What are the consequences of outstanding body corporate debt for an owner's voting rights?

QLD
Committee & Governance
question
Lookupstrata community member

Our body corporate mows the private lawns of some owners. If owners do not reimburse the body corporate, what are the consequences of outstanding body corporate debt?

Our body corporate engages a gardener to mow the common property lawns and some owners' private lawns.

These owners have signed agreements to reimburse the body corporate, but some owners are very tardy and one has not paid anything for a while, claiming financial hardship. The committee does not like to issue demand notices. Does this debt disentitle the owner from voting at our AGM?

answer
Frank Higginson
Frank Higginson Redchip Strata Law

If you owe the body corporate a debt, many consequences flow from that.

A 'body corporate debt' is specifically defined to include other amounts associated with the ownership of the lot and then provides examples, including lawn services arranged by the body corporate for the owner of the lot. If you owe the body corporate a debt, many consequences flow from that, including the inability to:

  • nominate people for committee,
  • be on the committee or
  • exercise votes at general meetings on most motions.

An amount of this nature is therefore akin to non-payment of levies. There are consequences.

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