Who can be on a body corporate committee

Who can be on a body corporate committee

A personal approach
to body corporate management

Relationships are the foundation of our business, built on the understanding that every client is unique, not just at a body corporate level, but as individuals.

That’s why we take the time to listen, tailoring our management approach to suit every person, their communication style and business preferences.

Receive an obligation
free building proposal

We'll need to get some details about your building. Let us know the best time to contact you.

Please contact us here if you are seeking a proposal for a building we don’t currently manage. If you are an existing BCsystems customer please email us at info@bcsystems.com.au

This article has been reproduced with the permission of Mahoneys Lawyers and Advisors.

Lot owners in a community title scheme have a statutory right to nominate for a position on the body corporate committee.

In this article we discuss the eligibility requirements for each regulation module. In other words, who can and who can’t be on the committee – including due to a relationship with another person (such as the caretaker).

As general rule, each regulation module sets out criteria which makes a person:

  • eligible to be a committee member; and
  • ineligible to be a committee member.

Both requirements must be met to be a committee member.

For example, one ineligibility criteria is an associate of a service contractor. As associate is broadly defined, it can unintentionally exclude committee members from being on the committee in some peculiar circumstances.

Standard and Accommodation Modules

To be eligible under the Standard or Accommodation Module the person must be:

  • An individual owner in their own right;
  • A family member of the individual owner (only including a spouse, child more than 18 years old, parent, brother or sister);
  • A person with a power of attorney from the individual owner;
  • A director, secretary or “other nominee” of the company owner; or
  • A representative of a subsidiary scheme for a subsidiary scheme owner.

Even if a person meets the eligibility criteria above, they must also not satisfy any of the ineligibility criteria.

A person is ineligible if they:

  • Are a body corporate manager, service contractor (which is when there is a contract with the body corporate for a term of more than 1 year) or letting agent;
  • Are an associate of a body corporate manager, service contractor or letting agent (associate means a relationship or series of relationships that can be traced through marriage, de facto, ascendant, descendent, partnership, employment, fiduciary, arrangement to act in accordance with instructions or wishes of another, corporation-executive officer and corporation-substantial influencer);
  • Conduct a letting business for the scheme (i.e. they operate a rent roll). Notably this does not extend to associates of those conducting a letting business for the scheme; and
  • Owe a body corporate debt (or the person they nominate does).

As set out earlier – associate is broadly defined. It would encompass many types of relationships including a committee member being engaged by the caretaker to carry out tasks (even if there is no formal agreement or remuneration arrangement) or even co-directorships of unrelated companies. The only relationship that is excluded is when the caretaker acts as a letting agent for the lot owner.

Commercial Module

The Commercial Module, as with other matters it regulates, is much more flexible in relation to the administrative requirements imposed on bodies corporate.

Relevantly, a person is eligible to be on the committee if they are an owner or are simply nominated by an owner. This allows a much broader range of potential committee members.

There are also less ineligibility considerations.

A person is ineligible if they:

  • Are a body corporate manager (or associate); or
  • Owe a body corporate debt (or the person they nominate does).

Small Schemes Module

A committee for a scheme regulated by the Small Schemes Module only has a single person or a second person acting as secretary and treasurer – it is not a full committee like the other regulation modules.

Similarly to the Commercial Module, eligibility is determined by ownership of a lot or nomination of another person by an owner.

A person is then ineligible if they:

  • Are a body corporate manager or service contractor (or associate); or
  • Owe a body corporate debt (or the person they nominate does).

Share This Post

Subscribe To Our Newsletter

Is BCsystems your current body corporate manager?
You are

More To Explore

Communication
Committee advice

Communication Between the Committee and Residents: Striking a Balance

It’s essential to understand the boundaries and responsibilities of communication within a body corporate framework, as outlined by body corporate legislation. While committees can, and often do, acknowledge resident correspondence, they are not legally required to respond to every question or comment.

Accountant
Committee advice

The Role of the Treasurer in Body Corporate Committees

The treasurer of the body corporate often plays a leading role in the committee and the body corporate community. It is a volunteer position which can be very rewarding, but also can take a significant investment of time and effort from the member.

Like this article?

Follow us for more