Note: the following information is applicable for the Standard Module Regulation of the Body Corporate and Community Management Act 1997. Other regulation Modules may impose different requirements

(Current as at 10 February 2009 with amendments on 30 August 2008)

As an industry we need to encourage and educate unit owners that they should take their investment and their lives in a body corporate community seriously.

We all need to be involved in our buildings, if not on the committee, we need to be interested in what our committees are doing to make sure that the people we elect are doing the right things by everyone.

There are some selfish committee people out there. At the UOAQ we hear lots of shockers

The best way to improve the quality of committee decisions is to learn to do the right things, to make sure people conduct meetings properly and that they represent all owners fairly and report back to them honestly and openly.

If you make a Division 10 appointment – nobody can be on the committee – you can’t have a chairman or a secretary or someone to work with the body corporate. It’s just the Body Corporate Manager (BCM) in charge of your building’s wallets – you have probably gathered the UOAQ is quite against the idea.

We recognize some buildings just have no interested owners and this is to cater for those situations. The UOAQ

believes that sometimes the Commissioner will have to appoint the “BCM” as administrator because no owners will bother to turn up or send in voting papers for the Annual General Meeting (AGM)

Composition of a committee section 9

This has changed slightly. There is still the need for a chairman, a secretary and a treasurer as the executive plus the required number committee members making a total of 7 voting members. (one person can hold one, two or three of the executive positions).

If you are a small building less than 7 lots, the size of the committee must be equal to the number of lot owners.

Also the number of persons is based on voting members as opposed to the current situation where non-voting members are included in the number of members.

Non voting members of the committee includes onsite letting agents and body corporate managers. Such a person has an automatic entitlement to be a member of the committee. The basis of this is that due to the functions they perform, they should be involved in committee deliberations as they either carried the maintenance of the scheme and/or the administration of the body corporate. They cannot vote, are not included in the count of committee members, cannot hold a proxy, and are not included in the quorum count for a committee meeting.

Body corporate managers can no longer be voted on as secretary treasurers and building managers, caretakers, onsite residential managers, letting agents whatever you want to call them are also not able to be voting members or elected members of the committee

Eligibility to be a committee member section 10

Eligibility has changed you now have to be a lot owner, and if the lot owner is an individual, a member of the lot owners family. A member of the lot owner’s family and that include spouse, child over 18 stepchild, adopted child or each of the individual’s parents or stepparents.

The authorized nominee of a corporation normally a director or secretary or a person acting with power of attorney of owner can be a committee member.

You have to be paid-up and not owe money to the body corporate and so does your nominator.

As mentioned before Body corporate managers cannot be the elected secretary /treasurer

Election of committee members

Lot owners may only nominate one person to the committee and don’t be shy about nominating yourself if you are an owner – that’s perfectly legal under section 13

Nomination must be in writing, signed and dated by the lot owner, if it’s for another lot owner that person must countersign it and must state the owner’s lot number

A nomination must include the surname of the candidate and the commonly used first names; the positions the candidate has been nominated for and whether the candidate is a lot owner.

If they are not a lot owner (that is they are family or a nominee of a company) the candidate’s residential or business address is to be included plus the category of person you are say adult child of Garry Maynard owner of Lot 11.

If you plan to ask for travelling expenses in this role you now should provide details with the annual nomination. Section 18.2E

Elections are to be carried out by secret ballot (unless decided differently at the previous agm) Section 21,22,23 of the regulations give the procedure – 4 separate ballots chairman, secretary, treasurer and ordinary members (if there are more than one nomination – otherwise elected unopposed)

Secretary must forward with the notices for the AGM papers.

For the secret ballot, if satisfied that the nominations are in order, the secretary must

send out ballot papers (when required for each position - listing candidates in alphabetical order of surname, an envelope marked ballot papers and either a separate particulars envelope or a tab that can be detached without opening the ballot-papers envelope.)

Open ballot is basically the same procedure and the proprietor must sign the voting paper, so everyone knows how everyone votes.

At the AGM, nominations can be invited from the floor to fill any vacancies up to the maximum number of persons allowed on the committee.

Co-owners can be nominated from the floor for ordinary member positions, ONLY if there are not 3 voting members willing to go on the committee.

Term of office section 33

At present there is uncertainty as to whether a lot owner who is a committee member vacates the committee position when that person sells his/her lot in the scheme.

This uncertainty has been clarified by the proposed amendment that:-

A committee member’s position becomes vacant if they die or sell the lot or their company sells their lot.

This will also apply to a member who does not owner a lot (for eg a family member). That person’s position will become vacant if the lot owner who nominated the person sells his/her lot.

If you don’t attend two committee meetings consecutively or give a proxy for those meetings without the committee’s leave. (Section 33.2D)

The committee can still fill a vacancy until the next AGM or if the vacancy occurs at a general meeting, the general meeting can fill the vacancy

Committee Meetings

Notice of meeting can be reduced from the normal 7 days to 2 days if everyone at the previous committee meeting agree to the reduced notice period or agree in writing – say fax or email – that the reduced notice is fine.

Non-member owners are to be given notice when committee members are given notice.

Non-committee owners may attend meetings as observers and may speak if they are invited to – they must leave if the majority of the committee vote for them to leave the meeting.

There is a last minute provision section 51(2) that people have to advise the secretary or the BCM if they are coming to a committee meeting. In a large scheme 200 people might turn up to the secretary’s living room if the issue is hot enough – imagine the chaos.

If person wishes to attend, must give written notice to the secretary not later than 24 hours before the meeting.

The provision will allow a hall to be rented and so on.

Also Section 51(3) is new and allows a committee to be closed to members only if they are discussing bylaw breaches or proceedings against them or disputes between the body corporate and particular owners or BCMs or service contractors.

Record of Committee Meetings section 55

Within 21 days of the committee meeting, minutes have to be sent out to all owners, except those owners who have previously said that they do not wish to receive them.

Full and accurate minutes have been defined under section 55(5)

as date, time and place of the meeting,

the 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,

the details of the next scheduled meeting

and the secretary’s name and contact address.

Engagement of a Division 10 Body Corporate Manager

Now here’s UOAQ opportunity to hammer home some of the difficulties by appointing a BCM as your committee.

Division 10 appointment Section 58 of the new regulations says

That the body corporate may decide not to have a committee by special resolution without the use of proxies and by secret ballot.

The engagement has to be in writing Section 59(1) and has to state that the BCM is required to carry out all the functions of the committee and each executive member of the committee and state the basis on which the payment for the BCM’s services is to be worked out .

The Term of Engagement Section 60 ends at the next AGM or for 12 months whichever is the shorter period.

If the body corporate engages a BCM under Div 10, any existing committee members positions are automatically vacated and the body corporate cannot elect a person as a committee member during the term of engagement.

Reporting Requirements Section 62

The BCM under this Division 10 appointment must

provide a quarterly report to owners stating the current condition of the common property;

the current financial position of the body corporate,

body corporate expenses incurred,

decisions made by the manager think about how expensive and how extensive all this reporting is going to be!

Owners can request an additional report every 3 months if they want to throw good money away!

Unit Owners Association Of Queensland Inc

www.uoaq.org.au

PLEASE NOTE: These notes on the standard Regulation Module are issued in the belief they are accurate and not misleading. The Association and its committee are not engaged in giving legal, accounting or other professional advice. We disclaim all liability for loss or damage suffered by any person acting upon or relying on these notes. If legal advice or other expert assistance is required, advice should be sought from a competent, professional person.

--------------------------------------------------------------------------------

Unit Owners Association of Queensland Inc

help@uoaq.org.au