Company title schemes pre-dates strata title which was introduced in New South Wales in 1961. Under company title, the company owns the building and land. Shares are held in groups corresponding to the comparative value of the units as perceived by the original developers based on the size and location of the units in the building.
The owner of a group of shares has the right to exclusive occupancy of his or her unit (subject to the Constitution of the Company - previously called the Memorandum and Articles of Association of the Company). The owner does not have a title deed but rather a Share Certificate.
The major differences from strata title units are that (i) under company title what is transferred is a group of shares and (ii) prospective owners must be approved by the Board of Directors of the company to enable settlement of the unit purchase and sale to be completed and the share transfer registered.
A company title building and its Articles of Association are a contract between the company and the shareholders regulating the relationship between the company and its shareholders (subject to the Corporations Act 2001). The rights given by the Articles of Association to shareholders and approved tenants to occupy units are subject to their observing the House Rules.
Company title management of a building can be complex and a specialised field, which entails expert knowledge of the Companies Act and the Australian Securities & Investment Commission (ASIC) protocol essential to the effective running of the company affairs of a building.
BCS Strata Management with its 40 years experience and being a market leader has a proven record of assisting properties under company title management, providing them guidance and support in the relevant legislation and statutory requirements. Our high level of expertise is rarely found elsewhere in this area.