Body Corporate Committee
What is the Body Corporate Committee?
The Committee for a Body Corporate is usually made up of volunteers that have an interest in the operation and management of their home or investment. To some, the thought of becoming a Committee Member can be daunting but, with the right help, it can be simple and satisfying.
Being a Committee Member can be rewarding for people on a number of different levels. Firstly, it is an opportunity to get to know some of the people who live around you and who own property in common with you. Secondly, it is an opportunity to preserve and enhance the value of your property. Thirdly, and perhaps most importantly, it is an opportunity to help create a harmonious living environment.
In Queensland, the Committee for a Body Corporate consists of up to 7 individuals in “voting member” positions. There are specified roles for Committee Members which will be discussed in another article but for now, we will focus on the role of the Committee as a whole.
What is the Role of the Committee?
The primary function of the Committee is to make decisions that affect the Common Property and the people that live and work within the boundaries of the Body Corporate. The effectiveness of the Body Corporate Committee will be largely determined by the way you handle these decisions. Typically, The Committee’s role is to make decisions on:
- Maintenance of Common Property;
- Insurance, both claims and renewal;
- By-law enforcement;
- Correspondence;
- Budgets and Financials;
- Contracts and Contractors.
What are the Restrictions on the Committee?
The Body Corporate legislation places a number of restrictions on the powers of the Committee. These restrictions do vary between the various Regulation Modules and, for this article, we will focus on the Committee’s powers under the Standard Module.
The restrictions placed on the Committee are limiting but are essential to preserve the rights and privileges of all lot owners. If a certain matter is a restricted issue for the Committee, it must be put to a General Meeting of lot owners, thereby giving all lot owners an opportunity to participate in the decision making process. Items that are restricted issues for the Committee include:
- deciding on levies;
- changing by-laws;
- reversing previous General Meeting decisions;
- commencing court proceedings (except for levy recovery);
- pay remuneration to Committee Members over $50.00;
- expenditure limited to $200 multiplied by the number of lots in the Body Corporate
How should the Committee manage disputes?
Often, the most difficult role for the Committee is handling people in the context of strata titled developments. Most people are passionate when it comes to their home and family. Sometimes, the lines between someone’s home and their obligations to their neighbours become blurred. Similarly, Committee Members sometimes have difficulties accepting the limits and limitations of the Committee’s powers.
Ultimately, when dealing with people-related issues, the Committee should:
- understand the technicalities of what you are doing;
- and be reasonable.
As to the technicalities of your role and responsibilities as Committee Members, it is important to know both your strengths and limitations. Our role, as Body Corporate Managers, is to provide the Committee with expert support and advice on technical Body Corporate matters. Committee Members are not expected to know all of the answers and should seek professional and technical advice on areas outside their individual areas of expertise.
Reasonableness is difficult to quantify as it means different things to different people but it helps to put the concept in a relevant context. A Body Corporate is simply an entity to control some property you own in common with other people. Given that the Body Corporate’s primary functions are to manage the common property, manage the by-laws and manage its finances, making reasonable decisions should be straightforward and not stressful.
Written by: Duncan Lee