(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
sum per lot fixed by special resolution of the strata company; or
no such sum is fixed, the prescribed amount per lot,
by the number of lots
that are the subject of the scheme.
Subsection (1) does not apply to —
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
expenditure that is deemed to be approved under subsection (3); or
payment of any premium of insurance effected by or on behalf of the strata
payment required to comply with —
a notice or order served on the strata company by any
public authority or local government; or
an order made with respect to the strata company by a
court or tribunal;
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 —
proprietors or first mortgagees of not less than 25% of the lots in 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.
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 —
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
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
[Section 47 inserted by No. 58 of 1995
s. 46(1) 5 ; amended by No. 57 of 1997 s. 115(3); No. 55
of 2004 s. 1122.]