 (b) of the executive committee of the primary thoroughfare 29 body corporate--see section 85A(1). 30 zone means a part of the site or adjacent site that-- 31 Page 111

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 61] (a) has a name mentioned in schedule 1, part 1; and 1 (b) is shown as a zone on the proposed use plan of the site 2 or the proposed use plan of the adjacent site.'. 3 (4) Section 4, definition initial plan of survey, `in accordance with 4 section 10'-- 5 omit, insert-- 6 `under section 10 or 12P(4).'. 7 (5) Section 4, definition initial plan of survey of the adjacent site, 8 `in accordance with section 12F'-- 9 omit, insert-- 10 `under section 12F or 12P(4).'. 11 (6) Section 4, as amended by this Act, definitions-- 12 relocate to schedule 9 as inserted by this Act. 13 (7) Section 4, as amended by this Act, `In this Act--'-- 14 omit, insert-- 15 `The dictionary in schedule 9 defines particular words used in 16 this Act.'. 17 Clause 61 Insertion of new ss 4A­4C 18 Part 1-- 19 insert-- 20 `4A Meaning of approved use for a zone 21 `An approved use for a zone is-- 22 (a) a use for the zone that is approved under a regulation as 23 a use for the zone; or 24 (b) if a change of a use for the zone is approved under part 25 2AA, the use for the zone as changed and approved 26 under a regulation. 27 Page 112

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 61] `4B Meaning of proposed use plan of the site or 1 adjacent site 2 `(1) The proposed use plan of the site is-- 3 (a) the plan of survey of the site approved by the local 4 government under section 7(4); or 5 (b) if an amendment of the plan is approved by the local 6 government under section 7(8)--the amended plan for 7 the time being approved by the local government; or 8 (c) if an amendment of the plan is approved by the 9 Governor in Council under section 12P--the amended 10 plan for the time being approved by the Governor in 11 Council. 12 `(2) The proposed use plan of the adjacent site is-- 13 (a) the plan of survey of the adjacent site approved by the 14 local government under section 12C(4); or 15 (b) if an amendment of the plan is approved by the local 16 government under section 12C(8)--the amended plan 17 for the time being approved by the local government; or 18 (c) if an amendment of the plan is approved by the 19 Governor in Council under section 12P--the amended 20 plan for the time being approved by the Governor in 21 Council. 22 `(3) To remove any doubt, it is declared for this section that the 23 approval of an amendment of the proposed use plan of the site 24 or the proposed use plan of the adjacent site under section 12P 25 does not limit the later amendment and approval of the plan 26 under section 7(8) or 12C(8). 27 Note-- 28 See also sections 114 (References to proposed use plan of site) and 115 29 (References to proposed use plan of adjacent site). 30 `4C References to standard module 31 `(1) In this Act, the information included in square brackets after a 32 section heading is a reference to a similar section of the Body 33 Page 113

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 62] Corporate and Community Management (Standard Module) 1 Regulation 2008. 2 `(2) The brackets and information do not form part of this Act.'. 3 Clause 62 Amendment of s 5 (The site) 4 (1) Section 5(1)-- 5 omit, insert-- 6 `(1) Subject to subsection (2), the site is the area of land shown on 7 the initial plan of survey of the site. 8 `(1A) If the initial plan of survey is amended under part 2AA by 9 varying the boundary of the site, the site is the area of land 10 shown on the initial plan of survey as amended.'. 11 (2) Section 5(3)-- 12 omit, insert-- 13 `(3) Despite the Local Government Act 1993, the site forms part of 14 the Gold Coast city local government area constituted under 15 that Act.'. 16 (3) Section 5(1A) to (3)-- 17 renumber as section 5(2) to (4). 18 Clause 63 Replacement of ss 7 and 8 19 Sections 7 and 8-- 20 omit, insert-- 21 `7 Proposed use plan of the site 22 `(1) The primary thoroughfare body corporate may lodge with the 23 local government a plan of survey showing the zones of the 24 site substantially in the form set out in schedule 7. 25 `(2) If the local government considers it appropriate that a 26 boundary of a zone shown on the plan should differ from the 27 boundary of the zone as shown in schedule 7, it may require 28 the primary thoroughfare body corporate to lodge an amended 29 plan showing the different boundary. 30 Page 114

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 63] `(3) The plan of survey must include a schedule stating-- 1 (a) for each of the residential zones, the maximum number 2 of group title lots or building unit lots into which each 3 zone may be subdivided for residential purposes; and 4 (b) the total of the maximum number of, not more than 900, 5 group title lots and building unit lots into which all of 6 the residential zones within the site may be subdivided 7 for residential purposes. 8 `(4) The local government may approve the plan if it is satisfied-- 9 (a) the plan adequately defines the boundaries of all the 10 zones within the site; and 11 (b) the number of building unit lots and group title lots 12 under subsection (3)-- 13 (i) is appropriate to the nature of the proposed 14 development of the site; and 15 (ii) is not more than the maximum number under 16 subsection (3)(b). 17 `(5) The local government must-- 18 (a) keep the proposed use plan; and 19 (b) give a copy of the plan to-- 20 (i) the registrar of titles; and 21 (ii) the chief executive. 22 `(6) For deciding the number of group title lots or building unit 23 lots into which a particular zone may be subdivided for 24 residential purposes-- 25 (a) a group title lot that is subdivided into lots resulting in 26 no area, other than common property, of the lot 27 remaining must not be counted; and 28 (b) the group title lots or building unit lots created from the 29 subdivision must be counted. 30 `(7) The primary thoroughfare body corporate may lodge with the 31 local government a plan of survey (an amending plan) 32 Page 115

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 64] varying the boundaries of the zones as shown on the proposed 1 use plan. 2 `(8) The local government may approve an amending plan if it is 3 satisfied-- 4 (a) the plan complies with subsection (4); and 5 (b) the variation of the boundaries is of a minor nature and 6 does not substantially prejudice the rights of any person. 7 `(9) If the local government approves an amending plan-- 8 (a) the amending plan becomes the proposed use plan; and 9 (b) the local government must keep the amending plan and 10 give a copy of it to the registrar of titles and chief 11 executive.'. 12 Clause 64 Amendment of s 9 (Town planning provisions) 13 (1) Section 9(1) and (2)-- 14 omit, insert-- 15 `(1) Despite the Integrated Planning Act, the local government's 16 planning scheme under that Act does not apply to the site.'. 17 (2) Section 9(2A), `the Albert'-- 18 omit, insert-- 19 `the former Albert'. 20 (3) Section 9(2A)-- 21 renumber as section 9(2). 22 (4) Section 9(3)-- 23 omit, insert-- 24 `(3) For the Integrated Planning Act, the use of land or a building 25 or other structure in a zone of the site for an approved use for 26 the zone is taken to be a lawful use under that Act. 27 `(3A) Despite the Integrated Planning Act, a development approval 28 under that Act is not required to erect a building or other 29 Page 116

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 65] structure in a zone of the site for an approved use for the 1 zone.'. 2 (5) Section 9(4), from `Within' to `that zone.'-- 3 omit, insert-- 4 `A person must not use land, or a building or other structure, 5 in a zone of the site for a use that is not an approved use for 6 the zone.'. 7 (6) Section 9(5)-- 8 omit, insert-- 9 `(5) In this section-- 10 erect, in relation to a building or other structure, includes the 11 following-- 12 (a) doing work for the purpose of erecting the building or 13 structure; 14 (b) carrying out structural work, alterations or additions or 15 rebuilding the building or structure; 16 (c) moving the building or structure or rebuilding it, with or 17 without alteration-- 18 (i) within a parcel of land; or 19 (ii) from one parcel of land to another parcel of land; 20 or 21 (iii) so that part of the building or structure is on a 22 parcel of land and another part of the building or 23 structure is on another parcel of land.'. 24 (7) Section 9(3A) to (5), as inserted or amended by this Act-- 25 renumber as section 9(4) to (6). 26 Clause 65 Amendment of s 10 (Initial subdivision within the site) 27 (1) Section 10, `Albert Shire Council'-- 28 omit, insert-- 29 `local government'. 30 Page 117

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 66] (2) Section 10, `Director of Local Government'-- 1 omit, insert-- 2 `chief executive'. 3 (3) Section 10(8)(b)-- 4 omit, insert-- 5 `(b) to amend the initial plan of survey in accordance with a 6 variation of the boundary of a zone approved by-- 7 (i) the local government under section 7(8); or 8 (ii) the Governor in Council under section 12P.'. 9 (4) Section 10(9), `pursuant to subsection (8)'-- 10 omit, insert-- 11 `under subsection (8)(a) or (b)(i)'. 12 (5) Section 10(9A), `the plan of survey'-- 13 omit, insert-- 14 `a plan of survey to be lodged under subsection (8)(a) or 15 (b)(i)'. 16 Clause 66 Amendment of s 12A (The adjacent site) 17 (1) Section 12A(1)-- 18 omit, insert-- 19 `(1) Subject to subsection (2), the adjacent site is the area of land 20 shown on the initial plan of survey of the adjacent site. 21 `(1A) If the initial plan of survey of the adjacent site is amended 22 under part 2AA by varying the boundary of the adjacent site, 23 the adjacent site is the area of land shown on the initial plan 24 of survey of the adjacent site as amended.'. 25 (2) Section 12A(3)-- 26 omit, insert-- 27 Page 118

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 67] `(3) Despite the Local Government Act 1993, the adjacent site 1 forms part of the Gold Coast city local government area 2 constituted under that Act.'. 3 (3) Section 12A(4), `subsection (5)'-- 4 omit, insert-- 5 `subsection (6)'. 6 (4) Section 12A(5), `subsection (4)'-- 7 omit, insert-- 8 `subsection (5)'. 9 (5) Section 12A(1A) to (5)-- 10 renumber as section 12A(2) to (6). 11 Clause 67 Replacement of ss 12C and 12D 12 Sections 12C and 12D-- 13 omit, insert-- 14 `12C Proposed use plan of the adjacent site 15 `(1) The primary thoroughfare body corporate may lodge with the 16 local government a plan of survey showing the zones of the 17 adjacent site substantially in the form set out in schedule 8. 18 `(2) If the local government considers it appropriate that a 19 boundary of a zone shown on the plan should differ from the 20 boundary of the zone as shown in schedule 8, it may require 21 the primary thoroughfare body corporate to lodge an amended 22 plan showing the different boundary. 23 `(3) The plan of survey must include a schedule stating-- 24 (a) for each of the residential zones, the maximum number 25 of group title lots or building unit lots into which each 26 zone may be subdivided for residential purposes; and 27 (b) the total of the maximum number of, not more than 28 1100, group title lots and building unit lots into which 29 all of the residential zones within the site may be 30 subdivided for residential purposes. 31 Page 119

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 67] `(4) The local government may approve the plan if it is satisfied-- 1 (a) the plan adequately defines the boundaries of all the 2 zones within the adjacent site; and 3 (b) the number of building unit lots and group title lots 4 under subsection (3)-- 5 (i) is appropriate to the nature of the proposed 6 development of the adjacent site; and 7 (ii) is not more than the maximum number under 8 subsection (3)(b). 9 `(5) The local government must-- 10 (a) keep the proposed use plan; and 11 (b) give a copy of the plan to-- 12 (i) the registrar of titles; and 13 (ii) the chief executive. 14 `(6) For deciding the number of group title lots or building unit 15 lots into which a particular zone may be subdivided for 16 residential purposes-- 17 (a) a group title lot that is subdivided into lots resulting in 18 no area, other than common property, of the lot 19 remaining must not be counted; and 20 (b) the group title lots or building unit lots created from the 21 subdivision must be counted. 22 `(7) The primary thoroughfare body corporate may lodge with the 23 local government a plan of survey (an amending plan) 24 varying the boundaries of the zones as shown on the proposed 25 use plan. 26 `(8) The local government may approve an amending plan if it is 27 satisfied-- 28 (a) the plan complies with subsection (4); and 29 (b) the variation of the boundaries is of a minor nature and 30 does not substantially prejudice the rights of any person. 31 `(9) If the local government approves an amending plan-- 32 Page 120

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 68] (a) the amending plan becomes the proposed use plan; and 1 (b) the local government must keep the amending plan and 2 give a copy of it to the registrar of titles and chief 3 executive.'. 4 Clause 68 Amendment of s 12E (Town planning provisions) 5 (1) Section 12E(1) and (2)-- 6 omit, insert-- 7 `(1) Despite the Integrated Planning Act, the local government's 8 planning scheme under that Act does not apply to the adjacent 9 site.'. 10 (2) Section 12E(2A), `the Albert'-- 11 omit, insert-- 12 `the former Albert'. 13 (3) Section 12E(2A)-- 14 renumber as section 12E(2). 15 (4) Section 12E(3)-- 16 omit, insert-- 17 `(3) For the Integrated Planning Act, the use of land or a building 18 or other structure in a zone of the adjacent site for an approved 19 use for the zone is taken to be a lawful use under that Act. 20 `(3A) Despite the Integrated Planning Act, a development approval 21 under that Act is not required to erect a building or other 22 structure in a zone of the adjacent site for an approved use for 23 the zone.'. 24 (5) Section 12E(4), from `Within' to `that zone.'-- 25 omit, insert-- 26 `A person must not use land, or a building or other structure, 27 in a zone of the adjacent site for a use that is not an approved 28 use for the zone.'. 29 (6) Section 12E(4A), `subsection (4)'-- 30 Page 121

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 69] omit, insert-- 1 `subsection (5)'. 2 (7) Section 12E(5)-- 3 omit, insert-- 4 `(5) In this section-- 5 erect, in relation to a building or other structure, includes the 6 following-- 7 (a) doing work for the purpose of erecting the building or 8 structure; 9 (b) carrying out structural work, alterations or additions or 10 rebuilding the building or structure; 11 (c) moving the building or structure or rebuilding it, with or 12 without alteration-- 13 (i) within a parcel of land; or 14 (ii) from one parcel of land to another parcel of land; 15 or 16 (iii) so that part of the building or structure is on a 17 parcel of land and another part of the building or 18 structure is on another parcel of land.'. 19 (8) Section 12E(3A) to (5), as inserted or amended by this Act-- 20 renumber as section 12E(4) to (7). 21 Clause 69 Amendment of s 12F (Initial subdivision within the 22 adjacent site) 23 (1) Section 12F, `Albert Shire Council'-- 24 omit, insert-- 25 `local government'. 26 (2) Section 12F, `Director of Local Government'-- 27 omit, insert-- 28 `chief executive'. 29 Page 122

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 70] (3) Section 12F(8)(b)-- 1 omit, insert-- 2 `(b) to amend the initial plan of survey in accordance with a 3 variation of the boundary of a zone approved by-- 4 (i) the local government under section 12C(8); or 5 (ii) the Governor in Council under section 12P.'. 6 (4) Section 12F(9), `pursuant to subsection (8)'-- 7 omit, insert-- 8 `under subsection (8)(a) or (b)(i)'. 9 (5) Section 12F(9A), `the plan of survey'-- 10 omit, insert-- 11 `a plan of survey to be lodged under subsection (8)(a) or 12 (b)(i)'. 13 Clause 70 Insertion of new pt 2AA 14 After part 2A-- 15 insert-- 16 `Part 2AA Amendments by application to 17 Minister 18 `12I Amendment applications 19 `(1) The primary thoroughfare body corporate may apply to the 20 Minister under this part for any of the following 21 amendments-- 22 (a) changing an approved use for a zone by-- 23 (i) replacing the use with a different approved use; or 24 (ii) including an additional approved use for the zone; 25 (b) amending the proposed use plan of the site or the 26 proposed use plan of the adjacent site by-- 27 Page 123

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 70] (i) replacing a zone name with a different zone name; 1 or 2 (ii) varying the boundary of a zone on the plan, other 3 than a variation to which section 7(8) or 12C(8) 4 applies; 5 (c) amending the initial plan of survey of the site by varying 6 the boundary of the site; 7 (d) amending the initial plan of survey of the adjacent site 8 by varying the boundary of the adjacent site. 9 `(2) Each of the plans mentioned in subsection (1)(b) to (d) is a 10 relevant plan. 11 `12J Members to be notified of proposed amendment 12 `(1) Before making the application, the primary thoroughfare body 13 corporate must-- 14 (a) give a written notice to each of the members of the 15 primary thoroughfare body corporate and each of the 16 members of the principal body corporate stating-- 17 (i) the nature of the proposed amendment; and 18 (ii) a description of each lot to which the proposed 19 amendment relates; and 20 (iii) that a member may give the primary thoroughfare 21 body corporate written submissions about the 22 proposed amendment within a period (the 23 notification period) of at least 30 business days 24 after the notice is given; and 25 (b) for a proposed amendment of a relevant plan, make the 26 proposed amended plan available for inspection by the 27 members of the primary thoroughfare body corporate 28 and the members of the principal body corporate during 29 the notification period; and 30 (c) place, on the subject land, a notice stating-- 31 Page 124

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 70] (i) a brief summary of the nature of the proposed 1 amendment and each lot to which the amendment 2 relates; and 3 (ii) the notification period for giving written 4 submissions about the proposed amendment; and 5 (iii) the name and contact details of a person authorised 6 by the primary thoroughfare body corporate to give 7 information about the amendment. 8 `(2) The notice under subsection (1)(c) must-- 9 (a) be of a type, and placed on the subject land in the way 10 required, under schedule 2; and 11 (b) remain on the subject land during the notification 12 period. 13 `12K Requirements for application 14 `The application must include-- 15 (a) a written statement confirming that-- 16 (i) a written notice was given to the members under 17 section 12J(1)(a), including the days the notice was 18 given; and 19 (ii) a notice was placed on the subject land under 20 section 12J(1)(c) and (2), including the period 21 during which the notice was on the land; and 22 (b) a copy of the notice given under section 12J(1)(a); and 23 (c) for an amendment of a relevant plan-- 24 (i) a written statement confirming the plan was made 25 available for inspection under section 12J(1)(b), 26 including the period during which the plan was 27 available for inspection; and 28 (ii) a copy of the proposed amended plan; and 29 (d) all written submissions given to the primary 30 thoroughfare body corporate under section 31 12J(1)(a)(iii); and 32 Page 125

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 70] (e) other matters, if any, the Minister considers necessary 1 for deciding the application. 2 `12L Minister to consider application 3 `(1) The Minister must-- 4 (a) consider the application including any written 5 submissions included in the application; and 6 (b) consult any local government, department of 7 government or statutory authority that, in the Minister's 8 opinion, is likely to be affected by the amendment. 9 `(2) The Minister may also consult another person, if, in the 10 Minister's opinion, the person is likely to be affected by the 11 amendment. 12 `(3) The Minister must give the Governor in Council-- 13 (a) the application; and 14 (b) a written notice stating details of the consultation, if any, 15 under subsection (1)(b) and (2), including-- 16 (i) who the Minister consulted; and 17 (ii) the results of the consultation. 18 `12M Decision on application 19 `The Governor in Council may, subject to section 12N-- 20 (a) approve the amendment; or 21 (b) approve the amendment with modifications or subject to 22 conditions; or 23 (c) refuse to approve the amendment. 24 `12N Minor variation of site boundaries 25 `(1) This section applies to an amendment of-- 26 (a) the initial plan of survey of the site by varying the 27 boundary of the site; or 28 Page 126

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 70] (b) the initial plan of survey of the adjacent site by varying 1 the boundary of the adjacent site. 2 `(2) The Governor in Council may approve the amendment only 3 if-- 4 (a) the Governor in Council considers-- 5 (i) the proposed variation of the boundary is of a 6 minor nature; and 7 (ii) the total area of the site or adjacent site will not be 8 materially changed because of the variation; and 9 (b) neither the aggregate number of the lots on the plan nor 10 the aggregate voting entitlements for the lots will be 11 changed because of the variation; and 12 (c) each affected land owner has given the owner's written 13 consent to the variation. 14 `(3) In this section-- 15 affected land owner means the owner of land that-- 16 (a) is outside the site and is proposed under the amendment 17 application to be within the site; or 18 (b) is within the site and is proposed under the amendment 19 application to be outside the site; or 20 (c) is outside the adjacent site and is proposed under the 21 amendment application to be within the adjacent site; or 22 (d) is within the adjacent site and is proposed under the 23 amendment application to be outside the adjacent site. 24 `12O Approval of change of use for zone 25 `If the Governor in Council approves an amendment to change 26 an approved use for a zone, the amendment does not take 27 effect until it has been approved under a regulation. 28 Page 127

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 71] `12P Approval of amendment of relevant plan 1 `(1) This section applies if the Governor in Council approves an 2 amendment of a relevant plan under this part. 3 `(2) The chief executive must-- 4 (a) notify the approval of the amendment by a gazette 5 notice stating-- 6 (i) the amendment that has been approved; and 7 (ii) the modifications, if any, made by the approval and 8 the conditions, if any, to which the approval is 9 subject; and 10 (iii) the places where a copy of the approval is available 11 for inspection; and 12 (b) keep a copy of the approval available for inspection at 13 the office of the chief executive at Brisbane during 14 business hours; and 15 (c) note the approval on the amended plan; and 16 (d) give to the registrar of titles and the local government a 17 copy of-- 18 (i) the approved amendment; and 19 (ii) the amended plan endorsed under paragraph (c). 20 `(3) The chief executive must, on payment by a person of the 21 reasonable fee decided by the chief executive, give a copy of 22 the amendment to the person. 23 `(4) If an amendment of the initial plan of survey of the site or the 24 initial plan of survey of the adjacent site is approved under 25 this section, the registrar of titles must register the amended 26 plan.'. 27 Clause 71 Amendment of s 15 (Subdivision of secondary lots) 28 (1) Section 15-- 29 insert-- 30 Page 128

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 71] `(2CA) A group titles plan mentioned in subsection (2) or (2A) that is 1 submitted to the local government must be accompanied by a 2 diagram showing the name and numbering, or proposed name 3 and numbering, of each road that is, or is to be, on-- 4 (a) the primary thoroughfare, or the part of the primary 5 thoroughfare, shown on the plan; and 6 (b) each secondary thoroughfare, or part of a secondary 7 thoroughfare, shown on the plan.'. 8 (2) Section 15(3), `Albert Shire Council'-- 9 omit, insert-- 10 `local government'. 11 (3) Section 15(1) and (2AA)-- 12 omit. 13 (4) Section 15(2) and (3), `Harbour, River and Waterfront 14 Residential Zone'-- 15 omit, insert-- 16 `Harbour 1 Residential Zone, Harbour, River and Waterfront 17 Residential Zone'. 18 (5) Section 15(2A), (2B), (2C), (2CA) and (5), `subsection (2)'-- 19 omit, insert-- 20 `subsection (1)'. 21 (6) Section 15(2B), (2C) and (2CA), `or (2A)'-- 22 omit, insert-- 23 `or (2)'. 24 (7) Section 15(4) and (5), `subsection (3)'-- 25 omit, insert-- 26 `subsection (7)'. 27 (8) Section 15(2) to (9)-- 28 renumber as section 15(1) to (13). 29 Page 129

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 72] Clause 72 Amendment of s 15A (Plan of survey where variation of 1 boundary approved) 2 (1) Section 15A(1), `under section 8(7) or 12D(7)'-- 3 omit, insert-- 4 `by the local government under section 7(8) or 12C(8) or by 5 the Governor in Council under section 12P'. 6 (2) Section 15A(2), `Albert Shire Council'-- 7 omit, insert-- 8 `local government'. 9 (3) Section 15A(3), `director of local government'-- 10 omit, insert-- 11 `chief executive'. 12 (4) Section 15A(3)-- 13 renumber as section 15A(4). 14 (5) Section 15A-- 15 insert-- 16 `(3) However, the endorsement of the approval of the local 17 government is not required on a plan of survey showing a 18 variation of a boundary of a zone that has been approved 19 under section 12P.'. 20 Clause 73 Amendment of s 20 (Subdivision of land where wholly or 21 partly submerged) 22 Section 20(1), `Floating Dwelling House Zone'-- 23 omit, insert-- 24 `Harbour 1 Residential Zone'. 25 Clause 74 Amendment of s 21A (Subdivision of land outside 26 residential zones) 27 (1) Section 21A, `Albert Shire Council'-- 28 Page 130

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 75] omit, insert-- 1 `local government'. 2 (2) Section 21A(3), `director of local government'-- 3 omit, insert-- 4 `chief executive'. 5 (3) Section 21A(4), `the council'-- 6 omit, insert-- 7 `the local government'. 8 (4) Section 21A(3) and (4)-- 9 renumber as section 21A(4) and (5). 10 (5) Section 21A-- 11 insert-- 12 `(3) A plan of subdivision lodged with the local government under 13 this section must be accompanied by a diagram showing the 14 name and numbering, or proposed name and numbering, of 15 each road that is, or is to be, on the primary thoroughfare, or 16 the part of the primary thoroughfare, shown on the plan.'. 17 Clause 75 Amendment of s 22 (Interpretation) 18 (1) Section 22, heading-- 19 omit, insert-- 20 `22 Definitions for pt 3'. 21 (2) Section 22-- 22 insert-- 23 `financial year means a period in relation to which the 24 principal body corporate is required under section 33(1)(f) to 25 prepare a statement of accounts. 26 nominee, of a member of the principal body corporate, see 27 section 24(1). 28 Page 131

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 76] original owner, of a secondary lot that has been subdivided by 1 a building unit or group titles plan, means the person who was 2 the registered owner of the lot immediately before it was 3 subdivided by the plan.'. 4 Clause 76 Replacement of s 24 (Member's nominee) 5 Section 24-- 6 omit, insert-- 7 `24 Member's nominee 8 `(1) This section applies to a member of the principal body 9 corporate for appointing a person (a nominee) to represent 10 and vote on behalf of the member at meetings of the principal 11 body corporate. 12 `(2) A subsidiary body corporate of the principal body corporate-- 13 (a) must appoint a nominee at its annual general meeting; 14 and 15 (b) otherwise, may appoint a nominee from time to time. 16 `(3) A member of the principal body corporate, other than a 17 subsidiary body corporate, may appoint a nominee from time 18 to time. 19 `(4) Subject to section 24A, a nominee appointed by a subsidiary 20 body corporate must be a member of the subsidiary body 21 corporate. 22 `(5) The appointment of a nominee has no effect until written 23 notice of the appointment is received by the secretary of the 24 principal body corporate. 25 `(6) A nominee appointed by a subsidiary body corporate must 26 represent the subsidiary body corporate-- 27 (a) in the way the subsidiary body corporate directs; and 28 (b) subject to paragraph (a), in a way that is in the best 29 interests of the subsidiary body corporate. 30 `(7) The appointment of a nominee for a member ends when the 31 first of the following happens-- 32 Page 132

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 76] (a) the end of 1 year after the appointment; 1 (b) the secretary of the principal body corporate receives 2 written notice of-- 3 (i) the cancellation of the nominee's appointment; or 4 (ii) the appointment of another nominee for the 5 member. 6 `(8) A written notice under subsection (5) or (7)(b) must be 7 signed-- 8 (a) for an appointment or cancellation made by a subsidiary 9 body corporate--by the chairperson and secretary of the 10 subsidiary body corporate; or 11 (b) otherwise--by the member. 12 `24A When original owner can not be nominee for 13 subsidiary body corporate 14 `(1) This section applies if more than 50% of the lots created by 15 the registration of a group titles plan or building units plan 16 subdividing a secondary lot are no longer owned by the 17 original owner of the secondary lot. 18 `(2) The subsidiary body corporate created by the registration of 19 the plan can not appoint as its nominee-- 20 (a) the original owner; or 21 (b) an associate (an ineligible associate) of the original 22 owner who is not 1 of the proprietors constituting the 23 subsidiary body corporate. 24 `(3) If the original owner or an ineligible associate of the original 25 owner is already a nominee for the subsidiary body 26 corporate-- 27 (a) a general meeting of the subsidiary body corporate must 28 be held within 2 months; and 29 (b) if it is not sooner ended, the owner's or associate's 30 appointment as the nominee ends at the next general 31 meeting of the subsidiary body corporate.'. 32 Page 133

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 77] Clause 77 Amendment of s 27 (Meetings of principal body 1 corporate) 2 Section 27(5A), after `apply'-- 3 insert-- 4 `and the application of the Building Units and Group Titles 5 Act 1980, schedule 2, part 2 is subject to schedule 3 and 6 schedule 9, definition ordinary resolution'. 7 Clause 78 Amendment of s 32 (Miscellaneous powers of principal 8 body corporate) 9 (1) Section 32, `body corporate may'-- 10 omit, insert-- 11 `body corporate may do any of the following'. 12 (2) Section 32-- 13 insert-- 14 `(e) employ staff to perform its functions.'. 15 Clause 79 Amendment of s 33 (Duties of principal body corporate) 16 Section 33(1)(e)-- 17 omit, insert-- 18 `(e) keep-- 19 (i) for at least 10 years after their creation or receipt 20 by or for the principal body corporate-- 21 (A) minutes of its meetings, including particulars 22 of motions passed at the meetings; and 23 (B) proper books of account for amounts 24 received or paid by the principal body 25 corporate showing the items for which the 26 amounts were received or paid; and 27 (ii) for at least 2 years after their creation or receipt by 28 or for the principal body corporate--voting tally 29 Page 134

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 80] sheets or other records showing votes for motions 1 and election ballots related to its meetings; and'. 2 Clause 80 Amendment of s 41 (Constitution of executive committee) 3 (1) Section 41(3), `3 members'-- 4 omit, insert-- 5 `5 members'. 6 (2) Section 41(4)-- 7 omit, insert-- 8 `(4) If there are more than 5 members of the principal body 9 corporate, the executive committee must consist of at least 5 10 persons and not more than the number of members of the 11 principal body corporate, as decided by the principal body 12 corporate.'. 13 (3) Section 41(5), `(if any)'-- 14 omit. 15 (4) Section 41(5), `more than 3'-- 16 omit, insert-- 17 `more than 5'. 18 (5) Section 41(6)-- 19 omit, insert-- 20 `(5A) The election of the chairperson, secretary, treasurer and any 21 other members of the executive committee at a general 22 meeting of the principal body corporate must be conducted 23 under schedule 3. 24 `(6) A person is eligible for election as chairperson, secretary or 25 treasurer, or as another member of the executive committee, 26 only if the person-- 27 (a) is an individual who is-- 28 (i) a member of the principal body corporate; or 29 Page 135

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 81] (ii) a nominee of a member of the principal body 1 corporate; and 2 (b) does not owe a relevant body corporate debt in relation 3 to a lot or lots owned by the person.'. 4 Clause 81 Insertion of new s 41A 5 After section 41-- 6 insert-- 7 `41A Code of conduct for voting members of executive 8 committee 9 `(1) The code of conduct in schedule 4 applies to each person (a 10 voting member) who is-- 11 (a) a member of the executive committee; and 12 (b) entitled to vote at general meetings of the principal body 13 corporate. 14 `(2) On becoming a voting member of the executive committee, 15 the person is taken to have agreed to comply with the code of 16 conduct.'. 17 Clause 82 Amendment of s 42 (Vacation of office of member of 18 executive committee) 19 (1) Section 42(1)(j)-- 20 renumber as section 42(1)(k). 21 (2) Section 42(1)-- 22 insert-- 23 `(j) if the person is removed from office by ordinary 24 resolution of the principal body corporate under division 25 2D; or'. 26 Clause 83 Insertion of new s 44A 27 After section 44-- 28 Page 136

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 84] insert-- 1 `44A Conflict of interest of executive committee member 2 [SM, s 53] 3 `(1) A member of the executive committee must disclose to a 4 meeting of the committee the member's direct or indirect 5 interest in an issue being considered, or about to be 6 considered, by the committee if the interest could conflict 7 with the appropriate performance of the member's duties 8 about the consideration of the issue. 9 `(2) If a member required under subsection (1) to disclose an 10 interest in an issue is a voting member of the committee, the 11 member is not entitled to vote on a motion involving the issue. 12 `(3) A person who holds the proxy of a member of the committee 13 must disclose to a meeting of the committee the proxy 14 holder's direct or indirect interest in an issue being 15 considered, or about to be considered, by the committee if the 16 interest could conflict with the appropriate performance of the 17 proxy holder's duties about the consideration of the issue. 18 `(4) A proxy holder required under subsection (3) to disclose an 19 interest in an issue must not vote as the proxy on a motion 20 involving the issue. 21 `(5) A person who holds the proxy of a member of the committee 22 must disclose to a meeting of the committee the member's 23 direct or indirect interest in an issue being considered, or 24 about to be considered, by the committee if the proxy holder 25 is aware that the member, if present, would be required under 26 subsection (1) to disclose the interest. 27 `(6) A proxy holder required under subsection (5) to disclose an 28 interest in an issue must not vote as the proxy on a motion 29 involving the issue.'. 30 Clause 84 Amendment of s 47A (Principal body corporate manager) 31 (1) Section 47A(1), `subsection (2)'-- 32 omit, insert-- 33 `subsections (2), (8), (9) and (10)'. 34 Page 137

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 85] (2) Section 47A(9)-- 1 renumber as section 47A(11). 2 (3) Section 47A(8)-- 3 omit, insert-- 4 `(8) The term of appointment of the body corporate manager (after 5 allowing for any rights or options of extension or renewal, 6 whether provided for in the instrument of appointment or 7 subsequently agreed to) must not be longer than 3 years. 8 Example-- 9 The appointment of a body corporate manager begins on 1 January 2009 10 and is for a term of 3 years. The appointment can not end later than 31 11 December 2011. 12 `(9) If the term of appointment purports to be longer than 3 years, 13 it is taken to be 3 years. 14 `(10) To remove any doubt, it is declared that at the end of the term 15 of appointment of a person as the body corporate manager-- 16 (a) the appointment expires; and 17 (b) the person can not act again as the body corporate 18 manager without a new appointment.'. 19 (4) Section 47A-- 20 renumber as section 47AB. 21 Clause 85 Insertion of new ss 47A and 47AA 22 Part 3, division 2-- 23 insert-- 24 `47A Protection of executive committee members from 25 liability 26 `(1) A member of the executive committee is not civilly liable for 27 an act done or omission made in good faith and without 28 negligence in performing the person's role as a member of the 29 committee. 30 `(2) In this section-- 31 Page 138

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 85] act done or omission made does not include the publication 1 of defamatory matter as mentioned in section 47AA(1). 2 `47AA Protection of body corporate and executive 3 committee from liability for defamation 4 `(1) This section applies if-- 5 (a) the executive committee publishes required material for 6 a general meeting of the principal body corporate; and 7 (b) the required material contains defamatory matter. 8 `(2) Each of the following is not liable for defamation because of 9 the publication-- 10 (a) the principal body corporate; 11 (b) the committee, or a member of the committee, other 12 than a member of the committee who submitted the 13 document containing the defamatory matter. 14 `(3) In this section-- 15 member of the committee includes the body corporate 16 manager acting under a delegation under section 47AB(1). 17 prescribed motion means any of the following-- 18 (a) a motion to give a member of the executive committee a 19 notice under section 47K(1); 20 (b) a motion mentioned in section 47L(2)(a) to remove a 21 member of the executive committee from office; 22 (c) a motion to give a letting agent a code contravention 23 notice; 24 (d) a motion to require a letting agent to transfer the letting 25 agent's management rights for a part of the resort under 26 section 94K; 27 (e) a motion to terminate a person's appointment as a body 28 corporate manager, engagement as a service contractor 29 or authorisation as a letting agent under section 94V. 30 Page 139

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 86] required material, for a general meeting of the principal body 1 corporate, means any of the following required under this Act 2 to be published for the meeting-- 3 (a) a prescribed motion submitted other than by or for the 4 committee for the general meeting; 5 (b) the substance of a prescribed motion mentioned in 6 paragraph (a); 7 (c) notice of a prescribed motion mentioned in paragraph 8 (a) or another document required to accompany the 9 motion, prepared by the submitter of the motion.'. 10 Clause 86 Insertion of new pt 3, divs 2B­2D 11 Part 3-- 12 insert-- 13 `Division 2B Proxies for general meetings of 14 principal body corporate 15 `47B Application of div 2B 16 `This division applies to the appointment and use of a proxy to 17 represent a member of the principal body corporate at a 18 general meeting of the principal body corporate. 19 `47C Appointment [SM, s 107] 20 `(1) Subject to subsections (2) to (5), a person entitled to vote at 21 the general meeting may appoint a proxy to act for the person 22 at the general meeting. 23 `(2) The principal body corporate may by special resolution 24 prohibit the use of proxies-- 25 (a) for particular things described in the special resolution; 26 or 27 (b) altogether. 28 Page 140

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 86] `(3) An appointment under subsection (1) has effect subject to the 1 operation of a special resolution under subsection (2). 2 `(4) A person must not hold-- 3 (a) if there are 20 or more lots for which there are voting 4 entitlements for the meeting--proxies greater in number 5 than 5% of the lots; or 6 (b) if there are fewer than 20 lots for which there are voting 7 entitlements for the meeting--more than 1 proxy. 8 `(5) The appointment of a proxy is effective only if the person or 9 the holder of the proxy gives, by hand, post or facsimile, a 10 properly completed proxy form to the secretary of the 11 principal body corporate before-- 12 (a) the start of the meeting where the proxy is to be 13 exercised; or 14 (b) if the principal body corporate has fixed an earlier time 15 by which proxies must be given (that can not, however, 16 be earlier than 24 hours before the time fixed for the 17 meeting)--the earlier time. 18 `47D Form of proxy [SM, s 108] 19 `A proxy under this division-- 20 (a) must be in the approved form; and 21 (b) must be in the English language; and 22 (c) can not be irrevocable; and 23 (d) can not be transferred by the holder of the proxy to a 24 third person; and 25 (e) lapses at the end of the principal body corporate's 26 financial year or at the end of a shorter period stated in 27 the proxy; and 28 (f) may be given by any person who has the right to vote at 29 a general meeting; and 30 (g) subject to the limitations contained in this division, may 31 be given to any individual; and 32 Page 141

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 86] (h) must appoint a named individual. 1 `47E Use of proxy [SM, s 109] 2 `(1) A member of the principal body corporate (member A) who is 3 the proxy for another member of the principal body corporate 4 (member B) may vote both in member A's own right and also 5 as proxy of member B. 6 `(2) If at least 1 co-owner of a lot is present at the general meeting, 7 a proxy given by another co-owner of the lot is of no effect. 8 `(3) A vote by proxy must not be exercised at the general 9 meeting-- 10 (a) if the member who gave the proxy is personally present 11 at the meeting, unless the member consents at the 12 meeting; or 13 (b) on a particular motion, if the person who gave the proxy 14 has exercised a written or electronic vote on the motion; 15 or 16 (c) on a ballot for the election of a member of the executive 17 committee, or for otherwise choosing a member of the 18 executive committee; or 19 (d) for voting for a special resolution prohibiting, wholly or 20 partly, the use of proxies at executive committee 21 meetings or general meetings; or 22 (e) for voting for a majority resolution; or 23 (f) on a motion approving-- 24 (i) the appointment, engagement or authorisation of a 25 person as the body corporate manager, a service 26 contractor or a letting agent; or 27 (ii) the amendment or termination of an appointment, 28 engagement or authorisation mentioned in 29 subparagraph (i); or 30 (g) on a motion decided by secret ballot. 31 `(4) A proxy may be exercised by-- 32 Page 142

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 86] (a) the proxy holder voting in a show of hands at a general 1 meeting; or 2 (b) the proxy holder completing a written or electronic vote 3 on a motion before the start of, or at, the general 4 meeting. 5 `47F Special provisions about proxy use [SM, s 110] 6 `(1) A member of the principal body corporate can not be 7 prevented by contract from exercising a vote at the general 8 meeting, and can not be required by contract to make 9 someone else the member's proxy for voting at the general 10 meeting. 11 `(2) A proxy can not be exercised for someone else by-- 12 (a) the original owner of a secondary lot; or 13 (b) a body corporate manager for-- 14 (i) the primary thoroughfare body corporate; or 15 (ii) the principal body corporate; or 16 (iii) a subsidiary body corporate of the primary 17 thoroughfare body corporate or principal body 18 corporate; or 19 (c) an associate of a person mentioned in paragraph (a) or 20 (b), unless the associate is 1 of the proprietors 21 constituting a body corporate that is itself a member of 22 the principal body corporate. 23 `47G Offence [SM, s 111] 24 `A person must not exercise a proxy, or otherwise purport to 25 vote on behalf of another person, at the general meeting of the 26 principal body corporate knowing that the person does not 27 have the right to exercise the proxy or otherwise vote on 28 behalf of the other person. 29 Maximum penalty--100 penalty units. 30 Page 143

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 86] `Division 2C Accounts and audit 1 `47H Application of div 2C 2 `This division applies to the principal body corporate for 3 preparing a statement of accounts under section 33(1)(f). 4 `47I Accounts [SM, s 154] 5 `(1) The statement of accounts may be prepared on a cash or 6 accrual basis. 7 `(2) If the accounts are prepared on a cash basis, they must include 8 disclosure of the following-- 9 (a) the total amounts paid to the fund established under 10 section 33(1)(i) and the account established under 11 section 33(1)(k); 12 (b) total contributions in arrears; 13 (c) balances for all financial institution accounts and 14 investments; 15 (d) all outstanding receipts and payments. 16 `(3) If the accounts are prepared on an accrual basis, they must 17 show the assets and liabilities of the principal body corporate 18 at the end of the financial year for which the accounts are 19 prepared. 20 `(4) The statement of accounts must include-- 21 (a) the corresponding figures for the previous financial 22 year; and 23 (b) disclosure of all remuneration, allowances or expenses 24 paid to members of the executive committee, identifying 25 the total amounts paid to each member during the 26 financial year under the following categories-- 27 (i) remuneration or allowances; 28 (ii) expenses, split up into travelling, accommodation, 29 meal and other expenses. 30 Page 144

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 86] `(5) A copy of the statement of accounts must accompany the 1 notice of the annual general meeting first happening after the 2 end of the financial year for which the accounts are prepared. 3 `47J Audit [SM, s 155] 4 `(1) The principal body corporate must have its statement of 5 accounts for each financial year of the body corporate audited 6 by an auditor. 7 `(2) The auditor to be appointed must be agreed to by ordinary 8 resolution of the principal body corporate. 9 `(3) The motion for agreeing to the auditor to be appointed-- 10 (a) must be included in the agenda for the general meeting 11 where the motion is to be considered; and 12 (b) must include the name of the auditor proposed to be 13 appointed. 14 `(4) Also, the body corporate may, by ordinary resolution-- 15 (a) resolve to have its accounting records audited for a 16 particular period or a particular project; and 17 (b) appoint an auditor for the audit. 18 `(5) A member of the executive committee, the body corporate 19 manager, or an associate of a member of the executive 20 committee or body corporate manager, can not be appointed 21 to audit the accounting records or the statement of accounts of 22 the principal body corporate. 23 `(6) On finishing an audit of the principal body corporate's 24 statement of accounts for a financial year, the auditor must 25 give a certificate-- 26 (a) stating whether the statement of accounts gives a true 27 and fair view of the principal body corporate's financial 28 affairs; and 29 (b) if the statement of accounts does not give a true and fair 30 view of the principal body corporate's financial 31 affairs--identifying the deficiencies in the statement. 32 Page 145

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 86] `(7) A copy of the auditor's certificate must accompany the notice 1 of the next annual general meeting held after the certificate is 2 given. 3 `(8) In this section-- 4 auditor means-- 5 (a) a person who is a registered company auditor; or 6 (b) a person who-- 7 (i) is a member of-- 8 (A) CPA Australia and entitled to use the letters 9 `CPA' or `FCPA'; or 10 (B) the Institute of Chartered Accountants in 11 Australia and entitled to use the letters `CA' 12 or `FCA'; or 13 (C) the National Institute of Accountants and 14 entitled to use the letters `MNIA', `FNIA', 15 `PNA' or `FPNA'; and 16 (ii) has a total of 2 years auditing experience, whether 17 or not continuous. 18 `Division 2D Removal from office of voting 19 members of executive committee 20 for breach of code of conduct 21 `47K Notice for breach of code of conduct [SM, s 34] 22 `(1) If the principal body corporate believes a voting member of its 23 executive committee has breached the code of conduct for the 24 member, the principal body corporate may decide, by ordinary 25 resolution, to give the member a written notice stating each of 26 the following-- 27 (a) that the principal body corporate believes the member 28 has breached a stated provision of the code of conduct; 29 Page 146

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 86] (b) details sufficient to identify the breach in not more than 1 600 words; 2 (c) that the member may give any other member of the 3 principal body corporate, within the stated period of at 4 least 21 days after the member is given the notice, a 5 written response to the notice in not more than 600 6 words; 7 (d) that, if asked by the member, the principal body 8 corporate will pay the member all postage charges and 9 copying expenses reasonably incurred by the member in 10 giving a written response under paragraph (c) to any 11 other member of the principal body corporate; 12 (e) that the principal body corporate is to consider a motion 13 to remove the member from office for the breach at its 14 next general meeting called after the period mentioned 15 in paragraph (c) ends. 16 `(2) If asked by the member, the principal body corporate must 17 pay the member all postage charges and copying expenses 18 reasonably incurred by the member in giving a written 19 response under subsection (1)(c) to any other member of the 20 principal body corporate. 21 `47L Removal of voting member at general meeting 22 [SM, s 35] 23 `(1) This section applies if-- 24 (a) the principal body corporate gives a voting member of 25 its executive committee a notice under section 47K(1); 26 and 27 (b) the period mentioned in section 47K(1)(c) for the notice 28 has ended. 29 `(2) The principal body corporate must-- 30 (a) include on the agenda of its next general meeting, called 31 after the period mentioned in section 47K(1)(c) ends, a 32 motion to remove the member from office for breaching 33 the code of conduct; and 34 Page 147

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 87] (b) attach to the agenda a copy of-- 1 (i) the notice; and 2 (ii) if the body corporate has received a written 3 response from the member under section 4 47K(1)(c)--the response. 5 `(3) The member may be removed from office, by ordinary 6 resolution of the principal body corporate, at the next general 7 meeting.'. 8 Clause 87 Amendment of s 60 (Establishment of pedestrian mall) 9 Section 60, `Floating Dwelling House Zone'-- 10 omit, insert-- 11 `Harbour 1 Residential Zone'. 12 Clause 88 Replacement of s 64A (Maintenance etc. of canals) 13 Section 64A-- 14 omit, insert-- 15 `64A Maintenance etc. of canals 16 `The principal body corporate must preserve, maintain and 17 keep clean a canal, or the part of a canal, that is part of a 18 secondary thoroughfare.'. 19 Clause 89 Amendment of s 64B (Surrender of secondary 20 thoroughfare as canal) 21 (1) Section 64B(1)-- 22 omit, insert-- 23 `(1) This section applies to a canal, including the part of a canal, 24 that is part of a secondary thoroughfare.'. 25 (2) Section 64B, `Albert Shire Council'-- 26 omit, insert-- 27 `local government'. 28 Page 148

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 90] (3) Section 64B, `Canals Act 1958'-- 1 omit, insert-- 2 `Coastal Protection and Management Act 1995'. 3 (4) Section 64B(2), `a canal'-- 4 omit, insert-- 5 `the canal'. 6 Clause 90 Amendment of s 65 (Interpretation) 7 (1) Section 65, heading-- 8 omit, insert-- 9 `65 Definitions for pt 5'. 10 (2) Section 65-- 11 insert-- 12 `financial year, for the primary thoroughfare body corporate, 13 means a period in relation to which the primary thoroughfare 14 body corporate is required under section 77(1)(f) to prepare a 15 statement of accounts.'. 16 Clause 91 Amendment of s 67 (Member's nominee) 17 (1) Section 67(1)(a), from `a body corporate' to `group titles 18 plan'-- 19 omit, insert-- 20 `a subsidiary body corporate'. 21 (2) Section 67-- 22 insert-- 23 `(4) A person appointed under this section by a subsidiary body 24 corporate must represent the subsidiary body corporate-- 25 (a) in the way the subsidiary body corporate directs; and 26 (b) subject to paragraph (a), in a way that is in the best 27 interests of the subsidiary body corporate.'. 28 Page 149

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 92] Clause 92 Amendment of s 70 (Meetings of primary thoroughfare 1 body corporate) 2 Section 70(5A), after `apply'-- 3 insert-- 4 `and the application of the Building Units and Group Titles 5 Act 1980, schedule 2, part 2 is subject to schedule 3 and 6 schedule 9, definition ordinary resolution'. 7 Clause 93 Amendment of s 76 (Miscellaneous powers of primary 8 thoroughfare body corporate) 9 (1) Section 76, `body corporate may'-- 10 omit, insert-- 11 `body corporate may do any of the following'. 12 (2) Section 76-- 13 insert-- 14 `(g) employ staff to perform its functions.'. 15 Clause 94 Amendment of s 77 (Duties of primary thoroughfare body 16 corporate) 17 Section 77(1)(e)-- 18 omit, insert-- 19 `(e) keep-- 20 (i) for at least 10 years after their creation or receipt 21 by or for the primary thoroughfare body 22 corporate-- 23 (A) minutes of its meetings, including particulars 24 of motions passed at the meetings; and 25 (B) proper books of account for amounts 26 received or paid by the primary thoroughfare 27 body corporate showing the items for which 28 the amounts were received or paid; and 29 Page 150

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 95] (ii) for at least 2 years after their creation or receipt by 1 or for the primary thoroughfare body corporate-- 2 voting tally sheets or other records showing votes 3 for motions and election ballots related to its 4 meetings; and'. 5 Clause 95 Amendment of s 85 (Constitution of executive committee) 6 (1) Section 85(3), `3 members'-- 7 omit, insert-- 8 `5 members'. 9 (2) Section 85(4)-- 10 omit, insert-- 11 `(4) If there are more than 5 members of the primary thoroughfare 12 body corporate, the executive committee must consist of at 13 least 5 persons and not more than the number of members of 14 the primary thoroughfare body corporate, as decided by the 15 primary thoroughfare body corporate.'. 16 (3) Section 85(5), `(if any)'-- 17 omit. 18 (4) Section 85(5), `more than 3'-- 19 omit, insert-- 20 `more than 5'. 21 (5) Section 85(6)-- 22 omit, insert-- 23 `(5A) The election of the chairperson, secretary, treasurer and any 24 other members of the executive committee at a general 25 meeting of the primary thoroughfare body corporate must be 26 conducted under schedule 3. 27 `(6) A person is eligible for election as chairperson, secretary or 28 treasurer, or as another member of the executive committee, 29 only if the person-- 30 (a) is an individual who-- 31 Page 151

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 96] (i) is a member of the primary thoroughfare body 1 corporate; or 2 (ii) has been nominated for election by a member of 3 the primary thoroughfare body corporate; and 4 (b) does not owe a relevant body corporate debt in relation 5 to a lot or lots owned by the person.'. 6 Clause 96 Insertion of new s 85A 7 After section 85-- 8 insert-- 9 `85A Code of conduct for voting members of executive 10 committee 11 `(1) The code of conduct in schedule 4 applies to each person (a 12 voting member) who is-- 13 (a) a member of the executive committee; and 14 (b) entitled to vote at general meetings of the primary 15 thoroughfare body corporate. 16 `(2) On becoming a voting member of the executive committee, 17 the person is taken to have agreed to comply with the code of 18 conduct.'. 19 Clause 97 Amendment of s 86 (Vacation of office of member of 20 executive committee) 21 (1) Section 86(1)(j)-- 22 renumber as section 86(1)(k). 23 (2) Section 86(1)-- 24 insert-- 25 `(j) if the person is removed from office by ordinary 26 resolution of the primary thoroughfare body corporate 27 under division 2C; or'. 28 Page 152

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 98] Clause 98 Insertion of new s 88A 1 After section 88-- 2 insert-- 3 `88A Conflict of interest of executive committee member 4 [SM, s 53] 5 `(1) A member of the executive committee must disclose to a 6 meeting of the committee the member's direct or indirect 7 interest in an issue being considered, or about to be 8 considered, by the committee if the interest could conflict 9 with the appropriate performance of the member's duties 10 about the consideration of the issue. 11 `(2) If a member required under subsection (1) to disclose an 12 interest in an issue is a voting member of the committee, the 13 member is not entitled to vote on a motion involving the issue. 14 `(3) A person who holds the proxy of a member of the committee 15 must disclose to a meeting of the committee the proxy 16 holder's direct or indirect interest in an issue being 17 considered, or about to be considered, by the committee if the 18 interest could conflict with the appropriate performance of the 19 proxy holder's duties about the consideration of the issue. 20 `(4) A proxy holder required under subsection (3) to disclose an 21 interest in an issue must not vote as the proxy on a motion 22 involving the issue. 23 `(5) A person who holds the proxy of a member of the committee 24 must disclose to a meeting of the committee the member's 25 direct or indirect interest in an issue being considered, or 26 about to be considered, by the committee if the proxy holder 27 is aware that the member, if present, would be required under 28 subsection (1) to disclose the interest. 29 `(6) A proxy holder required under subsection (5) to disclose an 30 interest in an issue must not vote as the proxy on a motion 31 involving the issue.'. 32 Page 153

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 99] Clause 99 Amendment of s 91A (Primary thoroughfare body 1 corporate manager) 2 (1) Section 91A(1), `subsection (2)'-- 3 omit, insert-- 4 `subsections (2), (8), (9) and (10)'. 5 (2) Section 91A(9)-- 6 renumber as section 91A(11). 7 (3) Section 91A(8)-- 8 omit, insert-- 9 `(8) The term of appointment of the body corporate manager (after 10 allowing for any rights or options of extension or renewal, 11 whether provided for in the instrument of appointment or 12 subsequently agreed to) must not be longer than 3 years. 13 Example-- 14 The appointment of a body corporate manager begins on 1 January 2009 15 and is for a term of 3 years. The appointment can not end later than 31 16 December 2011. 17 `(9) If the term of appointment purports to be longer than 3 years, 18 it is taken to be 3 years. 19 `(10) To remove any doubt, it is declared that at the end of the term 20 of appointment of a person as the body corporate manager-- 21 (a) the appointment expires; and 22 (b) the person can not act again as the body corporate 23 manager without a new appointment.'. 24 (4) Section 91A-- 25 renumber as section 91AB. 26 Clause 100 Insertion of new ss 91A and 91AA 27 Part 5, division 2-- 28 insert-- 29 Page 154

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 100] `91A Protection of executive committee members from 1 liability 2 `(1) A member of the executive committee is not civilly liable for 3 an act done or omission made in good faith and without 4 negligence in performing the person's role as a member of the 5 committee. 6 `(2) In this section-- 7 act done or omission made does not include the publication 8 of defamatory matter as mentioned in section 91AA(1). 9 `91AA Protection of body corporate and executive 10 committee from liability for defamation 11 `(1) This section applies if-- 12 (a) the executive committee publishes required material for 13 a general meeting of the primary thoroughfare body 14 corporate; and 15 (b) the required material contains defamatory matter. 16 `(2) Each of the following is not liable for defamation because of 17 the publication-- 18 (a) the primary thoroughfare body corporate; 19 (b) the committee, or a member of the committee, other 20 than a member of the committee who submitted the 21 document containing the defamatory matter. 22 `(3) In this section-- 23 member of the committee includes the body corporate 24 manager acting under a delegation under section 91AB(1). 25 prescribed motion means any of the following-- 26 (a) a motion to give a member of the executive committee a 27 notice under section 91H(1); 28 (b) a motion mentioned in section 91I(2)(a) to remove a 29 member of the executive committee from office; 30 Page 155

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 101] (c) a motion to give a letting agent a code contravention 1 notice; 2 (d) a motion to require a letting agent to transfer the letting 3 agent's management rights for the resort or a part of the 4 resort under section 94K; 5 (e) a motion to terminate a person's appointment as a body 6 corporate manager, engagement as a service contractor 7 or authorisation as a letting agent under section 94V. 8 required material, for a general meeting of the primary 9 thoroughfare body corporate, means any of the following 10 required under this Act to be published for the meeting-- 11 (a) a prescribed motion submitted other than by or for the 12 committee for the general meeting; 13 (b) the substance of a prescribed motion mentioned in 14 paragraph (a); 15 (c) notice of a prescribed motion mentioned in paragraph 16 (a) or another document required to accompany the 17 motion, prepared by the submitter of the motion.'. 18 Clause 101 Insertion of new pt 5, divs 2B and 2C 19 Part 5-- 20 insert-- 21 `Division 2B Proxies for principal body corporate 22 at general meetings of primary 23 thoroughfare body corporate 24 `91B Application of div 2B 25 `This division applies to the appointment and use of a proxy to 26 represent the principal body corporate at a general meeting of 27 the primary thoroughfare body corporate. 28 Page 156

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 101] `91C Appointment [SM, s 107] 1 `(1) Subject to subsection (2), the principal body corporate may 2 appoint a proxy to act for the body corporate at the general 3 meeting. 4 `(2) The appointment of a proxy is effective only if the principal 5 body corporate or the holder of the proxy gives, by hand, post 6 or facsimile, a properly completed proxy form to the secretary 7 of the primary thoroughfare body corporate before-- 8 (a) the start of the meeting where the proxy is to be 9 exercised; or 10 (b) if the primary thoroughfare body corporate has fixed an 11 earlier time by which proxies must be given (that can 12 not, however, be earlier than 24 hours before the time 13 fixed for the meeting)--the earlier time. 14 `91D Form of proxy [SM, s 108] 15 `A proxy given under this division-- 16 (a) must be in the approved form; and 17 (b) must be in the English language; and 18 (c) can not be irrevocable; and 19 (d) can not be transferred by the holder of the proxy to a 20 third person; and 21 (e) lapses at the end of the primary thoroughfare body 22 corporate's financial year or at the end of a shorter 23 period stated in the proxy; and 24 (f) may be given by any person who has the right to vote at 25 a general meeting; and 26 (g) subject to the limitations contained in this division, may 27 be given to any individual; and 28 (h) must appoint a named individual. 29 Page 157

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 101] `91E Use of proxy [SM, s 109] 1 `(1) A member of the primary thoroughfare body corporate who is 2 the proxy for the principal body corporate may vote both in 3 the member's own right and also as proxy of the principal 4 body corporate. 5 `(2) A vote by proxy must not be exercised on behalf of the 6 principal body corporate at the general meeting-- 7 (a) if the person appointed to represent the principal body 8 corporate under section 67(1) is personally present at 9 the meeting, unless the person consents at the meeting; 10 or 11 (b) on a particular motion, if a written or electronic vote has 12 been exercised on the motion on behalf of the principal 13 body corporate; or 14 (c) on a ballot for the election of a member of the executive 15 committee, or for otherwise choosing a member of the 16 executive committee; or 17 (d) for voting for a special resolution prohibiting, wholly or 18 partly, the use of proxies at executive committee 19 meetings or general meetings; or 20 (e) for voting for a majority resolution; or 21 (f) on a motion approving-- 22 (i) the appointment, engagement or authorisation of a 23 person as the body corporate manager, a service 24 contractor or a letting agent; or 25 (ii) the amendment or termination of an appointment, 26 engagement or authorisation mentioned in 27 subparagraph (i); or 28 (g) on a motion decided by secret ballot. 29 `(3) A proxy may be exercised by-- 30 (a) the proxy holder voting in a show of hands at a general 31 meeting; or 32 Page 158

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 101] (b) the proxy holder completing a written or electronic vote 1 on a motion before the start of, or at, the general 2 meeting. 3 `91F Special provisions about proxy use [SM, s 110] 4 `(1) The principal body corporate can not be prevented by contract 5 from exercising a vote at the general meeting, and can not be 6 required by contract to make someone else the body 7 corporate's proxy for voting at the general meeting. 8 `(2) A proxy can not be exercised for the principal body corporate 9 by-- 10 (a) the original owner of a secondary lot; or 11 (b) a body corporate manager for-- 12 (i) the primary thoroughfare body corporate; or 13 (ii) the principal body corporate; or 14 (iii) a subsidiary body corporate of the primary 15 thoroughfare body corporate or principal body 16 corporate; or 17 (c) an associate of a person mentioned in paragraph (a) or 18 (b), unless the associate is 1 of the proprietors 19 constituting a subsidiary body corporate of the principal 20 body corporate. 21 `91G Offence [SM, s 111] 22 `A person must not exercise a proxy, or otherwise purport to 23 vote on behalf of the principal body corporate, at the general 24 meeting of the primary thoroughfare body corporate knowing 25 that the person does not have the right to exercise the proxy or 26 otherwise vote on behalf of the principal body corporate. 27 Maximum penalty--100 penalty units. 28 Page 159

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 101] `Division 2C Removal from office of voting 1 members of executive committee 2 for breach of code of conduct 3 `91H Notice for breach of code of conduct [SM, s 34] 4 `(1) If the primary thoroughfare body corporate believes a voting 5 member of its executive committee has breached the code of 6 conduct for the member, the primary thoroughfare body 7 corporate may decide, by ordinary resolution, to give the 8 member a written notice stating each of the following-- 9 (a) that the primary thoroughfare body corporate believes 10 the member has breached a stated provision of the code 11 of conduct; 12 (b) details sufficient to identify the breach in not more than 13 600 words; 14 (c) that the member may give any other member of the 15 primary thoroughfare body corporate, within the stated 16 period of at least 21 days after the member is given the 17 notice, a written response to the notice in not more than 18 600 words; 19 (d) that, if asked by the member, the primary thoroughfare 20 body corporate will pay the member all postage charges 21 and copying expenses reasonably incurred by the 22 member in giving a written response under paragraph 23 (c) to any other member of the primary thoroughfare 24 body corporate; 25 (e) that the primary thoroughfare body corporate is to 26 consider a motion to remove the member from office for 27 the breach at its next general meeting called after the 28 period mentioned in paragraph (c) ends. 29 `(2) If asked by the member, the primary thoroughfare body 30 corporate must pay the member all postage charges and 31 copying expenses reasonably incurred by the member in 32 giving a written response under subsection (1)(c) to any other 33 member of the primary thoroughfare body corporate. 34 Page 160

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] `91I Removal of voting member at general meeting 1 [SM, s 35] 2 `(1) This section applies if-- 3 (a) the primary thoroughfare body corporate gives a voting 4 member of its executive committee a notice under 5 section 91H(1); and 6 (b) the period mentioned in section 91H(1)(c) for the notice 7 has ended. 8 `(2) The primary thoroughfare body corporate must-- 9 (a) include on the agenda of its next general meeting, called 10 after the period mentioned in section 91H(1)(c) ends, a 11 motion to remove the member from office for breaching 12 the code of conduct; and 13 (b) attach to the agenda a copy of-- 14 (i) the notice; and 15 (ii) if the body corporate has received a written 16 response from the member under section 17 91H(1)(c)--the response. 18 `(3) The member may be removed from office, by ordinary 19 resolution of the primary thoroughfare body corporate, at the 20 next general meeting.'. 21 Clause 102 Insertion of new pt 5A 22 After part 5-- 23 insert-- 24 Page 161

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] `Part 5A Conduct of body corporate 1 managers, service contractors 2 and letting agents 3 `Division 1 Preliminary 4 `94A Definitions for pt 5A 5 `In this part-- 6 caretaking service contractor, for the resort, or part of the 7 resort, means a service contractor for the resort or part who is 8 also-- 9 (a) a letting agent for the resort or part; or 10 (b) an associate of the letting agent. 11 letting agent authorisation, for a letting agent, means an 12 authorisation given by the primary thoroughfare body 13 corporate or principal body corporate to the letting agent to 14 conduct a letting agent business for the resort or part of the 15 resort. 16 management rights, of a letting agent for the resort or part of 17 the resort, means-- 18 (a) the letting agent business for the resort or part, including 19 the letting agent's authorisation; and 20 (b) the business conducted by the letting agent under a 21 service contract for the resort or part, including the 22 service contract; and 23 (c) the letting agent's interest in a lot used for conducting a 24 business mentioned in paragraph (a) or (b); and 25 (d) any right of the letting agent to use and occupy a part of 26 the common property for a business mentioned in 27 paragraph (a) or (b). 28 reviewable terms, for a service contract, means the terms of 29 the contract that provide for-- 30 Page 162

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] (a) the functions and powers of the relevant letting agent as 1 a service contractor; or 2 (b) the remuneration payable to the relevant letting agent as 3 a service contractor. 4 review advice, about a service contract, means written advice 5 about whether the contract's reviewable terms-- 6 (a) are currently fair and reasonable; and 7 (b) if the reviewable terms are not currently fair and 8 reasonable--how the reviewable terms should be 9 changed to ensure they are fair and reasonable. 10 service contract means a contract entered into with a person 11 for the engagement of the person as a service contractor for 12 the resort or part of the resort. 13 `94B Meaning of financier for a letting agent's contract 14 `(1) A person is a financier for a contract under which a letting 15 agent is authorised by a body corporate if the letting agent and 16 the person give written notice signed by each of them to the 17 body corporate that the person is a financier for the contract. 18 `(2) A person stops being a financier for the contract if the person 19 gives the body corporate a written notice withdrawing the 20 notice given under subsection (1). 21 `(3) A notice under subsection (2) may be given without the letting 22 agent's agreement. 23 `(4) However, a person is a financier for the contract only if the 24 person is-- 25 (a) a financial institution; or 26 (b) a person who, in the ordinary course of the person's 27 business, supplies, or might reasonably be expected to 28 supply, finance for business acquisitions, using charges 29 over contracts as the whole or part of the person's 30 security for supplying the finance; or 31 Page 163

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] (c) at the time the person supplied finance for a business 1 acquisition using a charge over the contract as the whole 2 or part of the person's security, the person was a person 3 to whom paragraph (b) would have applied. 4 `94C Meaning of letting agent and letting agent business 5 `(1) A person is a letting agent for the resort or part of the resort if 6 the person is authorised by the primary thoroughfare body 7 corporate or principal body corporate to conduct a letting 8 agent business for the resort or part. 9 `(2) A person conducts a letting agent business for the resort or 10 part of the resort if-- 11 (a) the person conducts, subject to the Property Agents and 12 Motor Dealers Act 2000, the business of acting as the 13 agent of the owners of 1 or more lots included in the 14 resort or part; and 15 (b) the owners choose to use the person's services for 16 securing, negotiating or enforcing, including collecting 17 rents or tariffs for, leases or other occupancies of lots 18 included in the resort or part. 19 `(3) It is not relevant to the identification of a person as a letting 20 agent under this section that the person also conducts an 21 ancillary business or other activity. 22 Examples of ancillary businesses or activities-- 23 video hire, linen hire, agency for tour operator 24 `94D Meaning of service contractor for resort or part 25 `A person is a service contractor for the resort or part of the 26 resort if-- 27 (a) the person is engaged by the primary thoroughfare body 28 corporate or principal body corporate to supply services 29 to the body corporate for the benefit of the common 30 property or lots included in the resort or part; and 31 Page 164

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] (b) the person is not an employee of the primary 1 thoroughfare body corporate or principal body 2 corporate; and 3 (c) the services do not include administrative services; and 4 (d) the term of the engagement is at least 1 year. 5 Examples of services that might be provided by a service contractor-- 6 caretaking services, pool cleaning services 7 `Division 2 Codes of conduct 8 `94E Code of conduct for body corporate manager and 9 caretaking service contractor 10 `(1) The code of conduct in schedule 5 applies to-- 11 (a) a body corporate manager appointed by the primary 12 thoroughfare body corporate or principal body corporate 13 in performing obligations under the person's 14 appointment; and 15 (b) a caretaking service contractor engaged by the primary 16 thoroughfare body corporate or principal body corporate 17 for the resort or part of the resort in performing 18 obligations under the person's engagement. 19 `(2) Compliance with the provisions of the code is taken to be a 20 condition of the instrument of appointment or the contract 21 providing for the person's engagement. 22 `(3) If there is an inconsistency between a provision of the code 23 and a provision in the instrument of appointment or contract, 24 the provision of the code prevails. 25 `(4) In this section-- 26 instrument of appointment, in relation to a person's 27 appointment as a body corporate manager, includes a contract 28 or other document relating to the appointment. 29 Page 165

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] `94F Code of conduct for letting agent 1 `The code of conduct in schedule 6 applies to a letting agent 2 authorised by the primary thoroughfare body corporate or 3 principal body corporate to conduct a letting agent business 4 for the resort or part of the resort. 5 `Division 3 Required transfer of management 6 rights for contravention of code of 7 conduct 8 `Subdivision 1 Preliminary 9 `94G Application of div 3 10 `(1) This division applies for transferring the management rights 11 of a letting agent authorised by the primary thoroughfare body 12 corporate or principal body corporate to conduct a letting 13 agent business for the resort or a part of the resort. 14 `(2) However, this division does not apply to a letting agent for 15 conducting a letting agent business or a part of a letting agent 16 business for a part of the resort for which a serviced strata 17 arrangement or scheme under the Corporations Act is in 18 operation. 19 `94H Effect of div 3 on other provisions 20 `The provisions of a letting agent authorisation or service 21 contract providing for its transfer or termination are void to 22 the extent the provisions are inconsistent with this division. 23 Page 166

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] `Subdivision 2 Transfer of management rights 1 `94I Code contravention notice 2 `(1) The body corporate must, if required by ordinary resolution 3 decided by secret ballot, give the letting agent a signed notice 4 under this section (a code contravention notice). 5 `(2) The code contravention notice must state-- 6 (a) that the body corporate believes the letting agent has or 7 is contravening a provision of the code of conduct for-- 8 (i) letting agents; or 9 (ii) body corporate managers and caretaking service 10 contractors; and 11 (b) the provision the body corporate believes has been or is 12 being contravened; and 13 (c) details sufficient to identify the contravention; and 14 (d) a reasonable period within which the letting agent must 15 remedy the contravention; and 16 (e) that the body corporate may, without further notice, give 17 the letting agent a transfer notice if-- 18 (i) the letting agent does not comply with the code 19 contravention notice; or 20 (ii) the body corporate reasonably believes the letting 21 agent, after being given the notice, has contravened 22 a provision of a code mentioned in paragraph (a). 23 `94J Grounds for requiring transfer 24 `The body corporate may require the transfer of the letting 25 agent's management rights under this division only if the 26 requirement is based on either of the following grounds-- 27 (a) the letting agent failed to comply with a code 28 contravention notice; 29 Page 167

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] (b) the body corporate reasonably believes the letting agent, 1 after being given the notice, contravened a provision of 2 the code of conduct for-- 3 (i) letting agents; or 4 (ii) body corporate managers and caretaking service 5 contractors. 6 `94K Requirement for transfer 7 `The letting agent must transfer the letting agent's 8 management rights for the resort or the part of the resort if-- 9 (a) a ground under section 94J exists for the body corporate 10 to require the transfer; and 11 (b) the body corporate-- 12 (i) by majority resolution decided by secret ballot 13 requires the transfer; and 14 (ii) gives written notice of the requirement (the 15 transfer notice) to the letting agent. 16 `94L Transfer--letting agent's choice of transferee 17 `(1) The letting agent must transfer the management rights-- 18 (a) within the following period after the transfer notice is 19 given to the letting agent-- 20 (i) if section 94Q does not apply--9 months; 21 (ii) if section 94Q applies--11 months; and 22 (b) to a person, other than an associate of the letting agent, 23 chosen by the letting agent and approved by the body 24 corporate. 25 `(2) For deciding whether to approve a person under subsection 26 (1)(b), the body corporate-- 27 (a) must act reasonably and as quickly as practicable; and 28 (b) may have regard only to the person's-- 29 Page 168

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] (i) character; and 1 (ii) financial standing; and 2 (iii) competence, qualifications and experience. 3 `(3) However, the body corporate must not-- 4 (a) unreasonably withhold approval of the person; or 5 (b) require or receive a fee or other consideration for 6 approving the person, other than reimbursement for 7 legal expenses reasonably incurred by the body 8 corporate in relation to a request for its approval. 9 Maximum penalty for subsection (3)--50 penalty units. 10 `(4) If the letting agent transfers the management rights to a person 11 who is not approved by the body corporate, the transfer is of 12 no effect. 13 `94M Giving financier copy of transfer notice 14 `When the body corporate gives the transfer notice to the 15 letting agent, the body corporate must give a copy of it to each 16 person who is a financier for the contract under which the 17 letting agent is authorised as the letting agent. 18 `94N Transfer--body corporate's choice of transferee 19 `(1) If the letting agent does not transfer the management rights as 20 required under section 94L, the letting agent must transfer the 21 management rights-- 22 (a) to a replacement letting agent chosen by the executive 23 committee of the body corporate and named in a written 24 notice given by the committee to the letting agent; and 25 (b) at the price stated in the notice; and 26 (c) within the period, of at least 2 months after the notice is 27 given, stated in the notice. 28 `(2) The price stated must be 1 of the following-- 29 Page 169

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] (a) the average of 2 valuations, obtained by the body 1 corporate from 2 independent registered valuers, stating 2 the value of the management rights; 3 (b) the highest bid for the management rights, excluding a 4 bid by the letting agent or an associate of the letting 5 agent, made at an auction-- 6 (i) conducted at the request of the body corporate; and 7 (ii) of which at least 60 days notice was given; 8 (c) the highest amount tendered, excluding by tender by the 9 letting agent or an associate of the letting agent, for the 10 management rights after reasonable efforts made by the 11 body corporate to market the management rights for at 12 least 60 days. 13 `(3) The letting agent must pay the body corporate, from the 14 proceeds of the sale, the reasonable costs incurred by the body 15 corporate under subsection (2). 16 Note-- 17 If the letting agent does not transfer the management rights as required 18 under this section, it is a ground for giving the letting agent a remedial 19 action notice under section 94V. 20 `94O Terms of service contract on transfer 21 `(1) This section applies to a service contract (the transferred 22 service contract) transferred to a person (the transferee) 23 under section 94L or 94N. 24 `(2) Unless the body corporate and transferee agree otherwise, the 25 terms of the transferred service contract are-- 26 (a) the terms applying to the service contract under 27 subsection (3); or 28 (b) if subsection (3) does not apply--the terms applying to 29 the service contract immediately before the transfer (the 30 existing terms). 31 Page 170

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] `(3) The terms of the transferred service contract are the existing 1 terms as changed under a review advice about the contract 2 if-- 3 (a) the review advice states how the contract's reviewable 4 terms should be changed to ensure they are fair and 5 reasonable; and 6 (b) the body corporate gave the letting agent a copy of the 7 review advice as required under section 94S(1). 8 `Subdivision 3 Replacement of letting agent 9 authorisation and service contract 10 `94P Replacement of letting agent authorisation and 11 service contract in particular circumstances 12 `(1) This section applies if the remainder of the term of the letting 13 agent's authorisation (the transferred authorisation), 14 including any rights or options of extension or renewal, is less 15 than 7 years when transferred to a person (the transferee) 16 under this division. 17 Example-- 18 A letting agent's authorisation is given for a term of 5 years with 4 rights 19 of renewal of 5 years each and 5 years have expired. The remainder of 20 the term is therefore 20 years and this section does not apply. 21 `(2) On the transfer-- 22 (a) the transferred authorisation and any service contract 23 (the transferred service contract) forming part of the 24 transferred management rights terminate; and 25 (b) the body corporate must-- 26 (i) authorise the transferee to conduct a letting agent 27 business for the resort or part; and 28 (ii) if a service contract formed part of the transferred 29 management rights--engage the transferee as a 30 service contractor. 31 Page 171

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] `(3) The authorisation and engagement must be given for a term of 1 9 years starting immediately after the transfer. 2 `(4) Subject to subsection (3)-- 3 (a) the authorisation must be given on the terms applying to 4 the transferred authorisation immediately before the 5 transfer; and 6 (b) unless the body corporate and transferee agree 7 otherwise, the engagement must be given on-- 8 (i) the terms applying to the transferred service 9 contract under subsection (5); or 10 (ii) if subsection (5) does not apply--the terms 11 applying to the transferred service contract 12 immediately before the transfer (the existing 13 terms). 14 `(5) The engagement must be given on the existing terms of the 15 transferred service contract as changed under a review advice 16 about the contract if-- 17 (a) the review advice states how the contract's reviewable 18 terms should be changed to ensure they are fair and 19 reasonable; and 20 (b) the body corporate gave the letting agent a copy of the 21 review advice as required under section 94S(1). 22 `Subdivision 4 Reviewing terms of letting agent's 23 service contract 24 `94Q Reviewing terms of service contract 25 `(1) This section applies if-- 26 (a) the letting agent's management rights include a service 27 contract; and 28 (b) when the body corporate passes the majority resolution 29 mentioned in section 94K, the body corporate also 30 passes, by ordinary resolution, a motion (a review 31 Page 172

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] motion) that a review advice about the service contract 1 be obtained. 2 `(2) Within 1 month after the review motion is passed, the body 3 corporate must obtain the review advice from an independent 4 appropriate person. 5 Example of an independent appropriate person-- 6 a person who, in the ordinary course of the person's business, has 7 knowledge of the functions and powers of service contractors and the 8 remuneration for performing the functions and powers 9 `(3) The review advice must be based on the review criteria stated 10 in section 94R. 11 `(4) This section applies to the contract even if the contract also 12 provides for either or both of the following-- 13 (a) the letting agent's engagement as a body corporate 14 manager; 15 (b) the letting agent's authorisation as a letting agent. 16 `94R Review criteria 17 `(1) The review criteria are each of the following-- 18 (a) the appropriateness of the reviewable terms for 19 achieving a fair and reasonable balance between the 20 interests of the body corporate and the service 21 contractor; 22 (b) whether the reviewable terms impose conditions that-- 23 (i) are unreasonably difficult to comply with; or 24 (ii) are not necessary and reasonable for the protection 25 of the legitimate interests of the body corporate or 26 the service contractor; 27 (c) the consequences of complying with, or contravening, 28 the reviewable terms and whether the consequences are 29 unfairly harsh or beneficial to the body corporate or the 30 service contractor; 31 Page 173

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] (d) whether the reviewable terms are appropriate for the 1 resort; 2 (e) the term of the engagement as service contractor and the 3 period of the term remaining. 4 `(2) The review criterion mentioned in subsection (1)(d) is to be 5 applied having regard, in particular, to the nature, features and 6 characteristics of the resort. 7 `94S Giving copy of review advice to letting agent and 8 prospective buyer of management rights 9 `(1) Within 14 days after obtaining the review advice, the body 10 corporate must give a copy of it to the letting agent. 11 `(2) If requested by a prospective buyer of the letting agent's 12 management rights, the body corporate must give a copy of 13 the review advice to the prospective buyer. 14 `Subdivision 5 Disputes about transfer of 15 management rights 16 `94T CCT jurisdiction 17 `A dispute about the transfer, under this division, of a letting 18 agent's management rights may be dealt with by the 19 Commercial and Consumer Tribunal under the Commercial 20 and Consumer Tribunal Act 2003. 21 `Division 4 Disputes about contractual matters 22 `94U CCT jurisdiction 23 `(1) This section applies to a dispute about a claimed or 24 anticipated contractual matter about-- 25 Page 174

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] (a) the appointment or engagement of a person as a body 1 corporate manager or caretaking service contractor for 2 the resort or part of the resort; or 3 (b) the authorisation of a person as a letting agent for the 4 resort or part of the resort. 5 `(2) A party to the dispute may apply under the Commercial and 6 Consumer Tribunal Act 2003 for an order of the Commercial 7 and Consumer Tribunal to resolve the dispute. 8 `Division 5 Termination of appointment, 9 engagement or authorisation 10 `94V Termination for failure to comply with remedial 11 action notice [SM, s 131] 12 `(1) The primary thoroughfare body corporate or principal body 13 corporate may terminate a person's appointment as a body 14 corporate manager or engagement as a service contractor if 15 the person or, if the person is a corporation, a director of the 16 corporation-- 17 (a) engages in misconduct, or is grossly negligent, in 18 carrying out functions required under the appointment 19 or engagement; or 20 (b) fails to carry out duties under the appointment or 21 engagement; or 22 (c) contravenes-- 23 (i) for a body corporate manager--the code of 24 conduct for body corporate managers and 25 caretaking service contractors; or 26 (ii) for a service contractor who is a caretaking service 27 contractor--the code of conduct for body 28 corporate managers and caretaking service 29 contractors or the code of conduct for letting 30 agents. 31 Page 175

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 102] `(2) Also, the body corporate may terminate a person's 1 authorisation as a letting agent if-- 2 (a) the person or, if the person is a corporation, a director of 3 the corporation-- 4 (i) engages in misconduct, or is grossly negligent, in 5 carrying out obligations, if any, under the 6 authorisation; or 7 (ii) fails to carry out duties under the authorisation; or 8 (iii) contravenes the code of conduct for letting agents 9 or, for a caretaking service contractor, the code of 10 conduct for body corporate managers and 11 caretaking service contractors; or 12 (b) the person has been given a transfer notice requiring 13 transfer of the person's management rights and has not 14 transferred the management rights as required under 15 section 94N. 16 `(3) The body corporate may act under subsection (1) or (2) only 17 if-- 18 (a) the body corporate has given the manager, contractor or 19 agent a remedial action notice; and 20 (b) the manager, contractor or agent fails to comply with the 21 remedial action notice within the period stated in the 22 notice; and 23 (c) the termination is approved by ordinary resolution of the 24 body corporate; and 25 (d) for the termination of a person's engagement as a 26 caretaking service contractor or authorisation as a 27 letting agent--the motion to approve the termination is 28 decided by secret ballot. 29 `(4) In this section-- 30 remedial action notice means a written notice stating each of 31 the following-- 32 (a) that the body corporate believes the person to whom the 33 notice is given has acted-- 34 Page 176

 


 

Resorts and Other Acts Amendment Bill 2009 Part 6 Amendment of Sanctuary Cove Resort Act 1985 [s 103] (i) for a body corporate manager or service 1 contractor--in a way mentioned in subsection (1); 2 or 3 (ii) for a letting agent--in a way mentioned in 4 subsection (2); 5 (b) details of the action sufficient to identify-- 6