One of the most common questions we receive is whether there are specific sections of legislation that clearly define the responsibilities of each committee member. The reality is that references to committee roles and responsibilities are spread across multiple sections that outline the functions each committee member may perform. In some instances, what is assumed to form part of a certain committee member’s role is not addressed in the legislation at all. The committee is tasked with the administrative and day-to-day running of the body corporate. They make decisions on behalf of the body corporate, provided the decisions are within their spending limit and are not restricted issues. The committee must also put into effect the lawful decisions of the body corporate.
The aim of this article is to provide a description of each role within your committee, and hopefully debunk some myths that exist about them within the wonderful world of bodies corporate.
The committee is elected at the annual general meeting and it is important for those considering nominating to understand what they are signing up for.
Chairperson
Many people assume the chairperson is the “head” of the committee and has greater decision-making authority than other members. The fact is the chairperson’s statutory responsibilities are primarily focused on chairing meetings rather than directing the committee or making decisions on its behalf.
The chairperson is responsible for presiding over general and committee meetings and ensuring they are conducted properly. This includes ruling motions out of order where they are unlawful, conflict with legislation, by-laws or previous resolutions or were not properly included on the meeting agenda. They must also declare the results of committee elections and voting outcomes.
A common misconception is the chairperson has more voting power than other committee members. While they have additional responsibilities during meetings, they still have only one vote when committee decisions are made.
Another enduring myth is the chairperson has a casting vote. While this existed under previous legislation, it does not apply under the Body Corporate and Community Management Act 1997. If votes are tied, the motion simply fails.
Key takeaway: the chairperson’s role is to facilitate meetings, not lead the committee. While they have additional responsibilities when chairing meetings, they do not have greater authority than other committee members, and their vote carries no more weight than anyone else’s.
Secretary
If the chairperson’s role centres around meetings, the secretary’s role centres around administration.
The secretary is responsible for many of the administrative tasks that keep the body corporate functioning smoothly. This includes issuing meeting notices, preparing agendas, calling for committee nominations, receiving voting papers and proxies, and ensuring owners receive notices required under the legislation.
One common misconception is the secretary must prepare the minutes of every meeting. While minutes must be kept and distributed, the legislation does not require the secretary to be the person who prepares them. In practice, this task may be performed by any committee member, the body corporate manager or another person.
Another myth is the secretary has greater authority than other committee members. The secretary has the same voting power as any other voting committee member and participates equally in committee decisions.
Similarly, the secretary cannot independently decide to call meetings. Committee meetings require the support of enough voting members to form a quorum, while general meetings are called by committee decision unless enough owners have exercised their right to request an extraordinary general meeting.
Key takeaway: the secretary’s role is administrative, not managerial. They help ensure the committee and body corporate meet their legislative obligations, but they do not have greater decision-making powers than other committee members.
Treasurer
The treasurer’s role is often the most misunderstood position on a committee, largely because the title carries different expectations in other organisations. In reality, the legislation prescribes very few duties for the role.
The treasurer’s primary legislative responsibility is financial reporting. If requested, they must prepare reconciliation statements for the body corporate’s financial accounts, ensuring the balances of the administrative and sinking fund accounts match the corresponding invoices and transaction records.
A common misconception is the treasurer has the authority to approve payments or authorise expenditure on behalf of the body corporate. However, spending decisions are made by the committee or, where required, the body corporate at a general meeting. The treasurer has no greater authority to approve expenditure than any other committee member.
Many people assume the treasurer is responsible for preparing budgets, obtaining quotes, managing investments, issuing levy notices or overseeing all financial matters. While treasurers often undertake some or all of these tasks, the legislation does not specifically assign these responsibilities to the role.
Key takeaway: the treasurer’s role is focused on financial record-keeping and reporting, not financial control. Despite the title, the treasurer does not have sole authority over the body corproate’s finances and has the same decision-making power as any other committee member.
Ordinary members
Don’t let the title fool you. Ordinary members are every bit as important as executive members.
While they don’t have the additional administrative responsibilities assigned to the chairperson, secretary or treasurer, they have the same voting rights. An ordinary member has one vote on every committee motion, just like every other voting committee member.
Think of ordinary members as extra muscle for the committee. They help consider issues, contribute to discussions, and share responsibility for making decisions on behalf of the body corporate, without the administrative duties associated with executive positions.
Key takeaway: ordinary members are not junior committee members. They have the same voting power as the chairperson, secretary and treasurer and play an equal role in the committee’s decision-making process.
Non-voting members
Not everyone who sits around the committee table has a vote.
Under the Body Corporate and Community Management (Standard Module) Regulation 2020 and the Body Corporate and Community Management (Accommodation Module) Regulation 2020 Standard and Accommodation Modules, a body corporate manager (BCM) and caretaking service contractor (CSC) are non-voting members of the committee. While they may attend committee meetings and provide advice or information, they do not participate in committee decisions.
Depending on the terms of a BCM’s engagement, they may perform tasks associated with executive roles, such as preparing and issuing notices or arranging meetings. However, this does not transfer the executive member’s decision-making powers to the BCM.
A CSC is engaged under a contract to provide duties such as cleaning and general maintenance. In many schemes they may also act as the letting agent. Their role is to support the day-to-day operation of the scheme, not to make decisions on behalf of the body corporate.
Key takeaway: BCMs and CSCs are there to support the committee, not replace it. While they may provide advice, administrative assistance and operational expertise, responsibility for making decisions and ensuring the body corporate meets its legislative obligations remains with the committee.
Ultimately, understanding what each role does, and just as importantly what it does not do, can help dispel long-standing myths about committee positions. It can also give owners the confidence to become involved, knowing that committee service is ultimately a shared responsibility rather than the responsibility of any one individual.
More information
While the legislation provides the framework for committee roles and responsibilities, adjudicators’ orders can offer valuable insight into how those provisions have been interpreted and applied in real situations.
If you’d like to explore decisions dealing with body corporate committee roles, powers and responsibilities, a good starting point is AUSTLii.
This post appears in Strata News #815.
Commissioner for Body Corporate and Community Management
P: Information Service Freecall 1800 060 119
This article has been republished with permission from the author and first appeared on the Commissioner for Body Corporate and Community Management website.
Leave a Reply