Victorian Numbered Acts

OWNERS CORPORATIONS ACT 2006 (NO 69 OF 2006) - NOTES

Act No. 69/2006

__________________

Victoria

No. 69 of 2006

Owners Corporations Act 2006^[†]

[Assented to 19 September 2006]

^[†]     Minister's second reading speech—

    Legislative Assembly: 20 July 2006

    Legislative Council: 12 September 2006

    The long title for the Bill for this Act was "to provide for the management, powers and functions of owners corporations and for appropriate mechanisms for the resolution of disputes relating to owners corporations, to amend the Subdivision Act 1988 in relation to the creation of owners corporations, to amend other Acts and for other purposes."

By Authority. Government Printer for the State of Victoria.

INDEX

Subject	Section
Accounts	33–35, 67, 71–72
Act
amendments to other Acts	220–224, Sch. 3
amendments to Sale of Land Act 1958	217–219
amendments to Subdivision Act 1988	206–216
commencement	2
copies provided at first meeting	67
purposes	1
transitional provisions	205, Sch. 2
Administrators	151, 173–177
Annual financial statements See Financial statements
Annual general meetings See Meetings
Audits	35
Ballots	83–86, 144
See also Committees; Polls; Proxies; Resolutions
Bank accounts	3, 27
Borrowing	25
Breaches
actions owners corporation may take	153
applications to, orders made by VCAT	153, 157, 159, 162, 164–166
complaints	152
failure to rectify, final notices	156–158
no action taken	153, 154, 156, 157
notice to rectify	155–158
reports to annual general meeting regarding	159
Budgets	71–72
Buildings (def.)	3, 54
Business Licensing Authority
definition	3
disclosure of information to Director	198
Licensing Registrar	3, 192, 196–197
notice of revocation of appointment of manager	169
payments into Victorian Property Fund	201
registration of managers	180–191
Certificates See Owners corporation certificates
Chairpersons
arranging of ballots	83
carrying out of functions of secretary	99
casting votes	93
convening, chairing of meetings by	70, 74, 79
delegation	11
election	98
of committees	98, 105, 108, 112
VCAT orders regarding	165
Subject	Section
Committees
acting chairperson	106
ballots held by	111, 112
casual vacancies	104
chairperson	98, 105, 108, 112
delegations to, by	11, 102
duties	117
election	71, 100
functions, powers	101
immunity of members of	118
managers to report to	120
meetings of	108–109, 112, 114
membership	103–104, 110
reports	71, 115
resolutions of	108, 111–114
secretary	99, 107–109, 114
sub-committees	110, 115–118
suspension of members	103
VCAT orders regarding	165
voting	112, 114
Common property
definition	3
leasing, licensing	14
lot owners' duties	130
maintenance, repairs	46, 49
must not be mortgaged, charged	17
occupiers' duties	137
owners corporations limited to	8
significant alterations, upgrading works	52–53
See also Insurance
Common seal	19–22, 67
Complaints
made to Director	160–161
made to owners corporations	152–159
Conciliation	161
Contracts
copies provided at first meeting	67
information in records, registers, certificates	144, 148, 151
VCAT orders regarding	165
void provisions	202
Contributions See Fees, contributions and levies
Corporations
as lot owners	21
as managers	179, 180, 183, 186, 194
Damages	165
Definitions	3, 37, 47, 51, 53, 54, 68, 161
Subject	Section
Delegations
by committees	102
by managers	124
by owners corporations	11, 87, 120, 121
dealt with at annual general meetings	71
VCAT orders regarding	165
Director
definition	3
disclosure of information to Authority	198
powers, functions, duties regarding
auditors, audit requirements	35
disputes	160–161, 163
forms	200
proceedings for offences	203
Disputes
applications to, orders made by VCAT	162–169
complaints to, actions by Director	160–161
complaints to, actions by owners corporations	152–159
information on resolution process in fees notices	31
Emergencies	51
Exemptions	7–8, 35, 170–171
Fees, contributions and levies
annual fees	23
dealt with at annual general meetings	71
extraordinary fees	24
information in owners corporation certificates	151
interest	29, 31–32
levied for upgrading works for common property	53
levied to pay for payments ordered by VCAT	168
lot owner's liability for	28
notices, final notices	31–32
overdue amounts, recovery of money owed	28–32, 94, 103
paid into bank account of owners corporation	27
paid into maintenance fund	42
Financial statements	34, 71–72, 144
Forms	200
Insurance
copies of policies provided at first meeting	67
definition of building	3, 54
exemptions from requirement to hold	170–171
information in records, registers, certificates	144, 148, 151
professional indemnity insurance of managers	119, 126, 180, 193, 194
regulations	204
taken out by lot owners	55, 57, 63
taken out by owners corporation
additional insurance	62
breaches of conditions of contracts	59
dealt with at annual general meetings	71
fees for	23
insurable interests of owners corporations	56
lots in multi-level developments	61
Subject	Section
mortgaged lots, mortgagees' interests noted	58, 59
not required	63–64
payments into maintenance fund	42
public liability insurance	60, 61
reinstatement and replacement insurance	59, 61
valuation of buildings, valuer's reports	65, 71
VCAT orders regarding	165
Interest	29, 31–32, 165
Investments	26
Land (def.)	3
Land affected by an owners corporation
definition	3
initial owner's duties	66–68
Leases and licences
common property	14
copies provided at first meeting	67
information in records, registers, certificates	144, 148, 151
lessees, licensees bound by rules	141
over land	15
personal property	16
Legal proceedings	18, 151, 203
Levies See Fees, contributions and levies
Licences See Leases and licences
Licensing Registrar See Business Licensing Authority
Lot entitlements	3, 148
Lot liability	3, 23–24, 28, 148
Lot owners
definition	3
delegations to	11, 102
details in records, owners corporation registers	144, 148, 170–171
duties, rights regarding
appointment of manager	125
ballots	83, 85, 86
care of common property	130
committees	103
compliance with laws	128
decoration of interior walls, floors, ceilings	132
inspection of records	146
insurance	55, 57, 63
mailing address if absent	135
maintenance, repair, care of lots, services	47–51, 129
meetings	70, 74, 79, 80, 81
name and address of new owners	134
notice of certain permits, certification	133
overhanging eaves, guttering	131
polls	92
rules	136, 141, 143
in arrears	29, 32, 94, 103
liability for fees, contributions, charges	28
payment for services provided to	12
Subject	Section
persons with powers of attorney for	88–89
recovery of money from	30, 32, 49, 163
witnesses to use of common seal	21
See also Breaches; Disputes; Proxies
Lots (def.)	3
Lots affected by an owners corporation (def.)	3
Maintenance and repairs
common property	46, 49, 52–53
emergencies	51
fees	23–24, 28, 42
information in owners corporation certificates	151
lots	47–51, 129
maintenance plans
alterations to common property permitted by	52
contents, preparation, approval	36–38
copies provided at first meeting	67
maintenance funds for	33, 38, 40–45
records	144
reports on	39, 71
services	46, 47, 50, 129
urgent repairs	24, 45, 52
Managers
appointment	71, 87, 119, 125, 165, 194
arranging of ballots by	83
carrying out of functions of secretary	99
convening, chairing of meetings by	70, 74, 79, 108
delegations to, by	11, 102, 120, 121, 124
duties, functions (general)	120–122
immunity of volunteer managers	123
information in registers, certificates	148, 151
orders to pay money	168
permission to carry on business of	187
professional indemnity insurance	119, 126, 180, 193, 194
reports	71, 120, 126
return of records held, controlled by	127
revocation, termination of appointment	87, 119, 127, 165, 169, 194
See also Breaches; Disputes; VCAT
Managers – Registration
annual registration fees, statements for Authority	183–185
application of Fair Trading Act 1999	199
applications	180–181
cancellation	185–186, 190, 194
change of information in applications, statements	188
duration	182
eligibility	179
false, misleading information, documents	189–190
Subject	Section
fees	180, 183, 185
further information required	181
grant	182
persons deemed to be registered	187
register	165, 192–197
registered managers (def.)	3
requirement to be registered	119, 178
review of decisions regarding	191
surrender	194
Mediation	161
Meetings
annual general meetings
agenda, matters to be dealt with	71
convening of	70
election of, decisions regarding committees	100, 103
financial statements, audits	34–35
notice of	72
reports presented at	39, 65, 71, 115, 126, 159
requirement to hold	69
first meetings	66–67, 70
minutes	20, 78, 81, 97, 144
participation by means of teleconferencing	80, 92
procedure at general meetings	77–82
quorum	77–78
special general meetings	73–76, 78, 103
voting at	81, 87–89, 91–94
See also Committees; Polls; Proxies; Resolutions
Occupiers	12, 51, 136–137, 141
See also Breaches; Disputes
Offences and penalties
penalties	166, 201
proceedings for	203
regarding managers	127, 178, 188, 189
regarding proxies, powers of attorney	89
Owners (def.)	3
Owners corporation certificates	151
Owners corporation disputes See Disputes
Owners corporation registers
contents, establishment, maintenance	147–149
copies provided at first meeting	67
definition	3
exemptions regarding information kept on	170–171
inspection	150, 151
orders recorded in	165
orders restricting access to personal information	172
Owners corporations
definition	3
delegation of powers, functions	11, 87, 120, 121
employees	9, 11
execution of documents by	10
Subject	Section
functions and powers (general)	3, 4–6
limited owners corporations (def.)	3
limited to common property	8
must not carry on business	13
notices and orders served on, by	144, 148, 151
prescribed owners corporations	3, 34–36, 65
two-lot subdivisions	7
unlimited owners corporations (def.)	3
See also the names of specific subjects, e.g. Insurance
Personal information	172
Personal property	16
Plans of subdivision	3
copies provided at first meeting	67
definition	3
duties of applicants for registration	66–68, 147
Polls	92, 95–96
See also Ballots; Resolutions
Power of attorney	88–89
Proceedings See Legal proceedings
Proxies
as committee members	87, 103
authorisation	87–88
must not be required of lot owners	89
names in minutes of meetings	81
records of	144
right to	72, 76, 80, 85
voting by	87–89, 92–94
Public liability insurance See Insurance
Records
keeping, inspection of	144–146
of ballots	86
orders restricting access to personal information in	172
provided at first meeting	67
return to secretary	127
Register	3, 142, 165
Registers See Managers – Registration; Owners corporation registers; Register
Registrar	3, 142, 165
Regulations	67, 139, 204
Resolutions
ballots for	83–86
copies with records, owners corporation certificates	144, 151
interim resolutions	78
making, passing of	86, 90, 92
matters to be determined only by resolution	82, 101
not passed, of no effect	92–93
of committees	108, 111–114
text in minutes of meetings	81
text in notice of ballots	85
to authorise use of common seal	20
Subject	Section
to borrow money	25
to pay money out of maintenance fund	43
to take out additional insurance	62
voting on	81, 86–94, 144
See also Special resolutions; Unanimous resolutions
Restitution orders	165
Rules
amendments	3, 142
copies	136, 142–144, 151
definition	3
details in owners corporation registers	148
model rules	139
of no effect if inconsistent with law	140
persons, bodies bound by	141
power to make, amend, and matters provided for	138, Sch. 1
recordings in Register	142
VCAT orders regarding	165
See also Breaches
Secretaries
arranging of ballots	83
convening of meetings by	70, 74
delegation	11
election	99
of committees	99, 107–109, 114
petitions against interim special resolutions to	97
return of records held by manager to	127
VCAT orders regarding	165
Services
information in owners corporation certificates	151
maintenance and repair	46, 47, 50, 129
provision of	12
Special fees and charges See Fees, contributions and levies
Special general meetings See Meetings
Special resolutions
interim special resolutions	97
passing of	86, 96
required for, in relation to
borrowing of money	25
confirmation of appointment of manager	87
extraordinary fees	24
leases, licences	14–15
legal proceedings	18
payments out of maintenance fund	44
rules	138
services to lot owners, occupiers	12
significant alterations to, upgrading works for common property	52–53
text included in notice of meetings	72, 76
two-lot subdivisions	7
voting rights of lot owners in arrears	94
Subject	Section
Subdivision Act 1988	206–216
Transitional provisions	205, Sch. 2
Two-lot subdivisions	7
Unanimous resolutions
exemptions from requirement to have	170–171
passing of	86, 95
text included in notice of meetings	72, 76
two-lot subdivisions	7
voting rights of lot owners in arrears	94
Valuations and valuers' reports	65, 71
VCAT
applications to, orders, jurisdiction regarding
administrators	173–176
breaches	153, 157, 159, 162, 164–166
disputes	162–169
exemptions	170–171
managers	125, 162, 165, 168, 169, 191, 194
operation of owners corporations	162, 165
payment of money by owners corporation	165, 168
recovery of money from lot owners	30, 32, 163
restriction of access to personal information	172
special resolutions not required for certain applications to	18
Victorian Property Fund	201
Voting See Committees; Meetings; Resolutions