The Role of the Committee

Ever wondered exactly about the role of the Committee, how it gets elected and what the Executive Committee members are supposed to do? We’ve put together this overview, which we hope makes it easy to understand the “whys” and “whats” of a body corporate committee.

Why is a Body Corporate Committee necessary?

In Queensland, it is a legal requirement that a Body Corporate must appoint a Committee, and the Committee is responsible for the day-to-day running of the body corporate. The Body Corporate Act 1997 sets out the requirements for the establishment and operation of a committee.

The role of the committee is to make decisions on behalf of the body corporate, such as managing and maintaining the common property, ensuring compliance with the by-laws, and managing the administrative and sinking funds. The committee is elected annually at the Annual General Meeting (AGM) of the body corporate.

A valid Committee consists of a minimum of three and a maximum of seven members, which must include a Chairperson, Secretary, and Treasurer, and then, if applicable, Ordinary Committee Members. There are exceptions to this rule, for example, schemes that are under the Small Schemes Module, only require a Secretary and Treasurer.

What do the Committee office holders do?

There is often confusion over what duties each Executive Committee member is expected to do. Still, the following information offers a suggested list of tasks that each position may be expected to perform.

Body Corporate Committee Chairperson:

The Chairperson is responsible for presiding over meetings, ensuring that the meetings are conducted in an orderly and efficient manner. They may be required to seal documents with the body corporate seal, call meetings in the absence of the Secretary, ensure that Committee meetings and general meetings deal with the agenda items and accept other matters raised at the meetings for consideration. The Chairperson chairs each meeting, declares whether or not a quorum is present, and can adjourn a meeting for lack of a quorum. They do not have a casting vote at a committee meeting, but they can rule motions out of order at general meetings if necessary. The Chairperson declares the results of voting at a general meeting, and states the votes for, against and abstained.

Body Corporate Committee Secretary:

The Secretary is responsible for the administrative duties of the committee. They call committee and general meetings, receive committee nominations and proposed motions, and acknowledge receipt of such. The Secretary issues meeting notices and minutes to all Lot owners, accepts voting papers from voters, and proxy forms. They also take and distribute minutes of committee meeting and general meetings.

Body Corporate Committee Treasurer:

The Treasurer is responsible for the financial management of the body corporate. They prepare annual budgets for the Administrative and Sinking Funds, calculate the contributions to be levied for the Administrative and Sinking Funds and any other special or interim contributions. The Treasurer prepares and distributes levy notices to Lot owners, undertakes recovery action for unpaid contributions, keeps the accounting records for the Administrative and Sinking Funds, and reconciles the bank account/s. They also prepare statements of accounts, and arrange to have them audited if required. The Treasurer pays/approves invoices.

Is the role of the Committee different from that of the Body Corporate Manager?

In many schemes, the Committee will engage a body corporate manager to help with some or all of the administrative duties, including the work undertaken by the Secretary and the Treasurer. The duties of the manager are contained in a written engagement entered into with the body corporate.

The body corporate manager is responsible for carrying out the day-to-day operations of the body corporate, such as responding to queries from Lot owners and tenants, maintaining records, and liaising with contractors. They may also provide administrative support to the committee, such as preparing notices and minutes of meetings.

The Body Corporate Committee is responsible for ensuring the effective management and governance of a body corporate. In addition to carrying out the day-to-day running of the body corporate, the committee is also responsible for making decisions that will affect the body corporate in the long term.

In order to ensure that the committee is able to carry out its responsibilities effectively, it is important that committee members have a good understanding of their roles and responsibilities. As such, it is essential that committee members are trained and have access to the necessary resources and information.

One of the key responsibilities of the committee is to ensure that the body corporate is compliant with all relevant laws and regulations. This includes ensuring that the body corporate is complying with all relevant occupational health and safety regulations, building codes, and environmental regulations.

The committee is also responsible for ensuring that the body corporate is effectively managing its financial affairs. This includes ensuring that budgets are prepared and approved, that levies are calculated and collected, and that appropriate financial records are maintained.

Another important responsibility of the committee is to ensure that the body corporate is properly maintaining the common property. This includes ensuring that repairs and maintenance are carried out in a timely manner, and that appropriate insurance cover is in place.

In order to ensure that the committee is able to carry out its responsibilities effectively, it is important that committee members have access to the necessary resources and information. This may include access to legal advice, financial advice, and other specialist advice where required.

In addition to its core responsibilities, the committee may also be responsible for a range of other tasks, such as ensuring that the body corporate is effectively managing its relationships with owners, managing disputes between owners, and managing contracts with contractors and service providers.

In order to carry out these responsibilities effectively, it is important that the committee is able to work together as a team. This requires good communication, effective decision-making processes, and a shared commitment to the success of the body corporate.

In conclusion, the Body Corporate Committee plays a critical role in the effective management and governance of a body corporate. It is responsible for the day-to-day running of the body corporate, ensuring that the body corporate is compliant with all relevant laws and regulations, effectively managing its financial affairs, and maintaining the common property. To carry out these responsibilities effectively, it is important that committee members have access to the necessary resources and information, and that they are able to work together effectively as a team.

Read Further:

Change Strata Managers

Brisbane Body Corporate

Gold Coast Body Corporate

Sunshine Coast Body Corporate

Role of the body corporate