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What is a Company Title?

What is a Company Title?

Company title is a category of land ownership whereby a company has title to the land and owns the units on that land. Shareholders who have shares in the company have exclusive use and occupation of their flat in accordance with The Company’s Constitution. Therefore, this means that shareholders are not actually the owners of the land, they just have exclusive occupation.

Regulation

Companies are legally regulated through the Corporations Act 2001 (Cth) and its constitutions. Other legislative material include Work Health and Safety Act 2001 (NSW), Environmental Planning and Assessment Act 1979 (NSW) and Part 3 Local Court Act 2007 (NSW).

The Constitution

The Constitution is a piece of legislative material which regulates the company’s internal management. A Constitution usually consists of:

House Rules

House Rules are often referred to as ‘by-laws’ or ‘regulations’ which outlines building management and conduct of its residents on a daily basis. These regulations can change or can be voted on by shareholders to make an amendment.

House rules usually consists of:

Common Property

The Company has a responsibility to common property which are certain parts of the property whereby other parts are the shareholders responsibility. Companies should have a set of rules which outlines any renovations or maintenance rules. These rules can ensure or avoid any disputes arising in regards to renovating or maintaining the company. By having these rules, it means not needing to change the constitution.

If you need further clarification on company title or think you have an outdated Constitution for your Company Title Building, contact JFM Law on (02) 9199 8597 for a no obligation chat. If you would rather get in contact through email, send your question through or by email at wehelp@jfmlaw.com.au

 

The information contained in this post is current at the date of editing – 03 April 2024.

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