Body Corporate and Community Management (Commercial Module) Regulation 1997

Queensland Body Corporate and Community Management Act 1997 Body Corporate and Community Management (Commercial Module) Regulation 1997 Reprinted as in force on 1 January 2008 Reprint No. 1F This reprint is prepared by the Office of the Queensland Parliamentary Counsel Warning—This reprint is not an authorised copy NOT FURTHER AMENDED LAST REPRINT BEFORE REPEAL See 2008 SL No. 271 s 165

Information about this reprint This regulation is reprinted as at 1 January 2008. The reprint shows the law as amended by all amendments that commenced on or before that day (Reprints Act 1992 s 5(c)). The reprint includes a reference to the law by which each amendment was made—see list of legislation and list of annotations in endnotes. Also see list of legislation for any uncommenced amendments. This page is specific to this reprint. See previous reprints for information about earlier changes made under the Reprints Act 1992. A table of reprints is included in the endnotes. Also see endnotes for information about— • when provisions commenced • editorial changes made in earlier reprints. Dates shown on reprints Reprints dated at last amendment All reprints produced on or after 1 July 2002, hard copy and electronic, are dated as at the last date of amendment. Previously reprints were dated as at the date of publication. If a hard copy reprint is dated earlier than an electronic version published before 1 July 2002, it means the legislation was not further amended and the reprint date is the commencement of the last amendment. If the date of a hard copy reprint is the same as the date shown for an electronic version previously published, it merely means that the electronic version was published before the hard copy version. Also, any revised edition of the previously published electronic version will have the same date as that version. Replacement reprint date If the date of a hard copy reprint is the same as the date shown on another hard copy reprint it means that one is the replacement of the other.

Queensland Body Corporate and Community Management (Commercial Module) Regulation 1997 Contents Part 1 1 2 3 4 5 6 Part 2 7 Part 3 Division 1 8 9 Division 2 10 Division 3 11 Division 4 12 13 Division 5 14 Division 5A 14A Page Preliminary Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Application of this regulation—Act, s 22 [SM, s 3] . . . . . . . . . . . . 9 Dictionary [SM, s 4] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 References [SM, s 5] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 References to standard module . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Community management statements Permitted inclusions—Act, s 57 [SM, s 6]. . . . . . . . . . . . . . . . . . . 12 Body corporate committee Preliminary Requirement for committee—Act, s 90 [SM, s 7] . . . . . . . . . . . . . 13 Purpose of pt 3 [SM, s 8] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Composition—Act, s 91 Composition of committee [SM, s 9]. . . . . . . . . . . . . . . . . . . . . . . 13 Eligibility—Act, s 91 Eligibility for committee membership [SM, s 10]. . . . . . . . . . . . . . 14 Choosing of committee—Act, s 91 When committee is chosen [SM, s 11] . . . . . . . . . . . . . . . . . . . . . 15 Election of committee [SM, s 12] . . . . . . . . . . . . . . . . . . . . . . . . . 16 Term of office of committee—Act, s 91 Term of office [SM, s 25]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Removing committee voting member for breaching code of conduct—Act, section 101B Notice for breach of code of conduct . . . . . . . . . . . . . . . . . . . . . . 17

14B Division 6 15 Division 7 16 17 18 19 20 21 Division 8 22 23 24 Division 9 25 26 Part 4 Division 1 27 Division 2 28 29 30 31 32 33 34 35 36 37 Division 3 38 39 2 Body Corporate and Community Management (Commercial Module) Regulation 1997 Removal of member at general meeting . . . . . . . . . . . . . . . . . . . Restricted issues Restricted issues for committee—Act, s 92 [SM, s 26] . . . . . . . . Administrative arrangements for committee meetings—Act, s 93 Who may call committee meetings [SM, s 27] . . . . . . . . . . . . . . . Notice of committee meetings [SM, s 28]. . . . . . . . . . . . . . . . . . . Place of committee meetings [SM, s 29] . . . . . . . . . . . . . . . . . . . Agenda for committee meetings [SM, s 30] . . . . . . . . . . . . . . . . . Chairing committee meetings [SM, s 31] . . . . . . . . . . . . . . . . . . . Quorum at committee meetings [SM, s 32] . . . . . . . . . . . . . . . . . Voting at committee meetings—Act, s 93 Voting at committee meetings [SM, s 33] . . . . . . . . . . . . . . . . . . . Conflict of interest [SM, s 34] . . . . . . . . . . . . . . . . . . . . . . . . . . . . Voting outside committee meetings [SM, s 35]. . . . . . . . . . . . . . . General matters for committee meetings—Act, s 93 Minutes of committee meetings [SM, s 36] . . . . . . . . . . . . . . . . . Minutes and resolutions [SM, s 37] . . . . . . . . . . . . . . . . . . . . . . . General meetings Purpose of part Purpose of pt 4 [SM, s 38] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Administrative arrangements for general meetings—Act, s 96 Types of general meetings [SM, s 39] . . . . . . . . . . . . . . . . . . . . . Who may call general meetings [SM, s 40] . . . . . . . . . . . . . . . . . Opportunity to submit agenda motions [SM, s 41] . . . . . . . . . . . . Notice of general meeting [SM, s 42] . . . . . . . . . . . . . . . . . . . . . . Time of general meetings [SM, s 43] . . . . . . . . . . . . . . . . . . . . . . Place of general meetings [SM, s 44]. . . . . . . . . . . . . . . . . . . . . . Agenda for general meeting [SM, s 45] . . . . . . . . . . . . . . . . . . . . Chairing general meetings [SM, s 46] . . . . . . . . . . . . . . . . . . . . . Power of person chairing meeting to rule motion out of order [SM, s 47] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Quorum for general meetings [SM, s 48] . . . . . . . . . . . . . . . . . . . Voting at general meetings—Act, s 96 Meaning of voter for general meeting [SM, s 49] . . . . . . . . . . . . . Representation of body corporate [SM, s 50]. . . . . . . . . . . . . . . . 18 19 19 20 20 21 21 21 22 22 23 23 24 25 25 25 25 26 27 27 28 29 30 30 31 34

40 41 42 Division 4 43 44 45 Division 5 46 47 Division 6 48 49 Part 5 Division 1 50 Division 2 51 52 53 54 55 56 Division 3 57 58 59 60 61 Part 6 Division 1 62 3 Body Corporate and Community Management (Commercial Module) Regulation 1997 Exercise of vote at general meetings [SM, s 51] . . . . . . . . . . . . . Voting at general meeting [SM, s 52] . . . . . . . . . . . . . . . . . . . . . . Secretary to have available for inspection body corporate roll etc. [SM, s 55] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Procedures at general meeting—Act, s 96 Amendment of motions at general meetings [SM, s 57]. . . . . . . . Amendment or revocation of resolution of general meeting [SM, s 58] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minutes of general meetings [SM, s 59] . . . . . . . . . . . . . . . . . . . . Other matters for general meetings—Act, s 96 Requirement for annual general meetings [SM, s 60] . . . . . . . . . Requirement for requested extraordinary general meeting [SM, s 61] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . First annual general meeting—Act, s 96 First annual general meeting [SM, s 62]. . . . . . . . . . . . . . . . . . . . Documents and materials to be handed over to body corporate at first annual general meeting [SM, s 63] . . . . . . . . . . . . . . . . . . Proxies Purpose of part Purpose of pt 5 [SM, s 64] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proxies for committee members—Act, s 94 Purpose of div 2 [SM, s 65] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appointment [SM, s 66] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restrictions on appointment [SM, s 67] . . . . . . . . . . . . . . . . . . . . Form of proxy [SM, s 68] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Special provisions about proxy use [SM, s 69]. . . . . . . . . . . . . . . Offence [SM, s 70] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proxies for body corporate members—Act, s 95 Purpose of div 3 [SM, s 71] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appointment [SM, s 72] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Form of proxy [SM, s 73] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Use of proxy [SM, s 74] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Offence [SM, s 76] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Body corporate managers, service contractors and letting agents Purpose of part Purpose of pt 6 [SM, s 77] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 35 35 36 36 36 36 37 37 39 40 40 41 41 41 42 42 42 43 43 43 44 44

Division 2 63 64 65 66 67 68 Division 3 69 Division 4 70 71 72 Division 5 73 Division 6 74 Part 7 Division 1 75 Division 2 76 Division 3 77 78 79 80 81 Division 4 82 83 Division 5 84 4 Body Corporate and Community Management (Commercial Module) Regulation 1997 Requirements for engagements and authorisations—Act, s 107 Form of engagement [SM, s 78]. . . . . . . . . . . . . . . . . . . . . . . . . . Form of authorisation [SM, s 79] . . . . . . . . . . . . . . . . . . . . . . . . . Term of engagement of body corporate manager [SM, s 80] . . . . Term of engagement of service contractor [SM, s 81] . . . . . . . . . Term of authorisation of letting agent [SM, s 82] . . . . . . . . . . . . . Commencement of term of engagement or authorisation [SM, s 83] ...................................... Authority for engagements and authorisations—Act, s 107 Authority to make engagement or give authorisation [SM, s 87] . Disclosure requirements—Act, s 107 Associate supplying goods or services [SM, s 88] . . . . . . . . . . . . Disclosure of associate contract [SM, s 89] . . . . . . . . . . . . . . . . . Disclosure of commission or other benefit [SM, s 90] . . . . . . . . . Occupation of common property—Act, s 107 Occupation of common property by service contractor or letting agent [SM, s 91] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Review of remuneration—Act, s 112 Review of remuneration under engagement of service contractor [SM, s 92] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial management Purpose of part Purpose of pt 7 [SM, s 93] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Budgets—Act, s 113 Budgets [SM, s 94] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Contributions levied by body corporate—Act, s 113 Contributions to be levied on owners [SM, s 95] . . . . . . . . . . . . . Notice of contribution payable [SM, s 96] . . . . . . . . . . . . . . . . . . . Discounts for timely payment [SM, s 97] . . . . . . . . . . . . . . . . . . . Penalties for late payment [SM, s 98] . . . . . . . . . . . . . . . . . . . . . . Payment and recovery of contributions [SM, s 99] . . . . . . . . . . . . Funds—Act, s 113 Administrative, sinking and promotion funds [SM, s 100]. . . . . . . Application of administrative, sinking and promotion funds [SM, s 101] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Borrowing—Act, s 113 Power to borrow [SM, s 102] . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 45 46 46 46 46 47 47 48 49 50 52 52 53 55 56 57 57 58 59 60 61

Division 6 85 86 87 Part 8 Division 1 88 Division 2 89 90 91 92 93 94 Division 3 95 96 97 Division 4 98 Division 5 99 Division 6 100 Division 7 101 102 Division 8 103 5 Body Corporate and Community Management (Commercial Module) Regulation 1997 Accounts and audit—Act, s 113 Accounts [SM, s 105] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Audit [SM, s 106] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Auditing qualifications and experience—Act, sch 6 [SM, s 107]. . Property management Purpose of part Purpose of pt 8 [SM, s 108] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common property Duties of body corporate about common property—Act, s 114 [SM, s 109] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mailbox—Act, s 115 [SM, s 110] . . . . . . . . . . . . . . . . . . . . . . . . . Disposal of interest in and leasing of common property—Act, s 116 [SM, s 111] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Easements over common property—Act, s 117 [SM, s 112] . . . . Improvements to common property by body corporate—Act, s 121 [SM, s 113] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Improvements to common property by lot owner—Act, s 121 [SM, s 114] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Body corporate assets Duties of body corporate about body corporate assets—Act, s 114 [SM, s 115] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Acquisition of amenities for benefit of lot owners—Act, s 118 [SM, s 116] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dealing with (including disposal of) body corporate assets—Act, ss 43, 119 [SM, s 117] . . . . . . . . . . . . . . . . . . . . . . Agreement with another body corporate Sharing facilities [SM, s 118] . . . . . . . . . . . . . . . . . . . . . . . . . . . . Services for and obligations of owners and occupiers Supply of services by body corporate—Act, s 120 [SM, s 119] . . Condition of lot Obligations of owners and occupiers—Act, s 122 [SM, s 120]. . . Power to act for owners and occupiers Body corporate may carry out work required of owners and occupiers—Act, s 123 [SM, s 121] . . . . . . . . . . . . . . . . . . . . . . . . Body corporate’s power to take action to remedy defective building work—Act, s 124 [SM, s 122] . . . . . . . . . . . . . . . . . . . . . Exclusive use by-laws Conditions and obligations under exclusive use by-law—Act, s 136 [SM, s 123] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 62 63 64 64 65 66 67 68 68 69 69 70 70 71 72 73 73 74

104 105 Division 9 106 107 108 109 110 111 112 113 114 115 116 117 Part 9 Division 1 118 Division 2 119 Division 3 120 121 122 Division 4 123 124 125 126 127 Division 5 128 129 130 6 Body Corporate and Community Management (Commercial Module) Regulation 1997 Improvements—Act, s 136 [SM, s 124] . . . . . . . . . . . . . . . . . . . . Recovery of amount owed—Act, s 136 [SM, s 125] . . . . . . . . . . . Insurance—Act, s 147 Definitions for div 9 [SM, s 126] . . . . . . . . . . . . . . . . . . . . . . . . . . Insurance of common property and body corporate assets [SM, s 127] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Insurance of building including lots [SM, s 128] . . . . . . . . . . . . . . Insurance for buildings with common walls [SM, s 129] . . . . . . . . Premium [SM, s 130] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Improvements affecting premium [SM, s 131] . . . . . . . . . . . . . . . Use affecting premium [SM, s 132] . . . . . . . . . . . . . . . . . . . . . . . Excess [SM, s 133]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Insurance for buildings with no common walls [SM, s 134] . . . . . Combined policy of insurance [SM, s 135] . . . . . . . . . . . . . . . . . . Public risk insurance [SM, s 136] . . . . . . . . . . . . . . . . . . . . . . . . . Use of insurance money [SM, s 137] . . . . . . . . . . . . . . . . . . . . . . Administrative matters Purpose of part Purpose of pt 9 [SM, s 138] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Body corporate’s seal—Act, s 35 Body corporate’s seal [SM, s 139] . . . . . . . . . . . . . . . . . . . . . . . . Notices—Act, s 158 Notices for roll [SM, s 140] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Address for service [SM, s 141] . . . . . . . . . . . . . . . . . . . . . . . . . . Change of address [SM, s 142] . . . . . . . . . . . . . . . . . . . . . . . . . . Rolls and registers—Act, s 161 Roll of lots and entitlements [SM, s 143] . . . . . . . . . . . . . . . . . . . Register of assets [SM, s 144] . . . . . . . . . . . . . . . . . . . . . . . . . . . Register of engagements and authorisations [SM, s 145] . . . . . . Register of authorisations affecting the common property [SM, s 146] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Register of allocations under exclusive use by-law [SM, s 147] . . Documents and information Definitions for div 5 [SM, s 148] . . . . . . . . . . . . . . . . . . . . . . . . . . Keeping and disposal of records—Act, s 161 [SM, s 149] . . . . . . Access to records—Act, s 161 [SM, s 150] . . . . . . . . . . . . . . . . . 74 74 75 75 76 78 79 79 80 80 81 82 82 83 84 84 84 86 87 87 88 89 90 91 92 93 95

7 Body Corporate and Community Management (Commercial Module) Regulation 1997 131 Part 10 132 133 134 Part 11 135 Schedule Fee for information given to interested persons—Act, s 205 [SM, s 151] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Miscellaneous Voting other than at general meeting—Act, s 101A . . . . . . . . . . . Return of body corporate property—Act, s 268 [SM, s 152] . . . . Documents in custody of body corporate manager—Act, s 268 [SM, s 153] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional provisions Transitional provision for Audit Legislation Amendment Act 2006 Dictionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 96 96 97 97 99 Endnotes 1 2 3 4 5 6 Index to endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date to which amendments incorporated. . . . . . . . . . . . . . . . . . . . . . Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table of reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . List of legislation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . List of annotations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 101 102 102 103 104

s1 9 s3 Body Corporate and Community Management (Commercial Module) Regulation 1997 Body Corporate and Community Management (Commercial Module) Regulation 1997 [as amended by all amendments that commenced on or before 1 January 2008] Part 1 Preliminary 1 Short title This regulation may be cited as the Body Corporate and Community Management (Commercial Module) Regulation 1997 . 2 Commencement This regulation commences on 22 December 1997. 3 Application of this regulation—Act, s 22 [SM, s 3] (1) This regulation is a regulation module for the Act. (2) For this regulation to apply to a community titles scheme— (a) the lots included in the scheme must be predominantly commercial lots; or (b) both of the following must apply for the scheme— (i) the lots included in the scheme are not predominantly commercial lots; 1 (ii) when the first community management statement (which could be the community management statement recorded for the scheme on its establishment) identifying this regulation as the regulation module applying to the scheme was 1 For example, although the lots were offered for sale as commercial lots, the buyers might have chosen not to use them as commercial lots.

s 3 10 s 3 Body Corporate and Community Management (Commercial Module) Regulation 1997 recorded, the lots included in the scheme were intended to be predominantly commercial lots; or (c) all of the following must apply for the scheme— (i) the lots included in the scheme have previously been, but are no longer, predominantly commercial lots; (ii) when the lots included in the scheme last stopped being predominantly commercial lots, the community management statement for the scheme identified this regulation as the regulation module applying to the scheme; (iii) since the lots included in the scheme last stopped being predominantly commercial lots, each community management statement (if any) recorded for the scheme has identified this regulation as the regulation module applying to the scheme. 2 (3) In this section— accommodation lot means a lot that is either or both of the following— (a) the subject of a lease or letting for accommodation for long or short term residential purposes, or immediately available to be the subject of a lease or letting for accommodation for long or short term residential purposes; (b) part of a hotel. commercial lot means a lot that— (a) is used for commercial (including retail) or industrial purposes; and 2 Accordingly, and having regard also to section 21 (Meaning of regulation module ) of the Act, this regulation is the regulation module that applies to a community titles scheme if— (a) the community management statement for the scheme states that this regulation applies to it; and (b) the circumstances mentioned in paragraphs (a), (b) or (c) exist for the scheme.

s 4 11 s 5 Body Corporate and Community Management (Commercial Module) Regulation 1997 (b) is not an accommodation lot or residential lot. hotel means an establishment organised and operated principally for providing accommodation in guest rooms or suites and offering food and drink, whether or not the establishment includes any of the following— (a) restaurants; (b) function rooms; (c) a nightclub or cabaret; (d) shops for tourists; (e) recreation facilities. residential lot means a lot used for residential purposes, whether or not the lot is also an accommodation lot. 4 Dictionary [SM, s 4] (1) The dictionary in the schedule defines particular words used in this regulation. 3 (2) Definitions found elsewhere in this regulation are signposted in the dictionary. 5 References [SM, s 5] In a provision of this regulation about a community titles scheme, a reference to— (a) the committee, is a reference to the committee for the 3 In some regulations, definitions are contained in a dictionary that appears as the last schedule and forms part of the regulation—see Acts Interpretation Act 1954 , section 14(5). Words defined elsewhere in the regulation are generally signposted by entries in the dictionary. However, if a section has a definition applying only to the section, or a part of the section, it is generally not signposted by an entry in the dictionary and is generally set out in the last subsection of the section. Signpost definitions in the dictionary alert the reader to the terms defined elsewhere in the regulation and tell the reader where the definitions can be found. For example, the definition ‘ requested extraordinary general meeting see section 47’, tells the reader there is a definition of requested extraordinary general meeting in section 47.

s 6 12 s 7 Body Corporate and Community Management (Commercial Module) Regulation 1997 body corporate for the scheme; and (b) the chairperson, is a reference to the chairperson of the body corporate for the scheme; and (c) the secretary, is a reference to the secretary of the body corporate for the scheme; and (d) the treasurer, is a reference to the treasurer of the body corporate for the scheme. 4 6 References to standard module (1) The information included in square brackets after a section heading is a reference to a comparable section of the standard module. (2) The brackets and information do not form part of this regulation. Part 2 Community management statements 7 Permitted inclusions—Act, s 57 [SM, s 6] A community management statement for a community titles scheme may include the following— (a) arrangements for future connections to utility infrastructure necessary to accommodate progressive development; (b) provisions adopting and regulating the operation of an architectural and landscape code, including the establishment and operation of an architectural review committee; (c) provision for a fund to be used to promote the community titles scheme. 4 See also section 8 (References) of the Act.

s 8 13 s 10 Body Corporate and Community Management (Commercial Module) Regulation 1997 Part 3 Body corporate committee Division 1 Preliminary 8 Requirement for committee—Act, s 90 [SM, s 7] There must be a committee for the body corporate for a community titles scheme. 9 Purpose of pt 3 [SM, s 8] The purpose of this part is to provide for the composition of the committee for the body corporate for a community titles scheme, the choosing of members of the committee and meetings of the committee. Division 2 Composition—Act, s 91 10 Composition of committee [SM, s 9] (1) The committee consists of— (a) the persons chosen to be the executive members of the committee; and (b) if ordinary members are chosen for the committee—the ordinary members. (2) The one person may hold the positions of chairperson, secretary and treasurer, or any 2 of the positions, in conjunction. (3) The committee must consist of at least 3, but not more than 7, persons. 5 (4) There must be a chairperson, secretary and treasurer, whether or not there is a body corporate manager who has been 5 However, if there are less than 3 owners of the lots, the committee may consist of 1 or 2 individuals (see section 12 (When committee is chosen)).

s 11 14 s 11 Body Corporate and Community Management (Commercial Module) Regulation 1997 delegated the powers of any or all of the executive members of the committee. Division 3 Eligibility—Act, s 91 11 Eligibility for committee membership [SM, s 10] (1) A person is eligible to be a member of the committee if the person is an individual and is also— (a) a member of the body corporate; 6 or (b) a person nominated for membership of the committee by a member of the body corporate. (2) However, a person who is otherwise eligible under subsection (1) to be a member of the committee is not eligible to be a member of the committee if the person is— (a) a body corporate manager; or (b) an associate of a body corporate manager. (3) Despite subsection (2), a person who under subsection (1) is eligible to be a member of the committee, but who is a body corporate manager, is a member of the committee if the person is chosen as the secretary, treasurer, or secretary and treasurer. (4) A person who under subsection (3) is a member is a non-voting member of the committee. 6 Under section 31 (Membership of body corporate for community titles scheme) of the Act, the members of the body corporate are the owners of all lots included in the scheme. The members could include the bodies corporate for other community titles schemes that are lots included in the scheme as subsidiary schemes. If the body corporate for a subsidiary scheme decided to nominate a person for the committee of the scheme in which the subsidiary scheme is included as a lot, it could nominate its subsidiary scheme representative, or another individual.

s 12 15 s 12 Body Corporate and Community Management (Commercial Module) Regulation 1997 Division 4 Choosing of committee—Act, s 91 12 When committee is chosen [SM, s 11] (1) The choosing of the members of the committee must happen at each annual general meeting of the body corporate. (2) Subsection (1) does not apply for an annual general meeting if, when the annual general meeting is held— (a) there are only 2 lots included in the scheme, and the 2 lots are in identical ownership; or (b) there are only 2 lots included in the scheme, and the 2 lots are in different ownership; or (c) there are 3 or more lots included in the scheme, and all of the lots are in identical ownership; or (d) there are 3 or more lots included in the scheme, and there are only 2 different owners for all the lots. (3) If subsection (2)(a) or (c) applies, the committee is a committee of 1 consisting of the individual who is the owner, or the nominee of the owner, of the lots, and the individual holds all the executive positions on the committee. (4) If subsection (2)(b) or (d) applies, the committee consists of 2 individuals who are owners, or the nominees of owners, of lots, and they must decide between themselves who are to hold the positions of the executive members of the committee (and, if they cannot agree, the positions of the executive members are jointly held by both of them). (5) If, under subsection (3), at the first annual general meeting of the body corporate the committee formed at the meeting consists of only 1 individual, the committee may be chosen at an extraordinary general meeting held before the next annual general meeting after the first annual general meeting. (6) This division applies to an extraordinary general meeting mentioned in subsection (5) as if the extraordinary general meeting was the next annual general meeting after the first annual general meeting.

s 13 16 s 14 Body Corporate and Community Management (Commercial Module) Regulation 1997 13 Election of committee [SM, s 12] (1) The members of the committee must be chosen by election. (2) The election must be conducted in the way decided by the body corporate by special resolution. (3) The value of any vote able to be cast for a lot included in the scheme for choosing a member of the committee is the same as the value of the vote able to be cast for each other lot included in the scheme. (4) For subsection (3), it is immaterial whether there are 2 or more co-owners of 1 or more of the lots. (5) A way decided by the body corporate under subsection (2) must be fair and reasonable in the circumstances of the scheme. Division 5 Term of office of committee—Act, s 91 14 Term of office [SM, s 25] (1) The term of office of a member of the committee continues until another person is chosen for the position. (2) However, a member’s position becomes vacant if the member— (a) dies; or (b) becomes ineligible to hold the position; or (c) resigns by written notice given to the chairperson or secretary; or (d) is absent from 2 consecutive meetings of the committee without the committee’s leave; or (e) is convicted (whether or not a conviction is recorded) of an indictable offence; or (f) is removed from office by ordinary resolution of the body corporate.

s 14A 17 Body Corporate and Community Management (Commercial Module) Regulation 1997 s 14A (3) The committee must (even though the number of its members may have fallen below a quorum) appoint a person who is eligible to be a member of the committee to fill a vacancy in the position of an executive or ordinary member of the committee, or call a general meeting of the body corporate to fill the vacancy. (4) An order an adjudicator may make under the dispute resolution provisions includes, if the body corporate ceases to have a properly formed committee— (a) authorising a person named in the order to call a general meeting of the body corporate to choose members for the committee; and (b) prescribing the notice to be given of the general meeting; and (c) giving other directions necessary for, or incidental to, holding the general meeting or reforming the committee. Division 5A Removing committee voting member for breaching code of conduct—Act, section 101B 14A Notice for breach of code of conduct (1) If a body corporate believes a member of the body corporate’s committee who is a committee voting member has breached the code of conduct for the member, the body corporate may decide, by ordinary resolution, to give the member a written notice stating each of the following— (a) that the body corporate believes the member has breached a stated provision of the code of conduct; (b) details sufficient to identify the breach in not more than 600 words; (c) that the member may give any other member of the body corporate, within the stated period of at least 21 days

s 14B 18 Body Corporate and Community Management (Commercial Module) Regulation 1997 s 14B after the member is given the notice, a written response to the notice in not more than 600 words; (d) that, if asked by the member, the body corporate will pay the member all postage charges and photocopy expenses reasonably incurred by the member in giving a written response under paragraph (c) to any other member of the body corporate; (e) that the body corporate is to consider a motion to remove the member from office for the breach at the next general meeting of the body corporate called after the period mentioned in paragraph (c) ends. (2) If asked by the member, the body corporate must pay the member all postage charges and photocopy expenses reasonably incurred by the member in giving a written response under subsection (1)(c) to any other member of the body corporate. 14B Removal of member at general meeting (1) This section applies if— (a) a body corporate gives a committee voting member a notice under section 14A(1); and (b) the period mentioned in section 14A(1)(c) for the notice has ended. (2) The body corporate must— (a) include on the agenda of the next general meeting of the body corporate, called after the period mentioned in section 14A(1)(c) ends, a motion to remove the member from office for breaching the code of conduct for the member; and (b) attach to the agenda a copy of the notice given to the member. (3) The member may be removed from office, by ordinary resolution, at the next general meeting mentioned in subsection (2)(a).

s 15 19 s 16 Body Corporate and Community Management (Commercial Module) Regulation 1997 Division 6 Restricted issues 15 Restricted issues for committee—Act, s 92 [SM, s 26] A decision is a decision on a restricted issue for the committee if it is a decision— (a) to change rights, privileges or obligations of the owners of lots included in the scheme; or (b) on an issue reserved, by ordinary resolution of the body corporate, for decision by ordinary resolution of the body corporate; or (c) that may only be made by resolution without dissent, special resolution or ordinary resolution of the body corporate; or (d) to bring a proceeding in a court, other than— (i) a proceeding to recover a liquidated debt against the owner of a lot; or (ii) a counterclaim, third-party proceeding or other proceeding in relation to a proceeding to which the body corporate is already a party. Division 7 Administrative arrangements for committee meetings—Act, s 93 16 Who may call committee meetings [SM, s 27] (1) A meeting of the committee may be called by— (a) the secretary or, in the secretary’s absence, the chairperson; or (b) in the absence of both the secretary and the chairperson—another member of the committee acting with the agreement of enough members to form a quorum at a meeting of the committee. (2) The secretary or, in the secretary’s absence, the chairperson, must call a meeting if asked, in writing, to call the meeting by

s 17 20 s 18 Body Corporate and Community Management (Commercial Module) Regulation 1997 enough members of the committee to form a quorum 7 at a meeting of the committee. (3) The meeting must be held within 21 days after the secretary or chairperson receives the request to call it. (4) The secretary and chairperson may both be presumed to be absent if the request for the meeting, addressed to the secretary and chairperson, is given at the address for service of the body corporate, and no reply is received within 7 days. 17 Notice of committee meetings [SM, s 28] (1) Unless the committee otherwise decides, a meeting is called by giving written notice of at least 7 days to all other committee members of when and where the meeting is to be held. (2) Also, advice of the proposed meeting must be given individually to each lot owner who has— (a) instructed the secretary that the lot owner wishes to be given advice of committee meetings; and (b) has not withdrawn the instruction. (3) The advice mentioned in subsection (2)— (a) must state when and where the meeting is to be held; and (b) must be accompanied by the agenda for the meeting; and (c) must be given in a way that ensures its delivery to the lot owner’s address for service at least 24 hours before the meeting is to be held. 18 Place of committee meetings [SM, s 29] (1) The first meeting of the committee after the committee is formed must be held where the person calling the meeting decides. 7 Section 21 (Quorum at committee meetings)

s 19 21 s 21 Body Corporate and Community Management (Commercial Module) Regulation 1997 (2) Subject to subsection (1), a committee meeting must be held where the committee decides. 19 Agenda for committee meetings [SM, s 30] (1) The notice calling a committee meeting must include an agenda stating the substance of issues to be considered at the meeting. (2) However, the committee may also consider other issues raised at the meeting. 20 Chairing committee meetings [SM, s 31] (1) The chairperson must chair all meetings of the committee at which the chairperson is present. (2) If the chairperson is absent from a meeting, the member chosen by the members present (with the member’s agreement) must chair the meeting. 21 Quorum at committee meetings [SM, s 32] (1) At a meeting of the committee a quorum is at least half the number of voting members of the committee. Examples of subsection (1) — 1 If there are 6 voting members of the committee, a quorum is 3. 2 If there are 7 voting members of the committee, a quorum is 4. (2) For deciding whether there is a quorum— (a) a voting member who is present— (i) is counted as 1; or (ii) if the voting member also has the proxies of 1 or more absent voting members—is counted as 2; and (b) a non-voting member who is present is not counted, whether or not the non-voting member also has the proxy of an absent voting member.

s 22 22 s 23 Body Corporate and Community Management (Commercial Module) Regulation 1997 Division 8 Voting at committee meetings—Act, s 93 22 Voting at committee meetings [SM, s 33] (1) At a meeting of the committee— (a) a question is decided by a majority of votes of the voting members present (either in person or by proxy) and voting; and (b) each voting member has 1 vote on each question to be decided. (2) Without limiting subsection (1), if a quorum is present, a decision supported by a majority of the votes of the voting members present is a decision of the committee. (3) To avoid doubt, it is declared that a voting member who is an executive member has only 1 vote, even if the person holds more than 1 of the positions of chairperson, secretary and treasurer. 23 Conflict of interest [SM, s 34] (1) A member of the committee must disclose to a meeting of the committee the member’s direct or indirect interest in an issue being considered, or about to be considered, by the committee if the interest could conflict with the appropriate performance of the member’s duties about the consideration of the issue. (2) A member required under subsection (1) to disclose an issue must not, if the member is a voting member, vote on the issue. (3) A person who holds the proxy of a member of the committee must disclose to a meeting of the committee the proxy holder’s direct or indirect interest in an issue being considered, or about to be considered, by the committee if the interest could conflict with the appropriate performance of the proxy holder’s duties about the consideration of the issue. (4) A proxy holder required under subsection (3) to disclose an issue must not vote as the proxy on the issue.

s 24 23 s 25 Body Corporate and Community Management (Commercial Module) Regulation 1997 (5) A person who holds the proxy of a member of the committee must disclose to a meeting of the committee the member’s direct or indirect interest in an issue being considered, or about to be considered, by the committee if the proxy holder is aware that the member, if present, would be required under subsection (2) not to vote on the issue. (6) A proxy holder required under subsection (5) to disclose an issue must not vote as the proxy on the issue. 24 Voting outside committee meetings [SM, s 35] (1) A resolution on a motion before the committee is a valid resolution of the committee, even though the motion is not passed at a meeting of the committee called and conducted under division 7, if— (a) notice of the motion is given to all committee members or, in an emergency, as many members as it is practicable to contact; and (b) a majority of all voting members of the committee agrees to the motion. (2) The notice must be given in writing, and the members’ agreement to the motion must be given in writing but, in an emergency, the notice may be given, and the member’s agreement expressed, orally or by another appropriate form of communication. (3) For the operation of section 23(1) and (2), the committee, in dealing with a resolution under this section, is taken to deal with the resolution at a meeting of the committee. Division 9 General matters for committee meetings—Act, s 93 25 Minutes of committee meetings [SM, s 36] The committee must ensure— (a) full and accurate minutes of its meetings are taken; and

s 26 24 s 26 Body Corporate and Community Management (Commercial Module) Regulation 1997 (b) a full and accurate record is kept of each motion voted on other than at a meeting. 26 Minutes and resolutions [SM, s 37] (1) A copy of all minutes of the committee's meetings, and a copy of each resolution of the committee not included in the minutes, must be given individually to each lot owner who has— (a) instructed the secretary that the lot owner wishes to be given copies of minutes and resolutions; and (b) has not withdrawn the instruction. (2) A copy required to be given under subsection (1) must be given within 21 days after— (a) for a copy of minutes—the holding of the meeting to which the minutes relate; or (b) for a copy of a resolution not included in the minutes—the passing of the resolution. (3) If there is a body corporate manager, and powers of the committee have been delegated to the manager, a reference in this section to a resolution of the committee extends to a decision of the manager made under the delegated powers, other than a decision to pay an account— (a) of a routine, administrative nature; or (b) on the basis of an authorisation given by the body corporate in a general meeting.

s 27 25 s 30 Body Corporate and Community Management (Commercial Module) Regulation 1997 Part 4 General meetings Division 1 Purpose of part 27 Purpose of pt 4 [SM, s 38] The purpose of this part is to prescribe matters about general meetings of the body corporate for a community titles scheme. Division 2 Administrative arrangements for general meetings—Act, s 96 28 Types of general meetings [SM, s 39] (1) All meetings of the body corporate are general meetings. (2) A general meeting is either an annual general meeting or an extraordinary general meeting. 29 Who may call general meetings [SM, s 40] A general meeting may be called by— (a) the secretary; or (b) another member of the committee authorised by the committee to call the meeting; or (c) a person authorised or required to call a general meeting by an order of an adjudicator acting under the dispute resolution provisions. 30 Opportunity to submit agenda motions [SM, s 41] (1) A member of the body corporate may at any time submit a motion for consideration at a general meeting of the body corporate and, if a motion is submitted, including in response to an invitation under subsection (3), it must, subject to

s 31 26 s 31 Body Corporate and Community Management (Commercial Module) Regulation 1997 subsection (2), be included on the next general meeting agenda on which it is practicable to include the motion. (2) A motion may be included on the agenda for an annual general meeting only if the secretary receives the motion before the end of the body corporate’s financial year immediately preceding the meeting. (3) If notice is forwarded to members of the body corporate inviting nominations for committee member positions to be filled at an annual general meeting of the body corporate, the members must also be invited to submit motions for inclusion on the agenda for the meeting. 31 Notice of general meeting [SM, s 42] (1) Written notice of a general meeting must be given to the owner of each lot included in the scheme, and if not given personally, must be sent to the owner at the owner’s address for service. (2) The notice must state the time and place of the proposed general meeting. (3) The notice of a proposed general meeting must— (a) contain an agenda for the meeting; and (b) be accompanied by— (i) a proxy form; and (ii) if the notice is given to the corporate owner of a lot—a form under which the lot owner may advise the body corporate of the corporate owner nominee; and (c) unless the body corporate has decided by ordinary resolution that this paragraph need not be complied with—be accompanied by a voting paper— (i) stating each motion to be considered at the meeting and, if the motion is not proposed by the committee, stating the name and lot number of the person proposing the motion; and

s 32 27 s 33 Body Corporate and Community Management (Commercial Module) Regulation 1997 (ii) stating for each motion whether a resolution without dissent, special resolution or ordinary resolution is required; and (iii) enabling a person who is a voter for the general meeting to record a written vote on each motion to be considered at the meeting; and (d) contain or be accompanied by explanatory or other materials required under this regulation to be contained in or to accompany the notice. 8 (4) If all the lots have identical ownership, no notice of a general meeting need be given. 32 Time of general meetings [SM, s 43] A general meeting must be held at least 21 days after notice of the meeting is given to lot owners. 9 33 Place of general meetings [SM, s 44] (1) A general meeting must be held not more than 15km (measured in a straight line on a horizontal plane) from scheme land. (2) However, if the committee notifies the owners of its intention to hold the meeting at a stated place more than 15km from scheme land, and allows them a reasonable opportunity to object in writing to the proposed place, the meeting may be held at the place unless written objections to the proposed place of meeting are given by or for owners of at least 25% of the lots included in the scheme. 8 Materials that could be required to be contained in or accompany the notice of the general meeting include— • explanatory notes to a motion (section 34 (Agenda for general meeting)) • budgets (section 76 (Budgets)) • statement of accounts (section 85 (Accounts)) • auditor’s certificate (section 86 (Audit)) 9 Section 47 (Requirement for requested extraordinary general meeting) provides for the timing of a requested extraordinary general meeting.

s 34 28 s 34 Body Corporate and Community Management (Commercial Module) Regulation 1997 34 Agenda for general meeting [SM, s 45] (1) The committee must prepare an agenda for each general meeting. (2) The agenda must include— (a) if the notice for the proposed general meeting was accompanied by a voting paper—the substance of the following motions— (i) motions the committee proposes for consideration at the meeting; (ii) if the general meeting is a requested extraordinary general meeting—the motions proposed in the notice asking for the meeting; (iii) a motion submitted under section 30 10 by a member of the body corporate and required to be included on the agenda; (iv) if an adjudicator makes an order under the dispute resolution provisions authorising or requiring the calling of the general meeting to consider motions stated in the order—the motions stated in the order; (v) if there has been a previous general meeting—a motion to confirm the minutes of the last meeting; and (b) if the notice for the proposed general meeting was not accompanied by a voting paper—the motions mentioned in paragraph (a); and (c) if the general meeting is the first annual general meeting for the scheme—the business required to be considered at the first annual general meeting. (3) If the general meeting is an annual general meeting (other than the first annual general meeting), the agenda must also— (a) provide for the presentation of the accounts for the financial year; and 10 Section 30 (Opportunity to submit agenda motions)

s 35 29 s 35 Body Corporate and Community Management (Commercial Module) Regulation 1997 (b) provide for the appointment of an auditor of the body corporate’s accounts for the next financial year or for a special resolution that the accounts are not to be audited; and (c) provide for the approval of a budget for the financial year; and (d) provide for fixing the contributions to be paid by the owners of lots for the financial year; and (e) include other things that are, under the Act, required to be included on the agenda for the annual general meeting. (4) If the lot owner seeking the inclusion of a motion under subsection (2)(a)(iii) supplies an explanatory note about the motion, and the note is not longer than 100 words, the note must accompany the agenda. 35 Chairing general meetings [SM, s 46] (1) The chairperson must chair all general meetings at which the chairperson is present. (2) A person elected (with the person’s consent) by the persons present and having the right to vote at a general meeting must chair the meeting if— (a) the chairperson is absent from the meeting; or (b) a chairperson has not been chosen; or (c) there is a vacancy in the office of chairperson. (3) A body corporate manager to whom powers of the chairperson have been delegated— (a) may advise and help the chairperson when the chairperson is chairing a meeting under subsection (1); but (b) must not chair the meeting unless the body corporate manager— (i) is elected under subsection (2); or

s 36 30 s 37 Body Corporate and Community Management (Commercial Module) Regulation 1997 (ii) is the only person forming a quorum at an adjourned meeting. 36 Power of person chairing meeting to rule motion out of order [SM, s 47] (1) The person chairing a general meeting of the body corporate must rule a motion out of order if— (a) the motion, if carried, would conflict with the Act, this regulation or the by-laws, or would be unlawful or unenforceable for another reason; or (b) except for a procedural motion for the conduct of the meeting, or a motion to correct minutes—the motion, or the substance of the motion, was not included in the agenda for the meeting. (2) The person chairing the meeting must give reasons for ruling a motion out of order and the reasons must be recorded in the minutes of the meeting. (3) The persons present and entitled to vote may reverse a ruling given under subsection (1)(a) by passing an ordinary resolution disagreeing with the ruling. 37 Quorum for general meetings [SM, s 48] (1) A voter is taken to be present at a general meeting if the voter is present at the meeting personally, by proxy, or by written voting paper. (2) A quorum at a general meeting is at least 25% of the number of voters for the meeting, except that— (a) if the number of voters for the meeting is 3 or more, 2 individuals must be present personally; and (b) if the number of voters for the meeting is less than 3, there is a quorum if at least 1 individual is present personally. (3) If there is not a quorum within 30 minutes of the time scheduled to start the meeting, the meeting must be adjourned

s 38 31 s 38 Body Corporate and Community Management (Commercial Module) Regulation 1997 to be held at the same place, on the same day and at the same time, in the next week. (4) If at the adjourned meeting a quorum is again not present within 30 minutes of the time scheduled to start the adjourned meeting, the persons present (whether personally or otherwise) form a quorum if— (a) the chairperson is present personally; or (b) the chairperson is not present personally, but a body corporate manager, with the delegated powers of the chairperson, is present personally. (5) Despite subsection (3), if it is not practicable to hold the adjourned meeting at the same place, it may be held at another place if all lot owners are advised personally or in writing of the new location before the adjourned meeting is to start. (6) For this section, 2 or more co-owners of a lot are counted as 1 voter. Division 3 Voting at general meetings—Act, s 96 38 Meaning of voter for general meeting [SM, s 49] (1) A voter for a general meeting of the body corporate is an individual— (a) whose name is entered on the body corporate’s roll as— (i) the owner of a lot; 11 or (ii) the representative of the owner of a lot; or (b) who is the nominee of a corporation the name of which is entered on the body corporate’s roll as the representative of the owner of a lot; or (c) who is a corporate owner nominee; or 11 It should be noted that owner includes by definition a mortgagee in possession of a lot (see schedule 6 (Dictionary) of the Act). A mortgagee in possession may displace the right of the owner of the fee simple to vote (see subsection (10)).

s 38 32 s 38 Body Corporate and Community Management (Commercial Module) Regulation 1997 (d) who is a subsidiary scheme representative. (2) For subsection (1)(a)(ii) and (b), a person is the representative of the owner of a lot if the person is a guardian, trustee, receiver or other representative of the owner of the lot, and is authorised to act on the owner’s behalf. (3) However, a person may be treated as the owner’s representative only if the person— (a) gives the secretary a copy of the instrument under which the person derives the representative capacity or otherwise satisfies the secretary of the person’s representative capacity; and (b) advises the secretary of the person’s residential or business address, and address for service (if different from the residential or business address given). (4) For subsection (1)(b), a person is taken to be the nominee of a corporation only if the corporation gives the secretary written notice of nomination, stating the name of the nominee or the names of 2 nominees, 1 of whom is to act in the absence of the other. (5) The notice of nomination mentioned in subsection (4) must— (a) be given— (i) under the common or official seal of the corporation; or (ii) by a person acting under the authority of a power of attorney from the corporation, a copy of which power of attorney is also given to the secretary; and (b) advise the residential or business address, and address for service (if different from the residential or business address given), of each nominee. (6) A corporation may change a nomination mentioned in subsection (4) by giving the secretary written notice of a new nomination, in a way mentioned in subsection (5), stating the name and address of the new nominee or the new alternative nominees. (7) For subsection (1)(c), a person is taken to be a corporate owner nominee only if the corporate owner gives the secretary

s 38 33 s 38 Body Corporate and Community Management (Commercial Module) Regulation 1997 written notice of nomination, stating the name of the nominee or the names of 2 nominees, 1 of whom is to act in the absence of the other. (8) The notice of nomination mentioned in subsection (7) must— (a) be given— (i) under the common or official seal of the corporate owner; or (ii) by a person acting under the authority of a power of attorney from the corporate owner, a copy of which power of attorney is also given to the secretary; and (b) advise the residential or business address and address for service (if different from the residential or business address given), of each nominee. (9) The corporate owner may change a nomination mentioned in subsection (7) by giving the secretary written notice of a new nomination, in a way mentioned in subsection (8), stating the name and address of the new nominee or the new alternative nominees. (10) If a mortgagee in possession claims, by written notice to the secretary, the right to vote for a lot, the mortgagee’s right to vote displaces the right of the person entitled to the fee simple interest in the lot or a person who derives a right to vote from the person entitled to the fee simple interest in the lot. (11) A person does not have the right to exercise a vote for a particular lot on a motion (other than a motion for which a resolution without dissent is required), or for choosing a member of the committee, if the owner of the lot has not paid to the body corporate— (a) a contribution, or an instalment of a contribution, owing by the owner to the body corporate, if the contribution or instalment is owing at the time of the meeting; or (b) a penalty for not paying a contribution or instalment of a contribution by the date for payment, if the penalty is owing at the time of the meeting; or

s 39 34 s 40 Body Corporate and Community Management (Commercial Module) Regulation 1997 (c) any other amount owing to the body corporate, other than an amount owing under a legal relationship between the body corporate and the owner not associated with ownership of the lot. 39 Representation of body corporate [SM, s 50] (1) This section applies if the scheme ( scheme B ) is a lot included in another community titles scheme ( scheme A ). (2) The body corporate for scheme B must ensure that at all times there is a person (the subsidiary scheme representative ) appointed by the committee for scheme B’s body corporate to represent the body corporate for scheme B on scheme A’s body corporate. (3) The subsidiary scheme representative must be a member of the committee mentioned in subsection (2), and, if the committee does not appoint the representative, is the chairperson of the body corporate for scheme B. (4) The first person to be appointed under this section must be appointed as soon as practicable after the body corporate for scheme B becomes a member of scheme A’s body corporate. (5) The appointment of the subsidiary scheme representative has no effect until written notice of the appointment is received by the secretary of the body corporate for scheme A. (6) The subsidiary scheme representative must represent scheme B’s body corporate— (a) in the way scheme B’s body corporate directs; and (b) subject to paragraph (a), in a way that is in the best interests of scheme B. (7) The subsidiary scheme representative’s address for service is the address for service of scheme B’s body corporate. 40 Exercise of vote at general meetings [SM, s 51] (1) A voter for a general meeting may vote on a motion personally, by proxy or by casting a written vote.

s 41 35 s 42 Body Corporate and Community Management (Commercial Module) Regulation 1997 (2) A written vote is cast by completing the voting papers as required by the accompanying instructions and giving them to the secretary (personally, by post or by facsimile) before the start of the meeting. (3) A written vote on a motion may be withdrawn by a voter at any time before the result of the motion is declared, except that an owner’s written vote cannot be withdrawn by a person voting as the proxy of the owner. 41 Voting at general meeting [SM, s 52] (1) Voting at a general meeting must be done in the way provided in this section unless the body corporate decides by special resolution that voting is to be done in another way. (2) Voting by persons present at a general meeting must be by show of hands, or by giving completed voting papers to the person chairing the meeting not later than the start of the meeting, unless— (a) a ballot is required by the Act, this regulation or the by-laws; or (b) the person chairing the meeting decides a ballot is necessary to ensure an accurate count of votes. (3) If 1 or more, but not all, of the co-owners of a lot are present at the meeting, the co-owner or co-owners present vote as the owner of the lot. (4) No vote may be counted for a lot on a motion if there is a conflict between the votes of the co-owners of the lot. 42 Secretary to have available for inspection body corporate roll etc. [SM, s 55] The secretary must have available for inspection by voters for the general meeting— (a) the body corporate’s roll; and (b) a list of the persons who have the right to vote at the meeting; and (c) all proxy forms and voting papers.

s 43 36 s 46 Body Corporate and Community Management (Commercial Module) Regulation 1997 Division 4 Procedures at general meeting—Act, s 96 43 Amendment of motions at general meetings [SM, s 57] (1) A motion may be amended at a general meeting by the persons present, and having the right to vote, at the meeting. (2) However, an amendment cannot be made that changes the subject matter of the motion. (3) In counting the votes cast for and against a motion to amend a motion, or an amended motion, all persons who are not present personally or by proxy at the meeting, but would, if present, have the right to vote, must be taken to have voted against the motion. 44 Amendment or revocation of resolution of general meeting [SM, s 58] If a resolution without dissent, special resolution or ordinary resolution is required for a particular purpose, a resolution passed for the purpose may only be amended or revoked by a resolution of the required type. 45 Minutes of general meetings [SM, s 59] (1) The body corporate must ensure that full and accurate minutes are taken of each general meeting. (2) A copy of the minutes of a general meeting must be given to each lot owner as soon as practicable after the meeting. Division 5 Other matters for general meetings—Act, s 96 46 Requirement for annual general meetings [SM, s 60] An annual general meeting (other than the first annual general meeting) must be called and held within 3 months after the end of each of the scheme’s financial years.

s 47 37 s 48 Body Corporate and Community Management (Commercial Module) Regulation 1997 47 Requirement for requested extraordinary general meeting [SM, s 61] (1) An extraordinary general meeting (a requested extraordinary general meeting ) of the body corporate must be called if a notice asking for an extraordinary general meeting to consider and decide motions proposed in the notice is— (a) signed by or for the owners of at least 25% of all the lots included in the scheme; and (b) given to the secretary or, in the secretary’s absence, the chairperson or, if the committee has not yet been chosen, given to the original owner. (2) The secretary may be presumed to be absent if a notice is given to the secretary at the address for service of the body corporate, and no reply is received within 7 days. (3) A requested extraordinary general meeting must be called and held within 6 weeks after the notice asking for the meeting is given. (4) A requested extraordinary general meeting of the body corporate may be called even though the body corporate’s first annual general meeting has not yet been held. Division 6 First annual general meeting—Act, s 96 48 First annual general meeting [SM, s 62] (1) The original owner must call and hold the first annual general meeting of the body corporate as required by this section. Maximum penalty—150 penalty units. (2) The meeting must be called for and held within 1 month after the first of the following to happen— (a) more than 50% of the lots included in the scheme are no longer in the ownership of the original owner; (b) 6 months elapse after the establishment of the scheme.

s 48 38 s 48 Body Corporate and Community Management (Commercial Module) Regulation 1997 (3) The agenda for the meeting must include the following items— (a) adopting or reviewing budgets, and fixing of the contributions to be levied against the owners of lots, for the body corporate’s first financial year; (b) reviewing the policies of insurance taken out for the body corporate and, if appropriate, changing the insurance; (c) choosing the members of the committee; (d) providing for the custody and use of the body corporate’s seal; (e) deciding what issues are reserved for decision by ordinary resolution; 12 (f) deciding whether the by-laws should be amended or repealed; (g) appointing an auditor to audit the accounts of the body corporate, or resolving by special resolution not to appoint an auditor; (h) if the meeting is called on the order of an adjudicator under the dispute resolution provisions—deciding issues the adjudicator orders to be placed on the agenda for the meeting. (4) If the original owner does not call and hold the first annual general meeting as required by this section, the order of an adjudicator under the dispute resolution provisions may include an order appointing a person to call the first annual general meeting within a stated time. (5) The original owner is not relieved of liability for not calling and holding the first annual general meeting because the meeting has been called and held under the order of an adjudicator. 12 See section 15(b) (Restricted issues for committee—Act, s 92).

s 49 39 s 49 Body Corporate and Community Management (Commercial Module) Regulation 1997 49 Documents and materials to be handed over to body corporate at first annual general meeting [SM, s 63] (1) At the first annual general meeting, the original owner must give the following to the body corporate— (a) a register of assets containing an inventory of all body corporate assets; (b) all plans, specifications, diagrams and drawings of buildings and improvements forming part of scheme land (as built) showing water pipes, electric wiring, drainage, ventilation ducts, airconditioning systems and other utility infrastructure; (c) all policies of insurance taken out by the original owner for the body corporate; (d) documents in the original owner’s possession or control relevant to the scheme, including, for example, the body corporate’s roll, books of account, meeting minutes, registers, any body corporate manager or service contractor engagement or letting agent authorisation, correspondence and tender documentation; (e) the body corporate’s seal; (f) documents in the original owner’s possession or control relevant to the buildings or improvements on scheme land, not including certificates of title for individual lots, or documents evidencing rights or obligations of the original owner that are not capable of being used for the benefit of the body corporate or an owner (other than an owner who is the original owner) of a lot, but including— (i) contracts for building work, or other work of a developmental nature, carried out on scheme land; and (ii) certificates of classification for buildings and fire safety certificates; (g) a budget showing the body corporate’s estimated spending for the first financial year;

s 50 40 s 51 Body Corporate and Community Management (Commercial Module) Regulation 1997 (h) a detailed and comprehensive estimate of the body corporate’s sinking fund expenditure for the scheme’s first 10 financial years, which must include an estimate for the repainting of common property and of buildings that are body corporate assets. Maximum penalty—150 penalty units. (2) If documents of the types mentioned in subsection (1) come into the original owner’s possession after the body corporate’s first annual general meeting, the original owner must hand them over to the body corporate’s secretary at the earliest practicable opportunity. Maximum penalty for subsection (2)—20 penalty units. Part 5 Proxies Division 1 Purpose of part 50 Purpose of pt 5 [SM, s 64] The purpose of this part is to prescribe matters about the appointment and use of proxies for meetings of the committee for the body corporate for a community titles scheme, and for meetings of the body corporate. Division 2 Proxies for committee members—Act, s 94 51 Purpose of div 2 [SM, s 65] The purpose of this division is to prescribe matters about the appointment and use of proxies to represent committee members at a meeting of the committee.

s 52 41 s 54 Body Corporate and Community Management (Commercial Module) Regulation 1997 52 Appointment [SM, s 66] (1) A member of the committee may appoint a proxy to act for the member at a meeting of the committee. (2) The appointment of a proxy is effective only if a properly completed proxy form is given personally, by post or by facsimile to the secretary before— (a) the start of the committee meeting at which the proxy is to be exercised; or (b) if the body corporate or the committee has fixed an earlier time by which proxies must be given (which cannot, however, be earlier than 24 hours before the time fixed for the meeting)—the earlier time. (3) Unless it sooner expires under its own terms, a proxy under this division ceases to have effect immediately before the next annual general meeting of the body corporate held after the proxy is given. 53 Restrictions on appointment [SM, s 67] (1) A person appointed a proxy must be another committee member, or a person who is eligible to be an ordinary member of the committee. (2) However— (a) the secretary or the treasurer may appoint a proxy only with the committee’s approval; and (b) a body corporate manager may not be appointed the proxy of a member of the committee. 54 Form of proxy [SM, s 68] A proxy under this division— (a) must be in the approved form; and (b) must be in the English language; and (c) must be in a document separate from a contract; and (d) cannot be irrevocable; and

s 55 42 s 57 Body Corporate and Community Management (Commercial Module) Regulation 1997 (e) cannot be transferred by the holder of the proxy to a third person; and (f) must appoint a named individual. 55 Special provisions about proxy use [SM, s 69] (1) A committee member ( member A ) who is the proxy for another member ( member B ) may, in the absence of member B, vote both in member A’s own right and also as proxy of member B. (2) A proxy must not be exercised at a meeting of the committee— (a) if the committee member who gave the proxy is personally present at the meeting; or (b) for a particular motion—if the person who gave the proxy has exercised a written vote on the motion. (3) A committee member cannot be prevented by contract from exercising a vote at a committee meeting, and cannot be required by contract to make someone else the member’s proxy for voting at a committee meeting. 56 Offence [SM, s 70] A person must not exercise a proxy at a committee meeting knowing that the person does not have the right to exercise it. Maximum penalty—100 penalty units. Division 3 Proxies for body corporate members—Act, s 95 57 Purpose of div 3 [SM, s 71] The purpose of this division is to prescribe matters about the appointment and use of a proxy to represent a member of the body corporate at a general meeting of the body corporate.

s 58 43 s 60 Body Corporate and Community Management (Commercial Module) Regulation 1997 58 Appointment [SM, s 72] (1) A voter for the general meeting may appoint a proxy to act for the person at the general meeting. (2) The appointment of a proxy is effective only if a properly completed proxy form is given personally, by post or by facsimile, to the secretary before— (a) the start of the meeting at which the proxy is to be exercised; or (b) if the body corporate has fixed an earlier time by which proxies must be given (which cannot, however, be earlier than 24 hours before the time fixed for the meeting)—the earlier time. 59 Form of proxy [SM, s 73] (1) A proxy under this division— (a) must be in the approved form; and (b) must be in the English language; and (c) cannot be irrevocable; and (d) cannot be transferred by the holder of the proxy to a third person; and (e) may be given by any person who has the right to vote at a general meeting; and (f) subject to the limitations contained in this division, may be given to any individual; and (g) must appoint a named individual. (2) A proxy, other than a proxy exercised by the original owner, must be in a document separate from a contract. 60 Use of proxy [SM, s 74] (1) A body corporate member ( member A ) who is the proxy for another body corporate member ( member B ) may vote both in member A’s own right and also as proxy of member B.

s 61 44 s 62 Body Corporate and Community Management (Commercial Module) Regulation 1997 (2) If at least 1 co-owner of a lot is present at the meeting, a proxy given by another co-owner of the lot is of no effect. (3) A vote by proxy must not be exercised at a general meeting— (a) if the member who gave the proxy is personally present at the meeting, unless the member consents at the meeting; or (b) on a particular motion, if the person who gave the proxy has exercised a written vote on the motion. 61 Offence [SM, s 76] A person must not exercise a proxy, or otherwise purport to vote on behalf of another person, at a general meeting knowing that the person does not have the right to exercise the proxy or otherwise vote on behalf of the other person. Maximum penalty—100 penalty units. Part 6 Body corporate managers, service contractors and letting agents Division 1 Purpose of part 62 Purpose of pt 6 [SM, s 77] The purpose of this part is to prescribe matters about the engagement of a person as a body corporate manager or service contractor, or the authorisation of a person as a letting agent, for a community titles scheme, including matters about rights and obligations of the body corporate.

s 63 45 s 64 Body Corporate and Community Management (Commercial Module) Regulation 1997 Division 2 Requirements for engagements and authorisations—Act, s 107 63 Form of engagement [SM, s 78] (1) The engagement of a person as a body corporate manager or service contractor is void if the engagement does not comply with the requirements stated in subsection (2). (2) The engagement must— (a) be in writing; and (b) state the term of the engagement (including when the term begins and when it ends); and (c) state the functions the body corporate manager or service contractor is required or authorised to carry out; and (d) state the basis on which payment for the body corporate manager’s or service contractor’s services is to be worked out. Examples of paragraph (d) — 1 A body corporate manager’s payment could be calculated on the basis of an amount per lot. 2 A body corporate manager’s payment could include charges calculated on the basis of a stated amount per telephone inquiry or a stated amount for attendance fees for additional committee or general meetings. (3) The engagement must not be in the form of a by-law. 64 Form of authorisation [SM, s 79] (1) The authorisation of a person as a letting agent is void if the authorisation does not comply with the requirements stated in subsection (2). (2) The authorisation must— (a) be in writing; and (b) state the term of the authorisation (including when the term begins and when it ends).

s 65 46 s 68 Body Corporate and Community Management (Commercial Module) Regulation 1997 65 Term of engagement of body corporate manager [SM, s 80] (1) The term of the engagement of a person as a body corporate manager (after allowing for any rights or options of extension or renewal) must not be longer than 3 years. (2) If the term purports to be longer than 3 years, it is taken to be 3 years. 66 Term of engagement of service contractor [SM, s 81] (1) The term of the engagement of a person as a service contractor (after allowing for any rights or options of extension or renewal) must not be longer than 25 years. (2) If the term purports to be longer than 25 years, it is taken to be 25 years. 67 Term of authorisation of letting agent [SM, s 82] (1) The term of the authorisation of a person as a letting agent (after allowing for any rights or options of extension or renewal) must not be longer than 25 years. (2) If the term purports to be longer than 25 years, it is taken to be 25 years. 68 Commencement of term of engagement or authorisation [SM, s 83] (1) This section applies if the body corporate passes a resolution approving the engagement of a person as a body corporate manager or service contractor, or the authorisation of a person as a letting agent. (2) The resolution is of no effect if the term of the engagement or authorisation does not start within 12 months after the passing of the resolution.

s 69 47 s 70 Body Corporate and Community Management (Commercial Module) Regulation 1997 Division 3 Authority for engagements and authorisations—Act, s 107 69 Authority to make engagement or give authorisation [SM, s 87] (1) The body corporate may engage a person as a body corporate manager or service contractor, or authorise a person as a letting agent, only if— (a) the engagement or authorisation is approved by ordinary resolution of the body corporate; and (b) the terms of the engagement or authorisation are included in the material forwarded to members of the body corporate for the general meeting that considers the motion to approve the engagement or authorisation. (2) If subsection (1) is not complied with, the engagement or authorisation is void. (3) A body corporate may agree to the amendment of an engagement or authorisation mentioned in subsection (1) only if the amendment is approved by ordinary resolution of the body corporate. (4) If subsection (3) is not complied with, the amendment of the engagement or authorisation is void. Division 4 Disclosure requirements—Act, s 107 70 Associate supplying goods or services [SM, s 88] (1) This section applies if— (a) the body corporate is considering entering into, or proposes to enter into, a contract; and (b) the contract is for the supply of goods or services from a person (the provider ); and (c) the provider is an associate of a relevant person; and

s 71 48 s 71 Body Corporate and Community Management (Commercial Module) Regulation 1997 (d) the relevant person is aware of the matters mentioned in paragraphs (a) to (c). (2) Before the body corporate makes its decision to enter into the contract, the relevant person must give written notice to the body corporate disclosing the relationship between the relevant person and the provider. (3) If the relevant person does not comply with subsection (2), the body corporate may terminate— (a) if the relevant person is a body corporate manager—the body corporate manager’s engagement as a body corporate manager; or (b) if the relevant person is a service contractor—the service contractor’s engagement as a service contractor. (4) In this section— relevant person means— (a) a body corporate manager; or (b) a service contractor who is also a letting agent. 71 Disclosure of associate contract [SM, s 89] (1) This section applies if the following circumstances exist— (a) the body corporate is a party to a contract; (b) the contract is for the supply of goods or services from a person (the provider ); (c) the provider is the associate of a relevant person; (d) the relevant person is aware of the matters mentioned in paragraphs (a), (b) and (c); (e) to the knowledge of the relevant person, the body corporate has never been informed, or otherwise become aware, that the provider is the associate of the relevant person. (2) The relevant person must, in the shortest practicable time after this section commences to apply, give written notice to the body corporate—

s 72 49 s 72 Body Corporate and Community Management (Commercial Module) Regulation 1997 (a) identifying the contract; and (b) disclosing the relationship between the relevant person and the provider. (3) If the relevant person does not comply with subsection (2), the body corporate may terminate— (a) if the relevant person is a body corporate manager—the body corporate manager’s engagement as a body corporate manager; or (b) if the relevant person is a service contractor—the service contractor’s engagement as a service contractor. (4) In this section— relevant person means— (a) a body corporate manager; or (b) a service contractor who is also a letting agent. 72 Disclosure of commission or other benefit [SM, s 90] (1) This section applies if— (a) the body corporate is considering entering into, or proposes to enter into, a contract (the main contract ); and (b) the main contract is for the supply of goods or services from a person (the provider ); and (c) under the main contract, or under another contract or arrangement, a body corporate manager is entitled to receive, other than from the body corporate, a commission, payment or other benefit that is associated with the main contract, including with entering into the main contract. (2) Before the body corporate makes its decision to enter into the main contract, the body corporate manager must give written notice to the body corporate disclosing the commission, payment or other benefit.

s 73 50 s 73 Body Corporate and Community Management (Commercial Module) Regulation 1997 (3) If the body corporate manager fails to comply with subsection (2), the body corporate may terminate the body corporate manager’s engagement as a body corporate manager. Division 5 Occupation of common property—Act, s 107 73 Occupation of common property by service contractor or letting agent [SM, s 91] (1) The body corporate may, by ordinary resolution, give a person (a property occupier ) who is a service contractor or letting agent an authority (an occupation authority ) to occupy a particular part of the common property for particular purposes necessary to enable— (a) if the property occupier is a service contractor—the property occupier to perform obligations under the property occupier’s engagement as a service contractor; or (b) if the property occupier is a letting agent—the property occupier to operate as a letting agent. Example — The body corporate might authorise a letting agent to occupy a particular part of the common property as a reception area, or a caretaker to occupy a shed on the common property for storage of tools and garden implements. (2) The body corporate may include in the terms of the engagement of a person (also a property occupier ) as a service contractor, authority (also an occupation authority ) to occupy a particular part of the common property for particular purposes necessary to enable the property occupier to perform obligations under the property occupier’s engagement as a service contractor. (3) The body corporate may include in the terms of the authorisation of a person (also a property occupier ) as a letting agent, authority (also an occupation authority ) to occupy a particular part of the common property for particular

s 73 51 s 73 Body Corporate and Community Management (Commercial Module) Regulation 1997 purposes necessary to enable the property occupier to operate as a letting agent. (4) The body corporate may give an occupation authority only if the occupation of the part of the common property under the occupation authority would not interfere to an unreasonable extent with the use and enjoyment of a lot or the common property by an occupier of a lot. (5) An occupation authority— (a) may include conditions with which the property occupier must comply; and (b) if given under subsection (1)—is taken to be a term of— (i) if the property occupier is a service contractor—the property occupier’s engagement as a service contractor; or (ii) if the property occupier is a letting agent—the property occupier’s authorisation as a letting agent; and (c) may give the property occupier a right to exclusive occupation of the part of the common property the occupation authority relates to; and (d) must not be amended or terminated without the agreement of the property occupier— (i) if the property occupier is a service contractor—during the term of the engagement of the property occupier as a service contractor; or (ii) if the property occupier is a letting agent—during the term of the authorisation of the property occupier as a letting agent; and (e) terminates immediately on— (i) if the property occupier is a service contractor—the engagement of the property occupier as a service contractor coming to an end or being terminated; or (ii) if the property occupier is a letting agent—the authorisation of the property occupier as a letting

s 74 52 s 75 Body Corporate and Community Management (Commercial Module) Regulation 1997 agent coming to an end or being terminated. (6) Despite subsection (5)(c), a right a property occupier may have to exclusive occupation of a part of the common property is subject to the body corporate’s right to authorise access to the part of the common property by others if the extent of the access does not unreasonably interfere with the occupation of the part of the common property by the property occupier. (7) A service contractor or letting agent may acquire rights to occupy part of the common property for the purpose of the service contractor’s engagement or letting agent’s authorisation, only under this section. Division 6 Review of remuneration—Act, s 112 74 Review of remuneration under engagement of service contractor [SM, s 92] The service contractor remuneration review provisions of the Act apply to the scheme. 13 Part 7 Financial management Division 1 Purpose of part 75 Purpose of pt 7 [SM, s 93] The purpose of this part is to prescribe the financial management arrangements that apply to the body corporate for a community titles scheme. 13 Under section 129 (Review of remuneration under engagement of service contractor) of the Act, the service contractor remuneration review provisions do not apply to a community titles scheme established under chapter 8 (Transitional provisions), part 1 (Transition from 1980 Act) of the Act.

s 76 53 s 76 Body Corporate and Community Management (Commercial Module) Regulation 1997 Division 2 Budgets—Act, s 113 76 Budgets [SM, s 94] (1) The body corporate must, by ordinary resolution, adopt the following budgets for each financial year— • the administrative fund budget • the sinking fund budget. (2) The administrative fund budget must— (a) contain estimates for the financial year of necessary and reasonable spending from the administrative fund 14 to cover— (i) the cost of maintaining common property and body corporate assets; and (ii) the cost of insurance; and (iii) other expenditure of a recurrent nature; and (b) fix the amount to be raised by way of contribution to cover the estimated recurrent expenditure mentioned in paragraph (a). (3) The sinking fund budget must— (a) allow for raising a reasonable capital amount both to provide for necessary and reasonable spending from the sinking fund 15 for the financial year, and also to reserve an appropriate proportional share of amounts necessary to be accumulated to meet anticipated major expenditure over at least the next 9 years after the financial year, having regard to— (i) anticipated expenditure of a capital or non-recurrent nature; and (ii) the periodic replacement of items of a major capital nature; and 14 See section 82 (Administrative, sinking and promotion funds). 15 See section 82 (Administrative, sinking and promotion funds).

s 76 54 s 76 Body Corporate and Community Management (Commercial Module) Regulation 1997 (iii) other expenditure that should reasonably be met from capital; and (b) fix the amount to be raised by way of contribution to cover the capital amount mentioned in paragraph (a). Example — Painting of the common property is anticipated to be necessary in 3 years time at a cost currently estimated at $3000. The contribution amount for the sinking fund in the budget for the financial year must therefore include the annual proportional share for painting of $1000. Next year, the estimated cost has increased to $3400 and so the second year levy will be $1200. The estimated cost in the third year is $3500, so with the $2200 accumulated, a levy of $1300 is necessary to meet the cost. In larger schemes, the sinking fund will have several projects being funded for various future times. (4) The body corporate may by ordinary resolution adopt a promotion fund budget that— (a) contains estimates for the financial year of necessary and reasonable spending from the promotion fund 16 to cover the cost of promoting the scheme including, for example, by leasing, installing, maintaining and operating advertising signs; and (b) fixes the amount to be raised by way of contribution, from lot owners who have agreed to make contributions, to cover the estimated expenditure. (5) If the scheme is a lot included in another community titles scheme, the administrative fund budget must also include an estimate of the total amount the body corporate may reasonably be expected to be required to contribute to the administrative and sinking funds for the other scheme, and any other fund provided for in the regulation module applying to the other scheme. (6) The original owner must prepare proposed budgets for adoption by the body corporate at its first annual general meeting, and the committee must prepare proposed budgets for adoption by the body corporate at each later annual general meeting. 16 See section 82 (Administrative, sinking and promotion funds).

s 77 55 s 77 Body Corporate and Community Management (Commercial Module) Regulation 1997 (7) Copies of the proposed budgets must accompany the notice of an annual general meeting. Division 3 Contributions levied by body corporate—Act, s 113 77 Contributions to be levied on owners [SM, s 95] (1) The body corporate must, by ordinary resolution— (a) fix, on the basis of its budgets for a financial year, the contributions to be levied on the owner of each lot for the financial year; and (b) decide the number of instalments in which the contributions are to be paid; and (c) fix the date on or before which payment of each instalment is required. (2) If a liability arises for which no provision, or inadequate provision, has been made in the budget, the body corporate must, by ordinary resolution— (a) fix a special contribution to be levied on the owner of each lot towards the liability; and (b) decide whether the contribution is to be paid in a single amount or in instalments and, if in instalments, the number of instalments; and (c) fix the date on or before which payment of the single amount or each instalment is required. (3) Also, the committee may fix an interim contribution to be levied on the owner of each lot before the owner is levied contributions fixed on the basis of the body corporate’s budgets for a financial year. (4) The amount of a contribution mentioned in subsection (3)— (a) must subsequently be set off against the liability to pay contributions mentioned in subsection (1); and (b) must be calculated on the basis of the level of contributions applying for the scheme for the previous

s 78 56 s 78 Body Corporate and Community Management (Commercial Module) Regulation 1997 financial year; and (c) must relate, as closely as practicable, to the period from the end of the previous financial year to 30 days after the annual general meeting. (5) The contributions levied on the owner of each lot (other than contributions payable for insurance, the promotion fund budget and any other matter for which, under the Act or this regulation, the liability attaching to each lot is calculated other than on the basis of the lot’s contribution schedule lot entitlement) must be proportionate to the contribution schedule lot entitlement of the lot. 78 Notice of contribution payable [SM, s 96] (1) At least 30 days before the payment of a contribution, or instalment of a contribution, is required, the body corporate must give the owner of each lot written notice of— (a) the total amount of the contribution levied on the owner; and (b) the amount of the contribution, or instalment of contribution, of which payment is currently required; and (c) the date (the date for payment ) on or before which the contribution, or instalment of contribution, must be paid; and (d) any discount to which the owner is entitled for payment of the contribution, or instalment of contribution, by the date for payment; and (e) any penalty to which the owner is liable for each month payment is in arrears; and (f) if the owner is in arrears in payment of a contribution or penalty—the arrears. (2) The written notice under subsection (1) may also include notice about an amount payable by a lot owner to the body corporate for— (a) a specially contracted service enjoyed by the owner; or

s 79 57 s 80 Body Corporate and Community Management (Commercial Module) Regulation 1997 (b) an exclusive use or special right over common property enjoyed by the owner. (3) A written notice under this section may be served on a lot owner at the lot owner’s address for service, or in the way directed by the lot owner. 79 Discounts for timely payment [SM, s 97] (1) The body corporate may, by ordinary resolution, fix a discount to be given to owners of lots if a contribution, or an instalment of a contribution, is received by the body corporate by the date for payment fixed in notices of contribution given to the owners. (2) The discount cannot be more than 20% of the amount to be paid. Example — Suppose that— • a contribution of $100 is payable in 4 instalments of $25 and the body corporate has fixed a discount of 10% for payment by the date for payment in the notices of contribution given to the owners • an account requiring payment of an instalment of $25 by 31 March is given to the owner of a lot • the instalment is paid on 25 March. In this case, the owner is entitled to a discount of $2.50 on the instalment. 80 Penalties for late payment [SM, s 98] (1) The body corporate may, by ordinary resolution, fix a penalty to be paid by owners of lots if a contribution, or instalment of contribution, is not received by the body corporate by the date for payment fixed in notices of contribution given to the owners. (2) The penalty must consist of simple interest at a stated rate (of not more than 2.5%) for each month the contribution or instalment is in arrears. Example — Suppose that—

s 81 58 s 81 Body Corporate and Community Management (Commercial Module) Regulation 1997 • a contribution of $400 is payable in 4 instalments of $100 and the body corporate has fixed a penalty interest rate of 2% per month • an account requiring payment of an instalment of $100 by 31 March is given to the owner of a lot • the instalment is not paid until 27 June. In this case, the instalment has been in arrears for 2 months and a penalty of $4 is payable. 81 Payment and recovery of contributions [SM, s 99] (1) If a contribution, or instalment, is not paid by the date for payment, the body corporate may recover the amount of the contribution or instalment, together with any penalty, as a debt. (2) A liability to pay a contribution, instalment, penalty or other amount payable to the body corporate in relation to a lot is enforceable jointly and severally against the person who was the owner of the lot when the contribution, instalment or other amount became payable and a person (including a mortgagee in possession) who becomes an owner of the lot before the contribution, instalment, penalty or other amount is paid. (3) If there are 2 or more owners of a lot, they are jointly and severally liable to pay a contribution, instalment or penalty under the Act or this regulation, or another amount payable to the body corporate in relation to the lot. (4) If an owner is liable for a contribution, or an instalment of a contribution, and a penalty, an amount paid by the owner must be paid first towards the penalty and then in reduction of the outstanding contribution or instalment. (5) If the body corporate is satisfied there are special reasons for allowing a discount of contribution, or waiving a penalty, the body corporate may allow the discount, or waive the penalty in whole or part.

s 82 59 s 82 Body Corporate and Community Management (Commercial Module) Regulation 1997 Division 4 Funds—Act, s 113 82 Administrative, sinking and promotion funds [SM, s 100] (1) The body corporate must establish and keep an administrative fund and a sinking fund. (2) The body corporate must pay into its administrative fund any amount received by the body corporate that is not required— (a) under subsection (3) to be paid into its sinking fund; or (b) under subsection (5) to be paid into its promotional fund. (3) The body corporate must pay into its sinking fund— (a) the amount raised by way of contribution to cover anticipated spending of a capital or non-recurrent nature (including the periodic renewal or replacement of major items of a capital nature and other spending that should be reasonably met from capital); and (b) amounts received under policies of insurance for destruction of items of a major capital nature; and (c) interest from investment of the sinking fund. (4) If the body corporate adopts a promotion fund budget, it must also establish and keep a promotion fund. (5) The body corporate must pay into its promotion fund— (a) the amount raised by way of contribution to cover anticipated spending for the purposes of scheme promotion that has been agreed on by all lot owners who have agreed to contribute to the fund; and (b) interest from investment of the promotion fund. (6) The administrative, sinking and promotion funds may be invested in the way a trustee may invest trust funds. (7) All amounts received by the body corporate for the credit of the administrative, sinking or promotion fund must be paid

s 83 60 s 83 Body Corporate and Community Management (Commercial Module) Regulation 1997 into 1 or more accounts kept solely in the name of the body corporate at a financial institution. 17 (8) All payments from the administrative, sinking or promotion fund must be made from the account. 83 Application of administrative, sinking and promotion funds [SM, s 101] (1) The sinking fund may be applied towards— (a) spending of a capital or non-recurrent nature; and (b) the periodic replacement of major items of a capital nature; and (c) other spending that should reasonably be met from capital. (2) If the body corporate has a promotion fund, the promotion fund may be applied towards spending for the purposes of scheme promotion that has been agreed on by all lot owners who have agreed to contribute to the fund. (3) All other spending of the body corporate must be met from the administrative fund. Examples — 1 The cost of repainting the common property or replacing airconditioning plant would be paid from the sinking fund. 2 The cost of insurance would be paid from the administrative fund. 17 Financial institution is a bank, building society or credit union—see the Acts Interpretation Act 1954 , section 36, definition financial institution .

s 84 61 s 85 Body Corporate and Community Management (Commercial Module) Regulation 1997 Division 5 Borrowing—Act, s 113 84 Power to borrow [SM, s 102] (1) The body corporate may, by ordinary resolution, borrow amounts on security agreed between the body corporate and the person from whom the amounts are borrowed. 18 (2) The body corporate must not, at any time, without the authority of a special resolution, be in debt for a borrowed amount greater than an amount worked out by multiplying the number of lots included in the scheme by $250. Division 6 Accounts and audit—Act, s 113 85 Accounts [SM, s 105] (1) The body corporate must— (a) keep proper accounting records; and (b) prepare for each financial year a statement of accounts. (2) The statement of accounts mentioned in subsection (1)(b) must— (a) show the income and spending of the body corporate for the financial year; and (b) include a statement of the assets and liabilities of the body corporate at the end of the financial year; and (c) include the corresponding figures for the previous financial year (unless the statement is for the body corporate’s first financial year). 18 The body corporate may mortgage a body corporate asset—see section 97 (Dealing with (including disposal of) body corporate assets—Act, ss 43, 119). However, the fee simple interest in common property cannot be the subject of a mortgage—see Land Title Act 1994 , section 41C(3) (Application of provisions of Act to common property).

s 86 62 s 86 Body Corporate and Community Management (Commercial Module) Regulation 1997 (3) A copy of the statement of accounts must accompany the notice of the annual general meeting first happening after the end of the financial year for which the accounts are prepared. 86 Audit [SM, s 106] (1) The body corporate must have its statement of accounts for each financial year audited by an auditor unless— (a) the scheme is a basic scheme; and (b) the body corporate resolves by special resolution not to have the statement audited. (2) If the body corporate is required under subsection (1) to have its statement of accounts audited, the auditor to be appointed must be agreed to by ordinary resolution of the body corporate. (3) The motion for agreeing to the auditor to be appointed— (a) must be included in the agenda for the general meeting at which the motion is to be considered; and (b) must include the name of the auditor proposed to be appointed, and the name of the firm or corporation the auditor represents; and (c) is not voted on if, under subsection (1), it is resolved not to have the statement of accounts audited. (4) Even if the body corporate resolves not to have its statement of accounts for a particular financial year audited, the body corporate may, by ordinary resolution, resolve to have its accounting records for a particular period, or for a particular project, audited and appoint an auditor for the purpose. (5) A member of the committee, a body corporate manager, or an associate of a member of the committee or a body corporate manager, cannot be appointed to audit the accounting records or the statement of accounts of the body corporate. (6) On finishing an audit of the body corporate’s statement of accounts for a financial year, the auditor must give a certificate—

s 87 63 s 87 Body Corporate and Community Management (Commercial Module) Regulation 1997 (a) stating whether the statement of accounts gives a true and fair view of the body corporate’s financial affairs; and (b) if the statement of accounts does not give a true and fair view of the body corporate’s financial affairs—identifying the deficiencies in the statement. (7) A copy of the auditor’s certificate must accompany the notice of the next annual general meeting held after the certificate is given. (8) The motion for a special resolution under subsection (1) must be— (a) in the form ‘that the body corporate’s statement of accounts for the financial year ( state the financial year concerned ) not be audited’; and (b) accompanied by a note ‘NOTE: If you want the accounts to be audited, vote ‘no’; if you do not want the accounts to be audited, vote ‘yes’.’. 87 Auditing qualifications and experience—Act, sch 6 [SM, s 107] (1) For schedule 6 of the Act, definition auditor , paragraph (a)(ii), the qualifications and experience in accountancy that are approved for a person are stated in subsection (2). (2) The person must— (a) be a member of— (i) CPA Australia and entitled to use the letters ‘CPA’ or ‘FCPA’; or (ii) The Institute of Chartered Accountants in Australia and entitled to use the letters ‘CA’ or ‘FCA’; or (iii) the National Institute of Accountants and entitled to use the letters ‘MNIA’, ‘FNIA’, ‘PNA’ or ‘FPNA’; and (b) have a total of 2 years auditing experience, whether or not continuous.

s 88 64 s 89 Body Corporate and Community Management (Commercial Module) Regulation 1997 Part 8 Property management Division 1 Purpose of part 88 Purpose of pt 8 [SM, s 108] This part prescribes matters about property management for a community titles scheme, including matters about the rights and obligations of the body corporate. Division 2 Common property 89 Duties of body corporate about common property—Act, s 114 [SM, s 109] (1) The body corporate must maintain common property in good condition, including, to the extent that common property is structural in nature, in a structurally sound condition. (2) To the extent that lots included in the scheme are created under a building format plan of subdivision, the body corporate must— (a) maintain in good condition— (i) railings, parapets and balustrades on (whether precisely, or for all practical purposes) the boundary of a lot and common property; and (ii) doors, windows and associated fittings situated in a boundary wall separating a lot from common property; and (iii) roofing membranes that are not common property but that provide protection for lots or common property; and (b) maintain the following elements of scheme land that are not common property in a structurally sound condition— (i) foundation structures;

s 90 65 s 90 Body Corporate and Community Management (Commercial Module) Regulation 1997 (ii) roofing or other covering structures providing protection; (iii) essential supporting framework, including load-bearing walls. (3) Despite anything in subsections (1) and (2)— (a) the body corporate is not responsible for maintaining fixtures or fittings installed by the occupier of a lot if they were installed for the occupier’s own benefit; and (b) the owner of the lot is responsible for maintaining utility infrastructure in good order and condition, to the extent that the utility infrastructure relates only to supplying utility services to a particular lot. Example for subsection (3)(b) — An airconditioning plant is installed on the common property, but relates only to supplying utility services to a particular lot. The owner of the lot would be responsible for maintaining the airconditioning equipment. (4) To avoid doubt, it is declared that, despite an obligation the body corporate may have under subsection (2) to maintain a part of a lot in good condition or in a structurally sound condition, the body corporate is not prevented from recovering an amount of damages from a person (whether or not the owner of the lot) whose actions cause or contribute to damage or deterioration of the part of the lot. (5) In this section— utility infrastructure does not include utility infrastructure that— (a) is a device for measuring the reticulation or supply of water for a community titles scheme established after 1 January 2008; and (b) is installed after 1 January 2008, in relation to a compliance request made under the Plumbing and Drainage Act 2002 after 31 December 2007. 90 Mailbox—Act, s 115 [SM, s 110] The body corporate must—

s 91 66 s 91 Body Corporate and Community Management (Commercial Module) Regulation 1997 (a) maintain a mailbox clearly showing the body corporate’s name in a suitable position at or near the street alignment of the scheme land; or (b) make suitable alternative arrangements for the receipt of mail. 91 Disposal of interest in and leasing of common property—Act, s 116 [SM, s 111] (1) This section sets out the way in which, and the extent to which, the body corporate is authorised— (a) to sell or otherwise dispose of common property; and (b) to grant or amend a lease over common property. (2) The body corporate may— (a) if authorised by resolution without dissent— (i) sell or otherwise dispose of part of the common property; or (ii) grant or amend a lease for more than 10 years over part of the common property; and (b) if authorised by special resolution—grant or amend a lease for 10 years or less over part of the common property. (3) Also, the body corporate may grant or amend a lease over the whole of the common property if the body corporate is authorised to lease the land by— (a) for a lease for more than 3 years—a resolution without dissent; and (b) for a lease of 3 years or less—a special resolution. (4) Despite subsections (2) and (3), the body corporate may grant or amend a lease over part or the whole of the common property without the authority of a resolution without dissent or special resolution if the community management statement provides for the lease. (5) The body corporate must not lease common property if—

s 92 67 s 92 Body Corporate and Community Management (Commercial Module) Regulation 1997 (a) the lease would interfere with access to a lot, or to a part of the common property over which exclusive rights have been given under a by-law; or (b) the common property leased is land a person has the right to occupy for the person’s engagement as a service contractor or authorisation as a letting agent. (6) An instrument lodged for registration under the Land Title Act 1994 to give effect to a transaction under this section must be accompanied by— (a) a certificate under the body corporate’s seal certifying the transaction has been authorised as required by this section; and (b) a certificate of the local government certifying the transaction has been approved or noted as required under the Planning Act; and (c) if the transaction is associated with a reduction in the common property—a request to record a new community management statement for the scheme in the place of the existing statement for the scheme. (7) The body corporate may not grant a lease over utility infrastructure that is common property. 92 Easements over common property—Act, s 117 [SM, s 112] (1) This section sets out the way in which, and the extent to which, the body corporate is authorised to grant, accept the grant of, surrender and accept the surrender of easements relating to common property. (2) The body corporate may, if authorised by a resolution without dissent— (a) grant an easement over the common property, or accept the grant of an easement for the benefit of the common property; or (b) surrender an easement for the benefit of the common property, or accept the surrender of an easement over the common property.

s 93 68 s 94 Body Corporate and Community Management (Commercial Module) Regulation 1997 (3) An instrument lodged for registration under the Land Title Act 1994 to give effect to the grant or surrender of an easement over or affecting the common property must be accompanied by— (a) a copy of the resolution (or resolutions) certified under the seal of the body corporate; and (b) other documents required by the registrar (including, if considered appropriate, a request to record a new community management statement in the place of the existing statement for the scheme). 93 Improvements to common property by body corporate—Act, s 121 [SM, s 113] The body corporate may make improvements to the common property if— (a) the improvements are authorised by ordinary resolution; or (b) an adjudicator, under an order made under the dispute resolution provisions, decides the improvements are reasonably necessary for the health, safety or security of persons who use the common property and authorises the improvements. 94 Improvements to common property by lot owner—Act, s 121 [SM, s 114] (1) The body corporate may, if asked by the owner of a lot, authorise the owner to make an improvement to the common property for the benefit of the owner’s lot. (2) An authorisation may be given under this section on conditions the body corporate considers appropriate.

s 95 69 s 96 Body Corporate and Community Management (Commercial Module) Regulation 1997 (3) The owner of a lot who is given an authority under this section 19 — (a) must comply with conditions of the authority; and (b) must maintain the improvement made under the authority in good condition, unless excused by the body corporate. Division 3 Body corporate assets 95 Duties of body corporate about body corporate assets—Act, s 114 [SM, s 115] The body corporate must maintain body corporate assets in good condition. 96 Acquisition of amenities for benefit of lot owners—Act, s 118 [SM, s 116] (1) This section states the way in which, and the extent to which, the body corporate may acquire, and enter into agreements about the use of, real and personal property. (2) The body corporate may, in the name of the body corporate— (a) acquire freehold land for the use and enjoyment of the owners or occupiers of lots included in the scheme; or (b) acquire a leasehold interest in freehold or non-freehold land for the use and enjoyment of the owners or occupiers of lots included in the scheme; or (c) acquire a licence or concession related to land for the use and enjoyment of the owners or occupiers of lots included in the scheme, or surrender a licence or concession related to land previously acquired by the body corporate as a body corporate asset; or 19 Under the Acts Interpretation Act 1954 , section 35A (References to person with interest in land includes personal representative etc.), a reference to a person having an interest in land includes a reference to the person’s personal representatives, successors and assigns.

s 97 70 s 98 Body Corporate and Community Management (Commercial Module) Regulation 1997 (d) acquire personal property (other than personal property mentioned in paragraph (b) or (c)) for the general use and enjoyment of the owners and occupiers of lots included in the scheme. Example — The body corporate may under subsection (2)(c) acquire rights to establish or use moorings for vessels. (3) The body corporate may exercise its powers under this section only if authorised by ordinary resolution. 97 Dealing with (including disposal of) body corporate assets—Act, ss 43, 119 [SM, s 117] (1) The body corporate may— (a) sell or otherwise dispose of a body corporate asset that is freehold land, or a leasehold interest in freehold land; or (b) grant or amend a lease over a body corporate asset that is freehold land, or another body corporate asset capable of being leased; or (c) sell or otherwise dispose of a body corporate asset that is personal property (not including personal property mentioned in paragraph (a) or (b), but including a licence or concession related to freehold land). (2) The body corporate may mortgage or charge a body corporate asset, but the amount secured under the mortgage or charge must not, at any time when the mortgage or charge is in force, be more than 70% of the value of the asset. (3) The body corporate may exercise its powers under this section only if authorised by ordinary resolution. Division 4 Agreement with another body corporate 98 Sharing facilities [SM, s 118] (1) This section has effect despite anything else in this part.

s 99 71 s 99 Body Corporate and Community Management (Commercial Module) Regulation 1997 (2) The body corporate may, in the name of the body corporate, enter into an agreement with the body corporate of another community titles scheme under which the owners or occupiers of lots included in the scheme and lots included in the other scheme may share the use and enjoyment of— (a) facilities forming part of the common property of either scheme; or (b) body corporate assets for either scheme. Division 5 Services for and obligations of owners and occupiers 99 Supply of services by body corporate—Act, s 120 [SM, s 119] (1) The body corporate may supply, or engage another person to supply, utility services and other services for the benefit of owners and occupiers of lots, if the services consist of 1 or more of the following— (a) maintenance services, which may include cleaning, repairing, painting, pest prevention or extermination or mowing; (b) communication services, which may include the installation and supply of telephone, intercom, computer data or television; (c) domestic services, which may include electricity, gas, water, garbage removal, airconditioning or heating. Example — The body corporate might engage a corporation to supply PABX services for the benefit of the owners and occupiers of lots. (2) The body corporate may, by agreement with a person for whom services are supplied, charge for the services (including for the installation of, and the maintenance and other operating costs associated with, utility infrastructure for the

s 100 72 Body Corporate and Community Management (Commercial Module) Regulation 1997 s 100 services), but only to the extent necessary for reimbursing the body corporate for supplying the services. 20 (3) In acting under subsections (1) and (2), the body corporate must, to the greatest practicable extent, ensure the total cost to the body corporate (other than body corporate administrative costs) for supplying a service, including the cost of a commercial service, and the cost of purchasing, operating, maintaining and replacing any equipment, is recovered from the users of the service. Division 6 Condition of lot 100 Obligations of owners and occupiers—Act, s 122 [SM, s 120] (1) An occupier of a lot included in the scheme must keep the parts of the lot readily observable from another lot or common property in a clean and tidy condition. (2) The owner of a lot included in the scheme must maintain the lot in good condition. (3) The owner’s obligation under subsection (2) to maintain the lot in good condition does not apply to a part of the lot the body corporate is required under this regulation to maintain in good condition. (4) The owner of a lot included in the scheme must maintain the utility infrastructure within the boundaries of the lot, and not part of common property, in good condition and, if it is in need of replacement, must replace it. (5) This section applies only to a lot that is not a community titles scheme. 20 A body corporate is not permitted to carry on a business. (See section 96 (Body corporate must not carry on business) of the Act).

s 101 73 Body Corporate and Community Management (Commercial Module) Regulation 1997 s 102 Division 7 Power to act for owners and occupiers 101 Body corporate may carry out work required of owners and occupiers—Act, s 123 [SM, s 121] (1) This section applies if the owner or occupier of a lot included in the scheme does not carry out work that the owner or occupier has an obligation to carry out under— (a) a provision of the Act or this regulation, including a provision requiring an owner or occupier to maintain a lot included in the scheme; or (b) a notice given under another Act or a Commonwealth Act; or (c) the community management statement, including the by-laws; or (d) an adjudicator’s order; or (e) the order of a court. (2) The body corporate may carry out the work, and may recover the reasonable cost of carrying out work from the owner of the lot as a debt. 102 Body corporate’s power to take action to remedy defective building work—Act, s 124 [SM, s 122] (1) If building work carried out for the owner of a lot included in the scheme is defective and, because of the defect, the support or shelter of another part of scheme land is, or is likely to be, adversely affected, the body corporate may bring a proceeding under the Queensland Building Services Authority Act 1991 or another law to have the defect remedied. (2) If a body corporate brings a proceeding under this section, the body corporate is subrogated to the contractual and other rights of the person for whom the building work was carried out.