Section 4 (7) of The Registration (Strata Titles) (Amendment) Act, details what is called Annual Returns and requires strata corporations to file same, within one hundred and twenty (120) days after the end of the current year.

What constitutes Annual Returns

Annual Returns include the following financial information:

• Audited Financial Statements or, financial statements prepared in accordance with generally accepted accounting principles
• Form 13A – Income and Expenditure Statement;
• Form 13B – Outstanding Contributions
• Form 13C – Outstanding Payables

They also include a report on the Corporations activities during the year. This requires submitting Minutes of meetings (Annual General Meeting and Extraordinary General Meeting) held outlining:

a) The names of the Executive Committee members,
b) Resolutions passed to adopt budget or for non-insurance unanimous resolution is necessary to waive insurance coverage
c) Details of insurance coverage

Why are Annual Returns Important?

Annual Returns are the primary way the Authority keeps a check on the operation and management of a Corporation. In a very direct and transparent way, it is an indication of the operations of a Corporation over a one year period. It therefore allows the Authority to intervene or offer assistance to the Corporation where it deems it necessary.

It also provides information to third parties that might have an interest specifically mortgagors and prospective buyers. This will tell the parties is there is any risk of danger in providing a loan to purchase or buying into a unit in the property. Persons may ascertain this information and other information in relation to the status and operation of a Corporation via a status certificate.