Topics

Body Corporate Managers

Definition/Description
A Body Corporate Manager is a person or business appointed, in writing, to supply administrative, secretarial and treasury services to the body corporate for a fee. There are many specialist Body Corporate Management companies who are contracted to the Body Corporate on an annual basis. The Body Corporate management firm will appoint a staff member to be the designated Body Corporate Manager for the scheme.

The Body Corporate Manager is not an employee of the body corporate and they are NOT the On-Site Manager, Building Manager, Caretaker or Management Rights owner, they are a separate contractor to the Body Corporate.

The Body Corporate Manager may be authorized to carry out some or all of the functions of an executive member of the Body Corporate Committee who will direct the Body Corporate Manager about how power is to be exercised. The body corporate may revoke the authority at any time by notification in writing.

Authorization
A decision of a body corporate manager in exercising authorized powers is a decision of the body corporate.
The exception is a Restricted Issue for the committee.
The manager may not make a decision on a matter that must be decided in a general meeting, and cannot delegate an authorization.
A decision of a manager is void when it conflicts with the decision of the committee.
Duties of a Manager
Services provided by the manager are contained in the Body Corporate Managers appointment contract.
In general, they include:
  • organizing, preparing and sending out the paperwork for general and committee meetings
  • attending general and committee meetings, preparing and distributing the meeting minutes
  • preparing and maintaining the roll, registers, accounting records, statements of account
  • preparing the budgets, calculating the contributions and sending the levy notices
  • assisting with placing the body corporate’s insurances
  • providing assistance to the body corporate and members of the committee
Membership of Committee
A body corporate manager is automatically a member of the committee – but with no voting rights.
Being present at Body Corporate committee meetings enables the manager to give timely reports about the financial and business issues concerning the complex.

Contents

  1. Definition/Description
  2. Authorization
    1. Duties of a Manager
    2. Membership of Committee
    3. Disclosure Statements
  3. Engagement of Manager
    1. Form of Engagement
    2. Term of Engagement
    3. Transfer of a Contract
    4. Termination of a Contract
  4. Code of Conduct
Disclosure Statements
Queensland law requires that the vendor supply to the purchaser a Disclosure Statement duly endorsed by the Body Corporate Manager.

The ‘standard’ Disclosure Statement contains basic information including:

  • etails of the body corporate secretary & manager
  • the body corporate levies payable by the Buyer
  • any improvements on the common property for which the Buyer is responsible
  • the regulation module for the complex
  • whether a body corporate committee exists
  • details of applicable body corporate assets
A fee is payable on application.
 

 The ‘standard’ Disclosure Statement does not contain all the information that a buyer needs to know, an example being that the Body Corporate could have significant unfunded liabilities which the Buyer could become jointly personally liable for once they become owners.

The ‘long-form’ Disclosure Statement provides additional information including details of:
  • all body corporate liabilities
  • legal action concerning any disputes involving the building or owners
  • body corporate service contract agreements
  • building repairs and maintenance.
Manager
The engagement of a Body Corporate Manager is decided in a General Meeting.
The body corporate appoints a manager in general meeting by passing an Ordinary Resolution.
If the cost of engaging the body corporate manager is more than the major spending limit for the scheme, at least 2 quotes or tenders must be given to owners with the meeting papers.
The manager must disclose any relationship with, or any commission or other benefits payable to, the manager from any provider of goods and services to the body corporate.
Form of Engagement
The contract of engagement must be in writing and must indicate:
  • the engagement term including when the term begins and when it ends
  • the term of any right or option of extension or renewal of the contract
  • the functions which the body corporate manager is to carry out
  • the basis on which the manger is to be paid
  • any powers of an executive committee member the manager is authorized to exercise

A body corporate manager cannot be engaged through a by-law.

Term of Engagement
The maximum term of engagement is 3 years under the Standard, Accommodation and Commercial Regulation Modules.
Under the Small Schemes Module, it is 1 year.

If the term in the agreement purports to be longer than three years (1 year for Small Schemes) it is taken to be 3 years (1 year Small Schemes).
At the end of the term, the engagement expires and the manager must have a new engagement to act as the body corporate manager.

Transfer of a Contract
The transfer of the manager’s contract must be approved by the body corporate (Ordinary Resolution) or as a restricted matter by the committee.
The decision to approve the transfer must be made within 30 days after the body corporate receives all the information reasonably required.
The body corporate cannot ask for or receive a fee or other benefit for approving the transfer.
Termination of a Contract
The manager’s contract may be terminated under the terms of the contract, or under the Act.
The grounds to terminate under the BCCM Act include;
  • if the manager is convicted of fraud dishonesty, assault
  • if he/she transfers their contract without approval from the body corporate
  • if they engage in misconduct
  • if he/she is grossly negligent in carrying out or fails to carry out functions required under the engagement.

The body corporate can serve a Remedial Action Notice on the manager.
The remedial action notice must include details of the manager’s alleged failure or contravention require the manager to remedy the problem, and inform the manager that failure to comply with the notice may result in the manager’s termination.
Termination will only be effective if approved by an Ordinary Resolution.

Code of Conduct
The BCCM Act contains a Code of Conduct for Body Corporate Managers.
Generally, the Codes require managers and their associates to:
  • have a knowledge of the Act
  • act in an honest, fair and professional way, in best interests of the body corporate and
  • keep the body corporate informed of any significant development which might affect their complex.

Managers must not engage in fraudulent, misleading or unconscionable conduct. 
BCCM Act provides that the code is taken to be included in the engagement contract with the manager.

Code of Conduct
Reproduced on 29th April, 2003 from
Body Corporate & Community Management Act 1997 as amended 2003

Body Corporate and Community Management
Act 1997
SCHEDULE 2

CODE OF CONDUCT FOR BODY CORPORATE
MANAGERS AND CARE TAKING SERVICE CONTRACTORS

section 118 and schedule 6, definition “code of conduct”

  1. Knowledge of Act, including code
    A body corporate manager or caretaking service contractor must have a good working knowledge and understanding of this Act, including this code of conduct, relevant to the person’s functions.
  2. Honesty, fairness and professionalism
    A body corporate manager or caretaking service contractor must act honestly, fairly and professionally in performing the person’s functions under the person’s engagement.
  3. Skill, care and diligence
    A body corporate manager or caretaking service contractor must exercise reasonable skill, care and diligence in performing the person’s functions under the person’s engagement.
  4. Acting in body corporate’s best interests
    A body corporate manager or caretaking service contractor must act in the best interests of the body corporate unless it is unlawful to do so.
  5. Keeping body corporate informed of developments
    A body corporate manager or caretaking service contractor must keep the body corporate informed of any significant development or issue about an activity performed for the body corporate.
  6. Ensuring employees comply with Act and codeA body corporate manager or caretaking service contractor must take reasonable steps to ensure an employee of the person complies with this Act, including this code, in performing the person’s functions under the person’s engagement.
  7. Fraudulent or misleading conduct
    A body corporate manager or caretaking service contractor must not engage in fraudulent or misleading conduct in performing the person’s functions under the person’s engagement.
  8. Unconscionable conduct
    A body corporate manager or caretaking service contractor must not engage in unconscionable conduct in performing the person’s functions under the person’s engagement.
    Examples of unconscionable conduct—
    1. Taking unfair advantage of the person’s superior knowledge relative to the body corporate.
    2. Requiring the body corporate to comply with conditions that are unlawful or notreasonably necessary.
    3. Exerting undue influence on, or using unfair tactics against, the body corporate or the owner of a lot in the scheme.
  9. Conflict of duty or interest
    A body corporate manager or caretaking service contractor for a community titles scheme (the “first scheme”) must not accept an engagement for another community titles scheme if doing so will place the person’s duty or interests for the first scheme in conflict with the person’s duty or interests for the other scheme.
  10. Goods and services to be supplied at competitive prices
    A body corporate manager or caretaking service contractor must take reasonable steps to ensure goods and services the person obtains for or supplies to the body corporate are obtained or supplied at competitive prices.
  11. Body corporate manager to demonstrate keeping of particular records
    If a body corporate or its committee requests, in writing, the body corporate manager to show that the manager has kept the body corporate records as required under this Act, the manager must comply with the request within the reasonable period stated in the request.

Queensland Community Living Handbook 

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Strata Living in Queensland

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