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Multi-owned properties in Australia: a governance typology of issues and outcomes
journal contributionposted on 2015-10-05, 00:00 authored by Nicole Johnston, E R I C Too
Purpose – The purpose of this study is to develop a governance typology which identifies governance issues and outcomes. Multi-owned properties (MOPs) are a unique property type due to the incorporation of a private governance association. Although there are jurisdictional differences, these associations are generally responsible for the management, maintenance and control of the commonly owned property; determining the contributions payable by each lot owner to the operation of the association; enforcing the rules of the association; and ensuring that records meet legislative requirements. Legislation for MOP schemes was enacted in different jurisdictions to guide the governance and management of these matters. However, challenges relating to the governance of MOPs have continued to be a problem as identified in the literature and practice. Design/methodology/approach – The study first reviewed the legislation in three Australian states to identify specific governance categories and the legislative requirements related to those categories. To gain group opinion about the specific governance issues and outcomes, the Delphi method was utilised whereby industry experts participated in a two-round survey questionnaire. Findings – A typology was developed as a result of consensus found between participants. The findings identified key governance issues and outcomes for MOPs. Practical implications – The governance typology forms the basis for the development of a more comprehensive audit tool for the assessment of governance quality in individual schemes. Originality/value – This paper is the first of its kind to collate issues impacting upon effective owners’ corporation governance and the potential outcomes associated with poor governance practices in MOPs.