Most lot owners experience of their body corporate management is levy notices, agendas and minutes in the mail. For others there may be some interaction with the onsite building manager. But who actually is in charge?
It helps to think of a body corporate as a country, and a democratic one at that, ruled by the people for the people.
The lot owners are the ‘citizens’.
All major decisions of the body corporate are made collectively by the lot owners. The most important of those decisions is to elect a ‘government’, the committee.
Of course the process can be very complicated, so just like any government, the body corporate can engage ‘civil servants’ to help manage the process. There are two main contractors for body corporates; the body corporate manager and the building manager.
The Committee
All the day to day decisions, the running of the body corporate are made by the committee, within strict legislative guidelines.
The committee is elected each year at the Annual General Meeting and their appointment lasts for one year only, basically from AGM to AGM. Each committee is made up of Office Bearers, Chairperson, Secretary and Treasurer, and ordinary committee members.
The Chairperson is in charge of running the meetings, counting votes, and generally making the tough calls, although they do not have any deciding vote or special powers. The Secretary is responsible for managing the body corporate records and being the public contact point for the body corporate. The Treasurer is in charge of the money.
The actions of the body corporate, how much levies to collect, what works are undertaken and anything else the scheme is involved in is all decided by the committee.
The Body Corporate Manager
A body corporate manager may be appointed to undertake certain tasks, most commonly the duties of the Secretary and Treasurer.
For most schemes that means the body corporate manager is in charge of the financial aspects of the body corporate, which is what gives the impression the body corporate manager is actually running things. They are not.
What they are doing is issuing and collecting levies in accordance with the resolutions made at general meeting. They will pay the invoices that fall due, but usually only on the direct advice of the Treasurer. They also maintain the body corporate records.
Body corporate managers also advise committees. They are strata professionals and part of their role is to guide the scheme through the maze of legislative requirements.
The Building Manager
Similarly the building manager is a contractor hired by the body corporate. The role of the building manager is maintain the premises.
The exact duties of a building manager differ from scheme to scheme and are set out in the Caretaking Agreement, the agreement under which the building manager is appointed.
For the most part that will include gardening, pool cleaning, cleaning common areas such as lift lobbies or stairwells and minor repairs. They will also be responsible for obtaining quotes for major works the body corporate is planning.
One of the key roles of building managers is to ensure that all residents and visitors comply with the body corporate by laws.
Although the building manager is a committee member, they are included on a non-voting basis and have no power to make decisions.
The Majority Rules
Despite the many layers of body corporate management all the major decisions of the body corporate are still made by all the lot owners in conjunction by either a simple majority (ordinary resolution), 2/3 majority (special resolution) or unanimously majority (resolution without dissent), depending on the expenditure or action the body corporate wish to take.
Lot owners at general meeting:
- Elect the committee
- Confirm the yearly levy issue
- Authorise expenditure above the committee threshold
- Enter into contracts including:
- Appointment of a body corporate manager
- Entry into a Caretaking and Letting agreement
- Authorise any other major decision likely to affect the lot owners
Lot owners only vote on motions that have been submitted in accordance with legislation. Any lot owner may submit a motion however*.
Once a motion is resolved at a general meeting it then will revert back to the committee to action with the assistance of the building manager and the body corporate manager.
Body corporate management oversight
Just as the lot owners are responsible for electing their own leadership and support workers they’re also responsible for policing themselves. There is no outside body who’s watching the various levels of body corporate management to ensure compliance with both legislation and ethics guidelines.
Again it’s up to the lot owners collectively to monitor and, if necessary object, to the performance of the body corporate’s management.
*For further information about submitting motions refer to the Department of Justice guidelines.
Unless stated otherwise all the information on this website relates to Queensland legislation.
Does the body corporate chairman has to be an owner.
Hi Tony
No … the Chair can be a family member of a lot owner. Check out the eligibility here.
Good morning,
We are in a complex of 42 units…my question is ….
Under what circumstances can the chairman engage and pay contractors with Body Corporate funds without the approval of the committee? and if so is there a $limit?
It this in contravention of the act?
Thank you..Mal
Hi Malcolm
It depends on what arrangements your committee have made. Sometimes one person is put in charge of things, up to a certain limit, and they can arrange works etc up to that limit. Its the same with Caretakers. They’re often given a limit up to which they can undertake works that they don’t need prior approval for. Its something discussed between your committee. Maybe contact your body corporate manager and ask if there is some arrangement in place.
If not, then yes, decisions should be made by the committee as a whole. To not do so could be a breach of code of conduct.
Also … decisions made, even with prior approval, should be to maintain existing property, not improvements.
Thank you Lisa,
Another question…
Re-Payments from BC funds without committee approval.
We appear to be having BC money spent without the involvement or approval of the committee.
Is this a breach of the act?
Is the treasurer obliged to have written confirmation of the committee’s approval before approving payments from BC funds?
Thank you again..Mal
Hi Mal
This is a tricky one. Some schemes give blanket approval to strata managers to pay some costs without further information. This could be an old motion passed some time ago.
Further, some committees appoint one member, usually the Treasurer, to approve invoices. That said, they can only approve the invoice for payment when the work has been resolved by the committee.
So for instance: quotes submitted for works, approval granted to proceed for x dollars, then payment authorised by the Treasurer when received.
I’d bring up the payments not approved at the next meeting. Approvals for the work should be circulated to all committee. It could be simply poor processes with how to proceed as well. When committees work together there are often problems that aren’t so much issues with approvals as breakdowns in communication.
What is the position when a Building Manager takes over a common area for their own personal use
Hi Brian
If the area hasn’t been granted via exclusive use allocation or occupation authority its, presumably, a breach of scheme by-laws. Check you by-laws and if so the committee should treat it like any other breach. Write to them to remove their stuff from the area.
I cannot find who my Body Corporate as I want to direct debit funds toward my Body Corporate fees. I dont know whom manages my unit complex out trying to find out am pulling my hair out. There must be a register to find out such information. Would my local council know?
Hi Dan
The only register of contact details for bodies corporate is kept by the Department Natural Resources and Mines. It gives the service address of the body corporate. Unfortunately, there is no guarantee that the address is kept current and it may direct you to the address of the scheme, as that’s the default address.
Check you Notice of Contributions. The strata manager is usually noted on there. Payments are often managed by strata pay rather that the strata manager and that information should be on your Notice of Contributions.
I have two questions please:
what are the voting rights of a chairman (BCCM) qld – community title scheme
and is the chairperson by way of his annual report abuse or apply undue influence on the voting procedure by nominating his captains pick so to say and not acknowledging all candidates. I realise he is allowed to campaign but surely not in his annual report
Hi Buzz
The chairperson has the same voting rights as any other lot owner, both at committee and at general meetings. The Chair has additional power to conduct meetings including rule motions out of order at general meeting. But then owners have the right to vote to overturn the Chair’s rulings. The Chair is a leader but that does not give them more power than other owners.
Re the campaigning – yes they have the right to campaign. I think I’ve seen an Adjudicators Order about this. The whole “Chairperson’s Report” isn’t included in the Act, its simply something that some schemes do. There’s a grey area about whether the body corporate is even meant to use funds to circulate that information. I suggest checking with the Commissioner’s Office as to whether you have any right to object to the election based on the Chair using body corporate funds to campaign.
I have two quick questions!
We have a Building Manager, who is also an owner at our complex in QLD.
I understand that she is unable to vote at Committee meetings on decisions. However the entire body corporate have recently had a vote on pets in Strata. Is the building Manager entitled to a vote in this instance?
Also in regards to Pool Cleaning, if it is in the Building Managers contract to maintain the Pool, should we as a Body Corporate be paying additional fees on top of that to pay for a Pool Cleaner to come out and clean the pool, or should this all fall in her role? It makes no sense to be doubling up on fee’s and I can’t imagine this is normal?
Thanks!
Hi Kurt
When motions are voted on by all owners the Caretaker is just another owner. So yes, they can vote on the pet motion.
Re the pool cleaning you’d need to refer to the terms of the contract. Sometimes the Caretaking contracts are “supervisory” meaning that they need to oversee the management of the works but there is no requirement for them to do the work themselves. Each contract is quite different. Of course, it could be that she is required to clean and is not doing it in which case I agree with you, its a waste of money! Refer to the terms of the contract to be sure.
Hi,
1. Can a chairman to be voted and sit on the position forever > any limit of years can a person be appointed as a chairman, or a secretary or both ?
2. For a complex of 50 townhouses, what is the minimum quorum for a genenral meeting and an AGM ?
Hi Jonathan
In QLD any committee member is elected until the end of the next AGM. At the AGM all positions are declared vacant and elections carried out again.
A quorum for general meetings is 25% of voters plus a minimum of two persons present. Any owner that owns multiple lots is considered 1 voter. So if there are 50 lots and 48 different lot owners, there are a potential 48 voters.
The same applies if there is a corporate owner with no nominee (person authorised to vote). If no physical person is nominated to vote the corporate lot is not a voter for calculation of quorum.
Review the roll, remove additional lots and corporate lots with no nominees to find number of eligible voters, then calculate 25%. Which is all well and good. All the owners might vote by voting paper but if two people don’t actually turn up on the day the meeting is adjourned.