On 1 March 2021, the Body Corporate and Community Management (Standard Module) Regulation 2020 replaced the Standard Module Regulation from 2008.
To provide an overview and context around these exciting changes, Capitol will be releasing a series of videos.
First up, an overview of the changes which will impact our committees.
Amanda: “On 1 March 2021, the Body Corporate and Community Management (Standard Module) Regulation 2020 came into effect. This change was aimed at modernising body corporate procedures, reducing body corporate costs, enhancing protection for unit owners.”
Christopher: “The new Standard Module Regulation includes changes to committee membership, elections, procedures for meetings and administrative matters. Today we will provide you with a brief overview of the changes relating to committee membership and meetings. Co-owners are now able to serve as voting members of the committee if they own multiple lots. For example: If two people own two lots together they can both nominate to fill two committee positions.”
Amanda: “For schemes with three or more lots, but up to three owners, the committee can comprise of 1 person who owns 100% of the lots of 2 or 3 people who own the lots between them. For a body corporate that falls in this category, owners can decide amongst themselves which positions they will hold on the committee or alternatively they can decide to jointly hold positions. This is known as a Minor Committee. A body corporate has the authority by ordinary resolution to appoint a body corporate manager under a Part 5 Engagement in place of the committee.”
Christopher: “Committee nominations. As previous eligible owners are required to nominate for the committee prior to the end of the body corporate’s financial year. Where the committee is not at capacity the chairperson is required to call for nominations for committee positions from the floor of the meeting. The maximum number of voting members for a scheme is dependent on its size. Where there are 7 or fewer lots, the maximum number is equal to the number of the lots. Where there are greater than 7 lots the maximum number will be 7 – there are defined exceptions to this, if you are in a layered scheme arrangement.”
Amanda: “Finally, committee members are no longer able to receive direct or indirect benefit from a caretaking or service contractor unless the body corporate has passed the arrangement via ordinary resolution. The exception is if the contractor has been engaged directly via the body corporate or a lot owner.”
Christopher: “With regard to committee meetings: Owners are able to submit motions to be considered by the committee, a copy of the motion is to be shared with the secretary in person, via electronic communication or mail.”
Amanda: “Committees are not able to make a decision on a motion if it is on the restricted issue list for the committee or it conflicts with the act, by laws, is unlawful or a motion has already been voted on. Where the committee can make a decision on a motion they must do so within 6 weeks from the day the motion was submitted. If a decision is not possible, written notice is required to be provided to the owner who submitted the motion within the initial 6 weeks of submission. The notice is to include the appropriate explanation and defined extension date. Committees are not required to review a motion if it has already been submitted within the last 12 months or the owner has already submitted 6 motions within the last 12 months.”
Christopher: “Electronic attendance is now permitted for committee meetings where authorised by the committee. A representative of an owner will be able to attend committee meetings in place of an owner.”
Amanda: “Committee members are not able to vote at committee meetings if they are not financial. Finally, votes performed outside of a committee meeting have a 21 day time limit. Within 21 days committee members will need to return their written votes to the secretary, the motion will be decided if the majority of committee members eligible to vote have agreed to the motion. Please note there are different provisions in play for emergencies.”
By its very nature this presentation is intended to give you a general overview of what is covered within the standard module by the new regulations and how those regulations are intended to work. If you have any questions regarding what we have discussed today or if a more detailed explanation of a particular provision is required, please contact your Community Relationship Manager directly or visit our resource centre.