In this blog post, we will be pulling right back to the basics of why Bodies Corporate exist and taking a surface-level look at their basic functions. We intend this to be an introduction to new owners who may not be familiar with Bodies Corporate and as a refresher for our existing owners. We encourage all readers to explore our catalogue of articles as many items discussed here are explored in further detail.
The Body Corporate is a legal entity whose operations are governed by the Body Corporate and Community Management Act (1997) and its associated regulation modules. In simple terms, think of the Body Corporate as a company, with the owners of all the lots as shareholders.
All Bodies Corporate will have a Community Management Statement (CMS). This document will contain the Body Corporate name and Community Titles Scheme number (CTS), a description of the lots and common property, the entitlements for each scheme, the by-laws, and a list of any easements or granted exclusive use areas.
As a new owner, familiarising yourself with the CMS is encouraged. Levies are calculated in accordance with the contribution schedule of lot entitlements, which may not be equal for all lots. The by-laws set out rules for what can and cannot be done at your scheme and what requires Body Corporate approval.
Bodies Corporate operates on a financial year based upon the date of establishment. For example, if the Body Corporate was established in March, the financial year would be expected to be 1 March to 28 February of each year. Many key functions of the body corporate are tied to the end of financial year date, such as calling for committee nominations, setting the date for the Annual General Meeting (AGM), and setting the final date that motions can be submitted by owners for the next AGM.