Saturday, September 26, 2020

Owners Corporation Act 2006

Part 11
Division 1A
Section 169D

Prohibition order | Section 169D

(1)     VCAT may make an order prohibiting the use of a lot or part of a lot for the purpose of a short-stay accommodation arrangement for a specified period if—

(a)     a notice under section 159D has been served on a short-stay provider on at least 3 separate occasions within 24 months (regardless of whether the short-stay provider was an agent provider or a lessee of the lot or part of the lot); and

(b)     each notice relates to an alleged breach by a short-stay occupant of the proscribed conduct specified in section 159A(2).

(2)     Subject to subsection (3), a prohibition order ceases to have effect if the lot that is used (wholly or partly) for the purpose of a short‑stay accommodation arrangement is sold.

(3)     A prohibition order does not cease to have effect upon the sale of a lot that is used (wholly or partly) for the purpose of a short-stay accommodation arrangement, if the sale of that lot is made—

(a)     where the short-stay provider is the owner of the lot—to a person who has a beneficial relationship with the short-stay provider; or

(b)     where one of the notices under subsection (1) was served on a short-stay provider who is not the owner of the lot—to the short-stay provider or a person who has a beneficial relationship with the short‑stay provider.

(4)     For the purposes of subsection (3), a person has a beneficial relationship with a short-stay provider if the short-stay provider is—

(a)     an associate of the person; or

(b)     a body corporate of which the person, or an associate of the person, is a member; or

(c)     a corporation over which the person (either as an individual or jointly with associates)
or an associate of the person, can exercise control of; or

(d)     a corporation of which the person, or an associate of the person, is an executive officer; or

(e)     in the case of a person that is a corporation—an executive officer of that corporation or an associate of an executive officer of that corporation; or

(f)     the trustee of a discretionary trust of which the person, or an associate of the person, is a beneficiary; or

(g)     a member of a firm of which the person, or an associate of the person, is a member.

(5)     In this section the following definitions apply—

“associate” means—

(a)     an employee of the person; or

(b)     a spouse, domestic partner, parent, sibling or child of the person or the person’s representative; or

(c)     a child of the spouse or domestic partner of the person or the person’s representative;

control has the meaning given by section 50AA of the Corporations Act;

“executive officer” means any person described as an executive officer, whether or not the person is a director of the corporation, who is concerned with, or takes part in, the management of the corporation.

S. 169E inserted by No. 34/2018 s. 7.

© State of Victoria (Consumer Affairs Victoria). For the latest information please go to https://www.legislation.vic.gov.au/in-force/acts/owners-corporations-act-2006/017

Disclaimer: Reproduced from the Owners Corporation Act 2006. This website does not give legal advice or other professional advice. You should seek legal or other professional advice before acting and not rely on any of the content on this website.

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