The body corporate can establish and maintain the following funds, in addition to the operating account, if it decides they are necessary.
The Unit Titles Act 2010 allows the body corporate to establish and maintain the following funds (in addition to the operating account) if it decides they are necessary:
- a long term maintenance fund
- one or more contingency funds
- a capital improvement fund.
The operating account and these funds can either be set up as separate bank accounts or as a single bank account, providing each fund is kept entirely separate and is able to be identified.
Long-term maintenance fund
The body corporate must establish and maintain a long-term maintenance fund, unless the body corporate decides not to by special resolution. This fund can only be used for expenditure that relates to the long-term maintenance plan. The body corporate must approve any spending on a single maintenance item if the spending exceeds the budgeted amount in the long-term maintenance plan by more than 10%.
Should a body corporate need to pass a resolution without a general meeting.
- Notice of the resolution must be given to eligible voters in accordance with the regulations
- A resolution in writing signed by a majority of eligible voters in respect of an ordinary resolution, and not less than 75% of eligible voters in respect of a special resolution, is as valid as if it had been passed at a meeting of those voters.
A notice of a resolution to be passed without a general meeting must contain the following information:
- a statement that the resolution that accompanies the notice is to be passed by the body corporate without a general meeting
- instructions on how to vote in favour of, or against, the resolution
- the name and address of the person to whom the resolution indicating the vote must be returned
- the date by which a vote must be cast
- the percentage of eligible voters required to vote in favour of the resolution for the resolution to pass
- a statement that no poll can be requested in relation to the resolution.
A notice of a resolution to be passed without a general meeting must be accompanied by the resolution. As soon as is reasonably practicable after votes have been counted, the body corporate must notify unit owners of the result of the vote.
Optional contingence fund(s)
The body corporate may establish and maintain one or more contingency funds to provide for unbudgeted expenditure.
Capital improvement funds
The body corporate may also establish and maintain a capital improvement fund, for expenditure that adds to or upgrades the unit title development, if this is not already provided for in the long-term maintenance plan.