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STRATA SCHEMES MANAGEMENT ACT 2015 - SECT 26
Restrictions on powers of owners corporation during initial period
(1) An owners corporation for a strata scheme must not, during the
initial period, do any of the following things unless the owners corporation
is authorised to do so by an order of the Tribunal under this Division-- (a)
alter any common property or erect any structure on the common property
otherwise than in accordance with a strata development contract,
(b) incur a
debt for an amount that exceeds the amount then available for repayment of the
debt from its administrative fund or its capital works fund,
(c) appoint a
strata managing agent or a building manager or other person to assist it in
the management or control of use of the common property, or the maintenance or
repair of the common property, for a period extending beyond the holding of
the first annual general meeting of the owners corporation,
(d) borrow money
or give securities.
(2) An owners corporation may recover from the
original owner-- (a) as a debt, any amount for which the owners corporation is
liable because of a contravention of subsection (1) (b), together with the
expenses of the owners corporation incurred in recovering that amount, and
(b) as damages for breach of statutory duty, any loss suffered by the
owners corporation as a result of any other contravention of this section.
(3) An owner may recover, as damages for breach of statutory duty, any loss
that has been suffered by the owner as a result of a contravention of this
section (other than subsection (1) (b)).
(4) It is a defence to an action
under this section in debt or for damages if it is proved that the
original owner-- (a) did not know of the contravention on which the action is
based, or
(b) was not in a position to influence the conduct of the
owners corporation in relation to the contravention, or
(c) used due
diligence to prevent the contravention.
(5) A remedy available under this
section does not affect any other remedy.
Note : Section 140 places
restrictions on the making, amendment and repeal of by-laws during the
initial period.
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