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STRATA TITLES ACT 1985 - SECT 47

47 .         Restrictions on powers of expenditure

        (1)         Except as authorised by or under this section the council of a strata company shall not, in any one case, undertake expenditure exceeding the sum obtained by multiplying —

            (a)         a sum per lot fixed by special resolution of the strata company; or

            (b)         if no such sum is fixed, the prescribed amount per lot,

                by the number of lots that are the subject of the scheme.

        (2)         Subsection (1) does not apply to —

            (a)         expenditure authorised in an emergency by the State Administrative Tribunal by an order made on the application of the council of the strata company or a person concerned; or

            (b)         expenditure that is deemed to be approved under subsection (3); or

            (c)         the payment of any premium of insurance effected by or on behalf of the strata company; or

            (d)         any payment required to comply with —

                  (i)         a notice or order served on the strata company by any public authority or local government; or

                  (ii)         an order made with respect to the strata company by a court or tribunal;

                or

            (e)         expenditure authorised by the strata company in general meeting as part of the budget of the company.

        (2a)         The provisions of Part VI apply to an application made to the State Administrative Tribunal under subsection (2)(a) and to an order made by the State Administrative Tribunal in the same way as they apply to an application and an order made under that Part.

        (3)         For the purposes of subsection (2)(b) expenditure is deemed to be approved if notice in writing of the purpose and amount of the proposed expenditure has been given to the proprietors and first mortgagees of all lots in the scheme and, within 14 days after all proprietors and first mortgagees have been given the notice, objection to the proposed expenditure has not been notified in writing to the council by —

            (a)         the proprietors or first mortgagees of not less than 25% of the lots in the scheme; or

            (b)         the proprietors or first mortgagees of lots of which the total unit entitlement is at least 25% of the aggregate unit entitlement of the lots in the scheme.

        (4)         References in subsection (3) to first mortgagees are to registered mortgagees who are first entitled in priority and who have given written notice of their mortgages to the strata company.

        (5)         If an objection is notified under subsection (3) by a first mortgagee of a lot, any objection notified by the proprietor of that lot shall be disregarded.

        (6)         Subsection (3) has effect subject to any restriction imposed on the council by the by-laws of the strata company.

        (7)         Where proposed expenditure to which subsection (1) applies would exceed an amount calculated in accordance with that subsection, the council shall —

            (a)         submit the proposal for determination at a general meeting of the strata company convened for the purpose of, or for purposes which include, consideration of the proposal; and

            (b)         if the proposed expenditure is in respect of work to be performed or the purchase of personal property, submit at least 2 tenders to that meeting with the proposal.

        [Section 47 inserted: No. 58 of 1995 s. 46(1) 5 ; amended: No. 57 of 1997 s. 115(3); No. 55 of 2004 s. 1122.]



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