(1)  A body corporate may be divided into 2 or more separate bodies corporate by unanimous resolution of the body corporate.

(1A)  A division of a body corporate does not affect the ownership of the common property.

(2)  Any rights and liabilities that had accrued to the body corporate before the division takes effect attach to the bodies corporate formed by the division jointly and severally.

(3)  Two or more bodies corporate established in relation to the same scheme may merge to form a single body corporate.

(4)  Any rights and liabilities that had accrued to the bodies corporate subject to the merger before the merger takes effect attach to the body corporate formed by the merger.

(5)  The merger of bodies corporate, or the division of a body corporate, under this section does not take effect until the merger or division is recorded on the folio or folios of the common property.

(6)  If 2 or more bodies corporate are established in relation to the same scheme, constituent documents for the bodies corporate must be lodged with the Recorder.

(7)  The constituent documents –

(a) must define the functions and responsibilities of each body corporate and, in doing so, may create an administrative hierarchy with one or more bodies corporate at each level of the hierarchy; and

(b) must provide for the resolution of disputes between the bodies corporate; and

(c) must ensure that the powers of a body corporate under this Act insofar as they relate to a lot within the scheme are directly exercisable in relation to each lot within the scheme by one, and only one, body corporate.