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
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
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