Body Corporate Business Update June 2017
Changes to the act and regulation
The Unit Titles Act 2010 (the “Act”) has been amended by Part 2 of the Regulatory Systems (Building and Housing) Amendment Act 2017. The changes, which are largely technical in nature, came into force on 30 May 2017.
The majority of the changes are minor and relate to:
- grammar and style – through punctuation changes, simplified phrasing, and paragraph structures
- defined terms – through wording changes and new terminology
- inconsistencies – through being addressed
More substantive changes relate to:
- calling extraordinary general meetings (“EGMs”)
- cancellation of unit plans
The Unit Titles Regulations 2011 (the “Regulations”) have also been amended to align with the changes made to the Act and are limited to:
- new and amended provisions relating to calling EGMs
- new and amended statutory forms
- consequential amendments to update section references
An introduction of a new section 89A and amendments to section 90 of the Act make it a statutory requirement for an EGM to be held if it is requested by a notice signed by or for the owners of at least 25% of principal units. A new regulation 8A sets out the process for calling that EGM. Most importantly for unit owners, the notice of EGM (agenda) must be sent out not more than five working days after the chairperson receives the section 89A notice.
Changes to section 177 of the Act clarify what is required for a body corporate to cancel its unit plan by way of application to the Registrar. The primary change provides that bodies corporate must either reassess ownership interests prior to making an application or decide not to reassess ownership interests. If the latter, the body corporate must give its reasons. Further, a decision not to reassess ownership interests requires a special resolution, and such a decision is considered a designated resolution.
Matters advised on
We have recently advised bodies corporate, unit owners, and body corporate managers on:
- changes to operational rules
- surrendering of covenants relating to the base land
- building management agreements
- licences to occupy common property
- debt recovery
Source: Body Corporate Business Update June 2017