Owners Corporation Start Up

Requirements to get your OC underway.

Your owners corporation may be new or may not have been active for many years. The following information explains how to get your owners corporation going, so it can comply with the law.

Under the Owners Corporations Act 2006, your owners corporation must;

  • Manage and administer its common property,
  • Repair and maintain the common property, fixtures, fittings, services and equipment,
  • Take out and maintain a suitable level of insurance,
  • Keep an owners corporation register,
  • Provide owners corporations certificates,
  • Have a process to deal with complaints and grievances, and
  • Hold an annual general meeting and keep minutes.

After the first annual general meeting, you only need to hold one if your owners corporation pays out money or receives a complaint during the financial year.

Your owners corporation number:

Check your plan of subdivision. A subdivision with common property will be registered with Land Victoria and can be obtained by calling (03) 8636 2456 or by visiting www.land.vic.gov.au. The plan of subdivision number from Land Victoria is your owners corporation number.

For Developers and small subdivisions:

The initial owners role:

The initial owner should call the owners corporation’s first meeting within six months of registering the plan of subdivision at Land Victoria. The initial owner is usually the owners corporation’s sole member at this stage.

At this meeting, the initial owner or applicant for registration must provide the owners corporation with the following;

  • The owners corporation register,
  • A copy of the plan of subdivision and planning documents,
  • Copies of building contracts and building plans,
  • The maintenance plan, (for prescribed owners corporations or if necessary)
  • A copy of the Owners Corporations Act 2006, Owners Corporations Regulations 2007,
  • Subdivision Act 1988 and Subdivision (Procedure) Regulations 2000,
  • Contracts, leases and licences binding or benefiting the owners corporation,
  • Insurance policies relating to the owners corporation,
  • Names of companies, tradespeople or suppliers who have provided a warranty or guarantee,
  • Books to enable the owners corporation to keep minutes, accounts and other records,
  • Accounts or records made on behalf of the owners corporation,
  • A common seal, and
  • Rules registered at Land Victoria.
The first annual general meeting:

To activate your owners corporation you must hold an annual general meeting. Lot owners who have at least 25% of the total lot entitlements can convene the first annual general meeting:

  • If the initial owner did not, or
  • To reactivate an existing owners corporation.

To hold the meeting, send out a notice at least 14 days before the scheduled date to all members stating;

  • The date, time and place of meeting,
  • The text of any special resolution or unanimous resolution,
  • The financial statements setting out all income, expenditure, assets and liabilities,
  • The proposed budget,
  • A statement that lot owners can appoint a proxy, and
  • An agenda setting out;
  • Election of a committee, (a committee is mandatory if there are 13 or more lots, and optional if there are less than 13 lots)
  • Election of chairperson and secretary,
  • Appointment of registered manager,
  • Instruments of delegation for the manager, committee, chairperson and secretary if required,
  • Registration of the owners corporation for taxation purposes, (your owners corporation may need to have a Tax File Number (TFN) and an Australian Business Number (ABN)
  • Notification to Land Victoria of changes to the owners corporation contact details,
  • Provision and details of insurance,
  • Additional insurance, (for example, to protect office bearers)
  • Setting up a bank account,
  • Method of keeping books and records,
  • Letterbox and sign, (if not already provided)
  • Building audit for the purposes of the Building Regulations 2006, (including cooling tower registration if required)
  • Risk assessment for occupational health and safety purposes,
  • Budget for the next 12 months, (usually for a financial year)
  • Consideration of financial statements,
  • Details of any fees to be paid by the owners corporation,
  • Rules (including the owners corporations process for resolving disputes), and
  • Consideration of reports (you may not have any to consider at the first annual general meeting).

The notice must be handed or sent to lot owners. It can be sent by email or other electronic means. If you are reactivating an existing owners corporation, you should have original documents from the initial owner (see ‘The initial owner’s role’ above). If not, individual lot owners may have copies and you can get some of the documents from your local council and Land Victoria.

For more information please visit:  www.consumer.vic.gov.au

After the first annual general meeting:

After activating your owners corporation by holding the annual general meeting, you may need to open a bank account or take out insurance in its name. To do this you may have to provide evidence that the owners corporation is a legal entity. This includes;

  • A statement that the owners corporation is incorporated on the registration of the plan under Section 28 of the Subdivision Act 1988
  • A copy of the plan of subdivision, and
  • Minutes of meeting recording the decision to open an account or take out insurance.
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