The term ‘Owners Corporation’ was formerly ‘Body Corporation’, and it refers to a body managing collectively a multi-occupancy subdivision of property like land or building. It is normally created when a property to be shared is subdivided into more than one lot. The subdivided property includes those that are classed as retail, commercial, residential, or mixed-use. The ownership only applies to owners and not tenants. It operates just like other businesses, and decision-making binds on the corporation. The rules are generally binding on owners, corporations, and tenants concerning the usage of the common property or properties. However, the rules are not contravention to the legislation governing strata titles or any other laws.
A Little Bout the Owners Corporation Management
For proper running of the property led to the creation of Owners Corporation Management. This management body is inclusive of the members of the Owners Corporation and has responsibilities on the common property. For instance, the management serves to repair and maintain the common services and fixtures around the property. The property needs to be in its best condition, and the Owners Corporation Management sees to it that any necessary maintenance is carried out. Apart from maintenance responsibility, the management also looks into the property’s correct insurance, such as public liability insurance. They also provide management and administration services.
They Are Governed by There On Rules and Regulations
Regulations and rules of its own govern the Owners Corporation. These rules and regulations are enforceable under the management. It directly enforces them and provides statutory certificates to either prospective purchasers or owners, also known as Form 4 certification.
The rules mentioned above include;
- Regulations that govern resolution and meetings carried out.
- There is a prescribed process of managing conflicts within the community.
- An outline of how the nomination of the managers and committee members is carried out.
- And most importantly, the rights and duties of owners.
The regulation or rule-making process includes that an Owners Corporation may create additional rules by bypassing a special resolution. The amendment or revocation of the rules then lies on the special resolution.
How Decision Make Takes Place
Decision-making under the Owners Corporation Management falls into three levels.; unanimous resolution, special resolution, and ordinary resolution.
Ordinary resolution refers to the resolutions that belong to an Owners Corporation and was voted in by more than half of the members to pass. That means that if the resolutions are not supported by more than fifty per cent of the members, they will be nullified.
On the other hand, Special Resolution refers to the resolutions that were passed due to more than seventy-five per cent of the members voted in support of it. This kind of resolution is generally valuable for the decisions on setting annual fees, additional fees, extraordinary expenditure, the licensing or leasing of common property, to mention a few.
Finally, unanimous corporation refers to the resolutions passed due to a hundred per cent support through eligible votes. Some examples of the decisions in this category are; the buying or selling of common property, alteration of boundaries, the alteration of liability or entitlement.
Like any other business corporation, Owners Corporations are of great importance not only to the owners but also to the community. With its streamlined management and governance, it exudes transparency, sustainability, dedicated support and spearheads the use of technology for the benefit of the public. The collective decision-making process lessens the making of decisions solely for personal gain by encouraging inclusivity.