2.2 The duties of an owners corporation | Owners Corporation Network

2.2 The duties of an owners corporation

 In NSW the owners corporation’s duties cover:

Relevant NSW Legislation: Strata Schemes Management Act (1996)

Maintain and repair property

Section 62: What are the duties of an owners corporation to maintain and repair property?

Breach of by-laws

Section 45: How can an owners corporation enforce the by-laws?

Section 203: Civil penalties for contravention of notice of owners corporation

Record keeping

Section 96: Owners corporation must keep a strata roll

Section 100: What are the duties of an owners corporation to keep other records and documents?

Section 101: Notices and orders to be kept

Section 102: Minutes of meetings

Section 103: Accounting records

Section 104: Certain records to be retained for prescribed period

Section 105: Owners corporation may require certain persons to produce records, accounts and property of the owners corporation

Section 106: Owners corporation must prepare financial statements

Financial management

Section 23: What are the functions of the treasurer of an owners corporation?

Section 68: What money can be paid out of the administrative fund?

Section 71: What money can be paid out of the sinking fund?

Section 75 and 75 (3): Estimates to be prepared of contributions to administrative and sinking funds

Section 75A: Owners corporation to prepare 10-year sinking fund plans

Section 76: Owners corporation to set levy for contributions to administrative and sinking funds

Section 78: Manner of levying contributions

Section 79: Interest and discounts on contributions

Keeping all necessary insurance up to date

Section 88A: Insurance must be taken out with approved insurer

Section 83: Owners corporation to insure building

Section 82: Damage policy

Section 81: Building

Section 87: What other insurance must an owners corporation take out? Public liability insurance, Workers compensation insurance, Voluntary workers insurance

Fire Safety Inspections

Section 65C: What are the duties of an owners corporation in relation to fire safety inspections

Additional responsibilities for large schemes

A large scheme is defined as one with over 100 lots   (101 lots or more). Parking and utility lots are not counted in the calculation. The following special provisions apply to large schemes:

Section 75 (5): Annual budgets must list amounts expected to be spent on specific items

Section 107: Annual Auditing of accounts and financial statements

Section 80A: Limit on spending by executive committees of large strata schemes - are not permitted to spend more than 10% above the budgeted amount for any item (unless the owners corporation lifts the restriction by a resolution)

Section 80B: At least two Quotations required by large strata schemes for expenditure over $30,000

Section 80C: Exceptions in relation to emergencies. The 10% limit does not apply to emergency expenditure

 

Relevant NSW Legislation: Strata Schemes Management Regulation(2010)

Schedule 2, Regulation 11 (3): Proxy to be given to secretary of owners corporation at least 24 hours before the meeting

Schedule 3, Regulation 6: Notice of executive committee meetings must be given to all lot owners

Schedule 3, Regulation 14: At least two Quotations required by large strata schemes for expenditure over $30,000

Schedule 3, Regulation 16: Display of minutes of executive committee meetings must be given to all lot owners