Have you ever wondered about the role of a body corporate, and whom you might need to speak to about certain issues?
A body corporate is the legal entity responsible for managing and maintaining common property in a community titles scheme. This includes things like shared driveways, lifts, stairwells, gardens, rooftops, pools and building structures.
In Queensland, body corporates are governed by the Body Corporate and Community Management Act 1997 (Qld) and associated regulation modules.
All lot owners are automatically members of the body corporate and are bound by its by-laws and decisions, even if they do not actively participate. There are often three key roles which are responsible for different areas of the Body Corporate: The Committee, the Manager and the Caretaker or letting agent.
The first role is the Body Corporate Committee. The Body Corporate Committee is elected at an annual general meeting and is made up of a series of lot owners or people who act on their behalf.
The committee looks after the administrative and day-to-day running of the body corporate. They are empowered to make certain decisions on behalf of the body corporate and manage the implementation of decisions made by the body corporate.
The next role is the Body Corporate Manager. This is a different role to an onsite manager. The Body Corporate Manager is engaged by the body corporate to provide the administrative services of the body corporate, but they are restricted in the powers and decisions it can make.
The Body Corporate Manager will undertake things such as managing the administrative and sinking funds. They may perform some or all of the powers of the executive of the committee and/or provide assistance to the committee. These services include calling committee and general meetings, sending out levy notices and breach notices and bylaw contravention notices, sending out the minutes of the body corporate meetings and managing the body corporate’s financial affairs.
The final role within the body corporate is the role of the Caretaker and Letting Agent.
Some body corporates have a Caretaker who is responsible for managing the day-to-day maintenance of the body corporate. They may undertake gardening services and the general upkeep of the common property.
In addition to this service, the Caretaker may also be a Letting Agent. The Letting Agent is authorised to provide letting services within the body corporate. It is important to note that a Caretaker or an Onsite Manager is not empowered to give approval to lot owners or third-party requests.
The various roles within a body corporate become particularly important when you require body corporate approval.
A. Decisions are usually made at general meetings where owners vote. Day-to-day matters are often handled by an elected committee. The type of resolution needed (ordinary, special, or majority) depends on what’s being decided. For example, routine maintenance would likely constitute an ordinary resolution whereas a significant spending of funds would require a majority resolution.
A. Many bodies corporate engage a professional body corporate manager to handle administration, correspondence, insurance, and meeting preparation. The committee still oversees the big picture and gives direction to the manager.
A. The administrative fund covers every day running costs – insurance, cleaning, gardening, minor repairs. The sinking fund is set aside for bigger future expenses like painting the building, replacing lifts, or resurfacing driveways.
A. Generally, committee meetings are for committee members only, but owners can sometimes attend as observers if the committee agrees. All owners are entitled to attend and vote at annual general meetings and extraordinary general meetings.
A. An annual general meeting must be held once every financial year, usually within three months after the end of the financial year. That’s when budgets are set, committees elected, and major updates discussed.
A. The body corporate is required to insure the building and common property for full replacement value, plus public liability cover. Individual owners usually need their own contents insurance and may want cover for any fixtures in their lot.
A. Yes, by-laws can be changed or new ones added, but it requires a special resolution at a general meeting. Any change has to be reasonable and within the scope of the legislation.
If you would like to find out more about body corporate matters, read our article on common problems faced by members of a body corporate or please get in touch with the Argon Law team.
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