1
Lecture 5
RULES [LAWSA 420-429]
STA s 11(3)(e):
- In the developer’s application for opening the ST register, he must
say what rules are applicable
- must get certificate by the Chief Ombud stating that the rules
contemplated in s10 STA have been approved + Ann. 1 & 2 rules +
spec. rules
STSMA s 10(1):
- from establishment of the body corporate, they have rules that regulate
& manage the scheme
STSMA s 10(2):
- they must also provide for the regulation., management, use,
enjoyment of sections & common property
Two kinds of rules
1. (a) prescribed management (Ann 1)
a. Can be dev. substitute, add, amend by the body corporate
b. Can only be done by unanimous resolution
2. (b) prescribed conduct rules: (Ann 2)
a. developer or the body corporate can amend
b. only done by special resolution
The new conduct rule cannot be irreconcilable with management rules
STSMA s 10(3):
- must apply reasonably
- must apply equally to all owners of units
STSMA s 10(4) effect:
- binding on owners and occupiers (Shaftesbury)
STSMA s 10(5)(a):
- if the management or conduct rules are substituted to, added to,
amended or repealed, the developer or BC must lodge a notification
of this at the chief ombud
STSM Reg reg 5(2):
- the BC notice of amendment to rules must be in accordance with
Form B of Annexure 3
STSMA s 10(5)(b) &(c):
- Ombud by examine it
- Will not approve it unless it is reasonable and appropriate for scheme
- on approval, he must issue certificate
STSMA s 10(5)(d) in operation:
- date certificate of approval is issued
- the rules are only in operation after the certificate is issued
STSMA s 10(6) obligation on body corporate
- to keep a copy of all rules
- must have it available at meetings
- must deliver a copy to new owners & occupiers
- also must deliver copy of substituted etc rules upon request of owner/
person authorized in writing by owner
STSM Reg 6(3):
, 2
- developer may substitute etc only 4 management rules (at the
beginning)
- may only have to do with the number of trustees; nomination and
election of trustees; reimbursement: trustees; chairperson
- this is because we want a sound management system
- it wouldn’t help if the develop can change all of them
- only less important rules can be altered
STSM Reg 6(6):
- b. c. may substitute management rules only after developer has
transferred 30% of units to owners
Restrictions on amendment
1. certain management rules not amended developer in the beginning
(reg 6(3))
2. body corporate not substitute or amend it until 30% of units
transferred (reg 6(6))
3. no substituted conduct rule can be irreconcilable with management
rules
4. spec rules must be reasonable and apply equally to all sections (s
10(3))
5. may not conflict with STSMA provisions on regulation &
management
6. the rules must concern the regulation management: eg. cannot
have a rule that
trustees may not
drink
7. cannot regulate the behaviour of outsiders
8. may not conflict with Bill of Rights in Constitution eg. a
discriminatory rule
BODY CORPORATE LAWSA 430 (read only) 431-435
(passim)
We need a body to govern the building
Without this, there will be chaos without good management
required a central management body
Differs from social club
I. Nature
- Juristic person:
o has name,
o its own assets,
o perpetual succession,
o can institute or defend actions in court
- Differ from company:
o STSMA s 15(1)
o not limited liability (like a company)
o if there are creditors of the BC, the BC must be sued
Lecture 5
RULES [LAWSA 420-429]
STA s 11(3)(e):
- In the developer’s application for opening the ST register, he must
say what rules are applicable
- must get certificate by the Chief Ombud stating that the rules
contemplated in s10 STA have been approved + Ann. 1 & 2 rules +
spec. rules
STSMA s 10(1):
- from establishment of the body corporate, they have rules that regulate
& manage the scheme
STSMA s 10(2):
- they must also provide for the regulation., management, use,
enjoyment of sections & common property
Two kinds of rules
1. (a) prescribed management (Ann 1)
a. Can be dev. substitute, add, amend by the body corporate
b. Can only be done by unanimous resolution
2. (b) prescribed conduct rules: (Ann 2)
a. developer or the body corporate can amend
b. only done by special resolution
The new conduct rule cannot be irreconcilable with management rules
STSMA s 10(3):
- must apply reasonably
- must apply equally to all owners of units
STSMA s 10(4) effect:
- binding on owners and occupiers (Shaftesbury)
STSMA s 10(5)(a):
- if the management or conduct rules are substituted to, added to,
amended or repealed, the developer or BC must lodge a notification
of this at the chief ombud
STSM Reg reg 5(2):
- the BC notice of amendment to rules must be in accordance with
Form B of Annexure 3
STSMA s 10(5)(b) &(c):
- Ombud by examine it
- Will not approve it unless it is reasonable and appropriate for scheme
- on approval, he must issue certificate
STSMA s 10(5)(d) in operation:
- date certificate of approval is issued
- the rules are only in operation after the certificate is issued
STSMA s 10(6) obligation on body corporate
- to keep a copy of all rules
- must have it available at meetings
- must deliver a copy to new owners & occupiers
- also must deliver copy of substituted etc rules upon request of owner/
person authorized in writing by owner
STSM Reg 6(3):
, 2
- developer may substitute etc only 4 management rules (at the
beginning)
- may only have to do with the number of trustees; nomination and
election of trustees; reimbursement: trustees; chairperson
- this is because we want a sound management system
- it wouldn’t help if the develop can change all of them
- only less important rules can be altered
STSM Reg 6(6):
- b. c. may substitute management rules only after developer has
transferred 30% of units to owners
Restrictions on amendment
1. certain management rules not amended developer in the beginning
(reg 6(3))
2. body corporate not substitute or amend it until 30% of units
transferred (reg 6(6))
3. no substituted conduct rule can be irreconcilable with management
rules
4. spec rules must be reasonable and apply equally to all sections (s
10(3))
5. may not conflict with STSMA provisions on regulation &
management
6. the rules must concern the regulation management: eg. cannot
have a rule that
trustees may not
drink
7. cannot regulate the behaviour of outsiders
8. may not conflict with Bill of Rights in Constitution eg. a
discriminatory rule
BODY CORPORATE LAWSA 430 (read only) 431-435
(passim)
We need a body to govern the building
Without this, there will be chaos without good management
required a central management body
Differs from social club
I. Nature
- Juristic person:
o has name,
o its own assets,
o perpetual succession,
o can institute or defend actions in court
- Differ from company:
o STSMA s 15(1)
o not limited liability (like a company)
o if there are creditors of the BC, the BC must be sued
