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The Role of the Body Corporate Committee

Essentially, the committee is charged with the day to day administration of the body corporate.

So, what is a body corporate committee?

The committee is usually elected at each annual general meeting and contains at least three and not more than seven members. The committee consists of the executive members, (chairperson, secretary and treasurer) and the ordinary members.

The committee is charged with the responsibility to implement the decisions of the body corporate. Consequently, they must arrange for any resolutions passed by the body corporate in a general meeting to be carried out, whether it be to send levy notices based on the budget, obtain quotes or carry out works.

The committee also has the power to act for the body corporate. A decision of the committee is a decision of the body corporate, unless it is a restricted issue for the committee, in which case it does not have the power to make a decision on that issue.

Restricted issues for the committee include -

  • any decision which requires an ordinary resolution, majority resolution, special resolution, or resolution without dissent
  • fixing or changing a levy
  • expenditure above the relevant limit for committee spending (number of lots by $125 if Body Corporate operates in the Standard Module)
  • commencing a legal proceeding (other than recovery of levies), and
  • making a decision on an issue where the body corporate has decided it is a restricted issue for the committee (e.g. the body corporate may decide that consent to the assignment of management rights is to be a restricted issue for the committee).


Powers and Duties

The powers and duties of the committee include -

  • keeping full and accurate records of meeting resolutions
  • carrying out resolutions passed either at a committee meeting or on voting outside a committee meeting
  • carrying out resolutions passed at a general meeting
  • approving a transfer of any management rights
  • preparing proposed budgets for adoption at each annual general meeting
  • issuing of body corporate information certificates
  • making available the books and records for inspection by an interested person
  • giving notice of levy contributions (after they have been fixed at a general meeting)
  • carrying out spending above the relevant limit for committee spending if:
  • specifically authorised by ordinary resolution of the body corporate
  • all owners have given written consent
  • an adjudicator is satisfied it is required to meet an emergency situation, or
  • to comply with an order, notice or judgment.

Delegation of Powers

In 2003, the State Government introduced Division 10 to the Standard and Accommodation Module Regulations. This provision allows for the engagement of a body corporate manager to carry out the functions of the committee and executive members. A special voting process is outlined in the Legislation to ensure the evoking of this Division is sought by many in a boy corporate and is to be used in cases where the committee and or executive members can not operate.

However, this Division 10 engagement would be rare and in most cases the body corporate may delegate to a body corporate manager some or all of the powers of the committee or of an executive member of the committee.

Despite this delegation, the body corporate must not prevent the committee or an executive member of the committee from exercising a delegated power, or from directing a body corporate manager about how a delegated power is to be exercised.

This means despite anything in a contract between the body corporate and the body corporate manager, a decision of the body corporate manager is void to the extent that it is inconsistent with a decision of the committee.

This also means if the regulation module states the committee or an executive member must carry out a function, then it cannot be done by the body corporate manager unless specifically instructed by the committee or the executive member to do so.


Liability of Committee

Usually committee members take on this role in an unpaid capacity and it is for this reason they should be protected against any legal action which may be taken for any lawful decisions they have made.

Section 48A of the Building Units and Group Titles Act 1980 and of the Southbank Corporation Act (pursuant to the Schedule headed Modified Building Units and Group Titles Act (BUGTA) provided that no action shall lie against a committee member for any decision made in good faith and without negligence under the authority of BUGTA. No such provision has been included in the Body Corporate Community Management Act.

It is therefore understandable that the body corporate normally takes out errors and omissions liability insurance for the protection of its committee members.


The Responsibilities of the Treasurer

Although a treasurer must be elected each year, there is no specific mention of the role of the treasurer in the Body Corporate and Community Management Act or Regulation Modules. Specific reference is made in other forms of Body Corporate Legislation utilised in Queensland.

The treasurer's role is usually associated with the financial arrangements such as:-

  • preparing a budget for adoption by the body corporate
  • sending notices of levy contributions or other amounts payable by lot owners
  • payment and recovery of contributions, and
  • keeping account records and preparation of annual accounts for presentation to the annual general meeting.Where a body corporate manager has been engaged by the body corporate, it is usual for these duties to be carried out by the body corporate manager.

The Responsibilities of the Body Corporate Secretary

The secretary has a number of important duties under the prevailing legislation.

Even though the body corporate may delegate the powers of the secretary to a body corporate manager, this may not prevent the secretary from exercising a delegated power or directing the body corporate manager about how a delegated power is to be exercised.

The secretary's specific duties are summarised below:-

Committee Election

The secretary coordinates the committee election, including -

  • serving a notice on each lot owner inviting nominations for positions on the committee
  • acknowledging receipt of nominations
  • preparing ballot papers (either secret or open), if an election ballot is necessary
  • forwarding the ballot paper and ballot paper envelope with the notice of the annual general meeting.
  • giving a ballot paper to a voter at an annual general meeting, if the voter has not previously completed a ballot paper
  • holding the completed ballot papers received before the annual general meeting pending the election, and
  • delivering the completed ballot papers to the person chairing the meeting.

Committee Meetings

The secretary coordinates committee meetings by -

  • calling committee meetings
  • calling a committee meeting if requested in writing by enough committee members to form a quorum
  • giving notice of committee meetings:

  • to committee members
  • to lot owners (unless the lot owner has instructed he/she does not wish to receive a copy of the notice)
  • by placing a copy of the notice on the body corporate's notice board (if it has one)
  • sending a copy of committee resolutions (or minutes) to lot owners, unless the lot owner has instructed he/she does not wish to receive a copy of the resolution (or minutes).

General Meetings

The secretary's role in general meetings includes -

  • asking for submission of motions to be included on the agenda for the annual general meeting (this is done at the same time as calling nominations)
  • having available for inspection by voters
  • the roll
  • a list of persons who have the right to vote, and
  • proxy forms and voting papers
    The secretary would carry out other tasks such as providing a copy of the minutes to each lot owner,
  • attending to inward and outward correspondence,
  • keeping the records accurate and up-to-date, and
  • other administrative functions.

Serving and Receiving Notices

As well as carrying out the functions specified in the legislation, various notices and other documents must be served on or given to the secretary.

These include -

  • written voting paper before the start of a general meeting unless a returning officer is appointed
  • notice of a requested extraordinary general meeting
  • nominations for committee positions
  • ballot paper before or at the annual general meeting
  • notice calling a committee meeting by enough committee members to form a quorum
  • notice by lot owner that he/she does not wish to receive committee meeting notices
  • notice by lot owner that he/she does not wish to receive committee meeting resolutions (or minutes)
  • notice of opposition of committee resolution
  • proxy from committee member before the start of a committee meeting
  • proxy from a lot owner before the start of a general meeting
  • proof of the representative capacity if a notice has been given to enter particulars on the roll concerning the representative of the owner, and
  • details of a corporate lot owner's nominee and any change of nominee.

Many of the above duties are carried out by a body corporate manager as part of the agreed services under a body corporate administration agreement. However, where the legislation specifically provides that the secretary or returning officer must carry out a stated function, the body corporate manager cannot carry out that function unless authorised by the secretary or returning officer to do so.

The Responsibilities of the Chairperson

The chairperson has a number of duties concerning the conduct of meetings. If the chairperson is not at a meeting, then a person entitled to vote is elected to chair the meeting.

The chairperson is entitled to call a committee meeting in the secretary's absence.

Duties at General Meetings

At general meetings the chairperson's powers and duties include:

  • Chairing the meeting

  • Ruling a motion out of order. The chairperson must give reasons for the ruling, although those present at the meeting may pass an ordinary resolution reversing the decision.

  • The chairperson may only rule a motion out of order if the motion (if passed) would conflict with the Body Corporate Community Management Act, the regulation module or the bylaws, or would be unlawful or unenforceable for another reason.

  • Declaring the results of voting on motions, including the votes cast for and against, and the number of abstentions from voting.

Duties at Committee Elections

The chairperson also has an important role in counting the votes in an election ballot for positions on the committee.

Secret Ballot

If a secret ballot is held for an election, then the chairperson is responsible for -

  • Scrutinising the particulars tab to confirm the person voting has the right to vote
  • detaching the particulars tab from the ballot paper envelope
  • placing the ballot paper envelope in a receptacle
  • randomly mixing the ballot papers, and
  • taking each ballot paper out of the envelope

Open Ballot

In an open ballot election, the chairperson must take the ballot papers out of their envelopes, and scrutinise them to confirm the persons voting have the right to vote.

Counting of Vote

The chairperson is also responsible for recording the count of votes in the minutes, declaring the result and stating the number of votes cast for each candidate.

To assist the chairperson in performing these tasks, the body corporate may appoint a returning officer to decide questions about eligibility to vote and to count votes.

Under clause 11(7) of Part 2 of the second schedule of BUGTA, the chairperson had a casting vote if the votes were equal. This power is not available under the Body Corporate and Community Management Act. If the votes on an ordinary resolution are equal, then the motion is lost as there must be more votes counted for the motion than against it.


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