I recently came across a scheme where the Body Corporate wants to rent a section from an owner – in this case it is set up as a gym and the Trustees want to enter into a lease agreement to be able to make the facility available to all occupants.
If we look at the STSM Act we see the following:
Section 4. The body corporate may exercise the powers conferred upon it by or under this Act or the rules, and such powers include the power—
- when essential for the proper fulfilment of its duties and upon special resolution, to purchase or otherwise acquire, take transfer of, mortgage, sell, give transfer of or hire or let units;
So we see that the Body Corporate needs to pass a special resolution for this. The suggestion is that the Trustees include as much information as possible into the resolution for the owners to be able to make an informed decision. What will the rental amount be? How will it be paid? What will the period of the lease be? etc