How are Decision’s Made?
The various state strata legislation divides the management of schemes into a two-tier system of committee and owner level decision-making. Whilst the full spectrum of body corporate decisions can be made at general meetings (where all owners have an opportunity to have their say), committees serve an important function of managing the day-to-day administration and operation of the scheme.
The extent of a committee’s powers varies broadly between the various states and restrictions on committees decision-making powers can take various forms, including restrictions relating to:
- Raising funds and levies from owners
- Commencing legal proceedings
- Approving or entering certain types of contracts
- Creating or amending by-laws
- Dealing with common property
- Changing rights, privileges or obligations of owners
- Various other matters reserved for decision by resolution at general meeting
The nature and extent of a committee’s powers varies widely, not just across the different states, but even within them. In Queensland, the rules are different depending on which regulation module applies to the scheme. Procedures for the calling and holding of meetings are also very important as the cost of getting it wrong can be significant, including having the entire meeting declared invalid, and decisions purportedly made at the meeting declared null and void.
Small Myers Hughes are familiar with the strata legislation across all jurisdictions and have a comprehensive knowledge of the Queensland legislation (including all of the various modules) and New South Wales legislation. Whether you are a committee, committee member or body corporate manager seeking advice on behalf of the body corporate, or an owner or occupier, we can provide expert advice and guidance, including assisting with the preparation of appropriately worded motions and documentation, to ensure your proposal is properly and validly considered by the body corporate.