Introduction

The people who make up the Body Corporate Committee are usually participating voluntarily because they wish to protect their investment and as investments go they don't get much bigger than property. So when the subject of money is rife throughout most transactions that occur in a Body Corporate and is sourced from each individual, it is nothing but personal.

Committee Meetings

• There are no requirements under the BCCM Act for Committees to hold meetings however most Committees like to hold 4 Committee Meetings each scheme financial year. This includes 3 normal Committee Meetings and 1 budget meeting. An Annual General Meeting is held within 3 months after the end of the scheme financial year.
• In order for a Committee to work efficiently, regular Committee Meetings are recommended to make and implement decisions and provide instructions to either the Body Corporate Manager or Resident Manager for any items that may need attention.
• Some Committees of large schemes meet informally on a more regular basis and then formally meet with the Body Corporate Manager to formalize and ratify decisions made at the informal meetings.
• Some schemes also appoint sub-committees to assist them such as a gardening Committee where they can not make or implement decisions but can report to the main Committee on any items requiring attention.

Notice of Committee Meetings

• Notice of Committee Meetings is required to be given in writing to all lot owners (except where they have provided instructions they do not wish to be notified) at least 7 calendar days prior to the Meeting, together with agenda items.
• The notice must include the following:
  • Date and time of the meeting
  • Where the meeting is to be held
  • Any agenda items
  • There is a provision in the legislation that provides that if the Committee has agreed at the meeting immediately prior or in writing, only 2 days notice of the meeting may be given.
  • Where there is a notice board at the building, the notice and agenda must be placed on the notice board.

Place of Committee Meetings

• Committee Meeting can be held at a location decided by the Committee. However it cannot be held more than 15km (straight line) from the building if 50% or more of the Committee quorum objects in writing to the Secretary.
• A quorum at a Committee Meeting is at least half the number of voting members.

Attendance at Committee Meetings

• Obviously Committee Members are required to attend Committee Meetings; however others may attend as follows:
  • A lot owner, if they provide written notice to the Secretary at least 24 hours prior to the meeting
  • Any other person invited by a majority of the Committee Members
• Lot owners who are not Committee Members may observe the meeting, but Committee Members are able to ask Non-Committee Members to leave if there is a contentious issue or they are voting on any of the following:
  • A breach of By-Law
  • Starting a proceeding against the Body Corporate, Resident Unit Manager (RUM) or lot owner
• Lot owners who are not Committee Members are not able to speak at Committee Meetings unless invited by the Committee to do so - this invitation may be revoked by Committee Members at any time.

Voting at Committee Meetings

• Each member has 1 vote at a Committee Meeting.
• A Committee Member may hold only 1 proxy of another Committee Member to vote on their behalf.
• A majority rules for the counting of votes for a motion to be passed the votes for must be more than votes against.
• If the votes are equal the motion is lost.
• The Chairperson does not have the casting vote.
• Even if one person holds all 3 positions of Chairperson, Secretary and Treasurer, only 1 vote per person is allowed.

Conflict of Interest

• A Committee Member is not entitled to vote where there is a direct or indirect conflict of interest.
• A Committee Member must disclose the conflict of interest prior to the votes being cast.

Restricted Issues for the Committee

• The Committee is restricted from making certain decisions on behalf of the Body Corporate at Committee Meetings. These decisions must be made at a General Meeting:
  • Fixing or changing levies
  • Changing the rights or privileges or obligations of lot owners
  • Any items that must be decided by ordinary, special or resolution without dissent and majority resolution as outlined in the BCCM Act
  • To start proceedings in court of law
  • To bring a counter claim, third party action or other proceedings to which the Body Corporate is already a party
  • A proceeding in a court of law for an offence involving a By-Law

• The new regulations which came into effect on the 1^st September 2008 now provide that all reserved  issues (previously 'restricted issues') must now accompany the agenda for the Annual General Meeting each year.

Committee Expenditure Limits

• The new regulations refers to the relevant limit for Committee spending for the Accommodation and Standard Module as being $200.00 mulitplied by the number of lots in the scheme. This is an increase from $125.00 per lot.
• This limit can be increased at a general meeting with an ordinary resolution to an amount which is not capped or limited by the accommodation and standard module.
• To calculate the spending limit within layered schemes, the number of lots in the subsidiary schemes to the principal scheme applies to the $200 per lot limit.
• The Body Corporate can set an amount of their choice for major spending and needs to be resolved at a General Meeting with an ordinary resolution.
• The new limits are exclusive of GST
• If the Body Corporate resolves at a General Meeting with an ordinary resolutions to increase the Committee's spending limit to an amount higher than what is allowed for major spending the Committee must obtain two quotations.
• Under the BCCM Act the Commercial Module has no stipulated expenditure limits.
• The only time a Committee may spend above this limit for all modules under the Act is:

1.  If the amount has been approved by special resolution at a General Meeting
2. All the lot owners have given written consent
3. In an emergency, through the order of an adjudicator
4. To comply with a notice or order by a public authority, adjudicator or a judgment of a court

• This expenditure limit refers to an entire job therefore the Committee can not cut up one job into separate pieces (or invoices) to keep the amounts within the Committee expenditure limit. It is very important that total cost of the job does not exceed this limit.

Voting Without Committee Meetings

• Items affecting the Body Corporate can be addressed if deemed necessary without taking it to a Committee Meeting. This is addressed via the distribution and voting on a flying minute.
• Flying minutes need to be specific in outlining the issue, proposed action, specific quotes and demonstrate a desired outcome.

• The new regulations now provide the same criteria for voting outside committee meetings as when voting at a committee meeting.

Minutes of Committee Meetings

• Must be given to all lot owners within 21 days (except where they have provided instructions they do not wish to be notified).
• Full and accurate minutes:
  • Date, time and place of meeting
  • Names of persons present and details of the capacity in which they attended the meeting
  • Details of proxies tabled
  • The words of each question decided
  • The number of votes for and against each question decided
  • Details of correspondence, reports, notices or other documents tabled
  • The time the meeting closed
  • Details of the next scheduled meeting
  • The secretary's name and contact address

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