Body cor­po­rate and meet­ings

Whitsunday Times - - DOMAIN -

With more and more peo­ple opt­ing to buy a unit and town­house rather than a house, un­der­stand­ing the com­mu­nity ti­tles sec­tor is be­com­ing in­creas­ingly im­por­tant.

The body cor­po­rate for a com­mu­nity ti­tles scheme is com­posed of all the own­ers in the scheme. Ev­ery new owner au­to­mat­i­cally be­comes a mem­ber of the body cor­po­rate.

The Body Cor­po­rate and Com­mu­nity Man­age­ment Act 1997 is the Queens­land leg­is­la­tion reg­u­lat­ing bod­ies cor­po­rate, while the Body Cor­po­rate and Com­mu­nity Man­age­ment (Stan­dard Mod­ule) Reg­u­la­tion 1997 reg­u­lates body cor­po­rate gen­eral meet­ings.

“The leg­is­la­tion sets out the rights and re­spon­si­bil­i­ties of cer­tain per­sons as­so­ci­ated with bod­ies cor­po­rate, par­tic­u­larly lot own­ers and ten­ants,” REIQ man­ag­ing di­rec­tor Dan Mol­loy said.

Fol­low­ing the first an­nual gen­eral meet­ing (AGM), there are two types of gen­eral meet­ings which can be held by a body cor­po­rate. 1. An­nual gen­eral meet­ings The body cor­po­rate must hold an AGM within three months af­ter the end of each fi­nan­cial year for the scheme (the fi­nan­cial year for a body cor­po­rate is not nec­es­sar­ily the year used for tax­a­tion pur­poses e.g. 1 July to 30 June).

At the AGM, own­ers con­sider the fi­nan­cial po­si­tion and di­rec­tion of the body cor­po­rate, and elect the com­mit­tee for the next year. The agenda for an an­nual gen­eral meet­ing must pro­vide for:

- The pre­sen­ta­tion of the state­ment of ac­counts for the pre­vi­ous fi­nan­cial year;

- Adopt­ing the ad­min­is­tra­tive and sink­ing funds bud­gets for the next fi­nan­cial year;

- De­ter­min­ing the con­tri­bu­tions to be paid by lot own­ers for the fi­nan­cial year;

- De­ter­min­ing whether the state­ment of ac­counts for the next fi­nan­cial year are to be au­dited; and

- Re­view­ing each in­sur­ance pol­icy held by the body cor­po­rate.

The agenda must also in­clude mo­tions pro­posed by the com­mit­tee or sub­mit­ted by lot own­ers. An owner sub­mit­ting a mo­tion for con­sid­er­a­tion at an an­nual gen­eral meet­ing must en­sure that the sec­re­tary re­ceives the mo­tion be­fore the end of the fi­nan­cial year im­me­di­ately pre­ced­ing that meet­ing. 2. Ex­tra­or­di­nary gen­eral meet­ing An ex­tra­or­di­nary gen­eral meet­ing (EGM) can be held at any time through­out the year. Items con­sid­ered at EGM’s could in­clude re­pairs, dis­putes or changes to by-laws. An EGM must be called if a no­tice re­quest­ing the meet­ing:

- Is signed by or for the own­ers of at least 25 per cent of all the lots in­cluded in the scheme;

- In­cludes the mo­tions which the own­ers pro­pose to be con­sid­ered at the meet­ing; and

- Is given to the sec­re­tary, or in the sec­re­tary’s ab­sence, the chair­per­son.

An EGM must be called within 14 days af­ter the no­tice re­quest­ing the meet­ing is given to the sec­re­tary. The body cor­po­rate must hold the EGM within six weeks of re­ceiv­ing the no­tice re­quest­ing the meet­ing.

Sub­mit­ting mo­tion­sAll lot own­ers have the right to sub­mit mo­tions. If a mo­tion is sub­mit­ted, it must be in­cluded on the agenda of the next gen­eral meet­ing on which it is prac­ti­ca­ble to in­clude the mo­tion.

The leg­is­la­tion should be con­sulted as the pri­mary ref­er­ence for body cor­po­rate meet­ings. More in­for­ma­tion is avail­able from the of­fice of the Com­mis­sioner for Body Cor­po­rate and Com­mu­nity Man­age­ment’s web­site

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