Report 115 (2007) - Disputes in company title home units
Appendix A - Incidence of home unit companies in NSW
Updates and background for this project (Digest)
The Australian Securities and Investment Commission (“ASIC”) has provided the Commission with the following information from one of its databases.103 At 4 September 2006, the database showed 1,872 home unit companies registered with ASIC throughout the whole of Australia, with 732 listing the locality of their business in New South Wales.104 The Commission has taken this figure as, roughly, representing the number of company title buildings in this State.
Most company title survives in older apartment blocks in the Eastern Suburbs, Northern Beaches, City of Sydney and Lower North Shore of Sydney.
[table to be supplied]
The ASIC database covers “special purpose companies”, here meaning company title buildings that are also “proprietary companies”.105 A “proprietary company” must have a maximum of 50 non-employee shareholders, otherwise it is a “public company.”106
Muriel Barossa, one of the largest company title building managing agents in New South Wales, estimates that 12% of home unit companies have more than 50 shareholders. This would make the total number of company title buildings in New South Wales approximately 840. This is the figure the Commission has used.
Footnotes
103 “A Special Purpose Company - Home Unit Company” - subclass “HUNT” (home unit company).
104 The figures for all jurisdictions are: 918 (Vic); 732 (NSW); 79 (Qld); 90 (SA); 29 (WA); 19 (Tas); 4 (ACT); and 1 (NT).
105. See Corporations (Review Fees) Regulations 2003 (Cth) reg 3 (“special purpose company” (e)).
106. Corporations Act 2001 (Cth) s 113(1).
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