Body Corporate Managers: What Do They Really Do?

Body corporates are run by a committee elected by all lot owners voting at the Annual General Meeting.

This can cause some problems since body corporates are heavily regulated and the buildings involved can be both innovative and complex whilst most committee members are volunteers with little to no experience of the property industry.

Clearly there’s a gap in expertise between what the body corporate needs and what the lot owners can provide.

That gap is filled by body corporate managers (BCM).

What Is A Body Corporate Manager

Body corporate managers are specialist industry professionals who are appointed under a contract to undertake the functions of the executive committee. There tasks will include:

• Issue and collection of levies
• Maintenance of body corporate records including financial records
• Call and minute body corporate meetings
• Advising on body corporate practices and legislation
• Implementation of motions and committee directives

The term body corporate manager refers to both a qualified industry professional and the company or firm that employs that manager.

A Body Corporate Manager is expected to have a solid grounding in legislation, industry practices and property management. In smaller firms the manager will likely have a good understanding of bookkeeping as well. Larger firms have dedicated accounting and bookkeeping staff to manage financial affairs of body corporates.

Appointing Body Corporate Managers

A BCM is appointed by passing an ordinary resolution at a general meeting.

The appointment must be made under a written agreement that sets out;

• The term (not greater than three years)
• The remuneration payable
• The tasks the manager will perform, and
• How the agreement may be terminated

In most cases the BCM will undertake the tasks of the secretary and treasurer however different committees have different needs so the agreements can be tailored.

The BCM is a member of the committee however they have no power and cannot vote on motions. Their role is to advise and take minutes, and from there implement the decisions of the committee.

The Body Corporate Manager Is Not In Charge

Some people believe by appointing a manager they’re appointing someone to run the “business” for them, but that’s simply not the case.

Although the BCM is appointed to undertake the tasks of the executive committee they do so without negating the committee’s power. In fact the BCM acts like the a personal assistant that a leader, in that they do the drudge work without actually taking any of the responsibilities.

That’s because Body Corporate Managers’ do not make decisions.

Instead they will refer every piece of correspondence and every decision to the committee. This is why it can take so long to have issues dealt with in a body corporate; everything must wait until the next committee meeting where the committee will resolve what action, or not, to take and direct the manager.

In most cases it’s best to think of the manager as the secretary / accountant / personal assistant who acts on behalf of the committee, under committee direction.

What If No Owner Wants To Be On The Committee

It’s very difficult for a body corporate to run if they don’t have leadership.

But, circumstances do arise where no one member of the body corporate can spare time to work on the committee.

There is provision in the legislation for the BCM to be appointed to act as the committee at a fee. If the BCM is appointed as the committee then they are “in charge” and can make decisions on behalf of the body corporate, however those decisions must be in line with the legislation.

Appointing the BCM as committee is an expensive option for the scheme. Firstly there will be more fees payable to the manager and secondly the manager is mandated to ensure they body corporate complies with all legislation.

Body corporate managers are an important part of the industry and essential to many body corporates which are simply too large to function without dedicated full time professionals carrying out tasks.

There is no legislative requirement for a body corporate to appoint a manager and there are those that manage quite well without. But that’s a different story.

For more information about body corporate managers read this fact sheet.