A Manager’s Role

A Manager’s duties and the obligations of an Owners Corporation are as defined in the Owners Corporation governing law:

Legislation:        Subdivision Act 1988
                              Owners Corporations Act 2006

Regulations:       Subdivision (Procedures) Regulations 2000
                              Subdivision Regulations 2001
                              Owners Corporations Regulations 2007

Note that the Occupational Health and Safety Act 2004 must also be in consideration.

Management of an Owners Corporation as per Schedule 3, Regulation12, Owners Corporations Regulations 2007

An owners corporation may be self-managed by the lot owners or professionally managed by an owners corporation manager. If an owners corporation chooses to appoint a professional manager, it must be a manager registered with the Business Licensing Authority (BLA).


The Manager as per Section 122 Owners Corporation Act 2006 - Duties of manager:

(1) A manager —

(a) holds all money held on behalf of an owners corporation on trust for the owners corporation; and
(b) must account separately for the money held for each owners corporation by the manager.

The following excerpts of the governing law summarise the functions and duties of an Owners Corporation and its manager:


ACCOUNTING

   Establish and operate a bank account in the name of the Owners Corporation;

   All fees levied by an owners corporation must be paid into a bank account of the owners corporation or of the manager of the owners corporation;

   Keep proper accounts that cover all income and expenditure of the owners corporation, assets and liabilities of the owners corporation, and provide for the making of true and fair view reports of the financial situation of the owners corporation;

   An owners corporation that has an approved maintenance plan must keep separate accounts for its maintenance fund;

   Must prepare annual financial statements for presentation at the annual general meeting of the owners corporation;

   A prescribed owners corporation must prepare its financial statements in accordance with the standards required by the regulations;

   Prepare proposed annual budgets;

   Issue notices for fees set and special fees levied by the Owners Corporation in accordance with lot liability;

   Pursue Debt Collection processes as dictated in the Owners Corporation Act 2006;

   Pay invoices and insurance premiums on behalf of the Owners Corporation (provided reasonable funds are held by the Owners Corporation);

   Reconciliation of bank account.

INSURANCE

   Define an insurable building including: any building on the plan of subdivision, any improvements and fixtures forming part of the building, and anything prescribed as forming part of a building;

   An insurable building does not include: carpet and temporary floor, wall and ceiling coverings, or fixtures removable by a lessee at the end of a lease, or anything prescribed as not forming part of a building;

   An owners corporation must be taken to have an insurable interest in the land affected by the owners corporation;

   An owners corporation must take out public liability insurance for the common property;

   The public liability insurance required for any liability of the owners corporation to pay compensation in respect of: any bodily injury to or death or illness of a person, and any damage to or loss of property which is sustained as a result of an occurrence or happening in connection with the common property;

   The owners corporation must ensure that, in the insurance which the owners corporation has under the limit of liability is a minimum of $10,000,000, or if another amount is prescribed, that other amount, in any one claim and in the aggregate during any one period of insurance;

   A prescribed owners corporation must obtain a valuation of all buildings that it is liable to insure. The valuation must be obtained every 5 years or earlier as determined by the owners corporation. The owners corporation must present the valuer's report at the next general meeting after it is received;

   Prepare and lodge routine insurance claims with insurers/brokers. A manager’s obligation is to allow for a maximum of 15 minutes to process each claim. Time spent in excess of 15 minutes is chargeable in accordance with the manager’s contract.

DOCUMENTATION

   Establish an Owners corporation register:

a)    The applicant for registration of a plan of subdivision that provides for the creation of an owners corporation must establish an owners corporation register;

b)    An owners corporation existing on the date of commencement of this section must establish an owners corporation register within the time prescribed by the regulations;

c)    An owners corporation must maintain the owners corporation register.

   An owners corporation must keep the following records in respect of the owners corporation:

a)    the owners corporation plan number and address;

b)    the name and address of each lot owner;

c)    the name of the manager, registration number of the manager and contact details of the manager (if any);

d)    total lot liability and total lot entitlements;

e)    lot liability and lot entitlements for each lot affected by the owners corporation;

f)    the basis for the setting of lot liability and lot entitlement (if available);

g)   the date of each amendment to the owners corporation rules and the date of the recording of the consolidated rules (incorporating the amendment) in the Register kept under the Transfer of Land Act 1958;

h)   a consolidated copy of the rules;

i)    details of any notices or orders served on the owners corporation by a court or tribunal or under an Act;

j)    notices served by the owners corporation, including notices under Part 10 of the Owners Corporation Act 2006;

k)   contracts and agreements entered into by the owners corporation;

l)    details of contracts, leases and licences entered into by the owners corporation;

m) details of the insurance policies taken out by the owners corporation including—

i.      the name of the insurance company

ii.     the number of the insurance policy

iii.    the nature of the risk insured

iv.    the amount of insurance

v.     the due date of the premium

vi.    the date that the premium was last paid

n)    minutes of meetings;

o)    copies of resolutions;

p)    records of the results of ballots;

q)    proxies;

r)     voting papers or ballots;

s)    correspondence;

t)     accounting records;

u)    records of assets and liabilities;

v)     financial statements;

w)    income tax returns of the owners corporation;

x)     and GST records (if any);

y)     maintenance plans.

   Keep Records for:

a)    An owners corporation must keep voting papers and ballots for 12 months after the vote or ballot is taken;

b)    An owners corporation must keep proxies for 12 months after they expire or are revoked;

c)    An owners corporation must keep all other documents of a kind set out in section 144 of the Owners Corporation Act 2006 for at least 7 years.

   Ensure availability of records:

a)    The owners corporation, on request by a lot owner, a mortgagee of a lot, a purchaser of a lot or the representative of a lot owner or mortgagee or purchaser of a lot, must make the records of the owners corporation required to be kept available to that person for inspection at any reasonable time, free of charge;

b)    The owners corporation may at the request of a person entitled to inspect the records and on payment of a reasonable fee provide a copy of any record of the owners corporation;

c)    A fee determined by the owners corporation must not exceed the prescribed maximum fee.

   Issue Owners Corporation certificates;

   Answer reasonable enquiries at the cost of the applicant/enquirer;

   Transact routine inwards and outward correspondence;

   Keep a register and supervise the use of the common seal.

ANNUAL GENERAL MEETING


The manager must arrange and attend an annual general meetings held during office hours at the Manager’s office or at another place agreed between the Owners Corporation and the Manager. The Manager must ensure that the Annual General Meeting achieves:

   introductions;

   review of proxies, apologies, etc. received;

   review of previous minutes of meeting;

   the election of a committee, if the owners corporation is to have a committee;

   the appointment of a chairperson, secretary, committee members;

   the appointment of a manager, if applicable;

   the provision of details of the insurance held by the owners corporation;

   the provision of details of fees fixed by the owners corporation during the year;

   the consideration of the financial statements of the owners corporation;

   the consideration of the proposed annual budget of the owners corporation;

   the making of any delegations;

   the consideration of reports e.g. OH&S Report;

   the consideration of maintenance issues, plans, etc.;

   other business ...

MAINTENANCE

   Arrange for minor (< $1,000) repairs and maintenance of Owners Corporation Property;

   Organise duly qualified and certified contractors for regular maintenance works such as gardening, cleaning, etc.

   Organise for OH&S compliance, essential service safety checks, etc.

SIGNAGE


If the Owners Corporation appoints a manager, the Owners Corporation must erect and maintain a sign giving the manager's name and postal address in a place clearly visible from either:

a)    the main group of letterboxes; or

b)    the main entrance to the land.

GUIDANCE


Provide guidance to the Owners Corporation to enable the Owners Corporation to carry out and perform its duties and functions.


Professional services in excess of those listed above generally attract an additional fee.