Committee
Committee roles, decision-making powers, conflicts of interest and obligations.
Committee Questions
The body corporate committee is elected by lot owners at the AGM to manage the day-to-day affairs of the scheme between general meetings. The committee's responsibilities include: - Managing the body corporate's bank accounts and paying accounts - Arranging maintenance and repairs to common property - Engaging and supervising contractors - Enforcing by-laws (issuing contravention notices) - Calling and preparing for general meetings - Corresponding with owners and the body corporate manager - Making decisions within its delegated authority The committee cannot make decisions reserved for general meetings — such as setting the budget, changing by-laws, or spending above its approved limit. It acts as the body corporate's executive between owner meetings. This article is general information only and not legal advice.
Full answer →A conflict of interest arises when a committee member has a personal or financial interest in a matter being decided by the committee. Common examples: - A committee member's company is being considered for a contract - A committee member stands to benefit personally from a decision about common property adjacent to their lot - A family member of a committee member is involved in the matter What must happen: 1. The committee member must disclose the conflict to the committee before the matter is discussed 2. The disclosure must be recorded in the minutes 3. The committee member must leave the meeting while the matter is discussed and voted on 4. They cannot vote on the matter Failure to disclose a conflict of interest is a breach of the committee member's duties and can be grounds for removal from the committee. This article is general information only and not legal advice.
Full answer →Yes. A committee member can be removed from office in several ways: **By resolution at a general meeting:** Any lot owner can submit a motion to remove a committee member. This requires an ordinary resolution (more votes for than against) at a general meeting. **Automatic disqualification:** A committee member is automatically disqualified if they fall into arrears with levies, are no longer eligible to serve (for example, they sell their lot), or meet another disqualification condition under the relevant module. **Voluntary resignation:** A committee member can resign by giving written notice to the secretary. If a committee member is removed or resigns, the remaining committee can co-opt a replacement to serve until the next AGM, depending on the module rules. This article is general information only and not legal advice.
Full answer →The committee can approve spending up to the spending limit set by the body corporate at the AGM. Spending above this limit — other than genuine emergency repairs — must be approved at a general meeting. Key rules: - The limit applies per item of expenditure, not per year - The limit cannot be circumvented by splitting one large job into smaller amounts - Emergency repairs necessary to prevent serious damage or injury can exceed the limit, but must be reported to owners as soon as practicable - Spending limits are separate for the administrative and sinking funds If the body corporate does not set a spending limit at the AGM, a default limit applies under the relevant module regulation. For major works — repainting, resurfacing, major repairs — the committee should bring the matter to a general meeting regardless of whether the cost exceeds the limit. This article is general information only and not legal advice.
Full answer →The committee must have three office bearers, elected from among its members: **Chairperson** - Presides at committee and general meetings - Has a casting vote in the event of a tie - Signs documents on behalf of the body corporate **Secretary** - Manages correspondence with owners and the manager - Prepares and distributes meeting notices and agendas - Keeps minutes and maintains records - Receives formal applications and notices from owners **Treasurer** - Oversees the scheme's finances - Monitors budgets and bank accounts - Prepares financial reports for meetings - Manages levy collection oversight In small schemes, one person can hold more than one office bearer role. The body corporate manager often performs the administrative functions of the secretary role under a management agreement. This article is general information only and not legal advice.
Full answer →The committee cannot make decisions on matters reserved for the body corporate as a whole. These include: - Approving the annual budget and setting levy amounts - Changing by-laws - Raising a special levy - Spending above the committee's approved spending limit (other than emergencies) - Making improvements to common property - Entering into contracts that exceed the committee's authority - Removing a committee member - Terminating or materially varying a service contractor agreement within a restricted period When in doubt about whether a decision is within committee authority, it is safer to call a general meeting. A committee decision made on a matter that required a general meeting resolution can be challenged and set aside. This article is general information only and not legal advice.
Full answer →Any lot owner who is not in arrears with their levies is eligible to nominate for the committee. You do not need any special qualifications. A person who is not an owner can also serve if they are nominated by a lot owner — for example, a company representative (if a lot is owned by a company) or a co-owner who is not named on the title. The following people are generally not eligible: - A body corporate manager, caretaker, or their associates - Persons who are bankrupt or have been convicted of relevant offences - Anyone currently in arrears with levies Committee members should be willing to act in the best interests of all owners in the scheme, not just their own lot. This article is general information only and not legal advice.
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