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Good decision-making doesn’t happen by accident. It requires structure, transparency, and an understanding of the legal and human factors at play.
This article brings together common pitfalls, influences, and practical governance strategies to help body corporate committees make decisions that serve the best interests of all owners.
How Decisions Are Made in a Body Corporate
Decisions are made by either the body corporate at general meetings or by the committee at committee meetings.
The process generally follows these steps:
- Motion Submission – Any owner can submit a motion for consideration at a general meeting. Motions must be submitted in writing (up to 300 words), be lawful and enforceable, and include any necessary supporting documents. For AGM inclusion, motions must be submitted before the end of the financial year, and for EGMs they must be received early enough to meet the 21-day notice period.
- Notice of Meeting – A formal notice is issued including motions, background material, and meeting details.
- Discussion and Voting – Members discuss each item, ask questions, consider advice, and vote. Most motions pass by ordinary resolution, but major decisions may require special or majority resolutions.
- Implementation – The committee and body corporate manager carry out the decisions, monitor progress, and communicate outcomes to owners.
Good decision-making begins long before the vote, through preparation, reading the papers, asking questions, and seeking expert advice where needed.
The Hallmarks of Good Decision-Making
High-functioning committees consistently demonstrate the following principles:
Transparency – Information should be accessible, decisions communicated clearly, and discussions recorded accurately in meeting minutes.
Inclusivity – All owners should have opportunities to contribute through motions, questions, and participation in general meetings. Within committees, all members should feel able to speak, without being overshadowed by more confident personalities.
Clarity – Motions should be unambiguous, supported by relevant background information, and framed so members understand the decision’s purpose, cost, and impact.
Timeliness – Issues should be addressed early, before they escalate into costlier or more complex problems.
Fairness – Committee members must act in the interests of the body corporate overall, not themselves, their friends, or their floor. This duty of care is both ethical and required under legislation.
Common Decision-Making Pitfalls
Even well-intentioned committees can slip into unproductive or risky decision-making patterns.
Low participation and poor preparation – Committee members are volunteers, often juggling work, family, and other commitments. Reading lengthy reports can be challenging, but failing to do so can lead to costly mistakes.
BCsystems’ Tip: Provide clear executive summaries, distribute papers early, and encourage members to ask questions before meetings.
Over-reliance on the body corporate manager – Body corporate managers provide essential guidance, but they do not make the decisions.
BCsystems’ Tip: See the body corporate manager as a professional advisor. Ultimately, the committee must understand and own its decisions.
Poor communication – Misunderstandings, assumptions, and incomplete information can derail decisions and create conflict.
BCsystems’ Tip: Agree on communication expectations, avoid unnecessary group emails, and use meetings, not email chains, to resolve complex issues.
Lack of focus in meetings – Packed agendas, off-topic discussions, and repeated questions because documents weren’t read beforehand can stall progress.
BCsystems’ Tip: Chairs should guide discussion, keep the meeting on track, and ensure all voices are heard.
Failure to seek expert advice – Ignoring engineering, legal, or financial advice can expose the body corporate to legal risk and major financial loss.
BCsystems’ Tip: Engage qualified experts for significant, technical, or high-risk matters.
Procrastination – Delaying decisions often worsens issues, especially maintenance, insurance, and compliance matters.
BCsystems’ Tip: Set timelines, create action lists, and follow up between meetings.
How to Prevent Groupthink
Groupthink occurs when the desire for consensus overrides critical evaluation. In committees, this can look like:
- Members nodding along to avoid conflict
- A false sense of unanimity
- Overconfidence in decisions without considering alternatives
How to avoid it:
- Encourage open, honest dialogue
- Appoint a ‘devil’s advocate’ to challenge assumptions
- Use anonymous feedback if needed
- Seek diverse viewpoints and expertise
- Normalise disagreement as part of healthy governance
Constructive disagreement leads to stronger, more resilient decisions.
Not Wanting to Rock the Boat
Committee members sometimes avoid raising concerns because they don’t want to cause tension. But the cost of silence can be high:
- Issues go unaddressed
- Innovative solutions are never proposed
- Resentment builds
- Decisions become less robust
How to avoid it: Create meeting environments where questioning is encouraged, contributions are recognised, and members feel safe to speak candidly.
The Critical Role of the Chair
A good chair:
- Keeps discussions focused
- Ensures equal participation
- Manages time without cutting important conversations short
- Summarises decisions clearly
- Models respectful, evidence-based decision-making
The chair does not have the first or final say. They facilitate the process, not dominate it.
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