The Code of Conduct for a Body Corporate Committee
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Being a voting member of a body corporate committee is an important responsibility that requires integrity, fairness, and a commitment to serving the best interests of the scheme.
To ensure these standards are met, committee positions are governed by a legally binding code of conduct set out in Schedule 1A of the Body Corporate and Community Management Act 1997 (BCCM Act). Every voting member of a committee is taken to have agreed to comply with the code from the moment they take up the position.
If a committee member breaches the code, for example, by acting dishonestly, misusing confidential information, or failing to declare a conflict of interest, the body corporate can act to remove them from the committee. This is done by resolution at a general meeting, following a formal notice and response process set out in the applicable regulation module.
This article looks at the six key areas of the code of conduct for a body corporate committee.
1. Commitment to understanding the BCCM Act and code of conduct
A body corporate operates under specific laws, primarily the BCCM Act. To make informed decisions and fulfil their responsibilities, committee members must actively seek to understand:
- The BCCM Act and how it applies to their role
- The body corporate’s by-laws, which govern how the community is managed
- The committee’s responsibilities, including financial management, dispute resolution, and decision-making processes
No one expects committee members to be legal experts, but they should be willing to learn and seek advice when needed. Training sessions, industry updates, and guidance from a body corporate manager can help them stay informed.
2. Honesty, fairness, and confidentiality
Committee members have a duty to act honestly and fairly when making decisions on behalf of the body corporate. This means:
- Making decisions based on facts and what is best for the community, rather than personal preferences
- Treating all owners and residents fairly, without favouritism or bias
- Not unfairly or unreasonably disclosing information held by the body corporate, including information about an owner, unless authorised or required by law
Committee members often have access to sensitive information like owner contact details, financial contributions, complaints or disputes between residents, and legal matters involving the body corporate. This information must be kept confidential and only shared where the law requires or permits it.
3. Acting in the best interests of the body corporate
Committee members must act in the best interests of the body corporate when making decisions, unless doing so would be unlawful. In practice, this includes:
- Managing common property and finances responsibly
- Applying by-laws fairly to all owners and residents
- Acting in a way that benefits the scheme as a whole, rather than specific individuals or groups
If acting in the body corporate’s interests would mean taking an unlawful action, the committee member must not proceed. For example, if a committee member is pressured to approve a decision that breaches the BCCM Act or the scheme’s by-laws, they must refuse and seek proper advice.
4. Complying with the Act and code of conduct
Every voting committee member must take reasonable steps to comply with the BCCM Act and the code, including:
- Following correct procedures when making decisions, such as voting and record-keeping
- Ensuring meetings are conducted in accordance with the applicable regulation module
- Acting within the committee’s authority and not making unilateral decisions
Failing to comply can result in disputes, formal challenges to committee decisions, or removal from the committee.
5. Avoiding nuisance behaviour
Committee members must not engage in behaviour that causes a nuisance or disrupts the peaceful enjoyment of the scheme. This includes:
- Loud or disruptive behaviour during meetings or on common property
- Harassing or intimidating owners, tenants, or fellow committee members
- Using their position for personal gain or to settle personal disputes
Committee members should act professionally and respectfully, even where disagreements arise. Where conflicts become heated, mediation or professional advice is often the better path than letting the dispute play out through committee decisions.
See our article on dispute resolution.
6. Declaring conflicts of interest
A committee member has a conflict of interest when they have a direct or indirect interest in a matter before the committee that could conflict with the appropriate performance of their duties. Common examples include:
- Owning a business that provides services to the body corporate
- Having a close friend or family member involved in a contract under discussion
- Being in a dispute with another owner and voting on a matter that could affect them unfairly
A committee member must disclose the interest before the committee votes on the matter. What happens next depends on the regulation module that applies to the scheme:
- Under the Standard, Accommodation, and Commercial Modules, a conflicted member must not vote on the matter. They should step back from the vote and have the disclosure recorded in the minutes.
- Under the Small Schemes Module, the body corporate may authorise a conflicted member to vote, provided the authorisation is reasonable and the conflict has been properly disclosed. This exists to keep small committees functional, not as a way around disclosure.
See our articles on conflicts of interest in a body corporate and what a committee should do after disclosing a conflict of interest.
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