You are here: Strata Company > Title Management > Company Title Unit  > 

Company Title Unit

Company Title home units are found in buildings owned by companies registered under the Corporations Act. The majority of these were set up in the 1920’s to 1930’s and were the first chance for people to own a home without buying a house.

Company Title 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 determined by the original developer, predominately 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 a defined area in the Company’s building (e.g. unit 6). The owner does not have a title in any real estate but rather a Share Certificate.

Whilst there are similarities in the way units and shares are purchased and sold to that of strata title, there are two notable differences:-

-    Under company title what is being transferred is a group of shares; and
-    Prospective purchasers must be approved by the Board of Directors of the Company.

The day to day management of a Company Title building is vastly different to the management of a Strata Titled building and therefore requires a differing level of expertise and knowledge.

The way in which a Company Title building operates, is dependent upon the Companies Constitution. The Constitution, previously known as the Memorandum or Articles of Association, is a document that lists the official procedures by which the Company is required to manage its affairs.

It is important to note that no two Constitutions are identical.  Therefore it is always important to refer to the Constitution whenever a dispute or issue arises.

The Companies Constitution allows for the appointment of a Board of Directors to manage the day to day affairs of the building.

The Directors are responsible for ensuring that the Company is managed in the best interest of all shareholders. Some of the Boards responsibilities include the collection of levies, taking out adequate insurance coverage, coordinating repairs and maintenance and so on.

The Board is also responsible for approving new shareholders and if leasing is permitted, approving prospective tenants who wish to occupy any of the units.

The Constitution also imposes a number of rights and responsibilities on each and every Shareholder and therefore the active participation of each Shareholder is important.

As the role of a Director is a voluntary position and as the Legislative requirements continually change and become more encompassing, most companies elect to appoint the services of a professional managing agent.

Managing a company title property requires someone who is fully versed in the relevant corporation’s legislation as well as in the physical management of property.

The Strata Agency manages a number of Company Title properties and has many years experience in this field.

If you would like more information regarding this service, or if you would like an obligation free management quotation please contact us