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Section 75A may not state the plan has to be funded. But, there are other areas in the act that do.
Section 75(4) of the Act provides:
“In estimating amounts to be credited to the sinking fund, an owners corporation that is required to prepare a plan under section 75A is to take into account anticipated major expenditure identified in the plan for the 10-year period to which the plan relates.”
As David Bannerman suggests; ‘It is my belief that any legislative requirements to do something, such as, take into account something requires that it be done reasonably and in good faith’.
Take into account is mentioned in other less controversial areas of the Act, without dispute.
It’s my opinion a Test Case for the interpretation of this part of the Act is looming, in a similar fashion to the recent cases relating to maintaining common property where owners corporations were found to be negligent. These cases put shock waves through strata world. Sinking fund plans will be next.