QLD: Body Corporates and the duty of a Body Corporate Committee
Owners are often confused as to what constitutes a ‘Body Corporate’ and what the role of a Body Corporate Committee is.
A Body Corporate is formed when subdivided land is registered in order to create a Community Titles Scheme. The individual scheme can consist of a variety of property styles such as a duplex, high rise apartments, residential unit blocks, or even a commercial block of shops or businesses.
Every owner of a lot within the scheme is a member of the Body Corporate.
Role of a Body Corporate Committee
A Body Corporate must elect a Committee at the Annual General Meeting each year.
In Queensland, a valid committee consists of a minimum three and maximum seven members.
Different roles/positions exist within the Committee, including the Executive positions of Chairperson, Secretary, Treasurer and Ordinary Committee Members.
Essentially, the role of a Body Corporate Committee is to represent and act on behalf of all owners.
It is common for a Committee to work in conjunction with a body corporate management company to ensure the administration of the scheme is being run effectively and as per legislative requirements.
The Committee has the responsibility to make decisions on behalf of the Body Corporate. They are tasked with a variety of duties of which can include but are certainly not limited to the following:
- Preparation of proposed budgets that are approved at the Annual General Meeting;
- Managing contractors and sourcing quotations;
- Keeping accurate records and financials;
- Liaising with owners;
- Ensuring owners and residents comply with Body Corporate Bylaws;
- Ensuring that the common property of the scheme is being maintained;
- Supervising Caretakers/Building Managers (if the case may be)
It is to be noted that whilst the Committee has the power to act on behalf of the Body Corporate, they are not a power unto themselves.
The Committee must be transparent and act in the best interests of the Body Corporate, with decision making and subsequent resolutions being justifiable to all lot owners.
The Committee does not have the authority to simply spend body corporate funds and must work within a limit of expenditure.
Lastly, it is to be noted that Committee Members act on a voluntary basis only and are not paid for their time and commitment to all owners and the running of the scheme.