Abstract
Effective governance is an essential component in the establishment of a successful strata title scheme. This chapter examines the role and influence of developers in the establishment of governance arrangements prior to and following the registration of a strata title scheme in Australia. The chapter examines the rights of the developer in the initial stage of project development and the consequences of such rights for a scheme’s reputation, functionality and viability. Drawing on a case study of strata development in Queensland, the paper identifies common practices that thwart effective governance. The case highlights that poor decision-making from the outset can impose a structure which leads to poor outcomes for the owners’ corporations for many years to come.
This is a preview of subscription content, log in via an institution.
Notes
- 1.
The term bodies corporate is used in this chapter to denote the governing entity of a scheme.
- 2.
Sphere Southport Living [2013] QBCCMCmr 338; Sphere Southport Living [2013] QBCCMCmr 338; Sitting Bear Pty Ltd (receivers and managers appointed) v Body Corporate for Sphere Southport Living CTS 37951 (2014) QCAT (APL 444-13); Sphere Southport Living [2014] QBCCMCmr 186.
- 3.
Queensland Land Registry, Community Management Statements for Sphere Southport Living Community Titles Scheme 37951 dated 2008, 2011 and 2013.
References
Aguilera, R.V., and A. Cuervo-Cazurra. 2009. Codes of Good Governance. Corporate Governance: An International Review 17 (3): 376–387.
Allen, M., and N. Johnston. 2013. Partial Statutory Framework for Developer and Body Corporate Relationship. Paper Presented at the Strata and Community Title in Australia for the 21st Century Conference, September, Gold Coast.
Altmann, E., and Z. Yang. 2017. Why Chinese Investors Find Australian Real Estate So Alluring. The Conversation. https://theconversation.com/why-chinese-investors-find-australian-real-estate-so-alluring-76310. Accessed 1 May 2017.
Blandy, S., J. Dixon, and A. Dupuis. 2006. Theorising Power Relationships in Multi-owned Residential Developments: Unpacking the Bundle of Rights. Urban Studies 43 (13): 2365–2383.
Committee on the Financial Aspects of Corporate Governance. 1992. Report with Code of Best Practice [Cadbury Report]. London: Gee Publishing.
Desender, K.A., R.V. Aguilera, R. Crespi, and M. Garcia-Cestona. 2013. When Does Ownership Matter? Board Characteristics and Behaviour. Strategic Management Journal 34 (7): 823–842.
Easthope, H., J. Warnken, C. Sherry, C.E. Coiacetto, D. Dredge, C. Guilding, N. Johnston, D. Lamminmaki, and S. Reid. 2014. How Property Title Impacts Urban Consolidation: A Life Cycle Examination of Multi-title Developments. Urban Policy and Research 32 (3): 289–304.
Grindle, M. 2010. Good Governance: The Inflation of an Idea, Faculty Research Working Paper Series, RWP10-023. Cambridge, MA: John F. Kennedy School of Government, Harvard University.
Hyatt, W.S., and J.B. Rhoads. 1976. Concepts of Liability in the Development and Administration of Condominium and Home Owners Associations. Wake Forest Law Review 12 (4): 915–977.
Johnston, N., and E. Too. 2015. Multi-owned Properties in Australia: A Governance Typology of Issues and Outcomes. International Journal of Housing Markets and Analysis 8 (4): 451–470.
Johnston, N., C. Guilding, and S. Reid. 2012. Examining Developer Actions that Embed Protracted Conflict and Dysfunctionality in Staged Multi-owned Residential Schemes. Paper Presented at the 18th Annual Pacific-Rim Real Estate Society Conference, Adelaide, Johnston, January 15–18.
Klakegg, O.J., T. Williams, O.M. Magnussen, and H. Glasspool. 2008. Governance Frameworks for Public Project Development and Estimation. Project Management Institute.
Kumar, P., and A. Zattoni. 2013. Corporate Governance, Board of Directors, and Firm Performance. Corporate Governance: An International Review 21 (4): 311–313.
Miller, R., and D.R. Lessard. 2000. The Strategic Management of Large Engineering Projects: Shaping Institutions, Risk and Governance. Cambridge, MA: MIT Press.
Muller, R. 2009. Project Governance. London: Gower.
Queensland Land Registry. Community Management Statements for Sphere Southport. Living Community Titles Scheme 37951 dated 2008, 2011 and 2013.
Ruhanen, L., N. Scott, B. Ritchie, and A. Tkaczynski. 2010. Governance: A Review and Synthesis of the Literature. Tourism Review 65 (4): 4–16.
Sherry, C. 2010. Long-term Management Contracts and Developer Abuse in New South Wales. In Multi-owned Housing: Law Power and Practice, ed. J. Dixon, A. Dupuis, and S. Blandy, 15–176. Farnham: Ashgate.
Shleifer, A., and R. Vishny. 1997. A Survey of Corporate Governance. Journal of Finance 52 (2): 737–783.
Too, E., and P. Weaver. 2014. The Management of Project Management: A Conceptual Framework for Project Governance. International Journal of Project Management 32 (8): 1382–1394.
Legislation
Body Corporate and Community Management. Act 1997 (Qld).
Body Corporate and Community Management. (Standard Module) Regulation 2008 (Qld).
Owners Corporations. Act 2006 (Vic).
Strata Schemes Management. Act 1996 (NSW).
Subdivision. Act 1988 (Vic).
Uniform Condominium. Act (USA).
Cases
Sphere Southport Living [2013]. QBCCMCmr 338.
Sphere Southport Living [2014]. QBCCMCmr 186.
Sitting Bear Pty Ltd. (receivers and managers appointed) v Body Corporate for Sphere Southport Living CTS 37951 (2014) QCAT (APL 444–13).
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2018 The Author(s)
About this chapter
Cite this chapter
Johnston, N., Too, E. (2018). Impediments to Effective Strata Governance. In: Altmann, E., Gabriel, M. (eds) Multi-Owned Property in the Asia-Pacific Region. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-56988-2_4
Download citation
DOI: https://doi.org/10.1057/978-1-137-56988-2_4
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-56987-5
Online ISBN: 978-1-137-56988-2
eBook Packages: Social SciencesSocial Sciences (R0)