A body corporate is a creature of statute. This means that the extent of a body corporate’s powers are determined and limited by the legislation creating it.
This is why:
1. a body corporate’s powers are only those specifically set out in the legislation; and
2. there is no basis for the age-old adage (that some committees seek to use to excuse their decision making) “the legislation doesn’t say the Body Corporate can’t do that”.
On this principle, it has been well established by adjudicators that, despite it being a good idea for the community, a party cannot be funded with body corporate funds. The same can be said for reimbursing committee members for Christmas gifting. We will cover off on that issue in a further article shortly.
The reason for this principle is because the expenditure does not fall within what a body corporate is authorised by the legislation to spend funds upon…
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