An owners corporation is automatically created upon registration of a plan of subdivision which contains common property.
Prior to registration of the plan of subdivision, an owners corporation does not exist as a legal entity and therefore does not have the legal power to hold a meeting, make resolutions, open a bank account, grant common property leases/licences, enter into agreements or maintain valid insurance.
The inaugural meeting of the owners corporation (which must be convened within six (6) months of the owners corporation being created) is when the above matters must be decided.
Although many developers like to be organised in advance of the plan of subdivision registering, it is important to understand that any resolutions passed, or agreements entered into by the owners corporation prior to registration of the plan of subdivision, will be void.
Why?
Because the owners corporation does not exist and cannot exercise legal functions or powers until the plan of subdivision has registered.
