If you live in a complex with 10 or more lots with common property including shared infrustructure, you are classed as an Owners Corporation or otherwise known as an O/C and are required to elect a committee of members to represent the O/C members/lot owners.
The committee consists of between three to seven members. If your complex has less than 10 lots you may still elect an O/C committee.
The O/C committee is responsible for the ongoing decision making for the maintenance, services and financials required for the building.
Every owner in a building complex is a member of the of the Owners Corporation.
The Owners Corporation elects a committee of owners at the Annual General Meeting each year to represent all the Owners of the building.
The elected committee provides instructions and directions to the appointed Owners Corporation manager to implement the decisions of the committee.
Why a committee of management
A committee needs to elect a chairperson. Furthermore, a professional Owners Corporation company must be appointed and the Owners Corporation manager undertakes the running of the building affairs such as collecting and banking fees, arranging property maintenance and consulting with the Owners Corporation committee.
There is a clear delineation in the Owners Corporation Act 2006 that separates the functions of a committee which acts the unanimous voting of various resolutions passed, to the role of the Owners Corporation Manager which implements the decisions of the Committee.
- must be lot owners or hold a proxy for a lot owner
- once elected, hold office until a new committee is elected at the AGM.
There can only be one committee member for each lot.
A lot owner, or anyone acting as a proxy for a lot owner, may nominate for election as a committee member before or at the annual general meeting.
The committee can:
- invite owners corporation members to join the committee if there is a vacancy
- appoint sub-committees
- invite other lot owners or proxies of lot owners to advise and assist in carrying out its functions and powers. Sub-committees and invited members cannot vote as part of the committee.
The owners corporation may, at an annual general meeting or special general meeting, resolve to add or remove a committee member or replace or remove a committee.
A member of an owners corporation committee or sub-committee must further clarify that:
- act honestly and in good faith
- exercise due care and diligence
- act in the interests of the owners corporation
- not make improper use of his or her position as a member to gain an advantage (directly or indirectly) for themselves or for any other person
The committee chairperson provides a report on the current year’s activities to the owners corporation at each annual general meeting.
The Owners Corporations Act 2006 and subsequent amendments (Victorian State legislation) provides for the management powers and functions of Owners Corporations.
For more information about owners corporation committee roles and responsibilities and how your body corporate manager can assist with the necessary management of your building contact Australian Property Management on: 03 9034 4200 or email: email@example.com