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  • 1. Surviving  the  Transi=on  to  the  ACT   Unit  Titles  (Management)  Bill  2011   Presenta=on  July  2011  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 2. A  New  Suite  of  Legisla=on   Unit  Titles  Act  2001   Unit  Titles   (Management)  (Act)     Schedule  2  –   Schedule  4  –  Default   Schedule  1  –  Codes   Schedule  3  –  General   Execu=ve  CommiLee   Rules  (previously   of  Conduct   Mee=ngs   Process  &  Procedure   ar=cles)   1.1  Execu=ve   CommiLees   1.2  Strata  Managers  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 3. The  Environment  is  the  Big  Winner  •  New  defini=on  of  sustainability   infrastructure  •  Ordinary  resolu=on  to  install,   finance  and  grant  easements  •  Requires  considera=on  of  long  term   benefits  •  May  be  acquired  as  trustee  for  tax   reasons  •  Service  Contracts  may  need  to  show   environmental  sustainability   measures  •  OC  rules  must  not  prohibit  or  restrict   sustainability  or  u=lity  infrastructure   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 4. More  Responsibility  on  Execu=ve   CommiLees   • Responsible  for  compliance  with  Privacy  Act   Privacy   • Requires  privacy  policies  and  procedures     • Annual  disclosure  of  insurance  and  commission   Disclosure   • Requires  knowledge  of  managers’  insurance  commission   • Tighter  constraints  on  all  service-­‐type  contracts   • Requires  greater  focus  on  short-­‐term  for  contractors  and  employees  (other  than  strata   Outsourcing   manager  and  services  contractors)   • New  code  of  conduct  for  execu=ve  commiLee  members   Conduct   • Requires  knowledge  of  Act  and  higher  standards   • Personally  liable  for  dishonesty  and  recklessness   Liability   • Requires  due  diligence  processes  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 5. What  is  Recklessness?  reckless  /  adjec&ve  1.   •  Failing  to  repair  and  maintain  uLerly  careless  of  the   common  property  known  to  consequences  of  ac=on;   be  a  risk  to  health  and  safety  without  cau=on  –   •  Failing  to  take  advice  on  recklessness,  noun  Macquarie  Dic=onary,  4th  Edi=on   workplace  safety   •  Entering  into  a  major  contract   or  transac=on  without  legal   advice   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 6. A  $10  latch  and  10  minutes  work   would  have  saved  this  boy’s  life   Iman  Akter  Mostafa,  aged   three  (top  led),  died  when   he  fell  from  a  window  of  a   strata  scheme  in  Kogarah   in  2009.   hLp:// www.chw.edu.au/parents/ kidshealth/building_falls/  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 7. A  New  EC  Code  of  Conduct   1.  Understanding  of  Act   2.  Honesty  and  fairness   3.  Care  and  diligence   4.  Best  interest   5.  Compliance   6.  Nuisance   7.  Unconscionable   conduct   8.  Conflict  of  interest  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 8. What  Is  Reasonable  Care  &  Diligence?   For  example:  diligence  /  noun  constant  and  earnest  effort  to  accomplish   •  Checking  references  and  what  is  undertaken;  persistent   insurance  policy  of  a  new   strata  manager  exer=on  of  body  or  mind   •  Considering  external  advice  Macquarie  Dic=onary  4th  Edi=on   and  only  ac=ng  otherwise  in   special  circumstances   •  Finding  out  about   responsibili=es  and  =me   limita=ons  in  building  defect   maLers   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 9. What  Is  Unconscionable  Conduct?   •  Serious  misconduct  or   something  unfair  or   unreasonable   •  Conduct  which  shows   no  regard  for   conscience   •  Conduct  which  is   irreconcilable  with  what   is  right  or  reasonable  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 10. For  Managers  the  Devil  is  in  the  Detail  •  2  year  max  developer  appointments  •  Subsequent  3  year  terms  include  op=ons  •  EC  must  disclose  insurance  commission  annually  •  Transfers  subject  to  ordinary  resolu=on  approval   not  to  be  unreasonably  withheld  •  Dismissal  for  14  consecu=ve  days  absence  •  Cer=ficate  and  inspec=on  income  to  be  paid  to   the  OC   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 11. Lower  Bar  for  Budget  Approval  •  Ordinary  resolu=on  rather   than  special  for  approving   the  budget  •  Prudent  budge=ng   clarified  to  include   maintaining  common   property  in  good   condi=on  on  a  day-­‐to-­‐day   basis  •  Clearer  rules  about  what   funds  can  be  used  for   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 12. Sinking  Fund  Plans  Refined  PermiLed   Timing  for  new   Amending  plans  payments   plans   • First  plan  4  year  • New  property,  and     • At  least  12  months   review  • Renew  or  replace  old   before  end  of  10  year   • Other  plans  5  year   property   plan   review   • Enforces  prudent   • Express  power  to   budge=ng   amend  at  any  =me  by   ordinary  resolu=on   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 13. BeLer  Insurance  Regime   Improvements   en=rely  of   common   property   Future   Building   regula=ons  eg   exclusions   excess   defined   Compulsory   Addi=onal   debris  and  fee   risks  by   cover   regula=on   Greatest   prac=cable   extent  cover  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 14. ‘Rules’  Replace  ‘Ar=cles’  •  Pre  UTA  2001  ar=cles   stand  but  called  rules  •  Post  UTA  2001  ar=cles   stand  as  rules  if  not   inconsistent  with  new   Act  or  other  territory   laws  •  Rules  prohibi=ng  or   restric=ng  sustainability   are  invalid   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 15. Privacy  Laws  Apply  to  Records   Corporate  register   contains  personal   Limita=ons  on   EC  members  have   informa=on  and   human  rights  to   responsibility  for   must  be  separately   privacy  are  privacy  compliance   displayed,  printed  or   propor=onate   emailed  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 16. Personal  Informa=on  Held  by  OC’s  and   Managers     Owners  credit   Names   Tenancy  details     card  details     Property   Bank  account   Addresses     descrip=ons  and   details  for   valua=ons   suppliers   Some=mes  proof   Telephone   Email  addresses   of  personal   numbers   iden=fica=on    ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 17. What  Do  Strata  Managers  Do  With   This  Informa=on?  What?     Allowed  or  not?  Give  it  to  strata  inspectors     Required  by  strata  management  laws  Give  it  to  the  execu=ve  commiLee     Probably  not  allowed  under  Na=onal     Privacy  Principles      Give  it  to  web  hos=ng  companies     Probably  not  allowed  under  Na=onal   Privacy  Principles    Give  it  to  strata  management  sodware     Probably  not  allowed  under  Na=onal  providers   Privacy  Principles  Give  it  to  associated  suppliers  for  cross   Probably  not  allowed  under  Na=onal  marke=ng  (e.g.  banks  )     Privacy    Principles      Throw  it  in  the  rubbish  (paper  and   Not  allowed  under  Na=onal    Privacy  redundant  IT)     Principles     ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 18. What  Should  Owners  Do  to  Manage   Privacy?  •  Limit  informa=on   Protect     •  Audit  privacy   collected  to  that   policies   which  is  absolutely   •  Secure  info   electronically  and   •  Audit  strata   necessary     managers  document   give  traceable  access   only   security  processes     •  Use  privacy  policies     Limit     Check     ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 19. Dispute  Resolu=on  Changes  “Only  the  OC  can  apply  to  ACAT  for  an  order  about  animal  disputes  –  it  will  be  for  aggrieved  occupants  to  persuade  the  OC  to  take  ac=on”   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 20. General  Mee=ng  Innova=ons   •  28  days  rather  than  21   for  reduced  quorum   decision  to  take  effect   •  Absentee  votes  now   allowed  for  any  mo=on   (previously  only   unopposed  or   unanimous  resolu=ons)  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 21. How  We  Can  Help  Your  Transi=on   Execu=ve   commiLee   Compliance   manuals  and   reviews   training  material   Review  of  rules   Standard  privacy   policies  and   procedures  will   be  available   Updates  and   further   thoughts  will   be  available   weekly  via   StrataSpace  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  • 22. About  The  Presenter   Michael   Teys   is   the   Founder   and   Principal   Lawyer   of   TEYS   Lawyers.  He  has  a  Bachelor  of  Laws  and  prac=ces  exclusively  in   the   area   of   strata   =tle   law.   He   is   a   Fellow   of   the   Australian   College  of  Community  Associa=on  Lawyers.  He  was  formerly  an   Adjunct   Lecturer   with   Charles   Sturt   University.   He   appears   weekly   on   SKY   News   Business   Channels   Property   Success   with   Margaret   Lomas   and   is   a   regular   panellist   for   the   property   edi=on  of  Your  Money,  Your  Call  for  the  same  channel.  You  can   find  out  more  about  Michael  at  www.michaelteys.com  TEYS   Lawyers   prac=ce   na=onally   in   strata   =tle   law   represen=ng   owners  corpora=ons,  bodies  corporate  and  apartment  owners.    The  firm’s  prac=ce  groups  include   building   defects,   management   rights,   strata   community   disputes,   by-­‐laws  and  rules  and  levy  and  fee  collec=on.  Subscribe  for  their  free  e-­‐newsleLer  StrataSpace  and  find  out  more  about  them  at  www.teyslawyers.com.au  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au