STRATA TITLES ACT 1985  (ACT 318)

PART VIII
TERMINATION OF SUBDIVISION OF SUBDIVIDED BUILDING

56. Power of court when subdivided building is damaged.
57. Termination of subdivision.

(1) When a subdivided building is damaged but is not totally destroyed, a court of competent jurisdiction on the application of the management corporation, a parcel proprietor, or a registered chargee of any parcel, may by order, settle a scheme for the reinstatement or the continued use of the building in whole or in part and any such scheme may include provision for the transfer of the interests of the proprietors of parcels which have been wholly or partially destroyed to the other parcel proprietors in proportion to their share units.

(2) In the exercise of its powers under subsection (1), the court may make such orders as it deems necessary or expedient for giving effect to the scheme, including orders -

(a) directing the application of insurance moneys received by the management corporation in respect of damage to the building;

(b) directing payment of money by the management corporation or by the parcel proprietors or some or one or more of them;

(c) directing such amendment or replacement of the certified strata plan and such consequential amendment or replacement of the strata register as the court thinks fit; and

(d) imposing such terms and conditions as the court thinks fit

(3) Where an application is made under subsection (1), any insurer who has effected insurance on the building to which the application relates (or on any part thereof) shall have the right to appear on the hearing of the application.

(1) The management corporation, where -

(a) the building is totally destroyed; or

(b) the parcel proprietors seek to demolish the building or, in the case of a building which has been partially destroyed, the remaining parts of the building; or

(c) there is only one proprietor for all the parcels,

may be directed by unanimous resolution to take action to terminate the subdivision of the building and; and, subject to any order of a court of competent jurisdiction made under subsection (7), the management corporation if so directed shall lodge with the Registrar a notification in Form 8 together with the issue documents of title of the land and the parcels and of provisional blocks, if any.

(2) On receipt of a notification under subsection (1) the Registrar shall make a memorial of the notification in the registrar and the strata register, and shall inform the Director of Survey that he has done so.

(3) On the making of a memorial under subsection (2) in respect of a subdivided building -

(a) the subdivision shall be terminated and the proprietors shall cease to be proprietors of the parcels and provisional blocks; and

(b) the management corporation shall become the proprietor of the lot as the trustee of the former proprietors.

(4) Where the management corporation becomes the proprietor of the lot under subsection (3) -

(a) any registered charge on a parcel which existed immediately before the termination of the subdivision shall be converted into a personal obligation of the chargor to pay the chargee what is due under the charge;

(b) each of the former proprietors shall continue to be a member of the corporation, having the same voting rights as he had immediately before the termination of the subdivision;

(c) the management corporation shall hold and manage the lot for the benefit of the former proprietors;

(d) the former proprietors may by unanimous resolution direct the management corporation to transfer the lot to any one or more of the former proprietors or to any other person or body; and

(e) the management corporation shall distribute any profits arising from its proprietorship of the lot (including any purchase money received on a transfer) to the former proprietors proportionately to the share units or provisional share units which they held immediately before the termination of the subdivision.

(5) Notwithstanding the termination of a subdivision under this section, the relevant book of the strata register shall continue in existence while the management corporation remains the proprietor of the lot and may be used in evidence as a record of matters relating to the subdivision before its termination.

(6) Where the management corporation, having become the proprietor of the lot under subsection (3), transfers the lot in pursuance of a direction under paragraph (d) of subsection (4) -

(a) the management corporation shall continue in existence for so long as it is reasonably necessary to wind up its affairs and shall then cease to exist; and

(b) the Registrar shall cancel the relevant book of the strata register.

(7) A court of competent jurisdiction, if it is satisfied that the justice of the case so requires -

(a) may on the application of the management corporation, a parcel proprietor or the registered chargee of a parcel make an order -

(i) directing the management corporation to take action under subsection (1) notwithstanding the absence of a unanimous resolution; or

(ii) prohibiting the management corporation from taking action under that subsection notwithstanding a direction given by unanimous resolution; and

(b) where the management corporation has transferred the lot in pursuance of a direction under paragraph (d) of subsection (4), may on the application of the management corporation, a former proprietor or a former chargee make an order for the winding up of the affairs of the management corporation.

(8) In this section -

"former chargee" means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, is the registered chargee of a parcel in the building;

"former proprietor" means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, is the proprietor of a parcel in the building or of a provisional block on the land on which the building is situated.