Each month we’ll be going back to basics and breaking down some information about body corporates into bite-sized chunks that should help to clarify your understanding of general information about the body corporate. We’re calling it ‘Body Corporate 101’ – this month, read on to find out exactly why bodies corporate exist.
The body corporate is a legal entity and its operations are governed by the Body Corporate and Community Management Act 1997 (the Act).
Put simply, a body corporate is like a company and the owners of each lot are like the shareholders.
Each body corporate has a community management statement (CMS) which contains the body corporate name and community titles scheme (CTS) number, a description of the lots and common property, the entitlements for each lot in the scheme, the by-laws and a list of any easements or exclusive use grants.
The body corporate operates on a financial year that is based around the time that the body corporate was first established; for example, if the body corporate was first registered in March, the body corporate’s financial year would typically be 1 March – 28 February each year. Many of the body corporate’s operations are based around these key financial year dates.