Some requirements in the Community Titles Act 1996 (SA) do not apply to some small schemes. In addition, the by-laws of some schemes may exempt a scheme from certain requirements. Exemptions vary depending on the number of lots in the scheme or the value of the common property. See also Types of Resolutions: Special resolutions and Financial Management: Audit of accounts.
In relation to forward budgets, corporations with six or less community lots and corporations with buildings and improvements on the common property insured for less than $100 000 are not required to present a forward budget as part of their expenditure statement at their annual general meeting (see Financial Management).
Fidelity guarantee insurance
The requirement to have fidelity guarantee insurance, which began on 27 October 2014, does not apply to two lot community corporations with no administrative or sinking fund, or to community corporations with common property insurance cover of $100 000 or less (see Insurance).
Officers of the corporation
If a scheme has ten or less lots, one person may hold two or all of the positions of presiding officer, secretary and treasurer [Community Titles Act 1996 (SA) s 76(3)(a)] (see Community Corporation: Officers of the corporation).
By-laws may exempt a corporation from certain requirements
The by-laws of a scheme consisting of two lots may exempt the corporation from the requirements to [s 35]:
- hold annual general meetings (except the first general meeting);
- prepare accounting records of the corporation’s receipts and expenditure and to prepare an annual statement of accounts;
- have the annual statement of accounts audited;
- establish administrative and sinking funds; and
- maintain a register of the names of the owners of the community lots.
The by-laws of a three lot scheme may only exempt the corporation from the requirement to maintain a register of names of the owners of the community lots.
The content of the Law Handbook is made available as a public service for information purposes only and should not be relied upon as a substitute for legal advice. See Disclaimer for details. For free and confidential legal advice in South Australia call 1300 366 424.