Strata Schemes Management Act 2015 No 50
Current version for 1 July 2020 to date (accessed 7 July 2020 at 16:47)
Part 5
Part 5 Financial management
Division 1 Funds and accounts of owners corporation
73   Administrative fund
(1) Establishment of fund An owners corporation must establish an administrative fund.
(2) Amounts payable to fund An owners corporation must pay the following amounts into the administrative fund—
(a)  the contributions levied on, and paid by, owners for payment into the fund,
(b)  the proceeds of the disposal of any personal property of the owners corporation,
(c)  any fees paid to the owners corporation for inspection of its records and the provision of information and certificates relating to its records,
(d)  any monetary penalty payable to the owners corporation under this Act,
(e)  the proceeds of any investment of the fund.
(3)  An owners corporation may also pay the following amounts into the administrative fund—
(a)  any amounts paid to the owners corporation by way of discharge of insurance claims,
(b)  any income of the owners corporation (other than proceeds of any investment of the capital works fund),
(c)  any amount that may be, but is not required to be, paid into the fund under this Act.
(4) Amounts payable from fund An owners corporation may pay money from its administrative fund only for the following purposes—
(a)  payments of the kind for which estimates have been made under section 79 (1),
(b)  payments made in accordance with this Division on a distribution of a surplus in the fund,
(c)  payments to a member of the strata committee of the owners corporation in accordance with this Act,
(d)  other payments in connection with exercising its functions under this Act or the by-laws, or the Strata Schemes Development Act 2015, except payments that are permitted to be made from the capital works fund,
(e)  any monetary penalty payable by the owners corporation under this Act,
(f)  the transfer of money to the capital works fund or to pay expenditure that should have been paid from the capital works fund.
74   Capital works fund
(1) Establishment of fund An owners corporation must establish a capital works fund.
(2) Amounts payable to fund An owners corporation must pay the following amounts into the capital works fund—
(a)  the contributions levied on, and paid by, owners for payment into the fund,
(b)  any amounts paid to the owners corporation by way of discharge of insurance claims, unless paid into the administrative fund,
(c)  any amounts paid to the owners corporation under Part 11,
(d)  any amount received by the owners corporation that is not required or permitted to be paid into the administrative fund,
(e)  the proceeds of any investment of the fund.
(3)  An owners corporation may also pay the following amounts into the capital works fund—
(a)  any income of the owners corporation,
(b)  any amount that may be, but is not required to be, paid into the fund under this Act.
(4) Amounts payable from fund An owners corporation may pay money from its capital works fund only for the following purposes—
(a)  payments of the kind for which estimates have been made under section 79 (2),
(b)  payments made in accordance with this Division on a distribution of a surplus in the fund,
(c)  payments of amounts for the purposes of Part 11,
(d)  the transfer of money to the administrative fund or to pay expenditure that should have been paid from the administrative fund.
(5) Exemption An owners corporation for a strata scheme comprising 2 lots need not establish a capital works fund if—
(a)  the owners corporation so determines by unanimous resolution, and
(b)  the buildings comprised in one of those lots are physically detached from the buildings comprised in the other lot, and
(c)  no building or part of a building in the strata scheme is situated outside those lots.
75   Investment of money in administrative fund or capital works fund
(1)  An owners corporation may invest any money in its administrative fund or capital works fund in any manner permitted by law for the investment of trust funds or in any investment prescribed by the regulations.
(2)  Any interest received on an investment made under this section forms part of the fund to which the investment belongs.
76   Use of administrative fund or capital works fund for purposes of other fund
(1)  This section applies if the owners corporation for a strata scheme having more than 2 lots—
(a)  transfers money from the administrative fund to the capital works fund or uses the administrative fund to meet expenditure that should have been met from the capital works fund, or
(b)  transfers money from the capital works fund to the administrative fund or uses the capital works fund to reimburse expenditure that should have been met from the administrative fund.
(2)  The owners corporation must, not later than 3 months after the transfer or use, determine the amount to be levied as a contribution to the fund from which the transfer or use was made to reimburse the amounts paid from the fund. Section 81 (3) and (5) apply to a contribution determined under this subsection.
77   Distribution of surplus money in administrative fund or capital works fund
(1)  An owners corporation for a strata scheme may, in accordance with a unanimous resolution, distribute between the owners any money in its administrative fund or capital works fund that is not, in the opinion of the owners corporation, required for the purposes of either fund.
(2)  A distribution to an owner of a lot or other person entitled to receive it under this section must be made in the same proportion that the unit entitlement of the lot bears to the aggregate unit entitlement.
(3)  Any money distributed under this section in relation to a lot that is subject to a mortgage or covenant charge shown on the strata roll is to be paid—
(a)  in accordance with the joint directions of the owner of the lot and the mortgagee or covenant chargee, or
(b)  if they cannot agree—in accordance with an order under this section.
(4)  The Tribunal may, on application by an owners corporation, an owner of a lot that is subject to a mortgage or covenant charge, or the mortgagee or covenant chargee concerned, make an order as to the payment of money under subsection (3).
(5)  An application under this section is to be made to, and determined by, the Supreme Court (and not the Tribunal) if—
(a)  the title to land is in question otherwise than incidentally, or
(b)  the matter is incidental to other proceedings being dealt with by the Court.
78   Accounts of owners corporation
(1)  An owners corporation must pay any amounts that are received by it and are not otherwise invested in accordance with this Act into an account established in an authorised deposit-taking institution in the name of the owners corporation.
(2)  This section does not apply to an owners corporation that has appointed a strata managing agent to whom the duty of the owners corporation under this section is delegated in accordance with this Act.
Division 2 Contributions by owners
79   Estimates to be prepared of contributions to administrative and capital works funds
(1)  An owners corporation must, not later than 14 days after the constitution of the owners corporation and at each annual general meeting after that, estimate how much money it will need to credit to its administrative fund for actual and expected expenditure—
(a)  to maintain in good condition on a day-to-day basis the common property and any personal property vested in the owners corporation, and
(b)  to provide for insurance premiums, and
(c)  to meet other recurrent expenses.
Note.
 Recurrent expenses would include such regular expenses as insurance, water charges, electricity charges, carpet cleaning, lawn mowing services and the like and minor expenses relating to maintenance of the common property.
(2)  An owners corporation must, at each annual general meeting, estimate how much money it will need to credit to its capital works fund for actual and expected expenditure—
(a)  for painting or repainting any part of the common property which is a building or other structure, and
(b)  to acquire personal property, and
(c)  to renew or replace personal property, and
(d)  to renew or replace fixtures and fittings that are part of the common property, and
(e)  to replace or repair the common property, and
(f)  to meet other expenses of a capital nature.
Note.
 Expenses of a capital nature would include expenses in relation to major repairs or improvements to the common property or personal property of the owners corporation, such as replacement of roofing, guttering or fences and the like.
(3)  When estimating amounts needed to be credited to the administrative fund or the capital works fund, the owners corporation must have before it, and take into account, a statement of the existing financial situation of the strata scheme and an estimate of receipts and payments.
(4)  An estimate prepared before the first annual general meeting of an owners corporation is to take into account the initial maintenance schedule provided by the original owner for that meeting.
(5)  In estimating amounts to be credited to the capital works fund, an owners corporation is to take into account anticipated major expenditure identified in the 10-year plan for the capital works fund proposed under this Division.
(6)  An owners corporation of a large strata scheme must include in the estimates prepared at an annual general meeting—
(a)  specific amounts in relation to each item or matter on which the owners corporation intends to spend money, or on which the owners corporation is aware money will be likely to be spent, in the period until the next annual general meeting, and
(b)  a note as to any difference between the estimates and the 10-year plan for the capital works fund prepared under this Division and the reasons for the difference.
80   Owners corporation to prepare 10-year capital works fund plan
(1)  An owners corporation is to prepare a plan of anticipated major expenditure to be met from the capital works fund for a 10-year period commencing on the first annual general meeting of the owners corporation.
(2)  An owners corporation is to prepare a plan for each 10-year period following the 10-year period to which the first plan applied. The plan is to be prepared for the annual general meeting at which the period covered by the previous plan expires.
(3)  An owners corporation may, by resolution at a general meeting, review, revise or replace a 10-year plan prepared under this section and must review the plan at least once every 5 years.
(4)  A plan under this section is to include the following—
(a)  details of proposed work or maintenance,
(b)  the timing and anticipated costs of any proposed work,
(c)  the source of funding for any proposed work,
(d)  any other matter the owners corporation thinks fit,
(e)  any other matter prescribed by the regulations for the purposes of this section.
(5)  A plan under this section is to be finalised by the end of the next annual general meeting of the owners corporation after the annual general meeting for which the plan is prepared.
(6)  An owners corporation may engage expert assistance in the preparation of a plan under this section.
(7)  An owners corporation is, so far as practicable (and subject to any adjustment under this section), to implement each plan prepared under this section.
81   Owners corporation to set contributions to administrative and capital works funds
(1)  The owners corporation must determine the amounts to be levied as a contribution to the administrative fund and the capital works fund to raise the amounts estimated as needing to be credited to those funds.
(2)  That determination must be made at the same meeting at which those estimated amounts are determined.
(3)  The owners corporation must levy on each person liable for it such a contribution.
(4)  If the owners corporation is subsequently faced with other expenses it cannot at once meet from either fund, it must levy on each owner of a lot in the strata scheme a contribution to the administrative fund or capital works fund, determined at a general meeting of the owners corporation, in order to meet the expenses.
(5)  A contribution is, if an owners corporation so determines, payable by the regular periodic instalments specified in the determination setting the amount of the contribution.
82   Individual contributions may be larger if greater insurance costs
(1)  If the use to which a lot in a strata scheme is put causes an insurance premium for the strata scheme to be greater than it would be if it were not put to that use, so much of a contribution payable by the owner of the lot as is attributable to insurance premiums may, with the consent of the owner, be increased to reflect the extra amount of the premium.
(2)  The Tribunal may, on application, make an order for payment of contributions of a different amount to one or more contributions levied or proposed by an owners corporation on an owner if the Tribunal is of the opinion that the owner’s consent has been unreasonably refused under this section.
(3)  An application for an order under this section may be made by the lessor of a leasehold strata scheme, an owners corporation, an owner of a lot or a mortgagee in possession.
83   Levying of contributions
(1)  An owners corporation levies a contribution required to be paid to the administrative fund or capital works fund by an owner of a lot by giving the owner written notice of the contribution payable.
(2)  Contributions levied by an owners corporation must be levied in respect of each lot and are payable (subject to this section and section 82) by the owners in shares proportional to the unit entitlements of their respective lots.
(3)  Any contribution levied by an owners corporation becomes due and payable to the owners corporation on the date set out in the notice of the contribution. The date must be at least 30 days after the notice is given.
(4)  Regular periodic contributions to the administrative fund and capital works fund of an owners corporation are taken to have been duly levied on an owner of a lot even though notice levying the contributions was not given to the owner.
84   Liability of persons other than owners for contributions
(1)  If, at the time a person becomes the owner of a lot, another person is liable to pay a contribution in respect of the lot, the owner is jointly and severally liable with the other person for the payment of the contribution and any interest on the contribution.
(2)  A mortgagee or covenant chargee in possession of a lot is jointly and severally liable with the owner of the lot—
(a)  for any regular periodic contributions to the administrative fund or capital works fund together with any interest on those contributions, and
(b)  for any other contribution together with interest on that contribution taken to recover unpaid contributions, if the mortgagee or covenant chargee has been given written notice of the levy of the contribution, and
(c)  for any costs payable as a debtor in respect of enforcement action to recover unpaid contributions.
(3)  Subsection (2) does not affect the liability of an owner of a lot for any contribution levied under this section.
85   Interest, discounts on contributions and payment plans
(1)  A contribution, if not paid when it becomes due and payable, bears until paid simple interest at an annual rate of 10% or, if the regulations provide for another rate, that other rate.
(2)  Interest is not payable if the contribution is paid not later than one month after it becomes due and payable.
(3)  However, an owners corporation may by resolution determine (either generally or in a particular case) that a contribution is to bear no interest.
(4)  An owners corporation may, by resolution at a general meeting, determine (either generally or in a particular case) that a person may pay 10% less of a contribution levied if the person pays the contribution before the date on which it becomes due and payable.
(5)  An owners corporation may, by resolution at a general meeting, agree to enter into payment plans, either generally or in particular cases, for the payment of overdue contributions. A payment plan is to be limited to a period of 12 months but a further plan may be agreed to by the owners corporation by resolution.
(6)  The regulations may prescribe requirements for payment plans.
(7)  The existence of a payment plan does not limit any right of the owners corporation to take action to recover the amount of unpaid contributions.
(8)  The Tribunal or a court may, on application by an owner, order that no interest is chargeable on a specified contribution if the Tribunal or the court is satisfied that the owners corporation should reasonably have made a determination not to charge interest for the late contribution.
86   Recovery of unpaid contributions and interest
(1)  The Tribunal may order the owner of a lot in the strata scheme, or other person, to pay a contribution that is payable by the owner or other person under this Act that is not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts.
(2)  The Tribunal may make an order under subsection (1) only—
(a)  on the application of the owners corporation, and
(b)  if proceedings between the owners corporation and the owner of a lot in the strata scheme or other person are pending before the Tribunal.
(2A)  An owners corporation may, without obtaining an order under this section, recover as a debt in a court of competent jurisdiction, a contribution not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts.
Note.
 Clause 6 of Schedule 4 to the Civil and Administrative Tribunal Act 2013 provides for the transfer of proceedings between the Tribunal and a court which has jurisdiction (and vice versa) if the parties to the proceedings agree or if the Tribunal or court of its own motion or on the application of a party so directs.
(3)  Interest paid or recovered forms part of the fund to which the relevant contribution belongs.
(4)  An owners corporation must not take action to recover an amount under this section unless it has given the person against whom the action is to be taken at least 21 days notice of the action.
(5)  The notice of the action must set out the following—
(a)  the amount of the contribution, interest or expenses sought to be recovered,
(b)  the recovery action proposed,
(c)  any other matter prescribed by the regulations for the purposes of this subsection.
87   Orders varying contributions or payment methods
(1)  The Tribunal may, on application, make either or both of the following orders if the Tribunal considers that any amount levied or proposed to be levied by way of contributions is inadequate or excessive or that the manner of payment of contributions is unreasonable—
(a)  an order for payment of contributions of a different amount,
(b)  an order for payment of contributions in a different manner.
(2)  An application for an order may be made by the lessor of a leasehold strata scheme, an owners corporation, an owner or a mortgagee in possession.
88   Effect of order varying contributions where payments have been made
If a contribution that is the subject of an order by the Tribunal under this Division has been wholly or partly paid—
(a)  an order to pay more has effect as if the owners corporation had decided to levy a contribution equal to the difference, and
(b)  an order to pay less imposes a duty on the owners corporation to refund the difference.
89   Order requiring original owner to pay compensation for inadequate estimates and levies
(1)  The Tribunal may, on application by the owners corporation for or an owner of a lot in the strata scheme, order the original owner of the strata scheme to pay compensation to the owners corporation if the Tribunal determines that the estimates and levies determined during the initial period for the purposes of determining and meeting expenditures relating to the scheme were inadequate to meet the actual or expected expenditures of the owners corporation.
(2)  The Tribunal must not make an order under this section if the original owner satisfies the Tribunal that the original owner used due care and diligence in determining the estimates and levies.
(3)  An application under this section must be made not later than 3 years after the end of the initial period.
90   Contributions for legal costs awarded in proceedings between owners and owners corporation
(1)  This section applies to proceedings brought by one or more owners of lots against an owners corporation or by an owners corporation against one or more owners of lots (including one or more owners joined in third party proceedings).
(2)  The court may order in the proceedings that any money (including costs) payable by an owners corporation under an order made in the proceedings must be paid from contributions levied only in relation to the lots and in the proportions that are specified in the order.
(3)  The owners corporation must, for the purpose of paying the money ordered to be paid by it, levy contributions in accordance with the terms of the order and must pay the money out of the contributions paid in accordance with that levy.
(4)  This Division (other than provisions relating to the amount of contributions) applies to and in respect of contributions levied under this section in the same way as it applies to other contributions levied under this Division.
91   Information about contributions payable for retirement village
An owners corporation of a strata scheme for a retirement village (within the meaning of the Retirement Villages Act 1999) must, if requested by the operator of the retirement village, give a statement in writing specifying the amount of current contributions levied on a particular lot in the strata scheme.
Division 3 Financial statements and accounting records of owners corporation
92   Owners corporation must prepare financial statements and statements of key financial information
(1)  An owners corporation must cause financial statements, and a statement of key financial information, to be prepared for each reporting period for the administrative fund, the capital works fund and any other fund kept by the owners corporation.
(2)  The reporting period for financial statements or a statement of key financial information prepared under this Division is—
(a)  the period that commences on the date of registration of the strata plan and ends on a date that is not earlier than 2 months before the date of the first annual general meeting, and
(b)  each period that commences on the date up to which those statements were last prepared under this Division and ends on a date that is not earlier than 2 months before the next succeeding annual general meeting.
93   Requirements for financial statements
(1)  The financial statements are to be prepared on a cash or accrual basis and to comprise only the following matters—
(a)  a statement of income and expenditure for the administrative fund,
(b)  a statement of income and expenditure for the capital works fund,
(c)  a statement of income and expenditure for any other fund kept by the owners corporation.
(2)  The financial statement for an administrative fund or capital works fund must specify the following—
(a)  the fund, and the reporting period, for which it is prepared,
(b)  the balance carried forward in the fund from the previous period,
(c)  the particulars and amount of each item of income of the fund received during the current period,
(d)  the particulars and amount of each item of expenditure from the fund during the current period,
(e)  the amount of the contribution to the fund determined for each person liable to make such a contribution,
(f)  the balance outstanding for each such contribution,
(g)  the cash in the fund at the end of the current period,
(h)  the balance of the fund,
(i)  in respect of each liability to contribute to the fund—any unpaid arrears and any balance outstanding,
(j)  the extent to which, at the end of the current period, the fund is in debit or credit.
(3)  The financial statements for any other fund must specify the following—
(a)  the fund, and the reporting period, for which it is prepared,
(b)  the balance carried forward in the fund from the previous period,
(c)  the particulars and amount of each item of income of the fund received during the current period,
(d)  the particulars and amount of each item of expenditure from the fund during the current period,
(e)  the cash in the fund at the end of the current period,
(f)  the balance of the fund,
(g)  the extent to which, at the end of the current period, the fund is in debit or credit.
94   Statement of key financial information
(1)  The statement of key financial information for an administrative fund or capital works fund must be in the form approved by the Secretary and specify the following matters—
(a)  the fund, and the reporting period, for which it is prepared,
(b)  the balance carried forward in the fund from the previous period,
(c)  the total income of the fund received during the period,
(d)  the total interest earned by the fund during the period,
(e)  the total contributions paid to the fund during the period and the total of all arrears in contributions payable to the fund,
(f)  the total expenditure for maintenance from the fund during the period,
(g)  the total expenditure for administration costs from the fund during the period,
(h)  the balance of the fund,
(i)  the principal items of expenditure for maintenance proposed during the next year.
(2)  The statement of key financial information for any other fund must be in the form approved by the Secretary and specify the following matters—
(a)  the fund, and the reporting period, for which it is prepared,
(b)  the balance carried forward in the fund from the previous period,
(c)  the total income of the fund received during the period,
(d)  the total interest earned by the fund during the period,
(e)  the balance of the fund.
95   Auditing of accounts and financial statements
(1)  The owners corporation for a large strata scheme, or a strata scheme for which the annual budget exceeds $250,000 (or another amount prescribed for the purposes of this section by the regulations), must ensure that the accounts and financial statements of the owners corporation are audited before presentation to the annual general meeting.
(2)  The owners corporation for any other strata scheme may determine that the accounts and financial statements of the owners corporation are to be audited.
(3)  An audit of the accounts and financial statements of an owners corporation under this section must be carried out in accordance with the Australian Auditing Standards.
(4)  The regulations may specify the manner in which the annual budget of a strata scheme is to be determined for the purposes of this section.
Division 4 Accounting records
96   Accounting records must be kept by owners corporation
(1)  An owners corporation must keep accounting records in accordance with this Division.
Maximum penalty—5 penalty units.
(2)  The accounting records may be made and stored in the form determined by the owners corporation.
(3)  Separate accounting records must be kept for the administrative fund, the capital works fund and any other fund kept by the owners corporation.
(4)  The regulations may prescribe accounting records that are required to be kept by an owners corporation.
97   Receipts
(1)  The treasurer of an owners corporation must, if requested to do so, issue a receipt for each payment received by the treasurer for the owners corporation and must cause a record to be kept of the details of such receipts.
(2)  Each receipt must contain the information prescribed by the regulations for the purposes of this section.
98   Transaction records
(1)  The treasurer of an owners corporation must record particulars of money received or money disbursed by the owners corporation as soon as practicable after each transaction occurs.
(2)  The treasurer must balance the records of transactions and carry the balance forward at the end of each prescribed period.
(3)  At the end of each prescribed period, the treasurer must compare the entries in the records of transactions with the banking records for the account of the owners corporation and enter in the records of transactions—
(a)  the amounts credited to the account and appearing in the banking records for which no receipt had been given, and
(b)  the amounts debited to the account and appearing in the banking records for which no cheque had been drawn.
(4)  Any necessary reconciliation (showing the balance in the account of the owners corporation as indicated in the banking records, and adding any money received but not banked and deducting any cheques drawn but not presented for payment) must be entered by the treasurer in the record of transactions at the end of the entries for the relevant prescribed period.
(5)  In this section—
prescribed period means 12 months or, if an annual general meeting of the owners corporation determines a shorter period, that shorter period.
99   Levy register
The treasurer of an owners corporation must keep a levy register that includes, for each lot in the strata scheme (other than a utility lot), the following particulars in relation to contributions payable—
(a)  the date on which the contribution is due and payable,
(b)  the type of contribution and the period in respect of which it is to be made,
(c)  the amount of the contribution levied shown as a debit,
(d)  the amount of each payment shown as a credit,
(e)  the date on which each payment relating to the contribution is made,
(f)  whether a payment made was made in cash or in some other specified manner,
(g)  whether an amount paid comprised full payment or part payment,
(h)  details of any discount given for early payment,
(i)  the balance of the account.
Division 5 Financial functions generally
100   Power to borrow money
(1)  An owners corporation may borrow money and secure the repayment of money and of any interest in any manner agreed between the owners corporation and the lender, otherwise than by charging the repayment on the common property.
(2)  An owners corporation must not borrow money, or secure the payment of money and interest, unless a resolution approving the relevant loan has been passed at a general meeting of the owners corporation.
101   Persons who can exercise functions relating to the finances and accounts of the owners corporation
A person must not exercise any of the functions of an owners corporation or the treasurer of an owners corporation relating to the receipt or expenditure of, or accounting for, money of the owners corporation or the keeping of the books of account of the owners corporation unless the person is—
(a)  the treasurer of the owners corporation, or
(b)  a strata managing agent who is empowered to exercise the function, or
(c)  a person with whom the treasurer of the owners corporation is required by a decision of the strata committee to exercise the function jointly, and who is enabling the treasurer to comply with the decision, or
(d)  a member of CPA Australia, or a member of the Institute of Chartered Accountants Australia and New Zealand, authorised by the owners corporation to exercise the function, or
(e)  a member of the Institute of Public Accountants authorised by the owners corporation to exercise the function, or
(f)  during the initial period only—a person authorised by the owners corporation to exercise the function.
Maximum penalty—5 penalty units.
102   Limits on spending by large strata schemes
(1)  An owners corporation for a large strata scheme must obtain at least 2 quotations in relation to proposed expenditure in respect of any one item or matter if the proposed expenditure will exceed the amount prescribed by the regulations for the purposes of this section.
(2)  An owners corporation for a large strata scheme must not spend on an item or matter an amount greater than the amount specified for the item or matter (plus 10%) in estimates provided for that item or matter at an annual general meeting.
(3)  The owners corporation may by a resolution passed at a general meeting remove the limitation imposed by subsection (2) generally or in relation to any particular item or matter.
(4)  This section does not apply to expenditure for emergency purposes, including (but not limited to) the following—
(a)  burst or blocked water or sewerage pipes,
(b)  serious damage caused by fire or storm or any other natural disaster,
(c)  unexpected electrical or security system failure,
(d)  glass breakages that affect the security of any building in the strata scheme or could result in damage to the inside of any such building.
103   Legal services to be approved by general meeting
(1)  An owners corporation or strata committee of an owners corporation must not obtain legal services for which any payment may be required unless a resolution approving the obtaining of those services is passed at a general meeting of the owners corporation.
(2)  An owners corporation or strata committee may obtain legal services without obtaining approval under this section if—
(a)  it is of the opinion that urgent action is necessary to protect the interests of the owners corporation, and
(b)  the cost of the legal services does not exceed $10,000 or another amount prescribed by the regulations for the purposes of this subsection.
(3)  Approval under this section is not required for the following—
(a)  to obtain legal advice before commencing legal action,
(b)  to take legal action to recover unpaid contributions, interest on unpaid contributions or related expenses,
(c)  to take any other legal action prescribed by the regulations for the purposes of this section.
(4)  A failure by an owners corporation or the strata committee of an owners corporation to obtain an approval under this section does not affect the validity of any proceedings or other legal action taken by the owners corporation.
(5)  In this Division—
legal services includes obtaining legal advice and taking legal action.
104   Restrictions on payment of expenses incurred in Tribunal proceedings
(1)  An owners corporation cannot, in respect of its costs and expenses in proceedings brought by or against it for an order by the Tribunal, levy a contribution on another party who is successful in the proceedings.
(2)  An owners corporation that is unsuccessful in proceedings brought by or against it for an order by the Tribunal cannot pay any part of its costs and expenses in the proceedings from its administrative fund or capital works fund, but may make a levy for the purpose.
(3)  In this section, a reference to proceedings includes a reference to proceedings on appeal from the Tribunal.
105   Disclosure of matters relating to legal costs
If a disclosure under another Act is made to an owners corporation in respect of the costs of legal services to be provided to the owners corporation and the legal services are services for which approval is required under section 103, the owners corporation must give a copy of the disclosure to each owner and strata committee member not later than 14 days after the disclosure being made.