This article discusses body corporate committee conflicts of interest and explains that gifts or personal benefits cannot be accepted when approving management rights assignments.
Question: Can committee members receive personal benefits in exchange for consenting to an assignment of management rights?
Answer: No. Slow consent or saying that the assignment may be refused can’t be turned into an opportunity for someone to benefit
The regulations make it clear that committee members cannot receive gifts, payments or any kind of personal perk tied to the decision. These rules prevent delays, or a potential refusal of consent, being used as leverage for “sweeteners” or favours. The assignee still pays the assignor for the management rights business itself, but no one from the body corporate’s decision‑making side can profit personally. This keeps the process transparent and focused on whether the incoming manager is suitable.
In short, slow consent or saying that the assignment may be refused can’t be turned into an opportunity for someone to benefit, whether that’s a nice bottle of wine or a generous gift card, as we recently saw on a transaction.
Brooke Cunningham Mathews Hunt Legal E: admin@mathewshuntlegal.com.au P: 07 5555 8000
This post appears in Strata News #782.
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