The Body Corporate and Community Management Act 1997 (“the Act”) provides that a Body Corporate Committee shall (subject to delegation of any functions to a Body Corporate Manager or external service provider):
- Manage the Body Corporate and oversee compliance with by-laws;
- Obtain adequate and correct insurance policies;
- Organise repairs and maintain Common Property (and, in some instances, property adjoining Common Property);
- Communicate with and Report to Body Corporate Owners;
- Manage, deal with and organise third parties and contractors;
- Undertake financial reporting and accounting, including:
- Preparing annual budgets and contribution proposals; and
- Issuing levy notices and monitoring levy payments (including levy recovery legal proceedings);
- Represent the Body Corporate in legal proceedings;
- Ensure the Property is compliant with Queensland and Commonwealth Legislation, including but not limited to:
– Occupational health and safety;
– Fire safety; and
– Glass and structural mandates.
The obligations placed on the Committee can be daunting and onerous. However, a Body Corporate is authorised, pursuant to the Act, to delegate many aspects of the executive and/or administrative responsibilities of “managing” a Body Corporate to a service provider, which is often referred to as a “Body Corporate Manager.” (Section 119 of the Act) The Committee and Body Corporate Manager, collectively, service the obligations to the Body Corporate Owners.
The Body Corporate may elect to delegate all, or few, of the executive and/or administrative tasks otherwise reserved to a Body Corporate Committee. For example, in small complexes (under 8 Units), a Body Corporate Manager may be retained to perform the financial reporting obligations, but the Committee will remain all other tasks (such as organising contractors, providing notice to owners, undertaking meetings, etc). Most medium to larger complexes employ Body Corporate Managers to perform a far broader scope of tasks, with the Committee retaining more of an executive “supervisory” role with insight on strategic matters, but hands off on the administrative duties.
In order to retain a Body Corporate Manager, the engagement must be in writing, state the term of engagement, state the functions the Manager is required or authorised to carry out and state the basis for which payment of the services is made. In defining the functions authorised, the engagement must also identify if the Manager is permitted to engage in any executive decisions. An engagement may not exceed a 3 year period; however, no minimum term exists. Upon the expiry of the 3 year period, the Manager must renew the engagement with the Body Corporate.
The benefit of this flexibility of engagement, is that Bodies Corporate can “test” a Body Corporate Manager on a shorter term, and if happy, then engage the Manager for the longer term.
If, however, the Body Corporate is dissatisfied with the services of a Manager, during the period of an engagement agreement, the Body Corporate may terminate a Manager in some circumstances (including circumstances in which a Manager commits certain offences). (See Sections 129 and 130 of the Act)
Nautilus works with many outstanding Body Corporate Managers across Queensland, and we certainly support the retention of Managers for the bulk of Bodies Corporate. The scope of works can be broad, or limited – but in all cases, the Committee is able to rest more comfortably knowing they have a resource available to them. This is especially important for large Bodies Corporate, because the Committee members usually have significant personal obligations and are not capable (nor required) to work extensively for the Body Corporate (which would otherwise be required in the absence of a Body Corporate Manager appointment).
We appreciate that from time to time Committees may question the services offered by a Manager, or may wish to be provided advice on Management Agreements. Our Team are seasoned at reviewing Agreements, and assisting Queensland Bodies Corporate with such matters.
We offer an initial no charge, no obligation consultation and offer such services by telephone, Skype, email or on location (Brisbane to Gold Coast only). We also fly to Cairns, Townsville, Mackay and service the Sunshine Coast on a quarterly rotating schedule (although the bulk of services to these regions occur by telephone, Skype or by email).
We welcome you to contact our offices on (07) 5574 3560 or email info@nautiluslaw.com.au. We thank you for considering Nautilus Law Group.
