What is Owners Corporation?

Owners Corporation MeetingWhere a building is subdivided into a number of lots, the plan of subdivision may provide for the creation of a body to collectively manage the building.

When the plan is registered at the Titles Office this body becomes ‘incorporated’ as a separate legal entity and is known as an Owners Corporation (Formerly Body Corporate).

At this time an inaugural meeting is convened on behalf of the owners by the developer in conjunction with their solicitors. At this meeting the delegation of the duties of the Owners Corporation is approved and the Owners Corporation manager is appointed.

Minutes from this meeting are then prepared for the records of the Owners Corporation. Once a majority of purchasers have settled, a special general meeting of unit owners is held to approve additional special rules and appoint a committee of management.

 

What is the Role of the Owners Corporation?

The role of the Owners Corporation is to manage and administer the common property in accordance with the relevant Owners Corporation regulations. The powers, duties and functions of an Owners Corporation and its members are contained in the regulations and in the Owners Corporation rules. An Owners Corporation is responsible for:

  • The general management and administration of land and buildings in the subdivision including, in particular, any common property
  • Taking out and maintaining insurance, including compulsory public risk and reinstatement insurance
  • Properly maintaining common property
  • Taking any action necessary to ensure compliance with regulations, rules and by-laws
  • Providing statutory certificates to owners and prospective purchasers
  • Providing information about the Owners Corporation’s financial position

In addition, an Owners Corporation (body corporate services) is required to have a common seal, to conduct meetings of its members and to have an address for receiving correspondence. An Owners Corporation must also keep records and prepare financial statements.

 

More Information

The Owners Corporations Act
Consumer Affairs Victoria
– Owner’s Corporation Guide- Consumer Affairs Victoria 

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