UNDERSTANDING BODY CORPORATE DECISION-MAKING IN QUEENSLAND

In Queensland, body corporate decision-making operates within a structured two-tier system: committee decisions and general meeting decisions. Each tier has its own authority, limitations, and procedural requirements, ensuring proper governance within community title schemes. The decision-making process, essential for managing both residential and commercial properties, is crucial for maintaining a smooth, efficient, and harmonious living or working environment. Whether you’re a unit owner, tenant, or part of the management team, understanding the procedures for making decisions is key to effective property management.

What is a Body Corporate?

A body corporate is a legal entity that manages the common property of a community title scheme. This includes shared spaces like corridors, gardens, lifts, and swimming pools. The body corporate also oversees the financial matters, maintenance, and day-to-day operations of the property. In Queensland, it operates under the Body Corporate and Community Management Act 1997 (BCCM Act), which provides the framework for its governance.

The Role of the Committee

At the heart of body corporate decision-making is the committee, typically elected by the owners. The committee is responsible for making key decisions regarding the management of the property, including approving maintenance works, setting budgets, and ensuring compliance with legal and regulatory requirements.

Committee members are generally volunteers who may not have legal or professional experience but are committed to representing the interests of the community. In order to make decisions that are legally binding, the committee must follow specific procedures outlined in the BCCM Act and the scheme’s by-laws.

Committee Decisions – Authority and Scope

The body corporate committee, composed of lot owners, has the authority to make binding decisions on behalf of the body corporate. However, its powers are limited and do not extend to “restricted issues.”

Restricted Issues

These issues require approval at a general meeting and typically include:

• Changes to levies, rights, privileges, or obligations of owners.
• Matters specifically restricted by the body corporate in a general meeting.
• Decisions requiring a particular resolution under the Body Corporate and Community Management (BCCM) Act (e.g., by-law changes, significant financial expenditures).

Decision-Making Timeframes

The legislation specifically provides that an owner can submit a motion to the committee to be decided within the ‘decision period’ (within 6 weeks after the day the motion was submitted, or up to 12 weeks at most if the committee notifies the owner that more time is needed than the initial 6 weeks).

The Reasonableness Test

Committee members must ensure decisions comply with the reasonableness test under the BCCM Act, protecting owners from arbitrary or unfair decisions. The committee must act reasonably, considering all relevant circumstances, and properly document its decisions. Minutes should comprehensively outline considerations and the rationale behind each decision.

General Meeting Decisions

Certain matters, including all restricted issues, must be decided in a general meeting, either an Annual General Meeting (AGM) or an Extraordinary General Meeting (EGM).

Resolution Types and Voting

Different decisions require different types of resolutions, each with a unique voting threshold:

• Ordinary Resolution – Simple majority vote.
• Special Resolution – Requires at least two-thirds approval.
• Resolution Without Dissent – Requires unanimous approval.
• Majority Resolution – Requires approval from over 50% of owners, weighted by contribution schedule lot entitlements.

The Importance of Understanding the Process

For those involved in a body corporate, whether as owners or committee members, having a clear understanding of the decision-making process is essential to creating a well-managed community. Being aware of rights and responsibilities, as well as the voting procedures and processes, can help prevent frustration and ensure the property is managed in a way that benefits all stakeholders.

While understanding body corporate decision-making can sometimes feel overwhelming, especially for first-time owners or committee members, there are resources and support networks available. Body corporate managers, legal professionals, and industry organisations can offer valuable advice and assistance to navigate the complexities of body corporate management in Queensland.

Article Contributed by Joel McBride, Partner, Archers the Strata Professionals.