Your SlideShare is downloading. ×
Company Title Conversion
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Company Title Conversion

343
views

Published on

All you want to know about company title conversion

All you want to know about company title conversion

Published in: Education

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
343
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Conversion of Company Title Schemes to Strata Title © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au
  • 2. Why should we convert to strata title? • Own a subdivision of airspace above the ground on separate title • Can sell, mortgage, or lease the lot itself, without the cumbersome share/unit procedure • Ready made dispute resolution procedure through legislation including mediation and the Tribunal • Having strata title to land means a higher market value than company title © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au
  • 3. What are some disadvantages of conversion? • Can not decide who will be permitted as an occupant • Land Tax and Stamp Duty may apply • Higher rate liability (water, electricity) • May be capital gains liability on conversion © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au
  • 4. Power to Convert • The company must have the power to convert • If no power, the company must change the Constitution to provide the necessary power © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au
  • 5. Decision to Convert • Canvass the opinion of shareholders • Put forward a proposed motion to investigate conversion option: “THAT this meeting approves conversion of the company home unit scheme to strata title and that it supports the directors of the company in their proposed investigation of such a course of action.” • Unanimous approval is commonly required. This is specified in the Articles of Association and requires an Annual or Special General Meeting. © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au
  • 6. Matters Affecting Conversion • Corporate Issues • Local Government Requirements • Survey Matters • Mortgagees of shares © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au
  • 7. Steps to Conversion Company Consent Requirements • Altering the Memorandum of Association to allow conversion (commonly requires special resolution and notification must be provided to ASIC within 21 days of passing the special resolution) • Formal Decision to Convert • Consent of all shareholders in writing © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au
  • 8. Steps to Conversion continued… Town Planning and Strata Plan Preparation • Consult with a Town Planner at the pre-development application level • Brief surveyor to prepare Strata Plan and measure the lots in compliance with Planning Instruments (LEP and DCP) • Surveyor Plans and Report to be submitted to local council for Development Application (consent may be required for additional items as part of DA process) © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au
  • 9. Steps to Conversion continued… • Registration at Land Titles Office • Transfer of lots to shareholders in the company (Stamp duty payable on transfer) © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au
  • 10. Winding Up the Company • Once lots are transferred, shareholders must commence a voluntary winding up of company. © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au
  • 11. 323 Beaconsfield Pde – Case Study • 18 lots converted to Strata Title; • 12 mortgagees; 2 caveators and 1 dead owner; • Re-alignment of boundaries of car parking spaces; • Increase in value of $80,000 per unit* © Copyright 2012 Teys Lawyerswww.teyslawyers.com.au