ARAMA Committee Master Class

series 2016:

“Committee best practice: an overview”

Chris Irons, Commissioner for Body Corporate and Community

Management

Office of the Commissioner for Body Corporate and

Community Management

Topics

• Context – setting the scene

• Legislation – providing authority

• What the Commissioner’s Office does

(and doesn’t) do

• Common committee issues

• Common committee questions (and

answers, hopefully)

Firstly – some context

As of end of June 2016:

• Number of Schemes as at end of June 2016 = 45,663 (approx.

increase of 2.8% from June 2015).

• Number of Lots as at end of June 2016 = 435,887 (approx. increase

of 3.8% from June 2015).

• Standard 29009

• Small 9513

• Accommodation 3606

• Commercial 1996

• Two-Lot 1623

Statistics con’t.

No. of schemes No. of lots

6 and under 32,126 104,135

7-10 lots 5,599 46,624

11 – 20 lots 3,780 54,692

21 – 50 lots 2,654 85,590

51 – 100 lots 1,081 76,366

100+ lots 423 68,480

TOTAL 45,663 435,887

Commissioner’s Office: dos and don’ts

(What we) DO (What we) DON’T DO

Information Service:

- General legislative provisions

- Phone and written (online enquiry)

- Website and online services

- Engagement (seminars)

- Search of adjudicators’ orders

- Rulings

- Interpretation

- Advocacy

- Complaints-handling

Dispute Resolution Service:

- Conciliation

- Adjudication

- Case management

- Inspection and copies

- Complex (contractual) disputes

- Investigations (other than

adjudicator investigative functions)

- Enforcement

- Proactive compliance activities

- Licensing

- Policy and legislation

Dispute resolution (cont’d)

• Top dispute types:

Conciliation Adjudication

1. Maintenance

2. By-laws – animals

3. By-laws – other

4. Improvements – owner

5. By-laws – vehicles

1. GM – motions

2. GM – procedures

3. Change financial year1

4. Maintenance

5. Improvements – owner

6. By-laws – other2

1 - Not technically a dispute

2 - Does not include animal by-law matters

Statistics – disputes

• Commissioner’s Office has ‘exclusive jurisdiction’ to resolve

disputes – with some exceptions

• Stats for disputes 2015-16:

Adjudication Conciliation

Committee –

elections

13 5

Committee –

jurisdiction

55 20

Committee -

meetings

11 4

Caretaker/letting

agent

Nil Nil

Out of - 892 (8.8%) 558 (5%)

Statistics – information

• Over 26,000 client contacts in 2015-16

• Callback service, written information, seminars

• Total telephone enquiries: 18,006

– Caller status: committee 3,257 (2nd ranked after ‘lot owner’)

– Information topic: committee 12.5% (2nd ranked after

‘maintenance’)

– Caller status: letting agent/service contractor 335 (7th ranked)

– Information topic: letting agent/service contractor 2.4% (14th

ranked)

Committees

Committees

• A bit of perspective…

– Commit-tee

– A smaller subset (‘subordinate’) of the larger group

– Charged with executing some tangible tasks (e.g.,

governance; research and reporting; administration;

disciplinary)

– Example: Queensland Parliament Committees

Common committee issues

COMMUNICATION

Common committee issues

• ‘Communication’ also includes:

– Being informed

– Participating

– Transparency and reasonableness

Common committee issues (cont’d)

• Being informed:

– Legislative rights and responsibilities (not just BCCM

legislation)

• Code of conduct for committee voting members requires

committee members to have a commitment to acquire an

understanding of the Act.

– Committee training online

– Subscribe to our Common Ground e-newsletter to

keep up-to-date on body corporate news and events

– Information Service

– Importantly: don’t assume knowledge…

Common committee issues (cont’d)

• Participating:

– Day-to-day decision-making

– Considering and acting upon issues raised by other

owners and occupiers

– Liaison with contracted entitles (e.g., BCM, caretaking

service contractor, other contractors)

– Do not act independently – no authority to do so

Common committee issues (cont’d)

• Transparency and reasonableness:

– Committee record-keeping

– Decisions and actions should be defensible: the

‘reasonableness test’

– Be willing to admit ‘mis-steps’

– Notice of committee meetings, minutes, vote outside

committee meetings and results of the vote outside a

committee meeting must be sent to all owners

– Act in the best interests of all owners and occupiers

(including tenants in the building)

Some practical tips…

• Set up a specific email address for committee

business (group and individual)

• Don’t hit ‘reply all’ automatically

• Use of circulars or newsletters

• Seminars and events

• And of course…

Some practical tips…(cont’d)

• Online training course for Committees:

www.qld.gov.au/bodycorporatetraining

Some practical tips….(cont’d)

• Know where to access the legislation:

www.qld.gov.au/legislation or via our website

• Know your role and responsibilities as a committee

member

www.qld.gov.au/bodycorporate has dedicated

pages:

- Role of the body corporate

- Role of the committee

- Body corporate manager and service contractors

Some common Committee Q and A…

• I’m a lot owner and I want to attend committee meetings – can I do

so?

• Our Chairman intends to fly from interstate to attend meetings. Is

he entitled to be reimbursed for that?

• I’m not happy with a recent committee decision. Am I entitled to get

a copy of their minutes and if so, and they’re not giving them to me,

what can I do?

• The Committee want to hold a Christmas party at the scheme. Can

they spend body corporate funds for that?

• As a committee member, am I personally liable if, for example,

funds go missing or are not properly spent? Is there insurance to

cover me?

Some common Committee Q and

A…(cont’d)

• I’ve heard there’s a conciliation session scheduled in the

Commissioner’s Office and that my committee will be attending.

Who decides who attends and what authority do they have to

negotiate and settle?

• I’m on the committee and have been happy to hold meetings in my

lot. I recently had a run-in with another committee member and now I

don’t want them in my home. Can I ‘ban’ them?

• Our building recently entered into a large contract to upgrade our

pool area. I’ve heard the contractor is a ‘good mate’ of the

Chairperson. Should that have been disclosed and what can I do

about it?

Some common Committee Q and

A…..(cont-d)

• A committee member recently sold their lot, do we have to fill the

vacancy? If so, how?

• Who is eligible to be a voting member on the committee?

• A committee member has, while in office, fallen into arrears in

their body corporate levies, can they still be on the committee

and vote?

• Who can a committee member give their proxy to for a

committee meeting?

• What is the required number for a committee?

In conclusion

• Commissioner’s Office:

– 1800 060 119 (Freecall)

– www.qld.gov.au/bodycorporatequestion

– www.qld.gov.au/bodycorporate