Body corporate regulation definitions
This page includes a list of terms used in body corporate regulation modules, with their meanings explained. This is not meant to be a list of all body corporate related terms.
For more body corporate definitions, see the dictionary section of each regulation module schedule, as well as the body corporate legislation definitions.
Abstain
When a voter chooses not to cast a vote on a motion, either for or against it. No vote is counted for an abstention.
Address for service
The address that body corporate notices can be sent to. The address for service for a lot owner, and any other person whose address for service needs to be given to the body corporate, is recorded on the body corporate roll.
Even if there are 2 or more co-owners for 1 lot, there must be only 1 address for service for a lot.
The address for service must be an Australian postal address. However, if the body corporate hasn’t been notified of an address, the address for service is the residential or business address that the body corporate was last notified of for the lot owner or another person (whether in or out of Australia).
A person can also give the body corporate an email address for their address for service.
Body corporate debt
Any of the following owed by an owner of a lot to the body corporate:
- a contribution or instalment of a contribution
- a penalty for not paying a contribution or instalment of a contribution by the due date
- another amount associated with the ownership of a lot—for example, an annual payment for parking under an exclusive use by-law or the cost of lawn mowing services arranged by the body corporate on behalf of the owner.
Committee members
Non-voting member of the committee
The body corporate manager and caretaking service contractor for the community titles scheme are automatically non-voting members of the committee, without further election or appointment, even if they are also lot owners. Non-voting members of the committee are not entitled to vote at committee meetings.
Voting member of the committee
An eligible person who is appointed to the committee by the body corporate. A voting member can vote at committee meetings unless they owe a debt to the body corporate at the time of the vote.
Maximum number for committee
The body corporate must elect at least 3 voting members of the committee (except for schemes registered under the Small Schemes and the Specified Two-lot Scheme regulations)
The maximum number of voting members for a committee is:
- 7 (if the community titles scheme includes 7 or more lots)
- not more than the number of lots (if the scheme includes fewer than 7 lots).
Layered schemes
A principal body corporate in a layered arrangement with more than 7 subsidiary schemes or lots can increase the number of voting committee members from 7 to a maximum of 12 by passing a motion by ordinary resolution.
Corporate owner
A corporation that is the owner of a lot.
This does not include a body corporate for another community titles scheme that comprises a lot included in the scheme in its capacity as the body corporate for a subsidiary scheme for the scheme.
Corporate owner nominee
The person who has been nominated by a corporate owner to represent the corporate owner on the body corporate.
A person is a corporate owner nominee, for the purpose of voting at a general meeting, if the corporate owner entity gives the secretary a written notice of nomination, stating either:
- the name of the nominee
- the names of 2 nominees, 1 of whom is to act in the absence of the other.
A corporate owner may change a nomination by giving the secretary written notice of a new nomination.
General meeting motions
Group of same-issue motions
If 2 or more motions proposing different ways to deal with the same issue are submitted for a general meeting, the committee will need to list the original motions together on the agenda as a ‘group of same-issue motions’.
Find out more about groups of same-issue motions.
Procedural motion
A procedural motion is a motion about the conduct of a general meeting. A procedural motion does not need to be included on the agenda.
An example of a procedural motion is a motion to reverse a decision of the chairperson to rule a motion out of order.
Other motions that do not need to be included on the general meeting agenda include a motion to:
- amend a motion
- correct minutes.
Statutory motions
A statutory motion at an annual general meeting means a motion to:
- present the body corporate’s accounts for the financial year
- appoint an auditor of the body corporate’s accounts for the next financial year, or to not audit the accounts (except in the Small Schemes Module)
- adopt administrative fund and sinking fund budgets, and (in the commercial module) a promotion fund budget, for the financial year
- fix contributions for the next financial year
- review each insurance policy held by the body corporate.
Defect assessment report
A report that covers the property in scheme land that the body corporate must insure for full replacement value (other than a body corporate asset) .
A defect assessment report:
- identifies any defective building work
- identifies the cause of any defective building work (if reasonable) and the work required to correct it.
Initial contract date
For an engagement or authorisation of a service contractor or letting agent, the initial contract date is the earlier of either the day the service contractor or letting agent:
- entered into the engagement or authorisation
- first entered into any engagement or authorisation that has been continuously replaced or renewed (for a replacement or renewal of an engagement or authorisation).
Quorum
A quorum is the minimum number of members required to be a valid meeting.
Committee meetings
A quorum at a committee meeting is at least half the number of voting members of the committee.
For example, if there are 6 voting members for the committee, a quorum is 3. If there are 7 voting members of the committee, a quorum is 4.
When deciding whether there is a quorum, a voting member who is present is counted as 1. If a voting member has the proxy of an absent voting member, and the use of proxies for the meeting is not prohibited, the member is counted as 2.
A non-voting member is not counted for deciding whether there is a quorum.
General meetings
A quorum at a general meeting is at least 25% of the number of voters for the meeting.
However, if:
- the number of voters for the meeting is 3 or more, 2 voters must be present in person
- if the number of voters for the meeting is fewer than 3, there is a quorum if at least 1 voter is present in person.
The body corporate can pass a motion by special resolution to change how a quorum is calculated.
The body corporate can decide to:
- reduce the number of voters required to be present in person from 2 to 1
- change the minimum percentage of voters required to vote to between 10% and 25%.
A voter is taken to be present at a general meeting if the voter is present at the meeting in person, by proxy or by written or electronic voting paper.
Representative of a lot owner
An individual is the representative of the owner of a lot, and entitled to vote for that owner at a general meeting, if the person is either:
- the guardian, trustee, receiver or other representative of the owner of the lot, and is authorised to act on the owner’s behalf
- authorised by a power of attorney given to the person by the owner of the lot, and is not the original owner (except under section 211 or 219 of the Act), a body corporate manager, service contractor or letting agent.
A lot owner’s representative must give the secretary a copy of the document that authorises them as a representative (or otherwise satisfy the secretary of their representative capacity) and give the secretary their addresses.
A lot owner may revoke the authorisation of their representative in writing to the secretary.
A power of attorney can only represent 1 lot owner unless:
- the owner of each lot is the same person
- you are a family member of the lot owner
- the power of attorney is given by a buyer under section 211 or 219 of the Act.
Transferee
The person or entity to which the engagement or authorisation as a service contractor or letting agent is transferred.
Transferor
The person or entity engaged or authorised as a service contractor or letting agent that transfers the rights under the engagement or authorisation to another person or entity (the transferee).
Voter for general meeting
A voter for a general meeting of the body corporate is an individual:
- whose name is recorded on the body corporate’s roll as
- the owner of a lot
- the representative of a lot owner
- who is the nominee of a corporation that is the representative of a lot owner
- who is a corporate owner nominee who is a representative of a subsidiary body corporate.