Tips on forming a body corporate committee

Regardless of the type or size of your strata scheme, owners must form a Committee at each Annual General Meeting (AGM) as a statutory requirement. Committee members are made up of eligible lot owners or individuals who represent them, nominated for election at the AGM.

Once elected, it’s the Committee’s role to manage the day-to-day requirements of your scheme including maintenance and upkeep of the building in accordance with the BCCM Act Regulations. The Committee is empowered with making regulated decisions on behalf of your scheme and implementing the lawful decisions of the body corporate approved at either Committee level, or General Meetings.

When a Committee is inactive or dysfunctional, it can make the day-to-day running of a scheme quite difficult for all lot owners, as decisions can often be unreasonable or delayed.

Below we have provided an overview of how a Committee is formed:

• Calling for Committee Nominations are issued to all lot owners prior to the schemes financial year end, each year;

• Lot owners who are eligible to be voting members of the Committee may nominate themselves for Committee membership (providing the lot owner nominating and the lot owner being nominated do not owe a debt to the body corporate). Alternatively, lot owners may nominate another eligible person;

• A Committee must consist of a minimum of three members, with a maximum of seven members in total (with the exception of schemes regulated under Small schemes module);

• A Committee generally consists of three ‘Executive members’, Chairman, Secretary, Treasurer, and four ‘Ordinary Members’;

• A person can occupy more than one of the executive positions; however a minimum of three owners must be elected to the Committee to represent the body corporate;

• If only one nomination for a position is received, the person nominated is duly elected to that position, providing their nomination is eligible;

• Nominations can also be called from the floor at the AGM, providing there are still vacancies available;

• Elections are conducted by ballot when there are more nominations received than positions available, or multiple nominations received for a position;

• A Secret Ballot is required for schemes registered under the Standard Regulation Module , unless the body corporate has decided prior (by a resolution at a General Meeting) that election is by Open Ballot, at each AGM;

• A Ballot is required to be held for schemes registered under the Accommodation Regulation Module , in a way the Body Corporate has decided prior (by a resolution at a General Meeting).

This article was contributed by Melissa Braney. Melissa is a Partner has been a part of the Archers team since 2008 and began managing the Whitsundays office in 2011. She has extensive experience in the Strata Management industry and specialises in management of large prestige properties on Hamilton Island, which are governed under Company Law. Her in-depth legislative knowledge provides clients with expert and professional advice.