The Alexander Apartments 25 September 2017

Transcription

1 The Alexander Apartments 25 September 2017 Strata Committee Members Chairperson John Hudson Secretary Tarnya O Neil Treasurer David Macdonald Member Anne O Neill Member Paul McWilliams Dear Owner(s) AGM SP The Alexander Apartments Please find attached the agenda with associated papers for the Annual General Meeting to be held on 25 September 2017 at 6pm at the Rydges Hotel, North Sydney. This is an important meeting as its primary purpose is to consider an offer from Winten. In exchange for not enforcing our rights under the August 2016 Agreement, pertaining to the height and setback of the building, owners will receive $5 million plus GST. The meeting will set levies and the budget for next year. We have taken the opportunity of combining this meeting with the usual AGM agenda and as a result the pack is large. This is necessary as it is a requirement of the legislation that you be provided with full copies of the relevant documents, enabling you to make an informed decision. If you are receiving this by post, may I remind you that it is simpler and more efficient to receive it electronically. Also, included with the agenda is a form enabling you to appoint a proxy. We recommend that you attend the meeting however, if you are unable to attend please consider appointing a proxy to vote in accordance with your wishes. Yours sincerely John Hudson on behalf of the Strata Committee Chairman SP Page 1 of 1

2 Notice of Annual General Meeting Strata Plan Name The Alexander Apartments Address Berry Street North Sydney, NSW 2060 Meeting Date 25 September 2017 Time 6.00 pm Venue Jacaranda Ballroom Rydges Hotel Address 54 McLaren Street North Sydney, NSW 2060

3 Meeting procedures Quorum A quorum is present at a meeting immediately following where not less than 25% of those entitled to vote being present, either in person or by proxy. If no quorum is present within 30 minutes of the advertised meeting commencement, the chairperson may either adjourn the meeting for seven (7) calendar days or declare that the persons present (either in person or proxy and entitled to vote) constitute a quorum. Voting rights Each owner has voting rights that may be exercised at a meeting of the owners corporation if the owner is shown on the strata roll and in the case of a corporation, if the company nominee is shown on the strata roll. In the case of co-owners, one of the owners may act as proxy on behalf of the other co-owner, or if no proxy is provided; the owner first named on the strata roll has voting rights. An owner is not entitled to vote if they were unfinancial at the date the notice of the meeting was given and did not pay the amounts owing prior to the meeting. Proxies If an owner with voting rights is unable to attend the meeting, they may appoint a proxy to vote on their behalf. In the case of joint ownership, all owners must sign the proxy form. In the case of ownership by a corporation, the company nominee must sign the proxy form. The proxy form must provide instructions on whether the person appointing the proxy intends for the proxy to be able to vote on all matters and if not, the matters on which the proxy is permitted to vote. In the case of large schemes (in excess of 100 lots), proxy forms must be provided to the Secretary 24 hours before the commencement of the meeting. All other proxy forms must be provided to the Secretary either prior to, or at the commencement of the meeting. For strata schemes with 20 lots or less, a person may hold a maximum of one proxy. For strata schemes with greater than 20 lots, a person may hold proxies to a number that is equal to not more than 5% of the total number of lots. Decisions at meetings For motions declared for special resolution, not more than 25% of the values of votes cast are against the resolution. The value of a vote in respect of a lot is equal to the unit entitlement of the lot. For motions declared for unanimous resolution, no vote may be cast against the resolution. A motion or election that is not required to be approved by a special resolution or unanimous resolution is passed by a simple majority of votes cast for and against the motion with each person having one vote for each lot in respect of which the person is entitled to vote. Tenants at meetings A tenant that is registered on the strata roll is entitled to attend a meeting of the owners corporation but is not entitled to vote unless the tenant holds a duly authorised proxy. Tenants are not entitled to address a meeting of the owners corporation unless authorised to do so by a resolution of the owners corporation. The owners corporation may determine that tenants are not permitted to be in attendance at the meeting during discussions or decisions relating to financial matters. Meeting protocol Meetings of the owners corporation provide owners with the opportunity to discuss, contribute and participate in the decision-making process concerning all facets of common property within the strata scheme. Bright & Duggan strongly encourages the participation of all owners at meetings of the owners corporation. We recommend the following meeting protocols to encourage efficient and effective meetings. Be prompt. Allow sufficient time to register your attendance so that the meeting can commence at the advertised time. Turn mobile phones and any other electronic devices to silent. Address the meeting via the Chairperson and at their permission. The Chairperson is responsible for ensuring all attendees have the opportunity to address the meeting and that the voting process is accurate. Be respectful of others speaking to a motion by not participating in side conversations. Matters not included on the notice of agenda are not permitted to be discussed and resolved at the meeting. This is in recognition of a failure to provide notice to other interested owners. Your decisions should be made for the collective good of the owners corporation, rather than for self-interest.

4 Agenda Election of chairperson 1. That the owners corporation elect a chairperson in accordance with clause 12 (2) of Schedule 1 of the Strata Schemes Management Act 2015 (NSW). Explanatory notes: The elected chairperson of the owners corporation would ordinarily chair this meeting. Pursuant to the delegations of the managing agency agreement to Bright & Duggan, and with the consent of those in attendance, it is customary for the managing agent to chair the meeting. Strata committee recommendation: That the managing agent chair the meeting. Minutes 2. That the minutes of the last annual general meeting of the owners corporation held on 10 October 2016 be adopted as a true and accurate account of the proceedings of that meeting. Explanatory notes: The minutes of the last general meeting, either an annual or extraordinary general meeting have been attached to the notice of this meeting. This motion confirms the accuracy of the minutes and in the event that the minutes are in error, the owners may move the minutes be amended. Strata committee recommendation: Committee members recommend owners to approve the minutes unamended. Winten proposal/settlement 3. Strata Scheme Interpretation 1. The following motions are in respect of the document titled Deed to Vary Strata Management Statement No 2 between The Owners Strata Plan No , Victoria Plaza Commercial Pty Ltd ACN and Victoria Plaza Holdings Pty Ltd ACN in the form attached to the notice if meeting (Variation Deed). 2. Capitalised words and phrases used in the motions, and which are defined in the Variation Deed, have the corresponding meaning unless the contrary intention appears. Motion 1 Deed to Vary No 2 The Owners Strata Plan No RESOLVE to enter into the Variation Deed and authorise the affixing of the common seal to that document in the manner prescribed by s273 of the Strata Schemes Management Act Motion 2 Condition Precedent Consent and No Objection to Development - Clause 5 The Owners Strata Plan No RESOLVE to consent, on the terms of clause 5 of the Variation Deed, to the redevelopment of 1 Denison Street in accordance with Mod 6&7.

5 Motion 3 Condition Precedent Loading Dock and Garbage Area - Clause 9 The Owners Strata Plan No SPECIALLY RESOLVE to accept the terms of clause 9 of the Variation Deed, particularly: (c) (d) pursuant to section 108 of the Strata Schemes Management Act 2015 to authorise the Loading Dock and Garbage Area Works to the extent that those works affect the common property; pursuant to section 25 of the Strata Schemes Development Act 2015 to accept a transfer of the land shown marked (A) in Annexure C of the Variation Deed; pursuant to section 33 of the Strata Schemes Development Act 2015 to transfer that part of the common property shown marked (B) in Annexure C of the Variation Deed; and pursuant to section 34 of the Strata Schemes Development Act 2015 to execute a dealing creating an easement on the terms set out in Annexure D of the Variation Deed over that part the land shown marked (A) in Annexure C to the Variation Deed which will become common property after it is transferred to the owners corporation, for the purposes of effecting the subdivision shown in Annexure B of the Variation Deed, and authorise the affixing of the common seal to any document required for those purposes in the manner prescribed by s273 of the Strata Schemes Management Act Motion 4 Condition Precedent Naming Rights - Clause 10 The Owners Strata Plan No SPECIALLY RESOLVE pursuant section 34 of the Strata Schemes Development Act 2015 to accept the terms of clause 10 of the Variation Deed, reversing its previous resolution to vary the easement for naming rights under clause 11 of the Deed to Vary. Motion 5 Condition Precedent Access - Clause 14 The Owners Strata Plan No SPECIALLY RESOLVE pursuant to section 112 of the Strata Schemes Management Act 2015 to accept the terms of clause 14 of the Variation Deed granting licences over the common property generally on the terms set out in Annexure A to the Variation Deed. Motion 6 Condition Precedent Consent and no objection to the Development 1 Denison Street Separation - Clause 15 The Owners Strata Plan No SPECIALLY RESOLVE to accept the terms of clause 15 of the Variation Deed, particularly: pursuant to section 34 of the Strata Schemes Development Act 2015 to accept a dealing releasing the easement burdening the common property loading dock created on the terms set out in Annexure D of the Variation Deed; and pursuant to section 103 of the Strata Schemes Development Act 2015 to authorise the amendments to the Beau Monde SMS in the manner set out in Annexure H of the Variation Deed for the purposes of effecting the subdivision shown in Annexure E of the Variation Deed, and authorise the affixing of the common seal to any document required for those purposes in the manner prescribed by s273 of the Strata Schemes Management Act 2015.

6 Motion 7 Condition Precedent Changes to easements - Clause 17 The Owners Strata Plan No SPECIALLY RESOLVE pursuant to section 34 of the Strata Schemes Development Act 2015 to accept the terms of clause 17 of the Variation Deed, particularly: to accept a dealing creating, varying and releasing the easements referred to in Annexure G to the Variation Deed in the manner described in that Annexure; and authorise the affixing of the common seal to any document required for those purposes in the manner prescribed by s273 of the Strata Schemes Management Act Explanatory notes: Background Information to the Winten negotiations Owners are asked to authorise Bright & Duggan to sign on their behalf a Deed to Vary the SMS (the Deed) to give effect to an arrangement negotiated over the past 6 months. This comprises a number of motions, some of which are ordinary and some special motions. To gain a full understanding of its contents, owners should read the full Deed which is included with these papers. Additionally, owners should familiarise themselves with the proposed development details of which are available at Copies of the perspectives are included in these papers. The following is an executive summary of the main points in the proposed Deed: 1. The Owners Corporation (OC) will agree that it will not enforce its rights under the original Deed to Vary the SMS dated 2 August 2016, that states, in effect, that Winten would build within the then approved building envelop and would not increase the height or change the setbacks. The development has subsequently been revised as set out in Mods 6 & 7, whereby the building height has increased and the setbacks changed to reflect the revised development. 2. In return, Owners will receive $5 million payable 14 days from signing of the Deed and Plans reflecting changes to the Loading Dock. 3. Winten will bear the costs associated with the Deed and the costs of this meeting. 4. Winten will pay for the re-numbering and naming changes to our building from Beau Monde 77 Berry Street to The Alexander Apartments Berry Street. 5. The Loading Dock was scheduled to pass to the ownership of the OC following completion of the development. This transfer has been brought forward while certain changes to the area have occurred and the OC agrees to grant access rights to the restaurant tenant and Officeworks. The changes are set out in the plans and schedule attached to the Deed. In addition, Winten has paid for the repainting of the loading dock and installation of a new hoist. 6. Owners agree to no longer transfer the naming/signage rights on level 37 of the building and Winten warrant they have no intention to place telecommunication equipment on the roof. 7. The OC will not object to the installation of substations in Berry Square but Winten agree that the substations must be removed when the development is complete. 8. Winten and the OC agree to vary the voting rights of the existing Strata (i.e. the commercial, residual retail, and residential strata) to 50/50 from the current75/25 in favour of Winten. 9. Additionally, associated with the new strata, a revised schedule of cost sharing has been agreed and is set out in Schedule F in the attached Deed. These costs have been reviewed by George Floth, our Building Consultant, and deemed reasonable. In considering whether or not to vote in favour of these motions, Owners are reminded of the current state of our financial position. If opposed, the alternative would be to seek to enforce our rights and fight a legal battle. We currently have $8 million of debt with approval to raise two special levies of

7 $4.4 million each on 1 January 2018 and 1 January In addition, over the past 6 years, very little was spent on capital works or maintenance and, as a result, there is a backlog of necessary work. Winten has as part of the original deal, already spent considerable monies on replacing one chiller and refurbishing the other, installing a new Building Management System and carrying out various other works. Notwithstanding this, we have already raised a special levy to cover capital expenditure in the short term and another $1 million will be required this year. Your Strata Committee has negotiated what it believes is a very favourable deal in the circumstances and strongly recommends that you vote in favour of all motions. The Strata Committee members will be voting their personal votes and any undirected proxies in favour of these motions. The Deed and other relevant documents are appended to this meeting pack. Strata committee recommendation: The above explanation and motions have been reviewed and/or prepared by the owners corporation legal representative, Mr Bob Miljevic, CBP and are reproduced verbatim. The Strata Committee unanimously recommends resolving motion 1-7 inclusive at section 3 unamended. 4. The Owners Strata Plan No RESOLVE to: repay $4M to Lannock as a lump sum payment against the principal outstanding as soon as practicable; and rescind the previously approved $4.4M special levy payable on 1 January 2019; and (c) apply $1M from the Winten settlement to the Capital Works Fund. Explanatory notes: In order to minimise interest expense and to clear the Lannock debt sooner, the strata committee has prepared the 30 June 2018 budget on the assumption that the above is approved. Should owners decide to use the funds in a different manner, or to not accept the Winten proposal, then the budget and levies will need to be revised and re-presented at a subsequent meeting. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Key financial information 5. That the attached statements of key financial information for the financial years ending 30 June 2015, 30 June 2016 & 30 June 2017 for the administrative fund, the capital works fund and any other fund prepared by the owners corporation, together with the relevant auditor s report (FY2015 and FY2016) be adopted. 6. That the budget for the year ending 30 June, 2018 be adopted. Explanatory notes: The financial statements are a formal record of the financial activities and position of the strata scheme. A copy of the key financial information of the owners corporation is attached. The accounting records of the owners corporation are kept by the strata managing agent. Please direct any enquiries regarding the accounts to the strata managing agent at least 48 hours prior to the meeting. The audited accounts for the year ended 30 June 2017 are currently being finalised however no changes to the draft accounts as tabled have been advised to date.

8 Strata committee recommendation: The committee recommend owners resolve to: 1. Accept the audited accounts for 30 June 2015 and 30 June 2016 and budget for 30 June 2018; and 2. Note the draft accounts for the year ending 30 June Auditor 7. That an auditor be appointed for the financial year ending 30 June Explanatory notes: It is compulsory to appoint an auditor for large schemes (greater than 100 lots excluding utility lots) or for strata schemes where the annual budget exceeds $250,000. Strata committee recommendation: The committee recommends approving this motion. If the Winten proposal is approved (Section 3) then a review as to the provider of auditor services will be undertaken by the Strata Committee and Building Management Committee. Levy contributions 8. That in accordance with Section 79 (2) and 81 of the Strata Schemes Management Act 2015 (NSW) the owners corporation estimates that in respect of the period from 1 July 2017 to 30 June 2018 it will need to credit to its administrative fund and capital works funds for actual and expected expenditure referred to in those subsections the amounts set out in the budget that was attached to the notice of this meeting at which this resolution was passed; and a) In accordance with Section 81 of the Act, the owners corporation determines that the following amounts are to be levied to raise the estimated contributions: Administrative fund: $2,086, (GST inclusive) Capital Works fund: $169, (GST inclusive) already collected 1July 2017 b) The owners corporation resolves to determine that the contributions are to be payable in regular periodic instalments, specified as follows: Administrative fund: Four (4) instalments due on Date Amount Notes 1 July 2017 $ 690, Already collected 1 October 2017 $ 465, January 2018 $ 465, April 2018 $ 465, July 2018 $ 465, Continuing basis

9 Capital works fund: Four (4) instalments due on Date Amount Notes 1 July 2017 $ 169, Already collected 1 October 2017 $ 0 Funded by Winten settlement 1 January 2018 $ 0 As above 1 April 2018 $ 0 As above 1 July 2018 $ 169, Continuing basis Explanatory notes: Levy contributions provide funds to operate your strata scheme. All contributions must be calculated in proportion to the unit entitlements. The funds raised towards the administrative fund are to pay for the annual day-to-day recurrent expenses. The funds raised in the capital works fund are to pay for future capital expenditure. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Owners should consider the Motions proposed by Lot 59 (James McKinnon) as if these are approved the budget and levies for the year ended 30 June 2018 will have to be revised and represented at a General Meeting. Discounts on levy contributions 9. The owners corporation resolves in accordance with Section 85(4) of the Strata Schemes Management Act 2015 (NSW) that a person may pay 10% less of a contribution levied if the person pays the contribution before the date it becomes due and payable and no other amount is outstanding. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Levy collection 10. That the owners corporation resolve pursuant to the Strata Schemes Management Act 2015 (NSW) (including Section 103) for the purpose of collecting levy contributions to authorise the strata managing agent and/or the strata committee to do any one or more of the following: a) to issue arrears notices, reminder notices and/or letters to seek recovery of levy contributions and the recovery of other debts, including penalties, interest, legal and other costs/expense and arrange and monitor payment plans; b) to engage or appoint the services of a debt collection agency, obtain legal advice and/or retain legal representation and/or experts on behalf of the owners corporation. c) to issue demands, commence, pursue, continue or defend any court, tribunal or any other proceedings against any lot owner, mortgagee in possession and/or former lot owner in relation to all matters arising out of the recovery of levy contributions and the recovery of other debts, including penalties, interest, legal and other costs; d) enter and enforce any judgment obtained in the collection of levy contributions including issuing writ for levy of property (personal and real property), garnishee orders, examination notices/orders/hearings, bankruptcy notices, statutory demands and commencing and maintaining bankruptcy proceedings or winding up proceedings;

10 e) filing an appeal or defending an appeal against any judgment concerning the collection of levy contributions; and f) liaise, instruct and prepare all matters with the owners corporations debt collection agents, lawyers and experts in relation to any levy recovery proceedings. Explanatory notes: This resolution gives the owners corporation the power to take action to recover unpaid levies, interest and recovery costs including commencing proceedings and enforcing judgments obtained in legal proceedings for the recovery of unpaid levies, interest and recovery costs. Interest is not chargeable on outstanding levies until after one (1) month from the due date and legal action cannot be taken unless 21 days written notice is given of such action in accordance with Section 86 of the Strata Schemes Management Act 2015 (NSW). Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Payment plans 11. The owners corporation resolve to agree to enter into payment plans generally for matters involving arrears of unpaid contributions/levies or other amounts including interest, legal and other costs/expenses thereon and to delegate to the strata managing agent and/or the strata committee the ability to enter into, arrange and monitor each such payment plan limited to a period of 12 months per payment plan with any further or subsequent payment plan to be entered into as agreed by the strata committee or owners corporation by resolution. Explanatory notes: Pursuant to Sections 85(5) 85(7) of the Strata Schemes Management Act 2015 (NSW) and Regulation 18 and 19 of the Strata Schemes Management Regulation 2016 (NSW), an owners corporation may agree to enter into payment plans generally or in particular cases, for the payment of overdue contributions by a resolution passed at a general meeting. This resolution provides the power for the owners corporation to enter into such payment plans. Payments over 12 months will require resolution at a strata committee meeting. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Insurance 12. That the current insurances of the owners corporation as attached to the notice of the meeting be confirmed; and to take out the following additional insurances: a) cover for liability of officers or members of the strata committee for damage to property, death or bodily injury in accordance with Section 165(2) of the Strata Schemes Management Act 2015 (NSW); and b) cover for misappropriation of money or other property of the owners corporation in accordance with Section 165(2) of the Act. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Commissions and training services 13. That the owners corporation considers the report provided below by the strata managing agent for commissions and training services received in the last 12 months and estimate of commissions and training services to be received in the next 12 months.

11 Explanatory notes: The strata managing agent under Section 60 of the Strata Schemes Management Act 2015 (NSW) is required to disclose all commissions or training services provided to the strata managing agent for the strata scheme. Strata committee recommendation: The Strata Committee notes that NO commissions or training services have been or expect to be received; the committee recommends the owners corporation note the same. As at the date of the notice of this meeting, the strata managing agent has received the following: Commissions $0.00 in commissions received in the last 12 months. $0.00 in commissions is expected to be received in the next 12 months. Training $0.00 in training services received in the last 12 months. $0.00 in training services is expected to be received in the next 12 months. Capital works fund 14. That the owners corporation resolve to: a) Review the current capital works fund analysis report; and b) Engage a suitably qualified consultant to review, carry out and/or assess the capital upgrade and maintenance requirements of the building for the next 10 years or an updated report each five (5) years and provide the capital works fund analysis report; and c) To submit that report to the strata committee to determine what action is required, if any; and d) To delegate to the strata managing agent the function pursuant to the managing agency agreement additional duties scheduled to undertake the seeking of quotations and engaging the contractor to prepare the report and any ancillary work approved by the strata committee. Explanatory notes: The owners corporation has prepared a plan of anticipated major expenditure to be met from the capital works fund over the 10 year period. The capital works fund plan was tabled at the AGM in October 2016 and must be reviewed every 5 years. Due to the significant backlog of necessary capital works, required rectification activities, and the complications arising from the Winten works, this plan is currently being reviewed. For this year the works plan is as per the capital works fund budget. A new 10 year plan will be available shortly. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Restricted matters 15. That the owners corporation determine if any matter, or type of matter, is to be determined only by a general meeting of the owners corporation. Explanatory notes: Any matter, or type of matter, to be determined only by a general meeting of the owners corporation effectively removes that matter or class of matters from the decisionmaking powers of the strata committee.

12 Strata committee recommendation: Aside from those statutory matters that must be determined by a general meeting of the owners corporation, the strata committee does not recommend any specific matters, or types of matters, to be removed from the powers of the strata committee. Restriction of expenditure 16. That the owners corporation resolves, in accordance with Section 102(3) of the Strata Schemes Management Act 2015 (NSW), to remove the limitation on spending placed by Section 102(2) of the Act generally. Explanatory notes: Strata committees of large strata schemes (in excess of 100 lots) may not spend greater than 10% ABOVE ANY BUDGETED LINE ITEM. This restriction can be amended so that the strata committee may not spend greater than 10% of the overall total budget. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Annual fire safety statement 17. That the owners corporation resolves to: a) engage a suitably qualified consultant and/or contractor to carry out an annual fire safety statement (and report) in accordance with Part 9, Division 5 of the Environmental Planning and Assessment Regulation 2000 (NSW) as amended; and b) to submit any corrective actions report to the strata committee to determine what action is required, if any; and c) to delegate to the strata managing agent the following functions pursuant to the managing agency agreement additional duties schedule: i. undertake the seeking of quotations and engagement of a contractor to complete any repairs (if required) and for that contractor to prepare and sign the statement; and ii. lodge the statement with local Council and cause a copy of the statement to be given to the Fire Commissioner. Explanatory notes: If the owners corporation is subject to a fire safety statement in respect of fire services the statement must be considered and arrangements made for the next annual fire safety statement. An annual fire safety statement confirms that each essential fire safety measure installed in the building has been assessed and found to be performing to the standard required. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Election of the strata committee 18. The owners corporation resolves to decide the number of members of the strata committee and elect same. 19. That the owners corporation resolves to elect the strata committee as follows: a) The chairperson is to announce the names of the candidates nominated in writing for election to the strata committee and; b) Call for any oral nominations of candidates eligible for election to the strata committee.

13 Explanatory notes: The meeting must determine the number of members to be elected to the strata committee. The maximum number of strata committee members permitted by the Strata Schemes Management Act 2015 (NSW) is nine (9) or in a two (2) lot scheme, the number to be elected is two (2). When the number has been determined, if the number of candidates exceed that number, there will be a strata committee ballot to fill the positions. The procedure for election of the strata committee is prescribed in Part 2 of the Strata Schemes Management Regulation 2016 (NSW). Only financial members of the owners corporation may be elected as a member of the strata committee. Joint owners may not be elected simultaneously (unless ownership of more than one lot applies). Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolutions. Furthermore, the committee recommends maintaining the current number of positions on the committee, that being five members. Copies of nominations to date are included in these papers. Building management committee representative (special resolution) 20. That the owners corporation nominate and appoint the chairman or as his alternate the treasurer of the strata committee as the representative to the Building Management Committee, in accordance with the SP 74602, registered on March 4, Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. By-laws review 21. The owners corporation resolves to review the by-laws of the strata scheme, a copy of which has been attached to the notice of this meeting. Explanatory notes: Schedule 3 (4)(1) of the Strata Schemes Management Act 2015 (NSW) requires that the owners corporation review its by-laws within 12 months from the commencement of section 134 of the Strata Schemes Management Act 2015 (NSW), namely 30 November This review may be carried out by the strata committee at a meeting of the strata committee if resolved by the owners corporation. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. By-law to delegate minor renovations (special resolution) 22. The owners corporation: a) Specially resolves in accordance with Section 141(1) of the Strata Schemes Management Act 2015 (NSW) to make an additional by-law in the following terms and to complete, affix the seal to and lodge in the office of the Registrar-General notification of the same in the manner contemplated by Section 141(2) of the Strata Schemes Management Act 2015 (NSW): Special by-law (2): Minor renovations by owners delegation of functions Within the meaning of section 110(6) of the Strata Schemes Management Act 2015 (NSW) the owners corporation is permitted to delegate its functions under Section 110 of that ACT to the strata committee. b) Resolves to delegate its functions to the strata committee in accordance with the bylaw made in.

14 Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Window safety devices 23. That pursuant to Section 118 of the Strata Schemes Management Act 2015 (NSW), the owners corporation resolves to install window safety devices to all relevant windows within the building by 13 March a) Engage a suitably qualified consultant to carry out an inspection (and report) in compliance with the owners corporation s obligations under Section 30 of the Strata Schemes Management Regulation 2016 (NSW); and b) To submit that report to the strata committee to determine what action is required; and c) To delegate to the strata managing agent the duty and function pursuant to the managing agency agreement additional duties schedule to undertake the seeking of quotations and engaging the contractor to the strata managing agent and any ancillary work approved by the strata committee; and d) On completion of the works, seek certification from the consultant. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Work, health and safety report 24. That the owners corporation resolve to do the following: a) Engage a suitably qualified consultant to carry out (or review an existing) common property safety report in compliance with the owners corporation s obligations under the Work Health & Safety Act 2011 (NSW) as amended; and b) To submit that report to the strata committee to determine what action is required, if any; and c) To delegate to the strata managing agent the duty and function pursuant to the managing agency agreement additional duties schedule to undertake the seeking of quotations and engaging the contractor to the strata managing agent and any ancillary work approved by the strata committee. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Lift registration 25. That the owners corporation resolves that whilst Bright & Duggan is appointed as the strata managing agent for the strata scheme: a) It is required on an annual basis to engage a competent person to provide a statement as to whether the lift equipment is safe to operate; and b) Subject to receipt of the statement from the competent person that the equipment is safe to operate, it is instructed to sign on behalf of the owners corporation and lodge with WorkCover any item registration renewal or application form.

15 Explanatory notes: It is a responsibility under the Work Health & Safety Act 2011 (NSW) for ensuring that this statement is prepared and lodged with WorkCover. All lifts, escalators, car stackers, etc. are considered plant items and are required to be maintained and serviced accordingly to ensure that they are safe to operate. WorkCover is the administrator of plant item registrations and do so under the Work Health & Safety Act 2011 (NSW). Annually services providers of the plat are required to submit statements that they have been serviced which allow the annual registration to be made with WorkCover. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Voting methods 26. The owners corporation resolves to adopt the following means of voting on the following matters: Matter All matters to be determined by the owners corporation except those otherwise specified below. The authorising of the issuing of notices to comply with the by-laws. The approval of legal services under Section 103 of the Strata Schemes Management Act 2015 (NSW). Method of voting Voting may be by means of [teleconference/videoconference/ /other means] while participating in a meeting from a remote location. Voting is to be [wholly/partly] by means of [ /voting website at electronic means] before the meeting at which the matter (not being an election) is to be determined ( pre-meeting electronic voting ). Voting is to be [wholly/partly] by means of [ /voting website at electronic means] before the meeting at which the matter (not being an election) is to be determined ( pre-meeting electronic voting ). Explanatory notes: This motion is in preparedness for electronic voting. If a motion is to be determined wholly by pre-meeting electronic voting, then the motion may not be amended at the meeting by operation of clause 14(4) of the Strata Schemes Management Regulation 2016 (NSW). If a motion is to be determined partly by pre-meeting electronic voting, then the motion must not be amended at the meeting for which the pre-meeting electronic voting is conducted if the effect of the amendment is to change the subject matter of the original motion. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Electronic record keeping 27. The owners corporation resolves to determine that the strata roll and any other record required to be made or stored by it may be made or stored in electronic form. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution.

16 Building management, concierge, and cleaning 28. That the strata committee undertake a tender process and present back to the owners corporation a preferred service provider for the building management, concierge services, and cleaning services for their review and approval. Strata committee recommendation: The Strata Committee unanimously recommends approving the above resolution. Motions requisitioned by the owner of lot 59 James McKinnon 29. Motion 1 That an independent Engineering consultant be engaged to evaluate the current Buildings Fire Alarm Systems. Further to provide a costed solution to minimise false alarms, evacuations and general unnecessary disturbances to all Residents. To produce a proper Evacuation Plan for all residents. Explanatory notes: The Building is constantly subject to False Fire Alarms causing major disturbances and evacuations over the past twelve months. I have identified around 9 separate occurrences with two full evacuations and in one week alone 4 false alarms. In every instance there was no fire. 30. Motion 2 That the full 5 million dollars be allocated against the Lanock Loan and proposed capital works be funded from cost savings of : A: Delaying the Foyer Refurbishment by 12 Months B: Interest saved by applying the full 5 million against the Lanock Loan. C: Applying the Cost savings of Motion 3 including Parts A & B. Explanatory notes: Motions 2 & 3 are designed to give owners a break from the heavy taxing regime or special levies of the past few years through cost saving efficiencies. They need to be considered jointly. It is proposed that 1 million dollars from the 5 million dollar settlement be allocated to: 1. Refurbishment of the Foyer $200, Refurbishment of the Gym / Swimming Pool area $200, Defect Repairs $ Other Building Matters $200,000 $1,000,000 I propose the following alternative cost savings allowing the full 5 million to be paid against the Lanock Loan. It is noted an immediate cash flow benefit of around $400,000 per annum would result from reduced interest payments. 1. Delay the Foyer Refurbishment by 12 Months $200, Interest PA saved if 1 million is applied immediately $80,000 3 Cost savings if Motion 3 Part A & B is accepted $ Total Savings over 12 months $530,000 In so doing we only have to pay out 3 million in Jan 2018 and the cash flow benefits from there on is around $640,000 per annum as a result of no further Lanock interest bill, plus approx. $250,000 every year thereafter from Motion 3 Parts A & B related to the Building Management Service agreements rejig if voted for.

17 31. Motion 3 Part A That all three service contracts be incorporated into one Master Contract with the Building Managers role being fixed at $100,000 Ex Gst or a fee determined by the Owners Corporation and that contract would include managing concierge and cleaners at no additional charge. All concierge and cleaning rates to be paid on an agreed pass through rate determined by the Owners Corporation and agreed to by the Building Manager subject to owner voting approval and managed under one single master Building Management Contract. As a result if Part B is also accepted savings of around $250,000 plus per annum would be achieved. Part B If the Owners are so minded the Concierge services would be reduced to the hours of 7am- 8pm (13 hours per day) with no fundamental loss of service during peak hours. The cleaning contract to be maintained at 8 hours per day over 5 days. The role of an individual Building Manager not a facility management company to be marketed by Professional recruitment firms immediately for expression of candidate interest and to be reduced to 3-5 candidate options by the Strata Committee or an appointed independent HR specialist reporting to the Strata Committee. The Candidates, terms and period of engagement to be proposed by the Strata Committee and voted for approval by the owners at a future meeting. Voting may be undertaken by a meeting which may be wholly electronic, partly electronic or face to face as determined by the Strata Committee. Explanatory notes: The Building Management service contract system has traditionally operated on several contracts, those being: 1. Building Manager 2. Concierge 3. Cleaning All three contracts are currently held by one owner Edo Hodzic operating through his private company Champion Australia due to expire at the end of Sept The three contracts for the 2016/17 year cost owners approximately $500,000. I propose calling for expressions of interest on a revised basis. The revised basis being a single Building Managers contract at a flat fee with provision for managing concierge and cleaners on an agreed Owners Corporation pass through fee basis. Pass through meaning what the concierge is paid in nett terms. Therefore I propose: 1. Reduce the Concierge Contract from 24 hours x 7 days to 11 hours x 7 days (7am - 8pm) applying a pass through rate of $185,370 per annum. $22.50 an hour per individual concierge, cost savings being 2. By applying a Cleaning Contract of 8 hours x 5 days with pass through rate of $22.50 or less an hour per individual cleaner savings are $55,701 per annum. The total cost savings are around $250,000 per annum every annum going forward. It is expected the Cleaning Contact hourly rate would be less than $22.50 in reality, I have just used that rate in the calculations to be consistent and rounded up to $250,000.

18 32. Motion 4 Part A That the Owners Corporation obtain costed quotations for an Architectural Design & where necessary any Engineering specifications for a whole of building design for the purpose of a Development Application submission to facilitate balcony enclosure of individual apartments to be submitted to North Sydney Council for approval. The funding of the Project is for Design and DA Approval only, build costs should an owner choose at their discretion to do so would be funded solely by the owner and not the OC. Further, that the Owners Corporation may appoint James Mckinnon of Lot 59 if so minded on a strictly voluntary basis to assist and co-ordinate obtaining quotations and a schedule of works required for a DA submission to North Sydney Council to be scrutinised by the Strata Committee but to be approved by the Owners Corporation. The design would be restricted to generic Balcony design below the 34 th level of the Building of the Residential Strata SP74602 only. This process needs to be undertaken for a meeting to be called for voting approval by owners, that meeting may be wholly electronic, partly electronic or face to face only to approve and fund the project within 6 months of this meeting. Part B Subject to Part A being accepted, The Owners Corporation would instruct Colin Biggers Paisley (CBP) or other lawyers to provide a Cost Estimate on: 1. Drafting modifications to the existing Balcony Enclosure Code if needed 2. Drafting if required a new Bylaw 3. Advising on the legal implications of undertaking such a project. wholly electronic, partly electronic or face to face as determined by the Strata Committee. Explanatory notes: With the current development of 1 Denison Street, the new Metro Link and the proposed Ward Street redevelopment the Residential Strata, SP74602 will be greatly visually and acoustically impacted in the coming years. Balcony enclosure would provide a substantial degree of relief from such intrusion as well as increasing the effective living space and according to two Real Estate sources, in their opinion enclosure would increase the value of an owner s property. Therefore it is proposed a blanket DA or whole of building approach be undertaken which does not obligate any one owner to enclose, it is only an option should they wish to do so against an approved DA design. Preliminary cost estimates indicate around $50,000 from design to DA. 33. Motion 5 That changes in appearance and style of common areas of SP74602 such as the Forecourt, Foyer, Gym & Swimming Pool area of Berry Street, North Sydney is undertaken only after a consultative process with owners. To that extent owners are allowed to view plans, contracts, costings and visualisations of such changes prior to works commencing and would be given the right through a majority vote to approve or seek modification to such change or reject such proposed change. An appropriate Owners Corporation Meetings would be facilitated for all owners to attend and vote on proposed changes. These processes need to be undertaken for all aspects of major change that would impact upon the Residential Strata. Voting may be undertaken by a meeting which may be wholly electronic, partly electronic or face to face as determined by the Strata Committee. Voting may be undertaken by a meeting which may be wholly electronic, partly electronic or face to face as determined by the Strata Committee.

19 Explanatory notes: That proposed major changes affecting the Residential Strata common areas such as the Forecourt, Foyer, Gym and Swimming Pool area, but not limited to, are done so in the full view of all owners and determined by consultation and voting approval for such changes to take place. That includes Owners being apprised of plans, contracts, costings and visualisations of such changes prior to voting on approval or rejection. 34. Motion 6 Part A That legal opinion be sought immediately to clarify the issue of the Forecourt being or not being the Common Property of SP Part B That legal opinion be immediately sought regarding using the term "The Alexander Apartments" in conjunction with calling meetings, setting agendas, motions to be voted on, entering into contracts associated with SP74602 in so doing would not be compromised or invalidated because the term has no legal foundation at law. Explanatory notes: Legal Documents associated with the title of ownership refer to the Building as "Beau Monde" "SP74602". The recent change of name to "The Alexander Apartments" is not registered with Land Titles. Dated: 11 September 2017 Bright & Duggan Pty Ltd Managing agents for Strata Plan 74602

20 Notice of Strata Committee Meeting for Strata Plan Meeting Date 1 August 2017 Time To be held immediately following the AGM Venue Jacaranda Ballroom Rydges Hotel Address 54 McLaren Street North Sydney, NSW 2060 Minutes 1. That the minutes of the previous strata committee meeting held on 29 June 2017 be adopted as a true and accurate account of the proceedings of that meeting. Explanatory notes: The minutes of the last meeting have been distributed as required and are attached to the notice of this meeting. This motion confirms the accuracy of the minutes and in the event that the minutes are in error, the members can move that the minutes be amended. Election of office bearers 2. That the strata committee elects a chairperson, secretary and treasurer of the strata committee of the owners corporation. Explanatory notes: Even where the strata managing agent is delegated these powers, these positions must be filled for the strata committee to function in their own right. For example, convene a meeting without involving the strata managing agent, etc. Appoint contact and substitute contact 3. That the strata committee resolves to appoint a member of the strata committee to liaise with the strata manager and be the strata manager s primary point of contact. Further, that an alternate member of the strata committee be nominated to liaise with the strata manager as a substitute contact in the event of the absence of the primary contact. Explanatory notes: This will ensure that the correct instructions of the strata committee are received by the strata managing agent and will avoid any miscommunications provided by multiple strata committee members. Voting methods 4. The strata committee resolves to adopt voting by means of the method approved at the AGM dated 25 September Common property assessment 5. That the strata committee discuss the conditions and use of common property and resolve what action, if any, is to be taken. Dated: 11 September 2017 Bright & Duggan Pty Ltd Managing Agents for Strata Plan 74602

21 MINUTES of the Annual General Meeting of The Owners Strata Plan 74602, Beau Monde, held Monday, 10 October 2016 Present: Lots 17, 21, 23, 34, 36, 38, 42, 47, 51, 54, 63, 67, 68, 69, 73, 79, 86, 88, 90, 98, 99, 108, 118, 122, 125, 131, 135, 138, 145, 150, 155, 158, 161, 165, 170, 172, 173, 186, 191, 192, 196, 198, 203, 204, 205, 206, 207, 208, 210, 214, 216, 220, 231, 236, 243, 244, 245 & 250 Present via Proxy: Lots 1, 6, 113, 137, 148, 156, 177, 183, 219, 234, 235, 249, 251 Proxy to John Hudson Lots 5, 10, 30, 40, 45, 50, 55, 60, 65, 74, 82, 91, 93, 101, 117, 128, 136, 142, 160, 162, 163, 171, 175, 176, 180, 181, 188, 194, 195, 212, 217, 218, 226, 228, 232, 233, 237, 242 & 247 Proxy to Iver Pederson Lots 3, 16, 19, 33, 52, 63, 71, 77, 81, 85, 105, 106, 107, 112, 115, 146, 154, 164, 197 Proxy to Anne O Neill Lots 199, 246, 248 Proxy to Jen Yan Lot 229 Proxy to Tarnya O Neill Lot 54 Proxy to Barry Casey Lot 108 Proxy to Atul Suchdeva Lot 87 Proxy to David Macdonald Lot 99 Proxy to Diana Choquette Lot 149 Proxy to Peter Readman Attending: Steven Lekoski (Bright & Duggan Pty Ltd) Chris Duggan (Bright & Duggan Pty Ltd) Ryan Dick (Bright & Duggan Pty Ltd) Alex Bell & Jian Hu (Grant Thornton) Preamble to the commencement of the Annual General Meeting. Alex Bell, from Grant Thornton, provided a brief update on the current status of the forensic audit. Questions were then opened from the floor to Mr Bell.

22 SP Minutes AGM 10-Oct-16 1 CHAIR OF THE MEETING 1.1 Chair of the Meeting Resolved to elect Chris Duggan as Chair of the meeting. The meeting commenced at 6.00 pm with a presentation and summary of the proposed motions by the Chairman, Mr. John Hudson. 2 CONFIRMATION OF MINUTES 2.1 Confirmation of the Minutes 3 FINANCE 3.1 Financial Position Resolved that the minutes of the last Extraordinary General Meeting held 23 August 2016 be adopted. Resolved that the unaudited draft statement of financial position and statement of financial performance for the year ended 30 June 2016 be noted. 3.2 Budget for the Year Ending 30 June 2017 Resolved that the budget for the year ending 30 June 2017 as tabled, adjusted for interest payable on the outstanding Lannock loan balance from 1 January 2017, be adopted. 3.3 Sinking Fund Plan Resolved that the sinking fund plan be adopted. 3.4 Auditor 3.5 Levy Contributions Administration Fund Resolved that the accounts and financial statements be audited to Australian Auditing Standards for the financial year ending 30 June 2017 for presentation to the next annual general meeting. a) Amended & resolved that the contributions to the administration fund be estimated in accordance with the budget and section 75 and determined in accordance with section 76 on a continuing basis at: Administration fund $ 2,380, b) And that the amount collected from 1 July 2016 to 31 December 2016 be deducted from the amount above with the balance payable in 2 equal instalments due and payable on 1 January 2017 and 1 April

23 SP Minutes AGM 10-Oct Motion Requiring Special Resolution - Discount 3.7 Special Levy Repayment of Lannock Loan Specially resolved that the Owners Corporation, pursuant to section 79 (4) of the Act, grant a 10% discount on the payment of Administration Fund contributions paid prior to the administrative fund levy due date. NB No votes were cast against the above motion. NB this motion was considered first on the agenda as a poll was requested by the floor. Option 1 Full repayment That an extra contribution of $ 13,200, be raised in accordance with sections 76(4) and (5) of the Strata Schemes Management Act 1996 to pay backthe Lannock Loan, the levy to be due and payable in oneinstalment of $13,200, on 1 January Motion defeated. Unit Entitlements for 2670, Unit Entitlements against OR Option 2 Three equal payments As an alternative to the above special levy option, the loan be repaid over 3 years in equal instalments of $4,400, payable on 1 January 2017, 2018 and Motion passed. Unit Entitlements for 3434, Unit Entitlements against Payment Plan Special Levy Option 1 Only Sinking Fund Levy Motion Withdrawn as option 1 of the prior motion was defeated. That the Owners Corporation approve the Executive Committee granting payment plans for up to 3 years, at a penalty interest rate of 10% pa, for those Owners who wish to make the payment over time rather than on 1 January Resolved that the Owners Corporation raise a Sinking Fund Levy of $1,097,500 payable on 1 January 2017 for the year ending 30 June GOVERNANCE 4.1 Executive Committee Resolved that the executive committee consist of 5 members, and that the following be elected to the executive committee; John Hudson Iver Pederson Tarnya O Neill Anne O Neill David Macdonald 3

24 SP Minutes AGM 10-Oct Restricted Matters 4.3 Spending Restrictions 4.4 Levy Arrears Debt Collection 4.5 Management Agreement Resolved that, in accordance with section 34(g) of Schedule 2, the owners corporation do not further restrict the executive committee powers in respect of dealing with any matters or types of matter. Resolved that, in accordance with section 80A(2), the Owners Corporation remove the limitation on budgeted expenditure placed by section 75(5) generally and place a 10% limitation on the budget expenditure. Resolved that, in accordance with section 80D, for the purpose of collecting or recovering levy contributions, the Owners Corporation authorize the Strata Managing Agent and/or the Executive Committee to do any one or more of the following: a) to engage or appoint the services of a debt collection agency, obtain legal advice and/or retain legal representation of Grace Lawyers Pty Ltd and/or b) to commence, pursue, continue or defend any court, tribunal or any other proceedings against any lot owner, mortgagee in possession and/or former lot owner in relation to all matters arising out of the recovery of levy contributions and the recovery of other debts, including penalties, interest, legal and other costs; c) enforce any judgment obtained in the collection of levy contributions including commencing and maintaining bankruptcy of winding up proceedings; d) filing an appeal or defending an appeal against any judgment concerning the collection of levy contributions; and e) liaise, instruct and prepare all matters with the owners corporation s debt collection agents, lawyers and experts in relation to any levy recovery proceedings. a) Resolved that the Owners Corporation renew the agreement with Bright & Duggan Pty Ltd as its strata managing agent for a period of two years, with the right to terminate the agreement on the giving of three months written notice, and delegate functions to it on the terms and conditions as set out in the management agreement tabled at the meeting; b) And that the Owners Corporation nominate and authorise two owners or members of the Executive Committee to execute and affix the common seal to the management agreement; c) And that the management fee be $ 90, per annum excluding GST commencing 11 October

25 SP Minutes AGM 10-Oct Change of Service address Resolved that, pursuant to section 239, the strata manager be authorized and instructed to arrange lodgment of the approved Real Property Act 1990 form at Land and Property Information to change the Owners Corporation s address for service of notices to Bright & Duggan Pty Ltd s address. 5 ASSET MAINTENANCE 5.1 Insurance Renewal a) Resolved that the Owners Corporation confirm the current insurance policy is effected. b) Resolved that the Executive Committee be authorised to effect statutory insurances required to be taken out by the Owners Corporation under section 83 and 87. c) Resolved that the Executive Committee be instructed to effect any additional insurances required by the Owners Corporation under section Property Revaluation 5.3 Work Health & Safety Act Requirements a) Resolved that a revaluation be carried out for insurance purposes - the last valuation being carried out on 2 November b) Resolved that the strata manager adjust the sum insured on the building and common property in accordance with the building valuation. Resolved that the Owners Corporation acknowledge the Work Health and Safety Act 2011 and Regulations and resolve to: a) have an initial common property safety report or updated report prepared by a qualified consultant; b) where there is a common property elevator, have a lift safety audit report carried out by a qualified consultant, provided confirmation that there has not been one undertaken recently. c) elect the building manager, Edo Hodzich, as a liaison point for asset compliance. Resolved that the Strata Manager be instructed to arrange for the preparation of the necessary reports. 5

26 SP Minutes AGM 10-Oct WorkCover Lift Registration Resolved that, regarding lift registration due 24 October 2016, pursuant to WH&S 2011: a) an independent lift consultant be appointed to undertake safe to operate testing. 6 BUILDING RENAME 6.1 Renaming & Re- Birthing the Building Resolved that the Owners Corporation resolve to change the name Beau Monde and current address Berry St to The Alexander and that the address Berry St be adopted. There being no further business the meeting closed at: 7.48 pm 6

27 Deed to Vary No 2 Strata management statement for Beau MondeThe Alexander Dated Mallesons Stephen JaquesKing & Wood Mallesons Level 610 Governor Phillip Tower 1 Farrer Place Sydney NSW 2000 Australia T F DX 113 Sydney Deed to Vary 1

28

29 Strata management statement for Beau MondeThe Alexander Contents Part 1 The Alexander and the strata management statement 12 1 What is a strata management statement? Management of the building Rights and obligations Definitions 12 2 About The Alexander What are the different components in The Alexander? Management structure Who assists the committee perform its functions? Overview of management structure Boundary Realignment and Loading Dock Transfer Boundary Adjustment and 77 Berry Street Severance from The Alexander 14 3 How does this management statement work? How is this management statement set out? What is the effect of this management statement? How to amend this management statement 16 4 Who must comply with this management statement? General obligations Obligations for others Obligations for visitors By-laws for the The Alexander Apartments 17 Part 2 Rights and obligations of the committee 18 5 The committee Establishing the committee Members of the committee 18 6 Functions and powers of the committee What are the functions? How to make decisions Power to contract and make appointments Making rules Rights under easements 20 7 Officers of the committee What officers must the committee appoint? Eligibility for election Appointment of officers Vacating the position of an officer 20 Mallesons Stephen Jaques Strata management statement for Beau MondeThe Alexander 7 April

30 8 Functions of officers Exercising functions The secretary The treasurer The chairperson 21 9 Appointing a strata manager Purpose of the agreement Qualifications of the strata manager Delegation of functions What functions may not be delegated? Form of agreement Term of the appointment Remuneration Appointing a building manager Purpose of the agreement Delegation of functions Form of agreement Term of the appointment Remuneration Rights of the committee to do work in an emergency What power does the committee have? Entering parts of Beau Monde What are your obligations? Damages Interpreting this clause Insurance requirements Statutory insurance Required insurances Optional insurances Proceeds of building insurance claims Valuations Building sum insured Regular review of insurances Insuring for new risks Insurance records Keeping books and records Obligations of the committee Which books and records must the committee keep? How long are records kept? Power of the committee to act on behalf of the members Acting as agent Appointment as agent and attorney Legal proceedings by a member Power of the committee to gain access to shared facilities General requirement What are the powers of the committee? 27 4

31 15.3 Access requirements Notice requirements Rectifying damage Interpreting this clause Consents by the committee How may consent be given? Conditional consent Revoking consent 28 Part 3 Rights and obligations of members, owners and occupiers What are the rights and obligations of members? General obligations Voting rights Shared facilities Maintenance requirements Structural adequacy Damage Rights under easements Appointing a representative and a substitute representative Appointment of representatives Appointment of substitute representatives Eligibility for appointment Notice of appointment Appointing a new representative or substitute representative Proxies Acts by representatives What are the obligations of owners and occupiers? General obligations Shared facilities Changing parties to service contracts Additional obligations for the owners corporation Notices of meetings Attendance at meetings By-laws New owners corporations Rights of access General requirement Access in an emergency Access to shared facilities by the committee Access to Shared Facilities by the members, owners and occupiers Notice requirements When is access available? Paying costs Obligations for insurance Public liability insurance Machinery breakdown and contents 34 5

32 22.3 Actions that may increase premiums Paying for additional premiums Proceeds of building insurance claims by members Inspecting the books and records of the committee Who is entitled to inspect the books and records? What is the procedure? Time for the inspection Taking copies of records Obtaining an outstanding levy certificate Who may apply for a certificate? Procedure to obtain a certificate Information to be included in a certificate When must the certificate be given? Certificate is evidence of matters in it What contact details must you provide to the committee? Providing contact details to the committee Changing your contact details Giving approval to subdivisions Obligations of members Additional strata management statements Subdivision plan, membership and voting Subdivision plan and paying contributions Paying costs Upgrading and redevelopment Acknowledgment Member s consent not required for any upgrade or redevelopment Members to provide consents to any authorities required to carry out upgrading or redevelopment works Paying costs 38 Part 4 Meeting procedures and resolutions Meetings of the committee Types of meetings Meetings Emergency meetings Who convenes meetings? Notices and agendas for meetings Information to be included in the notice Agenda for a meeting Agenda for an emergency meeting Information to be included in the notice of a meeting to consider levy contributions How to give notice of a meeting How much notice is required for a meeting? How to serve notice of a meeting 41 6

33 30.3 Giving notice of an emergency meeting Notices for emergency meetings Procedures for holding meetings Conducting a meeting or emergency meeting Quorum for a meeting Failure to obtain a quorum Notice of adjourned meetings Quorums at adjourned meetings Attendance at a meeting Special provisions for meetings held in writing How to cast a vote at an emergency meeting Minutes of meetings Voting rights of members Voting rights of members How many votes does each member have? Types of resolutions Instructions by a member Instructions by the owners corporation Restrictions on voting Resolutions at meetings and emergency meetings What is a resolution? Who may vote on a matter requiring a resolution? When is a resolution passed? Matters decided by resolution Unanimous resolutions at meetings Purpose of unanimous resolutions Who may vote on a unanimous resolution? When is a unanimous resolution passed? Matters decided by unanimous resolution Appointing a proxy Who may appoint a proxy? Who may be a proxy? How to appoint Instructions about voting Restrictions on voting 46 Part 5 Financial management What funds must the committee establish? Administrative fund Sinking fund What money is paid into the administrative fund? What money is paid into the sinking fund? Money from the roof sign Financial years First financial year Subsequent financial years 48 7

34 38 Preparing budgets When to prepare budgets What information must be included in a budget? How much to budget? Determining contributions Levying members What proportion of costs must you pay? Water consumption and insurance Procedures for determining contributions Determining the amount of contributions Insufficient funds Determining contributions at an emergency meeting Contributions if a subdivision plan is registered Procedure for assessing contributions if a subdivision plan is registered Preparing financial statements Obligations of the committee Information to be included in a financial statement Paying contributions Notices of contributions Raising funds in an emergency Banking money days and interest on accounts Establishing a bank account Withdrawing money Trust account Interest bearing accounts Late payments Interest Calculating interest Certificates about interest rates Recovering unpaid contributions Dealing with surplus funds Distributing surplus funds Considerations Unanimous resolution Paying contributions when there is a dispute What are your obligations? Continuing payments Your rights are not affected 53 Part 6 Shared facilities Overview of shared facilities What are they? What do shared facilities include? Rights and obligations of the committee Shared Facilities and common property 55 8

35 46.5 Shared Facilities and stratum lots Who may use shared facilities? How to apportion costs for shared facilities Obligations of members to pay for shared facilities Metering Easements and shared facilities Changing and adding to shared facilities Powers of the committee Unilateral right of a member to change or add to shared facilities Obligations of members Access right Changing the costs for shared facilities Powers of the committee Reason for exercising powers What must occur before power can be exercised? Periodic review Change in use of a Shared Facility Obligations of members Using approved contractors Overview Obligations of the committee Your obligations Damage to shared facilities Security control at The Alexander An integrated security system Restricting access to parts of The Alexander Provision of security keys Charging fees for security keys Your rights and obligations Who owns security keys? Managing the security key system Roof sign and roof sign area Who may use the roof sign area and install a roof sign? What are the obligations of the owners corporation? Licences or leases for the roof sign and roof sign area Right of refusal Security at The Alexander The committee s powers Purposes of the agreement Form of agreement Term of the appointment Remuneration Use of loading dock Control over use of loading dock 64 9

36 54.2 Before you use the loading dock When can you use the loading dock? What are the rights of the retail owner? Loading Dock Transfer Control over use of loading dock Before you use the loading dock Managing the loading dock Water consumption Overview of water supply Water supply system Water consumption Obligations of the Committee Advance payments Overpayments Underpayments 67 Part 7 Miscellaneous How to resolve disputes Interpretation About disputes Dealing with disputes according to this clause Dispute notice Negotiation Expert determination Appointing an expert Instructions to the expert Conducting expert determination Expert determination Binding effect Expert determination about shared facility costs Costs How to serve notices Methods of serving notices When does a notice take effect? When is a posted notice received? When is a fax received? GST Amounts are exclusive of GST Obligation to pay GST Differences in amounts Reimbursement General Discretion in exercising rights Partial exercise of rights Approvals and consents Conflict of interest Remedies cumulative Severability 72 Part 8 Dictionary 73 10

37 60 Definitions Rules of interpretation Interpreting this management statement Headings Rights under this management statement Severance 79 Schedule 1 - List of shared facilities 80 Schedule 2 - Division of costs for shared facilities 87 Schedule 3 - Proxy form 99 Schedule 4 - List of excluded facilities 100 Schedule 5 - List of shared facilities intended to be converted to metered or consumption based cost contribution

38 Part 1 Beau Monde The Alexander and the strata management statement 1 What is a strata management statement? 1.1 Management of the building A strata management statement is a set of rules that regulate the management and operation of buildings where part of the building is subdivided by a strata scheme or schemes. These types of strata schemes are called part building strata schemes. Beau Monde The Alexander Apartments is a part building strata scheme. 1.2 Rights and obligations A strata management statement confers rights and imposes obligations on the owners corporations and owners and occupiers of lots in a building in which there is a part building strata scheme. It contains provisions about a wide range of issues including meetings, financial management and the maintenance of shared facilities. 1.3 Definitions In this management statement, italicised words are defined in part 8 of this management statement. 2 About Beau MondeThe Alexander 2.1 What are the different components in The AlexanderBeau Monde? At the date of registration of this management statement The Alexander Beau Monde has four distinct components. The owner of each component is a member of the committee and must comply with this management statement. The components of The Alexander Beau Monde are: Component Description Member Beau Monde The Alexander Apartments Beau Monde Commercial 77 Berry Street Beau Monde Retail A residential strata scheme containing 241 apartments with residential carparking facilities. A commercial stratum lot containing office accommodation with carparking facilities. A retail stratum lot containing a retail shopping centre. A stratum lot to be further subdivided and severed from The Alexander in accordance with clause 2.7. Owners corporation Commercial owner Retail owner Deed to Vary 12

39 Component Description Member Beau Monde Carpark A stratum lot containing a former a public carpark. Carpark owner The components of Beau Monde may be added to if a stratum lot is subdivided by a subdivision plan. The components of The Alexander may change as contemplated by this clause Management structure The committee is responsible to operate and manage Beau Monde The Alexander on behalf of the members. Each member is a member of the committee. Each member appoints a representative and substitute representative to attend and vote for them at meetings of the Committee. See clause 18 ( Appointing a Representative and Substitute Representative ) for more information. 2.3 Who assists the committee perform its functions? The committee has the power to appoint various persons to assist it perform its functions. For example, the committee may: (c) appoint a strata manager to assist in the operation and management of Beau Monde and to perform secretarial and financial functions; appoint a building manager to assist in the operation, maintenance and repair of shared facilities; and enter into contracts with various service providers for the operation, maintenance, repair and replacement of shared facilities. The powers of the committee are explained in more detail in part 2 of this management statement. 13

40 2.4 Overview of management structure In summary, the management structure for Beau Monde looks like this: Owners corporation Strata manager Commercial owner Retail owner Carpark owner These parties are members of the committee. They each appoint a representative to attend and vote for them at meetings and emergency Committee Building manager Service providers for shared facilities The committee may appoint a strata manager, a building manager and other parties to assist in the operation and management of Beau Monde The Alexander. 2.5 Boundary Realignment and Loading Dock Transfer The owners corporation and the retail owner have agreed to realign the boundaries between The Alexander and Beau Monde Retail (subject to the necessary approvals). The owners corporation and the retail owner agree that following the boundary adjustment referred to in paragraph, the loading dock will part of the common property of the Alexander Apartments and provisions will apply to the use of the loading dock in place of provisions Boundary Adjustment and 77 Berry Street The commercial owner and the retail owner have agreed to adjust the boundary between 77 Berry Street and Beau Monde Retail. The commercial owner and the retail owner agree that the boundary adjustment referred to in paragraph does not trigger any change to this management statement including no change to the sharing of costs of voting rights as a consequence of the boundary adjustment. 2.7 Severance from The Alexander The retail owner intends on carrying out a redevelopment of Beau Monde Retail and Beau Monde Carpark. On completion of that redevelopment, the retail owner and the carpark owner intend to subdivide Beau Monde Retail and the Beau Monde Carpark to realign the boundaries of those lots to reflect the as built structures. The plan of subdivision will create two new lots to be known as 1 Denison Street and the Residue Carpark. It is intended that 1 Denison Street will be structurally separate from The Alexander and will not share services with The Alexander. 14

41 (c) (d) (e) The parties agree that on and from the registration of the plan to create the Residue Carpark and 1 Denison Street, the retail owner can make an application to the Registrar General to remove 1 Denison Street from The Alexander so that 1 Denison Street will not be subject to the provisions of this management statement. The members will do all things reasonably required to effect the removal of 1 Denison Street from The Alexander. The members agree that on and from the date of registration of the plan referred to in paragraph, Schedule 2 is replaced with revised Schedule 2 entitled Revised Schedule 2 Following Separation of 1 Denison Street from SMS. Following the severance of 1 Denison Street from The Alexander, it is intended that the members of this management statement will be: Component Description Member The Alexander Apartments A residential strata scheme containing 241 apartments with residential carparking facilities. Owners corporation 77 Berry Street A commercial stratum lot containing office accommodation with carparking facilities. Commercial owner Residue Carpark A stratum lot containing retail shops and a small basement area adjoining 1 Denison Street. Carpark owner References to Beau Monde Retail will be deemed to be deleted from this management statement. 3 How does this management statement work? 3.1 How is this management statement set out? There are eight parts in this management statement: Part 1 Development and the strata management statement Part 2 Rights and obligations of the committee Part 3 Rights and obligations of members, owners and occupiers Part 4 Meeting procedures and resolutions Part 1 explains the management structure of Beau Monde and who must comply with this management statement. Part 2 explains the rights and obligations of the committee. It contains operational information about the committee and about appointing a strata manager, building manager and service providers to assist the committee to perform its functions. Part 3 explains the rights and obligations of members, owners and occupiers. It includes provisions about insurance, disputes and access rights. Part 4 explains the procedures for convening and holding meetings, quorums for meetings and emergency meetings and the types of resolutions required for decisions of the committee. 15

42 Part 5 Financial management Part 6 Shared facilities Part 7 Miscellaneous Part 8 Dictionary Part 5 explains the procedures for preparing budgets, financial statements and levying processes for contributions to meet costs under this management statement. Part 6 explains how shared facilities work and are paid for by the members. It contains important information about the operation of and obligations for shared facilities. Part 7 explains the procedures for resolving disputes and how to serve notices. Part 8 explains the meaning of words written in italics and how to interpret this management statement. 3.2 What is the effect of this management statement? This management statement has effect as an agreement under seal. 3.3 How to amend this management statement The committee may amend, add to or repeal all or parts of this management statement only by unanimous resolution. 4 Who must comply with this management statement? 4.1 General obligations Persons who must comply with this management statement are: (c) (d) (e) the owners corporation; owners and occupiers of apartments; the commercial owner and occupiers of Beau Monde Commercial77 Berry Street (or parts of it); the retail owner and occupiers of Beau Monde Retail (or parts of it) whilst it is part of The Alexander (until registration of the 1 Denison Street severance plan); and the carpark owner and occupiers of Beau Monde Carpark (or parts of it) or the Residue Carpark. 4.2 Obligations for others You must not: do anything to prevent another person from complying with this management statement; or allow another person to do anything which you cannot do under this management statement. 4.3 Obligations for visitors You must: 16

43 take all reasonable actions to ensure that your visitors refrain from breaching this management statement; and make your visitors leave Beau Monde The Alexander if they do not refrain from breaching this management statement. 4.4 By-laws for the Beau Monde ApartmentsThe Alexander Apartments The by-laws for the Beau Monde ApartmentsThe Alexander Apartments contain obligations with which owners and occupiers of apartments must comply (in addition to this management statement). 17

44 Part 2 Rights and obligations of the committee 5 The committee 5.1 Establishing the committee The members must: establish the committee within one month after this management statement is registered; and always have a committee. 5.2 Members of the committee The members of the committee are: (c) (d) the owners corporation; the commercial owner; the retail owner until registration of the 1 Denison Street severance plan; and the carpark owner. The owners of any new stratum lot created on registration of a subdivision plan, or any new owners corporation established on registration of a strata plan will also become members. 6 Functions and powers of the committee 6.1 What are the functions? In addition to its functions and powers elsewhere in this management statement, the functions and powers of the committee are: (c) (d) (e) to comply with its obligations and perform its functions according to the Management Act, the Development Act and this management statement and the easements; to make decisions about the matters in this management statement; to convene and hold meetings and emergency meetings; to determine administrative fund contributions and the sinking fund contributions to meet the costs for performing the functions and comply with the obligations of the committee; to operate, maintain, renew and replace shared facilities (subject to this management statement); 18

45 (f) (g) (h) (i) (j) (k) to deal with and make decisions about shared facilities according to this management statement; to effect insurances according to the Management Act and this management statement; to monitor the performance by members, owners and occupiers of their obligations under the Management Act, the Development Act and this management statement; to monitor the performance of the strata manager; to monitor the performance of the building manager and other service providers; and to perform ancillary functions necessary to carry out the functions and perform the obligations of the committee. 6.2 How to make decisions The committee may make decisions only according to this management statement and: at a properly convened meeting or emergency meeting; and by resolution or unanimous resolution. 6.3 Power to contract and make appointments Subject to this clause 6, the committee has the power to: (c) enter into contracts or other arrangements with service providers to assist the committee perform its functions and comply with its obligations; appoint consultants and experts to advise and assist the committee in the administration and performance of its functions and the compliance with its obligations; and appoint persons (eg a member) to act as its agent to enter into contracts or other arrangements on its behalf. 6.4 Making rules The committee may make rules to assist in the proper management, operation, maintenance and control of Beau Monde The Alexander. A rule made by the committee applies as though it is set out in full in this management statement. However, when the committee makes a rule: it must take into account the mixed use nature of Beau Monde The Alexander and the various components in it; and the rule must not be inconsistent with this management statement. If there is an inconsistency between a rule and this management statement, the management statement prevails. 19

46 6.5 Rights under easements The committee must not do anything to prevent or hinder a grantee from exercising their rights under an easement. 7 Officers of the committee 7.1 What officers must the committee appoint? The committee must appoint as officers a secretary, a treasurer and a chairperson. 7.2 Eligibility for election To be eligible for election as an officer, you must be: (c) a representative; a substitute representative; or the strata manager. 7.3 Appointment of officers The committee must appoint its officers within one month after this management statement is registered. The committee: (c) may appoint you (if you are eligible for appointment) to hold the position of one or more officer; may appoint new officers at any time; and must, as soon as reasonably practicable, appoint a replacement officer if an existing officer vacates their position as an officer. 7.4 Vacating the position of an officer You vacate your position as an officer if: (c) you cease to be a representative, substitute representative or the strata manager; the committee dismisses you from your position; or you resign in writing from your position. You must serve notice on the committee of your resignation and the date from which it will become effective. 8 Functions of officers 8.1 Exercising functions An officer must perform their functions according to this management statement, the Management Act, the Development Act and the directions of the committee. 20

47 8.2 The secretary In addition to the functions elsewhere in this management statement, the functions of the secretary are: (c) (d) (e) (f) (g) to convene meetings and emergency meetings; to prepare and distribute notices, agendas and minutes for meetings and emergency meetings; to serve notices for the committee; to answer communications sent to the committee; to perform administrative and secretarial functions for the committee; to keep records (other than records which the treasurer must keep) for the committee according to this management statement and the Management Act; and to make the books and records of the committee available for inspection according to clause 23 ( Inspecting the books and records of the committee ). 8.3 The treasurer In addition to the functions elsewhere in this management statement, the functions of the treasurer are: (c) (d) (e) (f) (g) (h) (i) to prepare budgets for the administrative fund and sinking fund; to prepare outstanding levy certificates; to prepare (or arrange for the preparation of) financial statements; to prepare (or arrange for the preparation of) audit reports; to send notices of administrative fund and sinking fund contributions to members; to collect contributions from members; to receive, acknowledge, bank and account for contributions and other money paid to the committee; to pay accounts; and to keep accounting records for the committee. 8.4 The chairperson The function of the chairperson is to preside at each meeting and emergency meeting at which the chairperson is present. If the chairperson does not attend a meeting or an emergency meeting, the persons present at the meeting may appoint another representative, substitute representative or the strata manager to preside at that meeting only. 21

48 9 Appointing a strata manager 9.1 Purpose of the agreement The committee has the power to appoint and enter into agreements with a strata manager to assist the committee perform its functions and, in particular, perform the functions of the secretary and treasurer. 9.2 Qualifications of the strata manager The strata manager must have the licences required by law to be a strata managing agent. 9.3 Delegation of functions Subject to this clause 9 and the law, the committee may delegate to the strata manager some of all of the functions of the committee and the officers. 9.4 What functions may not be delegated? The committee must not delegate these functions to the strata manager: (c) (d) this power of delegation; functions which the committee may exercise only by unanimous resolution; the function to determine administrative fund and sinking fund contributions; and functions which the committee decides by unanimous resolution may be performed only by the committee. 9.5 Form of agreement An agreement between the committee and the strata manager must: (c) (d) be in writing and be signed by each member or a person appointed by the committee under clause 6.3(c) ( Power to contract and make appointments ) and the strata manager; reserve the power for the committee and the officers to continue to exercise the functions which the committee has delegated to the strata manager; allow the strata manager to terminate the agreement if the strata manager is not appointed by the owners corporation as its strata managing agent; and contain provisions about the rights of the committee and the strata manager to terminate the agreement early if a party does not comply with or perform their obligations under the agreement. 9.6 Term of the appointment The term of the initial agreement between the committee and the strata manager must not exceed 2 years. The term of a new agreement may be for the period determined by the committee (acting reasonably). 22

49 9.7 Remuneration The remuneration of the strata manager for the first year of the initial agreement under this clause 9 must reflect market practices for comparable buildings having due regard to any difference in the number of stratum lots and strata schemes, and the scope of the strata management duties for those comparable buildings. The remuneration of the strata manager for the second and subsequent years of the initial agreement (and for any new agreements) may be the amount determined by the committee (acting reasonably). 10 Appointing a building manager 10.1 Purpose of the agreement The committee has the power to appoint and enter into agreements with a building manager to provide operational and management services for Beau MondeThe Alexander and, in particular, to assist the committee to perform its functions in relation to shared facilities Delegation of functions Subject to this clause 10, the committee must not delegate its functions to the building manager Form of agreement An agreement between the committee and the building manager must: (c) be in writing and be signed by each member or a person appointed by the committee under clause 6.3(c) ( Power to contract and make appointments ) and the building manager; allow the building manager to terminate the agreement if the building manager is not appointed by the owners corporation as its caretaker; and contain provisions about the rights of the committee and the building manager to terminate the agreement early if a party does not comply with or perform their obligations under the agreement Term of the appointment Subject to the law, the term of the initial agreement between the committee and the building manager must not exceed 2 years (including options). The term of a new agreement may be for the period determined by the committee (acting reasonably) Remuneration The remuneration of the building manager for the first year of the initial agreement under this clause 10 must reflect market practices for comparable buildings having due regard to any difference in the number of stratum lots and strata schemes, and the scope of building management comparable buildings. The remuneration of the building manager for the second and subsequent years of the initial agreement (and for any new agreements) may be the amount determined by the committee (acting reasonably). 23

50 11 Rights of the committee to do work in an emergency 11.1 What power does the committee have? In an emergency, the committee may do anything in Beau Monde The Alexander which you should have done under this management statement but which, in the opinion of the committee acting reasonably, you have not done or have not done properly. If practicable, the committee must give you notice before it exercises its rights under this clause Entering parts of Beau MondeThe Alexander To exercise its rights under this clause 11, the committee may: enter your part of Beau Monde The Alexander and stay there for a long as necessary; and do what is required to remedy the emergency provided that the committee does not interfere unreasonably with the lawful use of your part of Beau Monde The Alexander What are your obligations? If the committee carries out work under this clause 11, you must pay it its reasonable costs for carrying out the work you should have carried out. The committee must give you the information you reasonably require about the costs it has incurred according to this clause Damages The committee is not liable for damage arising out of exercising rights under this clause 11 (except for damage it causes maliciously or negligently) Interpreting this clause In this clause 11, references to the committee include persons authorised by the committee and service providers appointed by the committee. 12 Insurance requirements 12.1 Statutory insurance In accordance with the Management Act, the committee must effect building insurance for Beau MondeThe Alexander Required insurances In addition to its statutory obligation to effect building insurance, the committee must also: (c) effect machinery breakdown insurance for shared facilities plant and equipment which is not covered under warranty; effect public liability insurance for shared facilities for a cover of not less than the amount prescribed by the Management Act for a public liability policy effected by an owners corporation; effect workers compensation insurance if required by law; and 24

51 (d) effect enough insurance cover to pay for increased costs during the period of insurance Optional insurances The committee may effect other types of insurance including, but not limited to, office bearers liability insurance for its officers Proceeds of building insurance claims The Committee must: apply any payments it receives under the building policy for Beau Monde The Alexander to rebuild or reinstate the damaged parts of Beau Monde The Alexander; and rebuild or reinstate the damaged parts of Beau Monde The Alexander within a reasonable time. See clause 22.5 ( Proceeds of building insurance claims by members ) regarding the obligations of members if they receive a payment under the building policy for Beau Monde The Alexander Valuations The committee must have Beau Monde The Alexander valued for insurance purposes at least every three years. The valuation must be done by a qualified valuer or quantity surveyor who has: a minimum of five years experience; and experience in valuing for insurance purposes buildings like Beau Monde The Alexander. The committee must have the first valuation carried out within six months after this management statement is registered Building sum insured The committee must insure Beau Monde The Alexander for the sum determined by the valuer or quantity surveyor (or a higher sum if determined by the committee acting reasonably) Regular review of insurances Each year the committee must: (c) review its current insurance policies; decide whether it needs new insurance policies and, if so, effect those policies; and decide whether it needs to adjust current insurance policies and, if so, adjust those policies. The secretary must include a motion on the agenda for a meeting to determine these matters. 25

52 12.8 Insuring for new risks The committee must immediately effect new insurance or adjust existing insurances if there is an increase in risk or a new risk to the committee, Beau Monde The Alexander or shared facilities Insurance records The committee must: keep with its books and records all duplicate or certified copies of insurance policies, renewal certificates and endorsement slips for insurances it effects under this clause 12; and provide a certificate of currency to each member after it renews an existing policy, alters an existing policy or effects a new policy. 13 Keeping books and records 13.1 Obligations of the committee The committee must keep books and records relating to the exercise of its functions according to this clause Which books and records must the committee keep? Books and records which the committee must keep include, without limitation: (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) an up-to-date copy of this management statement; its agreements with the strata manager; its agreement with the building manager; its agreements with service providers, contractors, tradespersons and any other persons in relation to shared facilities; an up-to-date record of address and other details for each member, representative and substitute representative provided by members according to clause 25 ( What contact details must you provide to the committee? ); notices and minutes of meetings and emergency meetings; voting papers (including any proxies) for meetings and emergency meetings; financial statements; copies of outstanding levy certificates; audit reports; budgets; notices served on the committee; correspondence sent to and by the committee; insurance records; and 26

53 (o) all other records relating to the administration and operation by the committee of The AlexanderBeau Monde and shared facilities How long are records kept? The committee must keep copies of its records for a least seven years form the date of the record. 14 Power of the committee to act on behalf of the members 14.1 Acting as agent Each member agrees that the committee (or a person appointed by the committee) may act as agent for all the members and take legal proceedings about: (c) the failure of a member to pay administrative fund or sinking fund contributions; the failure of a member to comply with its obligations under this management statement; and the failure of an owner or occupier to comply with their obligations under this management statement Appointment as agent and attorney Each member appoints the committee as its agent and attorney to enable the committee or a person appointed by the committee to take any action authorised by resolution Legal proceedings by a member This clause 14 does not prevent a member from taking legal proceedings in its own name. 15 Power of the committee to gain access to shared facilities 15.1 General requirement When the committee exercises its rights to access parts of Beau Monde The Alexander, it must not interfere unreasonably with your lawful use of that area What are the powers of the committee? Subject to this clause 15, the committee has the power to gain access to an apartment, common property or stratum lot in order to: operate, test, use, maintain, repair or replace shared facilities (eg the integrated fire system for Beau Monde The Alexander); and exercise its rights and comply with its obligations under this management statement. 27

54 15.3 Access requirements To enable the committee to exercise its powers under this clause 15 and subject to clause 15.4 ( Notice requirements ): if you are an owners corporation, you must give the committee access to your common property; and if you are an owner or occupier, you must give the committee access to your apartment or stratum lot by the most direct route or by the route nominated by the committee (acting reasonably) Notice requirements The committee must give you reasonable notice before it requires access to your part of Beau Monde The Alexander. However, in an emergency the committee is not required to give you notice if it is not practicable to do so Rectifying damage When it exercises it rights or complies with its obligations under this clause 15, the committee must promptly rectify any damage it causes to your part of Beau MondeThe Alexander and leave your part of Beau MondeThe Alexander clean and tidy Interpreting this clause In this clause 15, references to the committee include persons authorised by the committee and service providers appointed by the committee. 16 Consents by the committee 16.1 How may consent be given? The committee may give consents under this management statement only at a meeting or an emergency meeting. Unless a clause states otherwise, the committee may give consents under this management statement by resolution Conditional consent The committee may make conditions if it grants consent under this management statement Revoking consent The committee may revoke its consent if the person who has been granted the consent does not comply with: conditions made by the committee when it granted the consent; and the clause under which the committee granted the consent. 28

55 Part 3 Rights and obligations of members, owners and occupiers 17 What are the rights and obligations of members? 17.1 General obligations In addition to your obligations in the Management Act, Development Act and elsewhere in this management statement, if you are a member you must: (c) (d) (e) (f) (g) (h) (i) act reasonably and in good faith in your dealings with the committee, other members, owners and occupiers; promptly comply with your obligations under this management statement, the Management Act and the Development Act; ensure, as far as is reasonable, that Beau Monde The Alexander is efficiently managed to a standard appropriate to its permitted uses; promptly pay your administrative fund contributions and sinking fund contributions and other amounts you owe the committee under this management statement; effect and maintain the insurances required by the Management Act and this management statement; ensure the committee is properly constituted; comply with decisions of the committee; and comply with rules; and comply with easements Voting rights If you are a member, you have the right to vote at meetings and emergency meetings according to part Shared facilities If you are a member you must not interfere with shared facilities other than according to this management statement Maintenance requirements Except for shared facilities and subject to this management statement, if you are a member you must, at your cost: maintain and keep in good repair the part of Beau Monde The Alexander which you own; 29

56 (c) maintain and keep in good repair the facade and other external finishes, fixtures or fittings in the part of Beau Monde The Alexander which you own; and maintain, inspect and operate plant and equipment owned or used exclusively by you to a standard recommended by the manufacturer or the applicable Australian standard Structural adequacy Members, owners and occupiers: must maintain the structural adequacy of their part of Beau Monde The Alexander (unless the committee is required to do so); and must not do anything to affect the structural adequacy of Beau Monde The Alexander (or any part of it) Damage If you are a member you are liable for damage or loss you cause to each other member, an owner or an occupier if you do or fail to do something under this management statement. However, your liability does not include damage or loss caused or contributed to by the member, owner or occupier suffering the damage or loss. In this clause 17.6, a reference to a member includes the representative, substitute representative, contractors, employees and agents of the member Rights under easements You must not do anything to prevent or hinder a grantee from exercising their rights under an easement. 18 Appointing a representative and a substitute representative 18.1 Appointment of representatives If you are a member, you must appoint a representative to represent and vote for you at meetings and emergency meetings Appointment of substitute representatives If you are a member, you may appoint a substitute representative to represent you at meetings and emergency meetings if your representative cannot attend Eligibility for appointment Representatives and substitute representatives must be natural persons Notice of appointment You must serve notice on the committee when you appoint a representative or substitute representative. The notice must contain the information in clause 25 ( What contact details must you provide to the committee? ). 30

57 18.5 Appointing a new representative or substitute representative If you are a member, you may appoint a new representative or substitute representative at any time. You must serve notice on the committee of the new appointment according to clause 25 ( What contact details must you provide to the committee? ). The appointment of your previous representative or substitute representative is terminated when the committee receives your notice of the new appointment Proxies You may authorise your representative or substitute representative to appoint a proxy to represent and vote for you at meetings and emergency meetings. In your notice to the committee under clause 18.4 ( Notice of appointment ), you must advise the committee whether your representative or substitute representative may appoint a proxy Acts by representatives Anything done for you by your representative or substitute representative has the same effect as if you did it. 19 What are the obligations of owners and occupiers? 19.1 General obligations In addition to your obligations elsewhere in this management statement, if you are an owner or an occupier you must: (c) (d) promptly comply with your obligations under this management statement, the Management Act and the Development Act; comply with decisions of the committee; and comply with rules; and comply with easements Shared facilities If you are an owner or an occupier, you must not interfere with shared facilities other than according to this management statement Changing parties to service contracts To ensure that each current member is a party to contract with a service provider entered into by the committee, if you: (c) transfer your stratum lot, you must procure the new member for your lot to become a party to all current contracts from the date of the transfer; or subdivide your stratum lot (or part of it) to create two or more stratum lot, you must procure the owners of the new lots to become parties to all current contracts from the date of registration of the subdivision plan; or subdivide your stratum lot by a strata plan, you must procure the new owners corporation to become a party to all current contracts within seven days after registration of the strata plan. 31

58 When you comply with your obligations under this clause 19.3, the members release you from your obligations under the relevant contract from the date the new member becomes a party to the contract (other than for liabilities which arose before that date). If you fail to comply with your obligations under this clause 19.3, you are responsible for any liability, loss, claim or damages sustained by the other members as a result of your non-compliance. 20 Additional obligations for the owners corporation 20.1 Notices of meetings The owners corporation must give each member notices of its general meetings and meetings of its executive committee as if the member receiving the notice is a member of the owners corporation or its executive committee if the business of the meeting involves this management statement or other members. The owners corporation must give the notice at least 72 hours before the meeting is scheduled to commence Attendance at meetings The owners corporation must allow the representatives or substitute representatives of the other members to: attend its general meetings and meetings of its executive committee if the business of the meeting involves this management statement; and address general meetings and executive committee meetings in regard to matters affecting this management statement or other members By-laws The owners corporation must not make by-laws that are inconsistent with this management statement. If there is an inconsistency between the by-laws and this management statement, the owners corporation must amend the inconsistent by-law to make it consistent with this management statement New owners corporations If you are an owners corporation created by registration of a strata plan after the date this management statement is registered, you must provide the Committee with contact details required under clause 25 ( What contact details must you provide to the committee? ) within five business days after registration of the strata plan. You become a member from the date of registration of the strata plan. 21 Rights of access 21.1 General requirement When the committee, members, owners and occupiers exercise their rights to access parts of Beau Monde The Alexander, they must not interfere unreasonably with your lawful use of that area. The owners corporation may access the lots of the other members on reasonable notice for the purpose of undertaking inspections, repairs, maintenance, replacement, upgrading or redevelopment of the common property of Beau Monde ApartmentsThe Alexander Apartments, 32

59 provided such access does not have a detrimental effect to an extent that is substantial. (c) A member other than the owners corporation may access: (i) (ii) the lots of the other members other than the owners corporation; and the common property of Beau Monde ApartmentsThe Alexander Apartments, on reasonable notice for the purpose of undertaking inspections, repairs, maintenance, replacement, upgrading or redevelopment of the lot of the first mentioned member to be undertaken, provided such access does not have a detrimental effect to an extent that is substantial Access in an emergency In an emergency you must give members, owners and occupiers access to fire stairs, passages and all other egress routes in your part of Beau Monde The Alexander necessary to exit Beau Monde The Alexander Access to shared facilities by the committee You must give the committee access to operate, test, use, maintain, repair and replace shared facilities located in your part of Beau Monde The Alexander according to this management statement. Clauses 11 ( Rights of the committee to do work in an emergency ) and 15 ( Power of the committee to gain access to shared facilities ) apply Access to Shared Facilities by the members, owners and occupiers You must give members, owners and occupiers access to use, maintain, repair, replace or modify shared facilities located in your part of Beau Monde The Alexander according to this clause Notice requirements The members, owners and occupiers must give you reasonable notice before they require access to your part of Beau Monde The Alexander to maintain, repair, replace or modify shared facilities When is access available? Except in an emergency, the members, owners and occupiers may gain access under this clause to your part of Beau Monde The Alexander only: during the hours determined by this management statement or reasonably agreed to by you; and subject to this management statement, according to your reasonable requirements Paying costs Subject to this management statement, the committee or a member must pay all of their costs associated with them gaining access to parts of Beau Monde The Alexander under this clause

60 22 Obligations for insurance 22.1 Public liability insurance If you are a member, you must effect public liability insurance with the same insurer appointed by the committee for its public liability policy Machinery breakdown and contents If you are a member, you must effect with the insurer appointed by the committee for its building policy: machinery breakdown insurance for plant and equipment in your part of Beau MondeThe Alexander that is not a shared facility and is not covered under warranty; and for the owners corporation, contents insurance for its common property Actions that may increase premiums You must have consent from the committee to do anything which might: void or prejudice insurances effected by the committee; or increase an insurance premium paid by the committee Paying for additional premiums If you do anything to increase an insurance premium paid by the committee, you must pay the amount by which the premium is increased. The committee may add the amount to your administrative fund contribution Proceeds of building insurance claims by members If you are a member, you must: apply any payments you receive under a building policy effected by the committee under clause 12.1 ( Statutory insurance ) to rebuild or reinstate the damaged areas of your part of Beau MondeThe Alexander; and rebuild or reinstate your part of Beau MondeThe Alexander within a reasonable time. 23 Inspecting the books and records of the committee 23.1 Who is entitled to inspect the books and records? You may inspect the books and records of the committee if you are a member, an owner or an occupier (or a person authorised in writing by them) What is the procedure? The procedure for inspecting the books and records of the committee is: the applicant must apply in writing to the secretary; and the applicant must pay the committee an inspection fee of $20.00 for the first hour of the inspection and $10.00 for each half hour after that (or 34

61 other amounts the Management Act requires for the inspection of the books and records of an owners corporation) Time for the inspection The secretary must allow an applicant to inspect its books and records within 10 business days after the applicant makes a written application and pays the inspection fee Taking copies of records At the cost of the applicant, the applicant may take extracts from or copy the books and records. The applicant cannot remove the books and records unless the secretary agrees. 24 Obtaining an outstanding levy certificate 24.1 Who may apply for a certificate? If you are a member, you or a person authorised in writing by you may apply for an outstanding levy certificate Procedure to obtain a certificate The procedure for obtaining an outstanding levy certificate is: the applicant must apply in writing to the treasurer; and the applicant must pay the committee a fee of $70.00 (or other amounts for a certificate under section 109 of the Management Act) Information to be included in a certificate The treasurer must include in an outstanding levy certificate the following information in relation to the member specified in the application: (c) (d) (e) (f) the amount of the regular periodic administrative fund contributions and the periods for which the contributions are payable; the amount of the regular periodic sinking fund contributions and the period for which the contributions are payable; the amount of any unpaid administrative fund contributions or sinking fund contributions; any amount recoverable for work carried out by the committee according to clause 11 ( Rights of the committee to do work in an emergency ); any amount and rate of interest payable to the committee under this management statement; and any other information the committee instructs the treasurer to include in the outstanding levy certificate When must the certificate be given? The treasurer must provide an outstanding levy certificate within 10 business days after receiving an application. 35

62 24.5 Certificate is evidence of matters in it An outstanding levy certificate is conclusive evidence, as at the date of the certificate, of the matters stated in it in favour of a person (whether or not the applicant for the certificate is the person referred to in the certificate) taking an interest in Beau MondeThe Alexander. 25 What contact details must you provide to the committee? 25.1 Providing contact details to the committee If you are a member, you must provide the committee with the following contact details: (c) your current address and the current addresses for your representative and substitute representative; your current fax number and the current fax number for your representative and substitute representative; and for the owners corporation, the name, telephone number, current address and current fax number of your strata managing agent Changing your contact details If you are a member, you must provide written notice to the committee within five business days if you change your name, address, telephone number or fax number. 26 Giving approval to subdivisions 26.1 Obligations of members Subject to this clause 26, members must: (c) give their consent to any proposal by the owner of a stratum lot to subdivide their stratum lot by a subdivision plan; and give their consent to any proposal by the owner of 2 or more adjoining stratum lots to consolidate or alter the boundaries of their stratum lots by a subdivision plan; do all things reasonably necessary, including signing documents, to allow registration of the subdivision plan provided that the proposed subdivision does not detrimentally affect the member or use by the member of their part of Beau MondeThe Alexander or shared facilities. The members have provided their consent to the subdivisions contemplated by clauses Additional strata management statements If a member is required to register a strata management statement with a strata plan, the member must ensure that the strata management statement imports the provisions of this management statement (without amendment unless the amendments are approved by the committee by unanimous resolution). 36

63 26.3 Subdivision plan, membership and voting If a subdivision plan is registered to create two or more stratum lots, the owners of the new stratum lots are members of the committee entitled to one vote each; If a subdivision plan is registered to consolidate two or more stratum lots, the owner of the new consolidated stratum lot is a member of the committee entitled to the total votes previously allocated to the stratum lots prior to the consolidation. For example, if the Beau Monde Carpark and Beau Monde Retail are consolidated, the new owner would be a member with two votes Subdivision plan and paying contributions If a subdivision plan is registered to create two or more stratum lots, the owners of the new stratum lots must contribute to the administrative fund and sinking fund according to clauses 39.8 ( Contributions if a subdivision plan is registered ) and 39.9 ( Procedure for assessing contributions if a subdivision plan is registered ) Paying costs The member proposing to register a subdivision plan must pay the reasonable costs of other members in complying with their obligations under this clause Upgrading and redevelopment 27.1 Acknowledgment The members acknowledge that, throughout the life of Beau MondeThe Alexander, upgrading and redevelopment works may take place Member s consent not required for any upgrade or redevelopment The consent, authority or approval of another member is not required for a member to undertake upgrading and redevelopment works to: its stratum lot or strata scheme as applicable unless such works detrimentally affect in a material way access to and from that other member s component in Beau MondeThe Alexander ; or shared services (whether within its stratum lot or strata scheme as applicable, or elsewhere in Beau MondeThe Alexander ) provided those works are permitted to be carried out under clause 47 ( Changing and adding to shared facilities ) Members to provide consents to any authorities required to carry out upgrading or redevelopment works The members agree, if requested by another member, to provide any consent required as owner of the land to the making of any application to an authority (such as a land owner consent to the lodgement of a development application) which is required from that member to enable a proposal to be made which is permitted under clauses 27.2 or 47. For the avoidance of doubt, nothing in clause 27.3 affects a member s right under any planning law to make any submissions in connection with the assessment of any such applications. 37

64 27.4 Paying costs The member proposing an upgrade or redevelopment must pay the reasonable costs of other members in complying with their obligations under this clause

65 Part 4 Meeting procedures and resolutions 28 Meetings of the committee 28.1 Types of meetings There are two types of meetings of the committee: meetings; and emergency meetings Meetings The committee must convene a meeting if: (c) (d) (e) the committee resolves to hold the meeting; the strata manager resolves to convene the meeting (if the committee has delegated that function to the strata manager); a member makes a written request to the committee to convene a meeting; it is necessary to appoint a replacement officer; or at least every six months Emergency meetings The committee may deal only with matters which require a resolution at an emergency meeting. The committee may convene an emergency meeting: if there is an emergency or other urgent matter which must be determined by the committee; and if, in the reasonable opinion of the person convening the emergency meeting, the circumstances of the emergency are such that it is impractical to wait the required notice period for a meeting Who convenes meetings? A meeting or an emergency meeting may be convened by: (c) the secretary; another officer if the secretary is absent or unable to convene the meeting; or the strata manager (if the committee has delegated that function to the strata manager). 39

66 29 Notices and agendas for meetings 29.1 Information to be included in the notice Subject to this clause 29, if you convene a meeting or an emergency meeting you must give each member a notice of the meeting which includes: the time, date and venue of the meeting or emergency meeting; and an agenda for the meeting or emergency meeting Agenda for a meeting The agenda for a meeting must: (c) (d) (e) include details of all business which the committee will deal with at the meeting. The committee cannot deal with business that is not on the agenda; clearly identify which motions require resolutions or unanimous resolutions; include motions which members have requested the committee in writing to include on the agenda for the next meeting; be accompanied by a copy of the minutes of the last meeting; and include a motion to adopt the minutes of the last meeting Agenda for an emergency meeting The agenda for an emergency meeting must: include details of the emergency and the actions proposed to be taken at the time of the notice to deal with the emergency; and include the terms of the motions for resolutions to take the actions proposed to deal with the emergency Information to be included in the notice of a meeting to consider levy contributions If you convene a meeting to determine administrative fund contributions or sinking fund contributions, you must include with the notice of the meeting: the budget prepared by the committee according to clause 38 ( Preparing budgets ); (c) the current audit report prepared by the committee according to clause 40 ( Preparing financial statements ); and the current audited financial statement prepared by the committee according to clause 40 ( Preparing financial statements ). 40

67 30 How to give notice of a meeting 30.1 How much notice is required for a meeting? If you convene a meeting, you must give each member at least 10 business days notice of a meeting How to serve notice of a meeting If you convene a meeting, you must serve notice of the meeting on each member notice by: (c) (d) delivering it personally to the member; sending it to the current address of the member; sending it to the current fax number of the member; or a combination of the above methods. All notices and other communications to be served on the committee by members must be addressed to the secretary Giving notice of an emergency meeting If you convene an emergency meeting, you may: give each member notice of the emergency meeting by the best method reasonably determined by you in the circumstances (eg by telephone); and give the amount of notice of the emergency meeting reasonably determined by you in the circumstances Notices for emergency meetings If you convene an emergency meeting, you must serve notice of the emergency meeting: (c) (d) by delivering it personally to the representative of the member; by sending it to the current fax number of the member; contacting the representative of the member on their current telephone number and reading them the notice for the emergency meeting; or a combination of the above methods. 31 Procedures for holding meetings 31.1 Conducting a meeting or emergency meeting Subject to this management statement, the committee may meet to conduct its business, adjourn and otherwise regulated meetings and emergency meetings as it thinks fit. 41

68 31.2 Quorum for a meeting A quorum must be present at a meeting or emergency meeting before the committee may vote on any motions. A quorum for a meeting or an emergency meeting is the representative or substitute representative of at least two members Failure to obtain a quorum If a quorum is not present within 30 minutes after a meeting or emergency meeting is due to commence, the committee must adjourn the meeting or emergency meeting to a time and place determined by the chairperson at the meeting or emergency meeting Notice of adjourned meetings If a meeting or emergency meeting is adjourned, the person who convened the meeting or emergency meeting must give notice of the adjournment to each member at least two business days before the adjourned meeting or emergency meeting is due to be held Quorums at adjourned meetings A quorum at an adjourned meeting or emergency meeting is: the representatives or substitute representatives of at least two members; or the representatives or substitute representatives present at the meeting or emergency meeting within 15 minutes after the meeting is due to commence Attendance at a meeting An owner or occupier may attend a meeting. However, they may address the meeting only with the consent of the committee Special provisions for meetings held in writing The committee may hold a meeting in writing and representatives and substitute representatives may vote in writing if: (c) the person who convenes the meeting serves notice of the meeting according to this management statement; the person who convenes the meeting provides each member with a voting paper with the notice for the meeting; and the required members or number of members approve the motions in the agenda, complete their voting paper and return it to the person who convened the meeting before the meeting is due to commence How to cast a vote at an emergency meeting A member may cast a vote at an emergency meeting: by telephone to the current telephone numbers of the person who convened the emergency meeting; personally to the person who convened the emergency meeting; or 42

69 (c) by post or fax to the current address or current fax number of the person who convened the emergency meeting Minutes of meetings If you convene a meeting or an emergency meeting, you must distribute minutes of the meeting to each member within ten business days after the meeting. 32 Voting rights of members 32.1 Voting rights of members Subject to this clause 32, you are entitled to vote at meetings and emergency meetings only if you are a member entitled to vote. Your vote may be cast in person or by proxy by: you (if you are a natural person); or your representative or substitute representative How many votes does each member have? Subject to this clause 32, each member has the following number of votes: (i) (ii) (iii) (iv) the owners corporation, one vote; the commercial owner, one vote; the retail owner, one vote; and the carpark owner, one vote. See clause 26.3 ( Subdivision plan, membership and voting ) about changes to voting entitlements if a subdivision plan is registered. Following the severance of 1 Denison Street from The Alexander, the votes will be reallocated as follows: (i) (ii) (iii) the owners corporation, three votes; the commercial owner, two votes; and the carpark owner, one vote Types of resolutions The two types of resolutions at meetings are resolutions and unanimous resolutions. Emergency meetings may only deal with matters which require a resolution Instructions by a member A representative or substitute representative for a member entitled to vote must vote at a meeting or an emergency meeting according to any instructions by the member which appointed them. 43

70 32.5 Instructions by the owners corporation The executive committee of the owners corporation may give instructions to the representative or substitute representative of the owners corporation about the way in which the representative or substitute representative must vote at a meeting or an emergency meeting Restrictions on voting The following restrictions apply to voting at meetings and emergency meetings: (c) the chairperson does not have a casting vote; the strata manager does not have a vote unless they are a representative or a substitute representative (or a proxy); and the building manager does not have a vote unless they are a representative or a substitute representative (or a proxy). 33 Resolutions at meetings and emergency meetings 33.1 What is a resolution? Resolutions relate to a number of administrative and other matters which do not affect shared facilities Who may vote on a matter requiring a resolution? You are entitled to vote on a resolution if you are a member entitled to vote When is a resolution passed? A resolution is decided according to the majority of members entitled to vote voting for or against the motion Matters decided by resolution The matters which the committee may determine by resolution are: (c) (d) (e) (f) (g) appointing or termination the appointment of the strata manager; appointing or termination the appointment of the building manager; appointing or terminating the appointment of a service provider (or an agent of the committee); effecting insurances; establishing the administrative fund and determining contributions for that fund; establishing the sinking fund and determining contributions for that fund; and resolving any other matter which does not require a unanimous resolution. 44

71 34 Unanimous resolutions at meetings 34.1 Purpose of unanimous resolutions Subject to this clause 34, unanimous resolutions generally relate to dealings with shared facilities Who may vote on a unanimous resolution? You are entitled to vote on a unanimous resolution if you are a member entitled to vote When is a unanimous resolution passed? A motion which requires a unanimous resolution is passed if no member entitled to vote on the motion votes against the motion Matters decided by unanimous resolution The matters which the committee may determine only by unanimous resolution are: amending, adding to or repealing all or part of this management statement (including the schedules); repaying surplus administrative fund or sinking fund contributions according to clause 44 ( Dealing with surplus funds ); (c) adding to, extending or removing a shared facility according to clause 47 ( Changing and adding to shared facilities ); (d) amending, adding to or repealing a clause about the division of costs for shared facilities according to clause 48 ( Changing the costs for shared facilities ); and 35 Appointing a proxy 35.1 Who may appoint a proxy? You may appoint a proxy if you are: a member; or a representative or substitute representative if the member which appointed you has authorised you to appoint a proxy according to clause 18.6 ( Proxies ). Members created on the subdivision of a stratum lot by a subdivision plan to create two or more stratum lots may jointly appoint a proxy (ie one proxy to exercise one vote for all of those members) Who may be a proxy? A proxy must be a natural person How to appoint Subject to this clause 35, you may appoint a proxy at any time provided that: 45

72 (c) you make the appointment on a written proxy form (see 0); and you and the proxy sign the proxy form; and you deliver the signed proxy form to the strata manager prior to the commencement of the first meeting or emergency meeting at which the proxy may vote Instructions about voting You may include in the proxy form instructions to your proxy about how to vote. A vote by your proxy in contravention of your instructions is invalid Restrictions on voting Your proxy cannot vote at a meeting or an emergency meeting if you cast a vote. 46

73 Part 5 Financial management 36 What funds must the committee establish? 36.1 Administrative fund The committee must establish an administrative fund within one month after this management statement is registered. The committee must use the administrative fund to pay the day to day expenses of operating and maintaining shared facilities, insurance costs, administrative costs and other costs which are not sinking fund costs Sinking fund The committee must establish a sinking fund within one month after this management statement is registered. The committee must use the sinking fund to pay for the renewal and replacement of shared facilities What money is paid into the administrative fund? The committee must pay into the administrative fund: (c) (d) (e) administrative fund contributions; and payments the committee receives for inspections of its records ; and payments the committee receives for providing outstanding levy certificates; and amounts paid to the committee by way of discharge of claims for insurances affected by the committee; and payments the committee receives under the easements (if any) What money is paid into the sinking fund? The committee must pay into the sinking fund: sinking fund contributions; and other money received by the committee which it does not have to pay into its administrative fund according to clause 36.3 ( What money is paid into the administrative fund? ) Money from the roof sign The roof sign is a shared facility available for use by the commercial owner according to clause 52 ( Roof sign and roof sign area ). If the commercial owner distributes money earned from the roof sign according to clause 52 ( Roof sign and roof sign area ), the income does not form part of the administrative fund or sinking fund provided that the commercial owner pays that money directly to each member. 47

74 37 Financial years 37.1 First financial year The first financial year of the committee: commences on the date of registration of this management statement; and ends on the date resolved by the committee (which must not be more than 18 months after the date of registration of this management statement) Subsequent financial years Subsequent financial years: commence at the expiration of the previous financial year; and end on the date resolved by the committee (which must not be more than 18 months after the expiration of the last financial year). 38 Preparing budgets 38.1 When to prepare budgets The committee must prepare an administrative fund budget and a sinking fund budget for each financial year What information must be included in a budget? A budget must show: (c) (d) how much money the committee will need during the financial year for its administrative fund and sinking fund; income the committee estimates it will receive in the financial year; the proportion which each member must contribute to each shared facility for the financial year; and the amount of the proportion which each member must contribute to each shared facility for the financial year. A budget for the administrative fund may also include the committee s estimate of water consumption for the financial year How much to budget? The committee must budget enough money to comply with its obligations under this management statement, the Management Act, the Development Act and easements. 48

75 39 Determining contributions 39.1 Levying members The committee must levy members the contributions it will need for its administrative fund and sinking fund for each financial year What proportion of costs must you pay? Subject to clause 39.3 ( Water consumption and insurance ), if you are a member, the proportion of administrative fund and sinking fund contributions you must pay is in Water consumption and insurance Members must contribute towards: the costs for water consumption on a user pay basis according to clause 55 ( Water consumption and supply ) and not according to the proportions in clause 39.2 ( What proportion of costs must you pay? ); and the costs for insurance according to the proportion that the replacement value of their strata scheme or stratum lot has to the total replacement value for Beau MondeThe Alexander (or any other method under the Management Act for calculating the payment of building insurance premiums by members of a building management committee) Procedures for determining contributions When the committee determines administrative fund and sinking fund contributions, it must determine: whether you must pay the contributions in a lump sum or by instalments; and the dates on which you must pay your contributions (eg monthly or quarterly) Determining the amount of contributions Subject to clause 39.7 ( Determining contributions at an emergency meeting ), the committee may determine contributions by resolution. The amount of contributions: for the administrative fund, must be the amount determined by the committee in the budget for the administrative fund under clause 38 ( Preparing budgets ); and for the sinking fund, must be the amount determined by the committee in the budget for the sinking fund under clause 38 ( Preparing budgets ) Insufficient funds Subject to clause 39.7 ( Determining contributions at an emergency meeting ), the committee must determine: additional contributions to the administrative fund if it cannot (or will not be able to) pay its administrative fund debts during the current financial year; and 49

76 additional contributions to the sinking fund if it cannot (or will not be able to) pay its sinking fund debts during the current financial year. Before the committee determines an additional contribution, it must prepare and adopt a budget for the period covered by the additional contribution. The budget must contain the information required in clause 38 ( Preparing budgets ). The committee may approve the budget by resolution Determining contributions at an emergency meeting If the committee must raise an administrative fund or sinking fund contribution at an emergency meeting, the committee may dispense with the need to prepare a budget for the contribution. The committee may determine and levy the contribution by resolution Contributions if a subdivision plan is registered If a stratum lot is subdivided by a subdivision plan to create two or more stratum lots, the proportion of administrative fund and sinking fund contributions which the new members must contribute is equal to the amount which the member for the subdivided stratum lot must contribute according to 39.2 ( What proportion of costs must you pay ). For example, if Beau Monde Commercial77 Berry Street is subdivided by a subdivision plan to create two stratum lots, the members for those lots must jointly contribute the percentage set out in the column headed Commercial owner in Procedure for assessing contributions if a subdivision plan is registered These procedures apply when a stratum lot is subdivided by a subdivision plan to create two or more stratum lots: (c) the new members must, within 14 days after registration of the subdivision plan, notify the committee of the share each member will contribute towards the administrative fund and sinking fund; and if the new members do not provide the notice within 14 days, the committee must give the new members notice of the share each of them should, in the opinion of the committee acting reasonably, contribute towards the administrative fund and sinking fund; and if the new members do not notify the committee of a different share within seven days after receiving the notice under clauses 39.9, the shares recommended by the committee will apply. 40 Preparing financial statements 40.1 Obligations of the committee At the end of each financial year, the committee must: have its accounts audited by a qualified auditor; and prepare a financial statement for each of its accounts for that financial year. 50

77 40.2 Information to be included in a financial statement A financial statement must show for each of the administrative fund and the sinking fund: (c) (d) (e) (f) (g) (h) (i) a statement of income and expenditure during the financial year; the balance carried forward from the financial year; particulars and amounts of each item of income during the financial year; particulars and amounts of each item of expenditure during the financial year; the cash in the fund at the end of the financial year; the balance of the fund at the end of the financial year; contribution arrears for each member at the end of the financial year; the amount of credit or debit in the fund at the end of the financial year; and other relevant information. 41 Paying contributions 41.1 Notices of contributions Subject to this clause 41, the committee must give you at least 20 business days notice before your administrative fund or sinking fund contribution are due. The notice must be in writing and must show for each of the administrative fund and sinking fund: (c) the total contribution to be raised; the portion of the contribution which you must pay; and the date you must make the payment Raising funds in an emergency If the committee has to raise funds in an emergency, it may give you less than 20 business days notice of the contribution. 42 Banking money days and interest on accounts 42.1 Establishing a bank account The committee must: establish and maintain a bank or building society account or accounts in the names of the members; and deposit all contributions and other money paid to the committee into its bank or building society accounts. 51

78 42.2 Withdrawing money The committee may withdraw money from its accounts only to exercise its functions and comply with its obligations under or arising from this management statement Trust account Subject to clause 42.4 ( Interest bearing accounts ), if the committee appoints a strata manager the committee may require the strata manager to deposit and hold its funds in a trust account established under the Property Stock and Business Agents Act 1941 (NSW) Interest bearing accounts The committee may place money in an interest bearing deposit account at a bank or building society. If the account earns interest, the committee may: credit it to one of the accounts of the committee; or pay it to the members according to clause 44 ( Dealing with surplus funds ). 43 Late payments 43.1 Interest If you are a member, you must: pay the committee interest on any amount you owe the committee under this management statement but do not pay on time (including costs for water consumption); and pay interest from (and including) the date on which the payment was due until the date it was paid Calculating interest The committee must calculate interest on daily balances at the rate equal to 2% per annum above the overdraft rate quoted by the bank or building society of the committee Certificates about interest rates A certificate about interest rates given to you by the bank or building society of the committee is conclusive evidence of the interest rate in clause 43.2 ( Calculating interest ) Recovering unpaid contributions The committee may recover unpaid contributions and other money owed to it under this management statement as a debt. 52

79 44 Dealing with surplus funds 44.1 Distributing surplus funds If there is surplus money in the administrative fund or sinking fund at the end of a financial year, the committee may distribute it between the members in shares decided by the committee according to this clause Considerations When deciding the shares for the distribution of surplus money according to this clause, the committee must have proper regard (as far as practicable) to the proportions in which each member contributed to the surplus funds according to clause 39 ( Determining contributions ) Unanimous resolution The committee may decide to distribute surplus funds under this clause only by unanimous resolution. 45 Paying contributions when there is a dispute 45.1 What are your obligations? You are not excused from paying your administrative fund contributions, sinking fund contributions or other amounts you owe the committee under this management statement because you have a dispute or a disagreement with the committee (eg a dispute about the amount of a payment) Continuing payments If you have a dispute or disagreement with the committee about the amount of administrative fund or sinking fund contributions you must pay, you must continue to pay your contributions at the rate determined according to this management statement. After the dispute is resolved, you and the committee must pay each other any necessary adjustments Your rights are not affected Your rights against the committee are not affected in you continue to pay administrative fund and sinking fund contributions according to clause 45.2 ( Continuing payments ). 53

80 Part 6 Shared facilities 46 Overview of shared facilities 46.1 What are they? There are a number of facilities and services in Beau MondeThe Alexander which are: used by two or more members; or located on the land of a member but used by another member. These facilities and services are called shared facilities What do shared facilities include? Subject to the description of each shared facility in 0, shared facilities and costs for shared facilities include: (c) (d) (e) (f) (g) (h) (i) plant and equipment which constitute a shared facility; any part of Beau MondeThe Alexander that gives access to and from a shared facility by the most direct route or by the rout nominated by the committee acting reasonably; pipes, wires, cables and ducts which are connected to or form part of a shared facility, but excluding any of those things which exclusively service a member s part of Beau MondeThe Alexander; any rooms or areas in which shared facilities are located; the maintenance, repair, operation, cleaning and replacement of shared facilities; parts or consumables used in the maintenance, repair, operation, cleaning and replacement of shared facilities; labour used in the maintenance, repair, operation, cleaning and replacement of shared facilities; the inspection of shared facilities (if applicable) by a government agency; and the certification of shared facilities for the purposes of the law Rights and obligations of the committee Subject to this management statement, the committee must operate, manage, control, maintain, repair and replace shared facilities. The committee may appoint and contract with parties to perform its functions in relation to shared 54

81 facilities. See clause 6 ( Functions and powers of the committee ) for more information Shared Facilities and common property Some items of common property are designated in this management statement as shared facilities. The owners corporation authorises the Committee to perform its functions and exercise its rights under this management statement in respect of that common property Shared Facilities and stratum lots Some items in stratum lots are designated in this management statement as shared facilities. If you are the owner of a stratum lot, you authorise the committee to perform its functions and exercise its rights under this management statement in respect of those items Who may use shared facilities? This management statement may specify which members and other persons are entitled to use and enjoy a shared facility or may restrict use of a shared facility. If the enjoyment or use of a shared facility is not restricted, the shared facility is available for use and enjoyment by each member, owner and occupier according to this management statement. Where a member, owner or occupier of a stratum lot is entitled to use a shared facility and that stratum lot (or part of it) is subdivided by a subdivision plan, then all new members, owners and occupiers created by the subdivision are also entitled to use the shared facility How to apportion costs for shared facilities Subject to clause 46.9 ( Metering ), Schedule 2 sets out how much each member must contribute towards the costs of shared facilities. The committee must charge members for shared facilities according to Schedule 2. If Schedule 2 does not make a provision for a charge, then the committee may determine the charge by unanimous resolution Obligations of members to pay for shared facilities If you are a member, you must pay your proportion of the costs for shared facilities according to Schedule 2 and clause 46.9 ( Metering ) (or according to the determination of the committee if there is no provision in Schedule 2 for that cost and the shared facility is not metered) Metering The committee must ensure that the shared facilities listed in Schedule 5 have their costs apportioned on a metered or measured usage basis in order to determine the relative usage by each member of the relevant shared facility. (c) The members other than Beau Monde ApartmentsThe Alexander Apartments are authorised to carry out, at their cost, any necessary works to enable those shared facilities to be separately metered or measured, including to have access as required to do so. When a metering or measurement system is installed in accordance with clause 46.9 which enables the costs of the shared facility to be 55

82 separately measured (whether or not it can be separately charged to each member benefited by the supplier of the relevant service), then: (i) (ii) (iii) members must pay for their consumption separately charged to each member benefited by the supplier of the relevant service; and to the extent that the cost of the shared facility is not entirely covered by the amount (if any) of the charges for consumption separately charged to each member benefited by the supplier of the relevant service, then the apportionment of costs for a shared facility not so charged are to be paid for by each member periodically as determined by the committee in accordance with their proportionate consumption of the service supplied through the shared facility as measured by periodic reading of meters or other measures of consumption; and each member agrees to provide, or authorise the supplier of the relevant service or any other appropriate person to provide to the committee, periodic reading of meters or other measures of consumption to enable the committee to give effect to clause (d) For the avoidance of doubt, until such time that the shared facilities referred to in Schedule 5 can be apportioned on a metered or consumption basis, each member must pay their proportion of the costs for shared facilities in accordance with Schedule Easements and shared facilities Some shared facilities are the subject of easements. The committee and each member agrees in favour of each grantor to perform the functions and exercise the right of the grantor according to the easements affecting shared facilities. Each grantor agrees that the committee may exercise the rights and perform the functions of the grantor under those easements. Where shared facilities cease to be shared facilities or are changed (including pursuant to clauses 27 or 47), each member agrees to effect a surrender or any necessary change (as applicable) to the subject easement. 47 Changing and adding to shared facilities 47.1 Powers of the committee The committee may, by unanimous resolution: (c) (d) (e) (f) add shared facilities if it identifies new shared facilities; create new shared facilities; or change existing shared facilities; change the use of existing shared facilities; modify or replace existing shared facilities; remove redundant shared facilities; 56

83 (g) (h) extend shared facilities; or determine a charge for a shared facility where Schedule 2 does not make provision for a charge Unilateral right of a member to change or add to shared facilities A member (the proposing member ) may: (c) (d) (e) (f) (g) add shared facilities if it identifies new shared facilities; create new shared facilities; change existing shared facilities; change the use of existing shared facilities; modify or replace existing shared facilities; remove redundant shared facilities; or extend shared facilities, provided that: (h) (i) any changes to shared facilities; and access to and from a component in Beau MondeThe Alexander, of any other member: (j) (k) is not detrimentally affected to an extent that is substantial; or is detrimentally affected to an extent that is substantial, but the proposing member obtains that member s consent in writing, and the proposing member undertakes to each other member to pay all costs associated with implementing the proposal Obligations of members If you are a member, you must agree to amend Schedule 1 and Schedule 2 to reflect anything the committee resolves to do under this clause Access right Each member may access the lots of the other members on reasonable notice and terms if reasonably required for the purpose of undertaking inspections, repairs, maintenance and replacement of its strata lot, strata scheme or shared facilities. 48 Changing the costs for shared facilities 48.1 Powers of the committee Subject to this clause 48, the committee may, by unanimous resolution, change costs, add new costs or adjust the division of costs for shared facilities in Schedule 2. 57

84 48.2 Reason for exercising powers The committee may change the costs, add new costs or adjust the division of costs for shared facilities only if: the costs for shared facilities will be more fairly divided; and the fairness of the division of costs is supported by at least one expert consultant report (unless all members agree to waive this requirement) What must occur before power can be exercised? Before the committee changes the cost, adds new costs or adjusts the division of costs for shared facilities, at least one of the following must occur: the committee has resolved to deal with the shared facility under 47 ( Changing and adding to shared facilities ); (c) (d) (e) (f) Beau MondeThe Alexander changes; the committee identifies new shared facilities; the use of shared facilities changes; shared facilities are repaired, modified or replaced; or anything else happens which affects the costs of shared facilities Periodic review The committee must review the allocation of costs for shared facilities every five years to ensure that the allocation of costs remains fair. If following the review the committee determines that costs for a shared facility will be more fairly divided, the committee must engage an expert to prepare a report on the allocation of the costs of that shared facility. If the expert report recommends that the cost of a shared facility should be changed having regard to information available as to the usage of the shared facility over the preceding 3 years, then the committee must adopt the recommendation of the expert and Schedule 2 will be amended accordingly. (c) A party can serve a dispute notice under clause 56.4 if that party disputes the report from the expert within 30 days in which case the dispute resolution provisions in clause 56 will apply to determine the apportionment of costs with respect to the relevant shared facility. The committee must act promptly and do everything reasonably required to amend the allocation of costs as recommended in the report with effect from the date of the report unless a party has served a dispute notice under paragraph in which case the committee must do so following the outcome of the dispute process. For the avoidance of doubt the committee is not required to pass any form of resolution to effect the changes required unless required by law Change in use of a Shared Facility If there is a change in use of a shared facility, a party can request the committee review the cost allocation of that shared facility. 58

85 (c) (d) (e) (f) If the committee is satisfied that there has been a change in use of a shared facility, the committee must engage an expert to prepare a report on the fairness of the allocation of the costs of the shared facility. The committee must adopt the recommendation of the expert unless a party disputes the findings of the report under paragraph (d). A party can serve a dispute notice under clause 56.4 if that party disputes the report from the expert within 30 days in which case the dispute resolution provisions in clause 56 will apply to determine the apportionment of costs with respect to the relevant shared facility. The committee must act promptly and do everything reasonably required to amend the allocation of costs as recommended in the report with effect from the date of the report unless a party has served a dispute notice under paragraph (d) in which case the committee must do so following the outcome of the dispute process. For the avoidance of doubt the committee is not required to pass any form of resolution to effect the changes required unless required by law Obligations of members If you are a member, you must agree to amend Schedule 1 and Schedule 2 to reflect anything the committee resolves to do under this clause Using approved contractors 49.1 Overview Many of the shared facilities in Beau Monde The Alexander are highly technical and affect other components in the development. As a result: shared facilities, building works and services must be maintained to a high standard; and only contractors approved by the committee may do structural building works and maintain or replace shared facilities Obligations of the committee The committee must: appoint and make sure that contractors approved by it are always available to maintain shared facilities and do structural building works; and give each member a list of current approved contractors. The committee may make a decision to approve a contractor in its absolute discretion and may approve contractors who are not service providers Your obligations You must use approved contractors for all work described in this clause

86 50 Damage to shared facilities You must: (c) use shared facilities only for their intended purposes; immediately notify the committee if you know about damage to or a defect in a shared facility; and compensate the committee for any damage to shared facilities caused by you, your visitors or persons doing work in Beau MondeThe Alexander on your behalf. 51 Security control at Beau MondeThe Alexander 51.1 An integrated security system Security at Beau MondeThe Alexander is important to all members, owners and occupiers. To maintain an integrated security system, this management statement regulates access and security issues and the use of security equipment (eg the provision of security keys) Restricting access to parts of Beau MondeThe Alexander Subject to this clause 51.2, the committee may: (c) close off or restrict your access to parts of Beau MondeThe Alexander which you do not require access to get to your apartment or stratum lot; subject to this management statement, restrict access to shared facilities who are not entitled to use them; and secure doors or gates in Beau MondeThe Alexander between the hours it determines are appropriate to preserve the security of Beau MondeThe Alexander and to protect members, owners, occupiers and their property. However, the committee may not restrict access to a stratum lot without the consent of the owner or occupier of the stratum lot Provision of security keys The committee must provide: (c) each member with a security key to access their component of Beau MondeThe Alexander; each member with a security key to access shared facilities which they are entitled to use; and each owner and occupier with a security key to access their apartment or stratum lot (but only if that access is controlled by the integrated security system for Beau MondeThe Alexander ) Charging fees for security keys The committee may charge you a fee or bond if they want additional or replacement security keys. 60

87 51.5 Your rights and obligations You must: (c) (d) take all reasonable steps not to lose security keys; return security keys to the committee if you do not need them; notify the committee immediately if you lose a security key; and comply with the reasonable instructions of the committee about security keys and, in particular, about re-coding and returning security keys. You must not: (e) (f) (g) (h) copy a security key; give a security key to someone who is not a member, an owner or an occupier; interfere with or shut down any part of the integrated access system for development without consent from the committee; or for the owners corporation, restrict access to common property in the Beau Monde ApartmentsThe Alexander Apartments without consent from the committee Who owns security keys? Security keys belong to the committee Managing the security key system The committee has the power to: re-code security keys; and require you to promptly return your security keys to the committee to be re-coded. The committee has the power to enter into agreements with third parties (including, without limitation, the strata manager or building manager) about the provision and management of security keys and the management of security systems generally. 52 Roof sign and roof sign area 52.1 Who may use the roof sign area and install a roof sign? Subject to this clause 52, the owners corporation has the sole right to erect and maintain a roof sign and roof sign equipment in the roof sign area. The owners corporation agrees that it has no right to, and must not, install a roof sign or roof sign equipment on the southern side of Beau Monde ApartmentsThe Alexander Apartments. 61

88 52.2 What are the obligations of the owners corporation? The owners corporation must: (c) (d) (e) (f) (g) (h) (i) obtain consent from all relevant government agencies before it erects a roof sign; use contractors and sub-contractors which are licensed and experienced in the erection and installation of a roof sign and roof sign equipment; operate, maintain, repair and replace the roof sign and roof sign equipment; pay for all electricity used in conjunction with the roof sign (if illuminated); ensure the roof sign and roof sign equipment is maintained to a high standard of repair and are at all times safe and clean; reimburse the committee for any increased premium for an insurance policy of the committee caused by exercising rights under this clause 52; reimburse a member for any increased premium for an insurance policy of the member caused by exercising rights under this clause 52; immediately rectify any damage caused while exercising rights under this clause 52 to another member or an owner or occupier; if the owners corporation (or person authorised by them) removes all or any part of the roof sign or the roof sign equipment or carry out repairs to the roof sign or the roof sign equipment, make good (as far as it is practicable) damage to that part of the roof sign area to which the roof sign or the roof sign equipment was affixed Licences or leases for the roof sign and roof sign area Subject to clause 52.4 the owners corporation may allow a third party to exercise its rights under this clause 52 by lease, licence or another arrangement. However, the owners corporation remains responsible to the committee and each member to comply with its obligations under this clause Right of refusal If the owners corporation wishes to sell, lease, licence or grant any other arrangement in relation to the roof sign and/or roof sign area, the owners corporation must first offer to sell, lease, licence or grant the other arrangement to the roof sign and/or roof sign area to the commercial owner by notifying the commercial owner in writing ( offer notice ) and delivering to the commercial owner an offer containing all the terms and conditions of the proposed sale, lease, licence or other arrangement, including any proposed fee or other consideration. (c) The commercial owner may within 20 business days after receipt of the offer notice under clause 52.4 accept the offer by signing and returning the offer to the owners corporation. If the commercial owner does not accept the offer in accordance with clause 52.4, the commercial owner will be deemed to have rejected the owners corporation s offer and the owners corporation s offer will be deemed to have been withdrawn and the owners corporation may seek offers to sell, lease, licence or grant the other arrangement to the roof 62

89 sign and/or roof sign area within a period of 6 months after the offer to the commercial owner was made. (d) (e) (f) (g) If within such 6 month period the owners corporation receives an offer to sell, lease, licence or grant any other arrangement to the roof sign or roof sign area that is acceptable to the owners corporation ( revised offer ), the owners corporation must make the revised offer to the commercial owner and the commercial owner will have 20 business days after receipt of the revised offer to accept the revised offer by signing and returning the revised offer to the owners corporation. If the commercial owner does not accept the revised offer, the owners corporation may accept the revised offer within 20 business days of rejection of the revised offer by the commercial owner. If the owners corporation wishes to sell or grant a lease, licence or any other arrangement to the roof sign and/or roof sign area after expiration of the 6 month period in clause 52.4(c) or 20 business day period in clause 52.4(e), the owners corporation must re-offer the roof sign and/or the roof sign area to the commercial owner (and clauses 52.4 to clause 52.4(f) will apply again in that regard). This clause 52.4 is an enduring right in favour of the commercial owner and: (i) (ii) must be complied with each time the owners corporation (or its successor in title) wishes to lease, licence or grant any other arrangement in relation to the roof sign and/or the roof sign area; and as a condition of any sale, the owner of the roof sign area must covenant in favour of the commercial owner to comply with this clause Security at Beau MondeThe Alexander 53.1 The committee s powers The committee has the power to take steps to: stop intruders coming into Beau MondeThe Alexander ; (c) install and operate within Beau Monde Retail, Beau Monde Carpark and Beau Monde Commercial77 Berry Street audio and visual security cameras and other surveillance equipment for the security of Beau MondeThe Alexander ; and prevent fires and other hazards, including, without limitation, the power to appoint and enter into agreements with a security services provider to provide security services for Beau MondeThe Alexander Purposes of the agreement The agreement with a security service provider may provide for, without limitation: 63

90 security guards to patrol those areas of Beau Monde Retail, Beau Monde Carpark and Beau Monde Commercial77 Berry Street as the committee may specify from time to time; install and operate within Beau Monde Retail, Beau Monde Carpark and Beau Monde Commercial77 Berry Street audio and visual security cameras and other surveillance equipment for the security of Beau MondeThe Alexander Form of agreement An agreement between the committee and the security service provider must: (c) (d) be in writing and be signed by each member and the security service provider; reserve the power for the committee and the officers to continue to exercise the functions which the committee has delegated to the security service provider; require the security service provider to have all licences, authorities, permits, insurances and qualifications required by law to provide security services, and to comply with obligations of a licensee, permit holder or qualified person; and contain provisions about the rights of the committee and the security service provider to terminate the agreement early if a party does not perform their obligations under the agreement Term of the appointment The term of the initial agreement between the committee and the strata manager must not exceed 2 years. The term of a new agreement may be for the period determined by the committee (acting reasonably) Remuneration The remuneration of the security service provider must reflect market practices for comparable buildings having due regard to any difference in the number of stratum lots and the scope of the security services provider s duties in those comparable buildings. 54 Use of loading docks 54.1 Control over use of loading dock The loading dock is a shared facility. However, the retail owner has the sole right to control the use of the loading dock by members Before you use the loading dock When using the loading dock for the purpose of loading and unloading items, members, owners and occupiers (other than the retail owner) must: do so quickly; have reserved use of the loading dock with the retail owner (or the building manager or retail centre manager if so directed by the retail owner); 64

91 (c) (d) vacate the loading dock for use by another member, owner or occupier who has reserved its use; and comply with the reasonable requirements and directions of the retail owner (or building manager, retail centre manager or other representative of the retail owner from time to time) When can you use the loading dock? The owners corporation, owners and occupiers of apartments may use the loading dock for furniture and removal vans only during the hours of: (i) (ii) (iii) 6:00pm to midnight Monday to Friday; and 8:00am to 6:00pm Saturday, Sunday and Public Holidays other times reasonably determined by the retail owner to be nonpeak times on weekdays. The retail owner must from time to time notify the owners corporation of the times it has, acting reasonably, determined to be non-peak times on weekdays. The retail owner may vary the access times for furniture and removal vans from time to time provided that the retail owner complies with the requirements of North Sydney Council regarding such access. The owners corporation, owners and occupiers of apartments may permit vehicles used for the purpose of courier or mail deliveries to the owners corporation or apartments to use the loading dock at other times, provided that they do so quickly or for a maximum of 15 minutes per use What are the rights of the retail owner? The retail owner may: manage the use of the loading docks by implementing a booking system for use; except in an emergency situation, require the members to provide 24 hours notice to book a time for use of the loading dock; (c) (d) appoint the building manager or its own retail centre manager to assist with the operation and management of the loading dock; and allocate a priority period for the retail owner s use of the loading dock for Monday to Friday each week provided that the retail owner must act in a fair and reasonable manner in exercising its rights under this clause 54, and must comply with the requirements of North Sydney Council in relation to use of the loading dock Loading Dock Transfer The following provisions of this clause 54 apply in place of clauses above once the loading dock has been transferred to the owners corporation and become part of the common property of The Alexander Apartments Control over use of loading dock The loading dock is a shared facility. However, the owners corporation has the sole right to control the use of the loading dock by members. 65

92 Before you use the loading dock When using the loading dock for the purpose of loading and unloading items, members, owners and occupiers must: do so quickly; have reserved use of the loading dock with the building manager; vacate the loading dock for use by another member, owner or occupier who has reserved its use; and comply with the reasonable requirements and directions of the building manager Managing the loading dock The committeeowners corporation may: manage the use of the loading dock by implementing a booking system for use; except in an emergency situation, require the members to provide 24 hours notice to book a time for use of the loading dock; (c) appoint the building manager to assist with the operation and management of the loading dock; provided that the committeeowners corporation must comply with the requirements of North Sydney Council in relation to use of the loading dock Before you use the loading dock When using the loading dock for the purpose of loading and unloading items, members, owners and occupiers must: (c) (d) do so quickly; have reserved use of the loading dock; vacate the loading dock for use by another member, owner or occupier who has reserved its use; and comply with the reasonable requirements and directions of the building manager or other person appointed by the owners corporation with assisting with the management of the loading dock. 55 Water consumption 55.1 Overview of water supply Beau MondeThe Alexander is serviced by a single street connection which is connected to two Sydney Water Meters. Various meters and sub-meters throughout Beau MondeThe Alexander measure water consumption by members and are read and recorded by the committee according to this clause

93 55.2 Water supply system The water supply system includes water meters and sub-meters (and pipes, wires, cables and ducts servicing them). It is part of the shared facility for domestic cold water. The costs for the water supply system are apportioned between members according to clause 39.2 ( What proportion of costs must you pay? ) Water consumption Water consumption is also a shared facility. Costs for water consumption are paid by members on a user pay system, based on meter and sub-meter readings. Despite anything to the contrary in this management statement, if you are a member you must contribute towards actual water consumption costs according to meter and sub-meter readings (not according to clause 39.2 ( What proportion of costs must you pay? )) Obligations of the Committee The committee must: regularly read and record water usage recorded by the water supply system meters and sub-meters which measure water consumption; and regularly give you accounts for your contribution towards water consumption Advance payments To ensure that the committee has sufficient funds to pay for water consumption, the committee may: require you to make advance payments on account of your future water consumption (as assessed by the committee acting reasonably); and include amounts for advance payments in your administrative fund contribution Overpayments If you pay for water consumption in advance, the committee must apply any overpayment you make towards the costs of your next water consumption payment Underpayments If you pay your water consumption costs in advance but the amount you pay is not sufficient to pay for the actual cost, you must immediately pay the committee any shortfall. 67

94 Part 7 Miscellaneous 56 How to resolve disputes 56.1 Interpretation For the purpose of this clause 56, party or parties means the party or parties to a dispute. The party or parties to a dispute may be the committee, a member, an owner or an occupier About disputes The parties must endeavour in good faith to resolve disputes about this management statement before taking action under this clause Dealing with disputes according to this clause The parties must deal with disputes about this management statement according to this clause 56. This includes disputes about the committee or an officer failing to comply with the provisions about meetings or emergency meetings Dispute notice A party may give another party a dispute notice if they are unable to resolve their dispute under clause 56.2 ( About disputes ). In the notice the party must: (c) (d) (e) describe what the dispute is about; identify the provisions of this management statement or the law that apply to the dispute; state the position of the party; set out the facts and other circumstances on which the party relies; and attach copies of correspondence and other documents mentioned in the dispute notice Negotiation Within 10 business days after a party gives a dispute notice, the parties to the dispute must meet in person (or conduct a telephone conference) at an agreed time and place. If they cannot agree on the time and place, they must meet to try to resolve the dispute by negotiation: at 2.00 pm on the date which is 10 business days after the dispute notice was given; and at Beau MondeThe Alexander or by telephone conference. 68

95 56.6 Expert determination If the parties cannot resolve their dispute by negotiation, a party may give a determination notice requiring the parties to: refer the dispute to an independent expert for determination; and appoint an expert to determine the dispute Appointing an expert If the parties cannot agree on an expert within five business days after a party gives a determination notice, a party may ask the chairperson of the Institute of Strata Title Management Limited Strata Community Australia (or other replacement body if this institute ceases to exist) to: appoint an appropriate expert having regard to the nature of the dispute; and determine the remuneration of the expert Instructions to the expert The parties must instruct the expert to: (c) act as an expert and not as an arbitrator; determine the rules for the conduct of the expert determination; and consider the documents and other information the parties give the expert and which, in the opinion of the expert, are relevant Conducting expert determination If the parties cannot agree on the rules for the conduct of the expert determination, then the expert is to determine the rules and notify the parties accordingly Expert determination The expert: (c) is not bound to observe the rules of natural justice or the rules of evidence; may obtain and refer to documents and information not provided by the parties; and must determine the dispute and give written reasons for the determination within one month of being appointed Binding effect The determination by the expert is final and binding on the parties to the dispute without appeal so far as the law allows. 69

96 56.12 Expert determination about shared facility costs Costs If a dispute about the proportion of a member s cost for a shared facility is determined under this clause 56, the expert who determines the dispute must determine any adjustments the member or the committee must pay. The parties to the dispute must: equally share the costs for expert determination of their dispute (unless the expert decide otherwise); and pay their own costs in connection with the dispute. 57 How to serve notices 57.1 Methods of serving notices Subject to the provisions in this management statement about convening and serving notices on members of meetings and emergency meetings, a notice or communication must be in writing, signed by the sender (if an individual) or an authorised officer of the sender, and must be: (c) (d) delivered personally to the addressee; left at the current address of the addressee; sent by pre-paid ordinary post to the current address of the addressee; or sent to the current fax number of the addressee When does a notice take effect? A notice or communication takes effect from the later of: the time the notice or communication is received by the addressee; or the time specified in the notice or communication When is a posted notice received? A notice or communication sent by pre-paid post to the current address of the addressee is received on the third business day after it is posted (or 7 business days if sent to or from a place outside Australia) When is a fax received? A fax is received: on the date of a transmission report from the machine that sent the fax that shows the whole fax was sent to the current fax number of the addressee; if the fax to the current fax number of the address after 5:00pm, on the next business day; or 70

97 (c) if the fax is sent to the current fax number of the addressee on day which is not a business day, on the next business day. 58 GST 58.1 Amounts are exclusive of GST Unless otherwise expressly stated, all amounts payable under or in connection with this management statement are expressed to be exclusive of any amount of GST Obligation to pay GST Where GST is imposed on any supply made under or in connection with this management statement by one party ( the supplying party ) to another party ( the receiving party ), the receiving party must pay or provide the GST exclusive consideration for the supply and, in addition to and at the same time as the GST exclusive consideration is payable or to be provided, an additional amount equal to the amount of GST liability of the supplying party. The supplying party must issue a tax invoice to the receiving party Differences in amounts If the amount of GST recovered by the supplying party from the receiving party differs from the amount of GST payable at law by the supplying party (or an entity grouped with the supplying party for GST purposes) in respect of the supply, the amount payable by the receiving party to the supplying party will be adjusted accordingly Reimbursement Where one party ( payer ) is liable to reimburse another party ( payee ) for any expenditure incurred by the payee ( Expenditure ), the amount reimbursed by the payer will be the GST exclusive Expenditure plus any GST payable to the payee by the payer under this clause General 59.1 Discretion in exercising rights The committee, a member or an owner may exercise a right or remedy or give or refuse its consent in any way it considers appropriate (unless this management statement expressly states otherwise) Partial exercise of rights If the committee, a member, an owner or an occupier do not fully exercise a right or remedy fully or at a given time, they may still exercise it later Approvals and consents By giving its approval or consent, the committee, a member or an owner does not make or give any warranty or representation as to any circumstance relating to the subject matter of the consent or approval. 71

98 59.4 Conflict of interest The committee, members, owners and occupiers may exercise their rights and remedies under this management statement even if this involves a conflict of duty or a party has a personal interest in their exercise Remedies cumulative The rights and remedies provided in this management statement are in addition to other rights and remedies given by law independently of this management statement Severability If the whole or any part of a provision of this management statement is void, unenforceable or illegal, then that provision or part provision is severed from this management statement. The remainder of this management statement has full force and effect unless the severance alters the basic nature of this management statement or is contrary to public policy. 72

99 Part 8 Dictionary 60 Definitions Terms in italics are defined terms. Defined terms (in any form) mean: 1 Denison Street 1 Denison Street severance plan the lot created on registration of the 1 Denison Street severance plan which is to be severed from The Alexander. the plan of subdivision contemplated by clause 2.7. administrative fund apartment Beau Monde Beau Monde Apartments the fund established by the committee according to clause 36 ( What funds must the committee establish? ) to pay for the day to day expenses of operating and maintaining shared facilities, insurance costs, administrative costs and other costs which are not sinking fund costs. a lot in the Beau Monde The Alexander Apartments. the land and buildings comprised in Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail. strata scheme no. Beau Monde Carpark lot 4 in DP ; and Beau Monde Commercial77 Berry Street (c) (c) the strata scheme created if lot 4 in DP is subdivided by strata plan; and the Residue Carpark.. lot 2 in DP ; and the lot created in substitution for lot 2 in DP by the boundary adjustment contemplated by clause 2.6; and the strata scheme created if lot 2 in DP that land is subdivided by strata plan. Beau Monde Retail lot 3 in DP ; and the lot created in substitution for lot 3 in DP by the boundary 73

100 adjustment as contemplated by clause 2.5; and (cb) the strata scheme created if lot 3 in DP that land is subdivided by strata plan. building manager business day the building manager appointed by the committee according to clause 10 ( Appointing a building manager ). a day on which banks in New South Wales are open for business. carpark owner the owner for the time being of Beau Monde Carpark; or if that title has been cancelled, the owner for the time being of the Residue Carpark; (c) if lot 4 in DP the Beau Monde Carpark or Residue Carpark (as applicable) is subdivided by a strata plan, the owners corporation created by that subdivision. chairperson the chairperson of the committee. See clause 8.4 ( The chairperson ) for more information. commercial owner the owner for the time being of Beau Monde Commercial77 Berry Street; or if lot 2 in DP Berry Street is subdivided by a strata plan, the owners corporation created by that subdivision. committee common property current address current fax number Development Act dispute the building management committee established and maintained by the members under clause 5 ( The committee ) and required by the Development Act. common property in a strata scheme as that term is defined in the Management Act and the personal property of the owners corporation. For the purposes of this management statement, common property does not include common property which is or forms part of a shared facility. the current address at which a person may be served a notice or communication under this management statement. the current fax number at which a person may be served a notice or communication under this management statement. the Strata Schemes (Freehold Development) Act (NSW). any dispute, controversy or difference between the committee, members, owners or occupiers about: 74

101 (c) (d) (e) the construction of this management statement; or the rights and obligations of the committee, a member, an owner or an occupier under this management statement; or amounts which the committee determines for administrative fund or sinking fund contributions; or the committee passing or failing to pass a resolution or unanimous resolution; or the operation, maintenance, repair or replacement of a shared facility. dispute notice easement emergency meeting financial year government agency grantee grantor GST GST Law a written notice of a dispute given by a party to a dispute according to part 7 of this management statement. any easement, restriction on use and positive covenant benefiting or burdening parts of Beau Monde. a meeting convened in an emergency according to part 4 of this management statement. the financial year of the committee determined according to clause 37 ( Financial years ). a governmental or semi-governmental administrative, fiscal or judicial department or entity. a person (or owners corporation) having the benefit of an easement. a member who is the owner of land burdened under an easement. any form of goods and services tax or similar value added tax. the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth) and any other legislation or regulation which imposes, levies, implements or varies a GST and any applicable ruling issued by the Commissioner of Taxation. loading dock the loading dock described as shared facilityies No. 11 in Schedule 1. They It includes line markings and signs in the loading bays (including any directional signs to them). Management Act the Strata Schemes Management Act (NSW). meeting a meeting of the committee held according to part 4 of this management statement. A meeting includes a 75

102 meeting held in writing according to clause 31.7 ( Special provisions for meetings held in writing ). member the owners corporation; (c) the carpark owner; the commercial owner; and (d) the retail owner until the date that 1 Denison Street is severed from The Alexander. member entitled to vote for the purposes of exercising their right to vote at a meeting or an emergency meeting, a member who has paid the committee: all of their administrative fund and sinking fund contributions up to date; and all other money they owe the committee under this management statement which are due and payable before the meeting or emergency meeting commences. occupier the occupier, lessee or licensee of an apartment (or part of an apartment); (c) (d) the occupier, lessee or licensee of Beau Monde Carpark (or part of it); the occupier, lessee or licensee of Beau Monde Commercial77 Berry Street (or part of it); and the occupier, lessee or licensee of Beau Monde Retail (or part of it). officer outstanding levy certificate the secretary, treasurer or chairperson of the committee. a certificate provided by the committee according to clause 24 ( Obtaining an outstanding levy certificate ). owner the owner of an apartment; (c) (d) the carpark owner; the commercial owner; and the retail owner until the date of registration of the 1 Denison Street severance plan. owners corporation The Owners - Strata Plan No proxy form representative a form in or to the effect of the proxy form in Schedule 3. a natural person appointed by a member to represent the member at meetings and emergency meetings. The owners corporation must appoint its 76

103 representative by a special resolution according to the Development Act. See clause 18 ( Appointing a representative and a substitute representative ) for further information. Residue Carpark resolution means the stratum lot containing part of lot 4 in DP and part of lot 3 in DP created by the subdivision as contemplated by clause 2.7. a motion passed at a meeting or an emergency meeting by a majority of votes cast by members entitled to vote. See clause 32 ( Voting rights of members ) for further information. retail owner the owner for the time being of Beau Monde Retail; or if lot 3 in DP is subdivided by a strata plan, the owners corporation created by that subdivision. roof sign roof sign area the roof sign which the owners corporation may erect in the roof sign area according to clause 52 ( Roof sign and roof sign area ). It includes illuminated or other signs displaying a business name, logo, advertisement or a combination of them. the area extending 0.5 metres around the Beau Monde Apartments The Alexander Apartments from the bottom of Level 37 upwards and over the roof of Beau Monde ApartmentsThe Alexander Apartments excluding the southern face of the Beau Monde Apartments The Alexander Apartments. roof sign equipment all pipes, wires, cables ducts, electrical conduits, electrical meters and other electrical equipment which service the sign; and cables, frames, bolts or other fittings or fixtures which support the sign. rules rules made by the committee according to clause 6.4 ( Making rules ) about the management, operation, maintenance and control of Beau Monde and shared facilities. secretary security service provider service provider the secretary of the committee. See clause 8.2 ( The secretary ) for more information. the security service provider appointed by the committee according to clause 53 ( Security at Beau Monde ). a person who provides services to the committee including, without limitation, operational, maintenance, repair and replacement services for shared facilities. shared facilities services, facilities, machinery, equipment and other items used by two or more members; 77

104 (c) costs for items like the strata manager and premiums for insurances effected by the committee; and other facilities and services nominated by or according to this management statement as shared facilities. Shared facilities include the items in clause 46.2 ( What do shared facilities include? ) and Schedule 1, but expressly excludes items in Schedule 4. sinking fund strata manager strata plan strata scheme stratum lot subdivision plan substitute representative tax invoice The Alexander The Alexander Apartments unanimous resolution water supply system the fund established by the committee according to clause 36 ( What funds must the committee establish? ) to pay for the renewal and replacement of shared facilities. the strata managing agent appointed by the committee under clause 9 ( Appointing a strata manager ) to manage Development and to perform functions for the committee. a strata plan under the Development Act. has the meaning as it does in the Development Act. a lot (not being an apartment ) in Beau Monde which has not been subdivided by a strata plan. a plan of consolidation or subdivision to effect the redevelopment or subdivision of a stratum lot into two or more stratum lots. a natural person appointed by a member to represent them for the purpose of this management statement as a substitute for their representative. has the same meaning as in the GST Law. the land and buildings comprised in The Alexander Apartments, Beau Monde Carpark, 77 Berry Street and Beau Monde Retail but following the subdivision contemplated by clause 2.7, the land and buildings comprised in The Alexander Apartments, Residue Carpark and 77 Berry Street. strata scheme no a motion passed at a meeting against which no member entitled to vote casts a vote. the meters, sub-meters, pipes, wires, cables and ducts which: provide water to strata schemes and stratum lots; and measure water consumption by strata schemes and stratum lots. 78

105 It does not include: (c) (d) costs for water consumption; or pipes, wires, cables and ducts which provide water exclusively to an apartment or stratum lot (ie are not shared between two or more apartments or a strata scheme and a stratum lot). water consumption actual amount of water, as recorded on the meters and sub-meters forming part of the water supply system, used by or supplied to each strata scheme and stratum lot. 61 Rules of interpretation 61.1 Interpreting this management statement In this management statement a reference to: (c) (d) (e) (f) a thing includes the whole or each part of it; the singular includes the plural and vice versa; a document includes any variation or replacement of it; a day means the period starting at midnight and ending 24 hours later; a law, ordinance or code includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of them; and a person includes their executors, administrators, successors, substitutes (including, but not limited to, persons taking by novation) and assigns Headings Headings are for convenience and do not affect the interpretation of this management statement Rights under this management statement The rights, powers and remedies in this management statement are in addition to those provided by law Severance If the whole or any part of a provision of this management statement is void, unenforceable or illegal, then that provision or part provision is severed from this management statement and the remainder of this management statement has full force and effect unless the severance alters the basic nature of this management statement or is contrary to public policy. 79

106 Schedule 1 - List of shared facilities The clauses in part 6 of this management statement have important provisions about the use, costs and operation of shared facilities in Beau Monde The Alexander. This schedule should be considered in the context of those clauses. No Shared facility Description 1. Building management services Building management services include the services provided by the building manager appointed by the committee according to clause 10. Costs for building management services include, without limitation: management fees and other fees which the committee must pay the building manager according to their agreement under clause 10; and other costs incurred by the committee according to its agreement with the building manager under clause Electrical Services 2.1 Substations The electrical substations servicing is located adjacent to the retail loading dock and serves all of Beau Monde The Alexander. 2.2 Main switchroom Switchboard B: A. [Not Used] B. Meter 1 C. Balance 2.3 Residential switchroom Switchboard C The Main switchroom A is located in Beau Monde Retail and contains 2 main switchboards. The second switchboard (B) serve Beau Monde Retail, Beau Monde Carpark, and the carpark areas of Beau Monde ApartmentsThe Alexander Apartments and Beau Monde Commercial77 Berry Street. Each retail shop is individually metered. The retail mall back of house and public carpark in Beau Monde Carpark are fed through Meter 1. The carpark areas take the balance of electricity consumed through Switchboard B. The third switchboard (C) is situated on Level B1 adjacent to the commercial/residential carpark and services primarily air conditioning in Lots 1 and 2, as well as some other plant (supply and exhaust fans in the residential and commercial car parks, cold water booster pumps that service the residential and commercial lots and fire services booster pumps that service the residential, commercial, retail and carpark lots).. 80

107 No Shared facility Description 3. Fire Services 3.1 Fire control room The fire control room is located at the bottom of Beau Monde Commercial77 Berry Street and serves all of Beau Monde The Alexander. The room houses the fire indicator panel, the EWIS panel and the fire fans control panel. 3.2 Sprinkler valve room The sprinkler valve room is located in Beau Monde Carpark and serves all of Beau Monde. It includes: (c) 2 valves which serve Beau Monde Commercial77 Berry Street and part of Beau Monde Retail; 2 valves which serve Beau Monde Carpark and part of Beau Monde Retail; and 1C valves which serve Beau Monde ApartmentsThe Alexander Apartments. 3.3 Sprinkler booster pumps The sprinkler booster pumps are located in Beau Monde ApartmentsThe Alexander Apartments and serves Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Commercial77 Berry Street and part of Beau Monde Retail. 3.4 Street connection A single street connection is provided for the sprinkler system and serves all of Beau Monde The Alexander. 3.5 Sprinkler storage tank A single water storage tank located on level 37 and serves Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Commercial77 Berry Street and part of Beau Monde Retail. 3.6 EWIS A. Central EWIS A single EWIS panel is located in the fire control room and serves all of Beau Monde The Alexander. B. Fire mimic panel A separate EWIS fire mimic panel is located in Beau Monde Retail and serves Beau Monde Retail. 3.7 Management of fire services Costs associated with maintaining, repairing and certifying all fire services in accordance with the relevant authority requirements. It includes but is not limited to preparation of the Annual Fire Safety Statement, evacuation procedures management and fire alarm monitoring. 4. Hydraulic Services 81

108 No Shared facility Description 4.1 Domestic cold water A single street connection serves all of Beau Monde The Alexander. A sub-meter A (100mm) serves the apartments in Beau Monde ApartmentsThe Alexander Apartments. Each apartment is metered by an individual authority meter. A separate sub-meter B (80mm) serves all other parts of Beau Monde The Alexander. This shared facility includes all other components of the water supply system - see definitions for more information. 4.2 [Not Used]Cold water booster pumps 4.3 Hot water Hot water generator A Hot water generator B Booster pumps serve the water storage tank located on level 37, which in turn serves Beau Monde Apartments (levels B1, B3 to B7 and levels 27 to 36) and Beau Monde Commercial. Each retail shop in Beau Monde Retail has its own hot water heater. A gas central hot water plant (A) located on level 37 provides hot water for Beau Monde ApartmentsThe Alexander Apartments. An electric central hot water plant (B) located on level 8 in Beau Monde ApartmentsThe Alexander Apartments provides hot water for the Gym in Beau Monde ApartmentsThe Alexander Apartments and Beau Monde Commercial77 Berry Street. 4.4 Gas A common street connection and regulator serves Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Commercial77 Berry Street and Beau Monde Retail. Gas is provided: (c) [Not Used] through a sub-meter to the boiler room on Level 37 in Beau Monde ApartmentsThe Alexander Apartments. The boiler room provides heating hotwater for Beau Monde ApartmentsThe Alexander Apartments and heating for Beau Monde Commercial77 Berry Street. Costs for heating are allocated in accordance with the by-laws for Beau Monde ApartmentsThe Alexander Apartments. Beau Monde Commercial77 Berry Street pays for the balance of gas consumption for heating; and [Not Used]. 82

109 No Shared facility Description 4.5 Hydrants and hose reels The hydrant and hose reel system is fed from a storage tank and pumps located on level 37 and serves Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and part of Beau Monde Retail. 4.6 Stormwater The stormwater from Beau Monde ApartmentsThe Alexander Apartments and Beau Monde Commercial77 Berry Street is combined and discharges through Beau Monde Carpark. 5. Insurance Costs for insurance include, without limitation: (c) (d) (e) (f) (g) building insurance premiums; [Not Used]; [Not Used]; [Not Used]; valuations of Beau Monde The Alexander for insurance purposes; insurance broker fees; and other costs incurred by the committee to effect an insurance policy or under an existing policy. 6. Mechanical services 6.1 [Not Used] 6.2 Public carpark ventilation[not Used] Beau Monde Carpark is ventilated by means of fans located in that stratum lot. 83

110 No Shared facility Description 6.3 Apartment and office air conditioning Air conditioning to the Beau Monde Apartments The Alexander Apartments are via a chilled water fan coil unit incorporating an electric heater coil or a hot water heater coil to maintain space temperatures within the apartment. Fan coil units in apartments on levels 9 29 incorporate electric heater coils. Fan coil units in apartments on levels incorporate hot water coils. The fan coil units are configured to suit the apartment size and location. The fan coil units receive chilled water for cooling from the central chiller plant located in the level 8 plant room. Fan coil units with hot water coils receive hot water from the central boiler plants located in the level 37 plant room. Fan coil air-conditioning units are powered from each apartment s power supply. Chilled and heating water usage is monitored via individual flow meters for each apartment fan coil unit. The air conditioning system for the Beau Monde Commercial77 Berry Street, located between levels 2 to 7, is served by a central plant variable volume system complete with its own dedicated air handling plant. Perimeter VAV boxes are fitted with electric duct heaters. Chilled and heating water is received from central chiller plant located in the level 8 plant room and boiler plant located on level 37. Chilled and heating water usage is monitored via individual flow meters. As to the electrical power usage by the apartment and office air conditioning, see paragraph 2.3 above. 6.4 Apartment heating Each apartment These units are connected to a dedicated cooling tower located on level 37. Apartments on levels 30 to 37 are also connected to a hot water boiler room heater located on level 37 which is described in the bylaws for Beau Monde ApartmentsThe Alexander Apartments. Apartments on levels 29 and below each have an individual electric heater. 6.5 Ground floor lobbies air conditioning (residential and office) Both lobby air conditioning units are connected to the residential condenser water circuit. 84

111 No Shared facility Description 6.6 Tower carpark ventilation The carpark areas of Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Commercial77 Berry Street and Beau Monde Retail under the Beau Monde ApartmentsThe Alexander Apartments tower are ventilated by means of fans located throughout those stratum lots. 7. [Not Used] [Not Used] 8. Strata management services Strata management services include the services provided by the strata manager appointed by the committee according to clause 9. Costs for strata management services include, without limitation: (c) (d) management fees and other fees which the committee must pay the strata manager according to their agreement under clause 9; other costs incurred by the committee according to its agreement with the strata manager under clause 9 (except for postage and photocopying); audit fees incurred by the committee; and costs incurred by the committee to maintain its records (including its financial records) according to this management statement. 9. Bike racks 9.1 Residential bike rack The Residential bike rack is located on part of Beau Monde Apartment on basement level 2 (check when plans issued) and serves visitors to Beau Monde Apartment and Beau Monde Commercial77 Berry Street. This includes access to and from the bike racks using the most direct route. 9.2 Public bike rack The public bike rack is located in Beau Monde Carpark and serves Beau Monde Carpark and Beau Monde Retail. This includes access to and from the bike racks using the most direct route. 10. Security services Security services include the security services provided by the committee or the security service provider appointed by the committee according to clause 53 to service Beau Monde Retail, Beau Monde Carpark and Beau Monde Commercial77 Berry Street. Costs for security services include, without limitation: 85

112 No Shared facility Description management fees and other fees which the committee must pay the security service provider according to their agreement under clause 53; other costs incurred by the committee according to its agreement with the security service provider under clause Loading dock The loading dock is located on level 1 of Beau Monde Retail and services Beau Monde ApartmentsThe Alexander Apartments, 77 Berry Street and Beau Monde RetailCarpark. This includes access to and from the loading dock using the most direct route. Costs associated with the loading dock includes the cost of maintaining the loading dock (including all elements necessary for the safe use and operation of the loading dock), keeping the loading dock in a clean and tidy condition, signage and lighting for the loading dock area (including electricity costs). 12 Water consumption Water consumption is the actual amount of water supplied to each strata scheme and stratum lot (as measured by the meters and sub-meters forming part of the water supply system). See the definitions for more information. 13 Miscellaneous Costs associated with maintaining, repairing and replacing shared facilities. 86

113 Schedule 2 - Division of costs for shared facilities Part A To apply until registration of the 1 Denison Street severance plan The percentages in the third to sixth columns represent the percentage of the total cost for each shared facility that each member must pay. No. Shared facility Owners corporation Carpark owner Commercial owner Retail owner Method of apportioning cost 1. Building management services 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau 25% across board Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. 2. Electrical services 2.1 Substation 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. 2.2 Main switchroom 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. Switchboard B: For Switchboard B: A. [Not Used] Deed to Vary 87

114 No. Shared facility Owners corporation Carpark owner Commercial owner Retail owner Method of apportioning cost B. Meter 1 0% 28% 0% 72% Meter 1 serves Beau Monde Retail s back of the house and Beau Monde Carpark. The cost for Meter 1 is apportioned based on relative floor areas of Beau Monde Retail and Beau Monde Carpark. C. Balance 78% 0% 22% 0% The Balance of electricity consumed is to be shared between respective carpark areas of Beau Monde Residential and Beau Monde Commercial77 Berry Street on the basis of relative floor areas of those carparks. 2.3 Residential Switchroom Switchboard C 60% 0% 40% 0% Relative usage.. 3. Fire services 3.1 Fire control room 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. 3.2 Sprinkler valve room 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. 3.3 Sprinkler booster pumps 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. Deed to Vary 88

115 No. Shared facility Owners corporation Carpark owner Commercial owner Retail owner Method of apportioning cost 3.4 Street connection 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. 3.5 Sprinkler storage tank 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Commercial77 Berry Street and part Beau Monde Retail. 3.6 A. Central EWIS 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Commercial77 Berry Street and part Beau Monde Retail. B. Fire mimic panel 0% 0% 0% 100% Sole benefit and use. 3.7 Management of fire services 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Commercial77 Berry Street and part Beau Monde Retail. 4. Hydraulic services 4.1 Domestic cold water Water consumption: Sub-meter A 88.5% 0% 11.5% 0% The estimated consumption of water for Beau Monde ApartmentsThe Alexander Apartments and Beau Monde Commercial77 Berry Street. Deed to Vary 89

116 No. Shared facility Owners corporation Carpark owner Commercial owner Retail owner Method of apportioning cost Water consumption: Sub-meter B 0% 5% 25% 70% The estimated number of fixtures for Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail 4.2 Cold water booster pumps 96% 0% 4% 0% The estimated number of fixtures for Beau Monde ApartmentsThe Alexander Apartments and Beau Monde Commercial77 Berry Street. 4.3 Hot water 0% 0% 0% 100% The estimated number of fixtures for Beau Monde ApartmentsThe Alexander Apartments and Beau Monde Commercial77 Berry Street. 4.4 Gas Hot water plant A 100% 0% 0% 0% Sole benefit and use Hot water plant B 25% 0% 75% 0% The estimated number of fixtures for Beau Monde Residential and Beau Monde Commercial77 Berry Street A. [Not Used] B. Level 37 submeter Consumption 0% Consumption 0% Costs apportioned as per Schedule 1. C. [Not Used] 4.5 Hydrants and hose reels 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and part of Beau Monde Retail. Deed to Vary 90

117 No. Shared facility Owners corporation Carpark owner Commercial owner Retail owner Method of apportioning cost 4.6 Stormwater 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. 5. Insurance 62% 5% 15% 18% The relative proportion of the replacement value of the Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. 6. Mechanical services 6.1 [Not Used] 6.2 Public carpark ventilation 0% 100% 0% 0% Sole benefit and use 6.3 Apartment and Office air conditioning Repairs and maintenance Energy consumption Consumption 83% See paragraph 2.3 0% 0% See paragrap h 2.3 Consumption 17% See paragraph 2.3 0% 0% See paragraph 2.3 Consumption to be paid as per sub-meter reading for Beau Monde ApartmentsThe Alexander Apartments and Beau Monde Commercial77 Berry Street. Cost to be apportioned on the basis of floor area. See paragraph 2.3. Deed to Vary 91

118 No. Shared facility Owners corporation Carpark owner Commercial owner Retail owner Method of apportioning cost 6.4 Apartment heating 100% 0% 0% 0% Sole benefit and use. Note, this does not include the supply of heated water to provide heating energy for the Apartment heating system, which is supplied from a shared facility and payable in accordance with the sharing of costs for that shared facility, including, if and when the heated water supply is covered by consumption metering, being paid by reference to proportional consumption 6.5 Ground floor lobbies air conditioning (residential and office) 50% 0% 50% 0% The relative floor areas of the lobbies of Beau Monde ApartmentsThe Alexander Apartments and Beau Monde Commercial77 Berry Street within the ground floor. 6.6 Tower carpark ventilation 92% 0% 7% 1% The relative floor areas of Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Commercial77 Berry Street and Beau Monde Retail within the carpark. 7. [Not Used] 8. Strata management services 65% 6% 13% 16% The relative floor areas for Beau Monde ApartmentsThe Alexander Apartments, Beau 25% across board Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. 9. Bike rack 9.1 Residential bike rack 50% 0% 50% 0% The apportionment of costs is based on the estimated nominal costs of use by Beau Monde Commercial77 Berry Street. Deed to Vary 92

119 No. Shared facility Owners corporation Carpark owner Commercial owner Retail owner Method of apportioning cost 9.2 Public bike rack 0% 100% 0% 0% The apportionment of costs is based on the estimated nominal costs of use by Beau Monde Retail. 10. Security services 0% 18% 38% 44% The apportionment of costs is based on the relative floor areas for Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. 11. Loading dock 0% 0% 0% 100% The apportionment of costs is based on the estimated nominal cost of use by Beau Monde ApartmentsThe Alexander Apartments. 13. Miscellaneous 65% 6% 13% 16% The apportionment of costs is based on the relative floor area for 25% Beau across Monde board ApartmentsThe Alexander Apartments, Beau Monde Carpark, Beau Monde Commercial77 Berry Street and Beau Monde Retail. Deed to Vary 93

120 Part B Revised Schedule 2 Following Separation of 1 Denison Street from SMS - To apply after registration of the 1 Denison Street severance plan No. 1 Shared facility Building management services Owners corporation Commercial owner Residue Carpark Owner 77.0% 21.5% 1.5% Method of apportioning cost The relative floor areas for The Alexander Beau Monde Apartments, Beau Monde Residue Carpark, Beau Monde Commercial and Beau Monde Retail and 77 Berry Street. 2 Electrical services 2.1 Substation 77.0% 21.5% 1.5% The relative floor areas for The Alexander Beau Monde Apartments, Beau Monde Residue Carpark, Beau Monde Commercial and Beau Monde Retail and 77 Berry Street. 2.2 Main switchroom 77.0% 21.5% 1.5% The relative floor areas for The Alexander Beau Monde Apartments, Beau Monde Residue Carpark, Beau Monde Commercial and Beau Monde Retail and 77 Berry Street. Switchboard B: For Switchboard B: A. [Not Used] B. Meter 1 0.0% 0.0% 100.0% Meter 1 serves Beau Monde Retail s back of the house and Beau Monde Residue Carpark. The cost for Meter 1 is apportioned based on relative floor areas of Beau Monde Retail and Beau Monde Carpark. C. [Not used] Balance 0.0% 0.0% 0.0% The Balance of electricity consumed is to be shared between respective carpark areas of Beau Monde Residential and Beau Monde Commercial on the basis of relative floor areas of those carparks. 2.3 Residential Switchroom Switchboard C 0.0% 0.0% 0.0% Relative usage - see Schedule 5. 3 Fire services 3.1 Fire control room 50.0% 46.7% 3.3% The relative floor areas for Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail.50% The Alexander Apartments, 50% 77 Berry Street and Residue Carpark on relative floor areas Deed to Vary 94

121 3.2 Sprinkler valve room 50.0% 46.7% 3.3% 3.3 Sprinkler booster pumps 50.0% 46.7% 3.3% 3.4 Street connection 50.0% 46.7% 3.3% 3.5 Sprinkler storage tank 50.0% 46.7% 3.3% 3.6 A. Central EWIS 50.0% 46.7% 3.3% B. Fire mimic panel 50.0% 46.7% 3.3% 3.7 Management of fire services 50.0% 46.7% 3.3% 4 Hydraulic services 4.1 Domestic cold water The relative floor areas for Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail.50% The Alexander Apartments, 50% 77 Berry Street and Residue Carpark on relative floor areas The relative floor areas for Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail.50% The Alexander Apartments, 50% 77 Berry Street and Residue Carpark on relative floor areas The relative floor areas for Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail.50% The Alexander Apartments, 50% 77 Berry Street and Residue Carpark on relative floor areas The relative floor areas for Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail.50% The Alexander Apartments, 50% 77 Berry Street and Residue Carpark on relative floor areas The relative floor areas for Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail.50% The Alexander Apartments, 50% 77 Berry Street and Beau Monde Residue Carpark on relative floor areas The relative floor areas for Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail.50% The Alexander Apartments, 50% 77 Berry Street and Residue Carpark on relative floor areas The relative floor areas for Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail.50% The Alexander Apartments, 50% 77 Berry Street and Residue Carpark on relative floor areas Deed to Vary 95

122 Water consumption: Submeter A 0.0% 0.0% 0.0% The estimated consumption of water for The AlexanderBeau Monde Apartments and 77 Berry Street Beau Monde Commercial. Water consumption: Submeter B and, 77 Berry Street Beau Monde Commercial and Beau Monde Retail The estimated number of fixtures for Beau Monde Residue Carpark 0.0% 0.0% 0.0% 4.2 [Not used] Cold water The estimated number of fixtures for Beau Monde Apartments and 0.0% 0.0% 0.0% booster pumps Beau Monde Commercial. 4.3 Hot water 0.0% 0.0% 0.0% The estimated number of fixtures for Beau Monde Apartments and Beau Monde Commercial. Hot water plant A 0.0% 0.0% 0.0% See Schedule 5Sole benefit and use Hot water plant B 0.0% 0.0% 0.0% See Schedule 5The estimated number of fixtures for Beau Monde Residential and Beau Monde Commercial 4.4 Gas A. [Not Used] B. Level 37 submeter 0.0% 0.0% 0.0% Costs apportioned as per Schedule 1. C. [Not Used] 4.5 Hydrants and hose reels 77.0% 21.5% 1.5% The relative floor areas for The Alexander Beau Monde Apartments, Beau Monde Residue Carpark, Beau Monde Commercial and Beau Monde Retail and 77 Berry Street. 4.6 Stormwater 77.0% 21.5% 1.5% The relative floor areas for The Alexander Beau Monde Apartments, Beau Monde Residue Carpark, Beau Monde Commercial and Beau Monde Retail and 77 Berry Street. 5 Insurance 77.0% 21.5% 1.5% The relative floor areas for The Alexander Beau Monde Apartments, Beau Monde Residue Carpark, Beau Monde Commercial and Beau Monde Retail and 77 Berry Street. 6 Mechanical services 6.1 [Not Used] 6.2 [Not used] Public carpark ventilation 0.0% 0.0% 0.0% Sole benefit and use Deed to Vary 96

123 Apartment and Office air conditioning Consumption to be paid as per sub-meter reading for Beau Monde Apartments and Beau Monde Commercial. 6.3 Cost to be apportioned on the basis of floor area. Consumption to be Repairs and maintenance 0.0% 0.0% 0.0% paid as per sub-meter reading Energy consumption 0.0% 0.0% 0.0% See paragraph 2.3.See Schedule Apartment heating 0.0% 0.0% 0.0% See Schedule 5 Sole benefit and use. Note, this does not include the supply of heated water to provide heating energy for the Apartment heating system, which is supplied from a shared facility and payable in accordance with the sharing of costs for that shared facility, including, if and when the heated water supply is covered by consumption metering, being paid by reference to proportional consumption Ground floor lobbies air The relative floor areas of the lobbies of The Alexander Beau Monde 6.5 conditioning (residential and office) 50.0% 50.0% 0.0% Apartments and 77 Berry Street Beau Monde Commercial within the ground floor. The relative floor areas of The Alexander Beau Monde Apartments, Tower carpark ventilation 92.0% 7.0% 1.0% Berry StreetBeau Monde Commercial and Beau Monde Residue CarkarkRetail within the carpark. 7 [Not Used] 8 Strata management services 9 Bike rack 33.3% 33.3% 33.3% 9.1 Residential bike rack 100.0% 0.0% 0.0% 9.2 Public bike rack 0.0% 0.0% 100.0% The relative floor areas for Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail. Shared Equally The apportionment of costs is based on the estimated nominal costs of use by Beau Monde Commercial. The apportionment of costs is based on the estimated nominal costs of use by Beau Monde Retail. The apportionment of costs is based on the relative floor areas for Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail. Based on sole benefit and use. Deed to Vary 97

124 10 Security services 0.0% 93.5% 6.5% 11 Loading dock 50.0% 46.7% 3.3% 13 Miscellaneous 77.0% 21.5% 1.5% The apportionment of costs is based on the estimated nominal cost of use by Beau Monde Apartments.Shared between 77 Berry Street and Beau Monde Residue Carpark on respective relative floor areas The apportionment of costs is based on the relative floor area for Beau Monde Apartments, Beau Monde Carpark, Beau Monde Commercial and Beau Monde Retail.50% The Alexander Apartments, 50% 77 Berry Street and Beau Monde Residue Carpark on relative floor areas The relative floor areas for The Alexander Apartments, 77 Berry Street and Beau Monde Residue Carpark Deed to Vary 98

125 Schedule 3 - Proxy form Beau Monde The Alexander Proxy Form Date Name of member, representative or substitute representative Name of member who appointed representative or substitute representative Name of proxy Address of proxy I/we,.., appoint.. as my/our proxy for the purpose of Meetings and Emergency Meetings of the Building Management Committee (including adjourned Meetings and Emergency Meetings) Period or number of meetings for which appointment of my/our is valid for. *months/*meetings * This form authorises the proxy to vote on my/our behalf on all matters OR * This form authorises the proxy to vote on my/our behalf on the following matters only and in the manner specified below: Signature or execution by member (if proxy appointed by member) Signature or representative or substitute representative (if proxy appointed by them) Signature of proxy Notes 1. The proxy appointed by this form must be a natural person. 2. This form is effective only if it is signed by the member, representative or substitute representative (as appropriate) and the proxy. 3. This form does not authorise voting on a matter if the representative or substitute representative of the member is present at the relevant meeting or emergency meeting and personally votes on the matter. 4. This form is ineffective unless it is given to the secretary of the Building Management Committee at or before the first meeting in relation to which it is to operate and it contains the date on which it was made. 5. This form will be revoked by a later proxy appointment form delivered to the secretary of the Building Management Committee. 6. A vote by the proxy which does not comply with the directions to vote given by the member, representative or substitute representative who appointed the proxy is void. Deed to Vary 99

126 Schedule 4 - List of excluded facilities No Excluded facility Description 1. Electrical Services Switchboard A One switchboard (A) serves Beau Monde Commercial77 Berry Street (except for carpark areas). Each office floor is individually metered. Switchboard B: A. Retail Meters Each retail shop is individually metered. 2. Hydraulic Services Gas A common street connection and regulator serves Beau Monde ApartmentsThe Alexander Apartments, Beau Monde Commercial77 Berry Street and Beau Monde Retail. Gas is provided: (c) through a sub-meter to Beau Monde ApartmentsThe Alexander Apartments. Individual authority meters serve the Hot water generator A; and to Beau Monde Retail which takes the balance from the main meter linked to the common street connection. 3. Insurance Cost for insurance specifically excludes: (d) (e) (f) public liability insurance premiums; premiums under other policies effected by the committee according to this management statement; and excess on insurance policies effected by the committee. Deed to Vary 100

127 No Excluded facility Description 4. Mechanical services Retail air conditioning Apartment Heating Part of Beau Mode Retail has its own air conditioning system comprising of roof top air handling paint and water cooler chiller. The plant is located on the roof of the stratum lot. Beau Monde ApartmentsThe Alexander Apartments has its own mechanical plant supplying heating to apartments. This dedicated system does not include the supply of heated water to provide heating energy for the Apartment heating system, which is supplied from a shared facility and payable in accordance with the sharing of costs for that shared facility, including, if and when the heated water supply is covered by consumption metering, being paid by reference to proportional consumption. 5. Roof sign Any sign installed on the roof sign area by the owners corporation. See clause 52 for more information. 101

128 Schedule 5 - List of shared facilities intended to be converted to metered or consumption based cost contribution Schedule 2, Item 2.2(C) Schedule 2, Item 2.3 Schedule 2, Item 4.2 Schedule 2, Item 4.1 Schedule 2, Item 4.3 Schedule 2, Item 4.4(B) Schedule 2, Item 6.3(B) Shared facility Schedule 2, Item 6.4 Note: Apartment heating plant is not a shared facility and will not be separately metered by a member (other than the Beau Monde Residential member at its sole cost). 102

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148 Strata Plan No Berry Street North Sydney NSW 2060 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 OWNERS FUNDS ACTUAL ACTUAL 30/06/16 30/06/17 Administrative Fund 2,997, ,570, Capital Works Fund 10, , Legal And Experts (14,766,969.21) (11,381,257.85) TOTAL $ (11,759,354.07) $ (6,838,237.12) THESE FUNDS ARE REPRESENTED BY CURRENT ASSETS Cash At Bank 1,959, , Bank Guarantee 225, Investment Bas Stg 82, ,204, Levies In Arrears 183, , Other Arrears , Interest Accrued On O/D Levies 3, , Prepayments 9, TOTAL ASSETS 2,463, ,265, LIABILITIES Unallocated Deposits 4, , Loan From Lannock 11,805, ,065, Key Deposits 15, , Renovations Bond 7, , G S T Clearing Account (222,372.58) 24, P A Y G Clearing A/C , Creditors 48, , Next Year Discounts (46,072.94) (55,579.50) Levies In Advance 460, , Accrued Expenses 2,148, , TOTAL LIABILITIES 14,223, ,104, NET ASSETS $ (11,759,354.07) $ (6,838,237.12)

149 Strata Plan No Berry Street North Sydney NSW 2060 STATEMENT OF FINANCIAL PERFORMANCE FOR THE PERIOD 1 JULY 2016 TO 30 JUNE 2017 ADMINISTRATIVE FUND ACTUAL ACTUAL BUDGET BUDGET 01/07/15-30/06/16 01/07/16-30/06/17 01/07/16-30/06/17 01/07/17-30/06/18 INCOME Levies - Administrative Fund 2,000, ,380, ,380, ,086, Discount - Admin Fund (174,290.08) (214,574.56) (238,000.00) (205,700.00) Special Admin. Fund Levy 5,997, Admin Fund Special Discount (525,462.00) Inspection Fees Interest On Overdue Levies 16, , Insurance Claim Refund Keys 7, , GST On Income (664,076.77) (197,589.59) (194,727.28) (170,960.91) TOTAL ADMIN. FUND INCOME 6,657, ,995, ,947, ,709, EXPENDITURE - ADMIN. FUND Rent Related Costs 4, Amenities-Pool & Spa Maint. 7, , , , Amenities-Gym Equipment , , , Audit Accounting G S T Fees 1, , , , Bank Charges , Bank Fees With GST Bank Guarantee Fees 5, , Building Management 106, , , , On Site Office Expenses Concierge 285, , , , BMC Contributions , , , Carpet-Cleaning 2, Cleaning 71, , , , Cleaning-Windows 17, Consulting/Engineering Fees 14, , , , Consulting-Oh&s Audit 0.00 (2,198.00) Consulting-Contractor Comp Consulting - Defects 179, Electrical Repairs 2, , , , Electrical-Globes 26, Fire Protection Testing 5, , , , Grounds-Indoor Plant Hire 5, , , , Insurance Premiums 90, , , , Insurance Claims - Excess Access Device Expenses 1, Access Device Refunds

150 Strata Plan No Berry Street North Sydney NSW 2060 STATEMENT OF FINANCIAL PERFORMANCE FOR THE PERIOD 1 JULY 2016 TO 30 JUNE 2017 (Continued) ACTUAL ACTUAL BUDGET BUDGET 01/07/15-30/06/16 01/07/16-30/06/17 01/07/16-30/06/17 01/07/17-30/06/18 Key Deposit Refunds Legal Fees 1, (8,272.67) 11, , Legal Fees - Defects 0.00 (7,801.47) Legal Fees - Eastmark 0.00 (13,723.63) Arrears Letters Lift-Maintenance 48, , , , Lift-Repairs 1, , , Management Fees 63, , , , Meeting Room Hire 8, , , Internet Services 7, , , , Accounting & Finance 5, Admin Processing By-Law Processing Asset Maintenance Meeting Attendance 22, Strata Manager Consultancy 30, , Disbursements 74, , Website 7, , , Pest Control-Service 1, , , Plumbing-General 13, , , , Plumbing-Hws/Boilers 1, , Lift Consultant 1, Rep & Maint-Intercom 1, Rep & Maint-Air Conditioning 6, (319.00) Rep & Maint-Garage Door , Rep & Maint-General Building 17, , , , Rep & Maint-Locks 3, Rep & Maint-Doors 6, BMC - Mechanical Services 83, BMC - Insurance 139, BMC - Electricity 147, BMC - Fire Services 61, BMC - Strata Management 26, BMC - Miscellaneous 4, (726.00) BMC - Accountancy & Audit 7, BMC - Gas 15, Services-Water Usage 99, , , , Signs/Notice Board Stationery 7, , , , Telephone Expense 6, , , , Contingency ,000.00

151 Strata Plan No Berry Street North Sydney NSW 2060 STATEMENT OF FINANCIAL PERFORMANCE FOR THE PERIOD 1 JULY 2016 TO 30 JUNE 2017 (Continued) ACTUAL ACTUAL BUDGET BUDGET 01/07/15-30/06/16 01/07/16-30/06/17 01/07/16-30/06/17 01/07/17-30/06/18 GST On Expenses (150,434.14) (134,551.19) (162,600.00) (141,200.00) TOTAL ADMIN. EXPENDITURE 1,603, ,422, ,716, ,495, SURPLUS / DEFICIT $ 5,053, $ 573, $ 231, $ 214, Opening Admin. Balance (2,056,129.95) 2,997, ,997, ,570, ADMINISTRATIVE FUND BALANCE $ 2,997, $ 3,570, $ 3,228, $ 3,785,510.95

152 Strata Plan No Berry Street North Sydney NSW 2060 STATEMENT OF FINANCIAL PERFORMANCE FOR THE PERIOD 1 JULY 2016 TO 30 JUNE 2017 CAPITAL WORKS FUND ACTUAL ACTUAL BUDGET BUDGET 01/07/15-30/06/16 01/07/16-30/06/17 01/07/16-30/06/17 01/07/17-30/06/18 INCOME Levies - Capital Works Fund 450, ,322, , , Discount - Capital Works Fund (37,470.46) (20,076.00) (20,250.00) 0.00 Special Capital Works Levy ,097, Capital Works Special Discount (468.00) Settlement ,000, Interest On Investment 2, , Lobby Refurbishment , , Bank Interest 6, Interest From Ato GST On Income (37,460.13) (138,402.18) (138,181.82) (15,372.60) TOTAL CAPITAL WORKS INCOME 383, ,406, ,381, ,153, EXPENDITURE - CAPITAL WORKS Amenities-Gym Equipment 3, Defect Repair , Consultants-Engineering , Miscellaneous Expense , Plumbing-General , Electrical , Light Fittings , Rep & Maint. -- Intercom , Rep & Maint-General Building 27, , Replace Intercom System , Building Exterior , Roof , Main Entry Foyer , , Lobbies And Hallways , Fire Stairwells , Washrooms/Change Rooms , Gymnasium , , Vechile Accessways , Swimming Pool , Fixtures And Fittings , Plant - Water , Lift , , , Contingency Allowance , , Sauna , Level ,000.00

153 Strata Plan No Berry Street North Sydney NSW 2060 STATEMENT OF FINANCIAL PERFORMANCE FOR THE PERIOD 1 JULY 2016 TO 30 JUNE 2017 EXPENDITURE - CAPITAL WORKS (Continued) ACTUAL ACTUAL BUDGET BUDGET 01/07/15-30/06/16 01/07/16-30/06/17 01/07/16-30/06/17 01/07/17-30/06/18 New Front Door , Managers Office/Parcel Store , Tax - Income Tax 1, Tax Installment 2, , Tax Return GST On Expenses (2,871.65) (43,822.68) (131,582.29) (204,425.00) TOTAL CAP. WORKS EXPENDITURE $ 32, $ 444, $ 1,315, $ 2,044, SURPLUS / DEFICIT $ 351, $ 961, $ 65, $ (890,524.00) Opening Capital Works Balance (341,076.02) 10, , , CAPITAL WORKS FUND BALANCE $ 10, $ 972, $ 76, $ 81,594.87

154 Strata Plan No Berry Street North Sydney NSW 2060 STATEMENT OF FINANCIAL PERFORMANCE FOR THE PERIOD 1 JULY 2016 TO 30 JUNE 2017 LEGAL AND EXPERTS ACTUAL ACTUAL BUDGET BUDGET 01/07/15-30/06/16 01/07/16-30/06/17 01/07/16-30/06/17 01/07/17-30/06/18 INCOME - LEGAL & EXPERTS Income Item ,400, ,400, ,400, Expert Fees Recovered , Settlement ,000, GST On Income 0.00 (404,545.45) (400,000.00) (400,000.00) TOTAL INCOME ,045, ,000, ,000, EXPENDITURE - LEGAL & EXPERTS Legal Fees , Loan Interest 846, , , , Loan Cost 10, BMC - Consulting Fees 440, BMC - Expert Fees 238, BMC - Legal Fees 981, , BMC - Legal Settlements 736, Doca Matters Sp , Doca - Consulting Fees 8, Doca - Expert Fees 6, Doca - Legal Fees 1,092, Defects - Consulting Fees 934, Defects - Expert Fees 820, Defects - Legal Fees 1,940, , Defects - Building Testing 59, Defects - Defendants 31, Defects - Settlement 2,550, (210,000.00) Sms - Legal Fees 7, Consent - Consulting Fees 23, Consent - Legal Fees 212, GST On Expenses (783,088.72) (7,092.29) (9,090.91) 0.00 TOTAL EXPENSES 10,164, , , , SURPLUS/DEFICIT $ (10,164,101.58) $ 3,385, $ 3,127, $ 7,712, Opening Balance (4,602,867.63) (14,766,969.21) (14,766,969.21) (11,381,257.85) BALANCE $ (14,766,969.21) $ (11,381,257.85) $ (11,639,878.30) $ (3,669,090.85)

155 Resume Bob Breen Address: Unit Berry Street North Sydney NSW 2060 Mobile: Summary of Experience: Over forty years experience in the construction and security industry. From hands on apprentice to total project management of design, manufacture and provision of highly complex secure facilities. Including a number of maximum security Jails and the Supermax in Goulburn. Since retiring in 2005 I have been involved with a number of SME s in a mentoring and consulting role offering project management and commercial advice Directorship History ~ ~ 2005 Career Summary Aug 1972 Mar 1974 Mar 1974 Mar 1994 Constructeam Limited (UK) Interior Design Construction Pty Ltd A G Security Pty LTD Gallipoli Club Pty Ltd Gallipoli Scholarship Fund Department of Commerce NSW F G Minter Builders London Apprentice Plumber Military Service Jun 1994 Feb 1996 Feb 1996 Jan 1998 Jan 1998 Nov 2001 Aug 1998 Nov 2004 Mar 2005 Aug 2005 Cordukes Builders Divisional Manager Martial Armour Ballistic Materials Pty Ltd General Manager Interior Design Construction Managing Director A G Security Pty Ltd CEO NSW Department of Commerce Security / Project Manager, Parramatta Justice Precinct Resume Bob Breen

156 Iver Pedersen, Lot owner 210. Strata Committee Nomination. Over the last few years I have served on and worked with a number of Strata Committees within our building. Long time owners would be aware of the at times, bitter dispute, I had with a previous committee, who presided over an era that burdened the strata with huge financial borrowings (which we are still paying for today) funding innumerable court actions, litigations and consultants. I am of the view, despite a level of carping and sniping by a few from the sidelines the outgoing committee and indeed the building manager have done an outstanding and difficult job in restoring the reputation of a building that was once considered to be a complete basket case within legal and real estate circles. The Beau Monde brand had unfortunately became toxic and was the butt of many a joke within these same circles including conveyancers. The outgoing committee have done the hard yards and re-set the foundations. They have demonstrated great competency in tackling a myriad of issues including, debt reduction, eliminating cut and paste budgets, settling complex legal disputes, commissioning pragmatic defect management and refurbishing/replacing neglected plant and equipment. The great deal they secured with the Winten Group, $5 million in cash as well as hundreds of thousands of dollars worth of improvements to internal infrastructure did not just happen. It required detailed work and a level of sophistication in appreciating the dire situation the building was in and what really mattered. The $5 million dollars however, that will be tipped into the coffers of the Strata is not a honey pot. What happened in years gone by cannot be allowed to happen again. The informed, sound and sober approach to the core issues adopted by the outgoing committee needs to continue. A healthy building will restore our capital value. I am of the view that means before we do or consider anything else, the debt has to be totally repaid, the defect rectification needs to be completed and our plant and equipment replacement and or refurbishment timetable needs to be maintained. I am therefore nominating myself for a strata committee position. I will also be supporting any members of the present committee that re-nominate. Finally, I think it's incumbent on any person nominating, to declare if they or their business, during our financially crippling litigation period, received any monies from the owner s corporation for a service linked to that litigation.

157 James McKinnon Owner/ Resident 6.5 years Semi Retired - 60 years of age - Married. Technical Engineering IT Background, trained in Hardware Maintenance, Operating System Installation and Software programming. I also hold a Certificate of Financial Management, designed and built a small business Accounting system some years ago. Accepted into the Charles Stuart Masters IT program..three subjects completed. Spent 20 years full time in IT from the early 90's in various roles including National Membership Manager and Systems Manager to the Australian Computer Society Worked for a Network Integrator designing and selling Network Solutions & equipment for several years Self Employed for many years selling Networking Solutions and custom Software Applications Employed by a large Public IT Company specialising in SAP solutions as a Business Development Manager (SMS Management & Technology), retrenched during the Global Financial Crisis. From time to time with SMS I was asked to project manage SAP solutions Projects Included Financial aspects of the Global Merger of Alcatel / Lucent Installation of an SAP template for ESPRIT in Hong Kong SAP Module customisation Currently self-employed as a Professional Photographer specialising in Wedding and Event Photography My Time, Interests and Contributions at Beau Monde Lobbying the previous EC to adopt HD Foxtel Designing a comprehensive IP based CCTV system Lobbying the then Minister of Communications Malcolm Turnbull for Beau Monde to be connected to the NBN on the Fibre to Basement program Lobbying the current Administration to take over the loading dock and secure it Lobbying the current Administration to create a website to distribute information Lobbying the current Administration to bring the Annual Accounts up to date Lobbying the current Administration to adopt Electronic Voting. Engaged by the OC to undertake the Photography and Videography for the recent Supreme Court defects case and asked to appear as witness supporting expert witness evidence if required. My Current Agenda To increase the Lifestyle & Add value to Owner Investment at Beau Monde. I have on the AGM Agenda A motion to have an independent consultant review the existing failed/flawed Fire Alarm Systems A motion to increase consultation to owners regarding major changes such as revamping the Foyer and Forecourt A motion to allow owners to enclose balconies aligned with an Architectural design specification and blanket Development Application approved by North Sydney Council

158 John Hudson (Owner Occupier) I am a highly experienced senior executive who retired 5 years ago, as Managing Director of Thakral Holdings Group, a listed AREIT with over $1.5 billion of property, including over 2500 hotel rooms, 3 shopping centres, an office building and residential development assets with an on completion value over $1 billion. During my 10 year tenure as Managing Director, Thakral significantly outperformed both the ASX 200 and AREIT indices. I am a chartered accountant and member of the Australian Institute of Company Directors. I have over 30 years experience in the property industry. I am currently on a number of Boards and investment committees in the property industry as well as Australia s largest hunger relief charity, Foodbank. I was previously a director of Hostplus, the hospitality industry superfund, Retirement Villages Group, Australian Industrial REIT, the Tourism & Transport Forum and the Committee for Sydney. As Chairman of the Strata Committee since February 2016, I, together with the rest of the Committee, have systematically set out to fix the issues of Beau Monde. These include: Settled all outstanding litigation and restored the finances of the Owners Corporation. Upgrading the lifts - Estimated cost $1.1 million. Underway, expected completion February Refresh the Lobby - Estimated cost $200,000. Out for check pricing, expected completion October Repair Windows, Façade & Balcony leaks Estimated cost $400,000. Contract let expected completion June Refurbish Level 8 Pool & Changing rooms - Estimated cost $200,000 Tender received, expected completion December Upgrade Security System & Cameras Estimated Cost $50,000. Pricing expected completion December In addition to the above, certain works are being undertaken as part of the settlement with Winten, the developer of 1 Dennison St. These include a new Building Management System, new chiller and valves and new meters to allow separation of costs on a user basis. Finally, we are now in the process of reducing ongoing levies as costs reduce. The budget is set out in the papers for the AGM. I urge you to vote to maintain the status quo and re-appoint existing members of the Strata Committee who are standing to ensure the work commenced is completed. I also commend to you Bob Breen who has offered to stand as he has extensive building skills. I would also encourage anyone with a legal background to offer their assistance. Finally, I confirm that I have no personal, business or financial relationship to any service provider to the Owners Corporation.

159 DAVID MACDONALD RESUME Owner and operator of McIntosh Bishop and ML Financial Services Pty Ltd, providing taxation, auditing, secretarial and consulting services. Operating from 83 Mount St for the last 27years. Have worked for the Auditor General of NSW for 5 years, Ernst & Young for 5.5years and Deloitte for 4years, before entering public practice in 1984 as a partner of McIntosh Bishop. Fellow of The Institute of Chartered Accountants Australia and New Zealand since 1991; member since Bachelor of Commerce in Accountancy from University of New South Wales awarded in Registered Company Auditor since 1984 Registered Tax Agent since 1983 Justice of the Peace since 1990 Hobbies include skiing, trout fishing, and an annual weeks fishing on the Great Barrier Reef.

160 NOMINATION FOR ELECTION TO EXECUTIVE COMMITTEE OF THE OWNERS CORPORATION To The Secretary - Strata Plan No. SP74602 From Neryl Mather - Unit August 2017 I hereby wish to nominate myself for election to the Executive Committee of the Owners Corporation for The Alexander. I have read the Strata Committee election information and confirm my eligibility pursuant to the provisions of the Strata Schemes Management Act 1996 (NSW). I hereby disclose I do not have any financial, business or family connections with the developer or caretaker. I am a current owner and have lived in my apartment since my initial purchase in I have been an active owner attending Strata meetings and networking with other residents. Below I have detailed in brief, my experience, which I believe will be of value, to the Executive Committee and to the Owners Corporation. My current work experience of over 15 years as a Project Manager within a large multinational company encompasses managing large projects covering Property management, Leasing, Facilities management, Place making and Employee experience. Additionally, I have previous experience as an Executive Committee member and as Secretary in my previous home. During this time, I was involved with the re-drafting and writing of new By Laws, to protect the Owners Corporation, bring them into line with best business practices in preventative maintenance, recycling, and to work in conjunction with changes to local council regulations, and changes under the Strata Schemes Management Act (NSW). This saw a significant improvement in the volumes of waste being converted to recycled waste, a reduction in illegal dumping, an increase in safety in the carpark, a significant reduction in the incidence of nuisance complaints. If elected, I will also seek to formulate with my fellow committee members the direction we should take around the proposed Place making to the surrounding streets and land by the Winten Property Group and North Sydney Council to limit detrimental impact, enhance amenity and ultimately increase our property value. In seeking nomination, I would like to be able to represent all of our best interests in the further making of our homes a great place to reside; a well maintained, safe and harmonious place, and to continue to build a great sense of community. Please call or me to clarify or for further information. Kind regards Neryl