SA: Q&A What does the Developer provide at the first meeting of the complex?

This question from a SA developer about what they need to do and provide at the very first meeting of the complex has been answered by Tony Johnson, Horner Management.

Question: As a small Developer of a Community Titled Property in South Australia, what am I required to provide for setting up the initial meeting of the complex?

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Answer: The Developer should employ a Strata Management firm to prepare and run the meeting.

The Developer has a legal obligation to set up the first statutory meeting of the Community group. I would propose that most Developers employ a Management firm to prepare and run that meeting along with the recording of the minutes and setting up the group from that point forward with the statutory requirements; such as forward budgets, bank accounts, sinking funds, etc.

However even when a Community Manager runs this initial meeting, there would still be requirements on the Developer to provide the information prepared by the Developer to that point, including all statutory documentation as outlined in the Act. Below is the relevant section of the Community Titles Act 1996 which outlines what the Developer must have ready for that meeting. Below is a link to the Act:

Division 2 — General meetings

79 — First statutory general meeting

1. The developer must convene a general meeting of the community corporation within 3 months after the day on which there are at least 2 different members of the community corporation (not including the developer or any person who the developer knows, or ought reasonably to know, is an associate of the developer).

   Maximum penalty: $15 000.

2. A member of the corporation may convene the meeting required under subsection (1) if the developer fails to do so.

80 — Business at first statutory general meeting

1. The developer must deliver to the corporation at the first statutory general meeting—

   (a) a copy of the plan of community division deposited in the Lands Titles Registration Office which shows the service infrastructure by which the lots and common property are provided with water, gas, electricity and other services; and

   (b) a copy of—

   1. the scheme description (if any); and
   2. the by-laws; and
   3. the development contract or contracts (if any), filed by the Registrar-General with the deposited plan; and

   (c) a copy of specifications, diagrams and drawings relating to the buildings or other improvements (if any) on the community parcel; and

   (e) all policies of insurance taken out by the developer; and

   (f) a statement of the corporation’s assets and liabilities; and

   (g) an expenditure and contribution statement complying with section 113; and

   (h) books of account and other records relating to the corporation; and

   1. the corporation’s common seal; and (j) a copy of all other documents in the developer’s possession that are likely to be of use to the corporation.

   Maximum penalty: $15 000.

2. The following matters must be addressed at the first statutory general meeting—

   (a) the appointment of the presiding officer, treasurer and secretary;

   (b) the custody of the corporation’s common seal and the manner of its use;

   (c) the corporation’s recurrent and non-recurrent expenditure in its first financial year and the amount to be raised by contributions from owners of community lots to cover that expenditure;

   (d) the appointment of an auditor of the corporation’s accounts in its first financial year or a special resolution that the accounts for that year need not be audited;

   (e) such other matters as are required by regulation.

3. If a document of a kind referred to in subsection (1) comes into the possession of the developer within 12 months after the corporation’s first statutory general meeting, the developer must deliver it, or a copy of it, to the corporation.

   Maximum penalty: $15 000.

Have a question about the developers first meeting when setting up the complex or something to add to the article? Leave a comment below.

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This post appears in Strata News #255.

Tony Johnson
Horner Management
SCA (SA) Strata Community Manager of the Year 2018, 2017 & 2016
T: 08 8234 5777
E: tony@hornermanagement.com.au

Read next:

• SA: Q&A Who Does the Strata Manager Really Take Instruction From?
• Why are Strata Managers so difficult to get along with?

This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.

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