Committee Meetings

From time to time as body corporate managers we are advised by lot owners or committee members that a committee meeting prior to the annual general meeting is not required because “no one else has them”.

Section 69 of the Standard Module Regulations provides for motions to be included on the agenda of a general meeting of the body corporate. Check the provisions of the regulation module applying to your scheme if it is not a standard module scheme. Motions can only be submitted by a member of the body corporate or the committee. It is not the responsibility or the right of a body corporate manager to submit motions for inclusion on the agenda. If the body corporate has a body corporate manager it is normal practice for them to submit draft budgets to the committee for their consideration. The committee at all times has the right to amend those drafts as a result of their discussions.

Why have committee meetings?

The annual committee meeting should consider, as a minimum, the following issues for inclusion on the agenda of the annual general meeting:

  • The auditor to be nominated if an audit is required by resolution of the annual general meeting.
  • The accountant that it recommends to prepare tax returns.
  • The sinking fund budget. In formulating the budget the committee should consider the sinking fund forecast and the committee’s review of the state of repair of those items for which the body corporate is responsible. Does any work need to be carried out during the financial year? If so quotes should be obtained for inclusion on the agenda.
  • The administrative fund budget. The committee should review last year’s expenditure against any proposed expenditure.
  • The levy payment dates, frequency of payments, any discount and the levy amounts. In addition the levies that are in arrears and what action is being taken to recover them should also be discussed.
  • The renewal of the body corporate’s insurances. Is the cover adequate? Should a new valuation be obtained? The basis on which renewal is to take place. Will it be automatic?
  • What arrangements are to be made in relation to safety issues?
  • Does the committee recommend the appointment of a body corporate manager and if so which one, for what term and remuneration and have they seen a contract?
  • In addition the committee must ratify the payments made on behalf of the body corporate and any Section 54 resolutions (Flying minutes) passed since the last committee meeting.

For the committee to discharge its functions and obligations appropriately it should have a formal committee meeting at which the committee members can discuss relevant topics and reach appropriate conclusions. Often the annual general meeting will include additional agenda items as a result of that committee meeting.

Those meetings require:

  1. Notice to be given to owners, who may attend.
  2. Minutes to be sent to owners who have a right to object to the decisions of the committee. If enough objections are received within the time limit prescribed the committee decision can be overturned.

Such meetings could in the long run save the body corporate money.

  1. The need for extraordinary general meetings is eliminated.
  2. Maintenance costs may be reduced by ensuring that all maintenance is carried out in a timely fashion.
  3. The actions of the committee are more transparent often resulting in greater harmony in the complex.

If the members of the committee do not hold appropriate meetings but rely on others to put motions on the agenda of the annual general meeting for them the office bearers’ insurance cover may not fully protect the committee members from liability should legal action be taken against the members of the committee.

As an owner or committee member do you consider that your investment is worth more than the value of a couple of hours of your time approximately once a year? If the answer is “yes” then you should ensure that your body corporate has formal committee meetings.