Page 33 - Nexia SAB&T Property & Tax Guide 2022

ceases to have a share in the common property. The body corporate is responsible for the
enforcement of the Rules of the scheme, and the control, administration and management
of the common property. Some of its more important functions are to establish and maintain
an Administration Fund and Reserve Fund, and to require owners to contribute to these funds
and to raise these amounts by levying contributions on the owners in proportion to the quotas
of their respective sections, to insure buildings and keep them insured to the replacement
value thereof.
TEN-YEAR REPAIR, REPLACEMENT AND MAINTENANCE PLAN
A body corporate or the Trustees are required to prepare a written, ten-year repair, replacement
and maintenance plan for the common property, setting out a number of items including major
capital items expected to require maintenance, repair and replacement within the next 10
years, the estimated cost of such maintenance, repair and replacement and the expected life
of those items. This plan is used to ascertain Reserve Fund Contributions.
MEETINGS OF THE BODY CORPORATE
The developer must convene a meeting of the members of the body corporate not more
than 60 days after the establishment of the body corporate, and is required to furnish the
members with information and documentation regarding the scheme. Where a special or
unanimous resolution will be taken, 30 days’ prior notice must be given to all the members in
the prescribed form. Votes are calculated in value, or in number, as is set out in section 6(6)
and (7).
A person may not act as a proxy for more than 2 members of the body corporate.
A body corporate or an owner who is unable to obtain a special or unanimous resolution may
approach the Chief Ombud for relief.
OWNER MEETINGS
The body corporate must hold an AGM within 4 months of the end of each financial year,
unless this requirement is waived. Business must not be transacted at any general meeting
unless a quorum is present or represented, and the requirements for a quorum to be met are
set out in detail in the Act.
MANAGEMENT AND CONDUCT RULES
Sectional Title schemes are regulated and managed by means of Management and Conduct
Rules, subject to the STSMA. Management rules exist to specify in detail how the body
corporate’s operations must be carried out and they also set out the rights and duties of its
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