Q&As from Committee meetings and insurance under the new Standard Module

Could you explain please how these regulations for committee meetings for the Standard Module affect committee meetings under the Accommodation Module.  

The information provided for in this webinar/video applies to the Standard Module though the changes are very similar in the Accommodation Module. However, you should always check the regulation module that applies to your scheme for any differences.

Is there a 'format' for a motion?

No, the body corporate regulations do not provide how a motion must be written. However, there are things that may need to be considered, such as the requirement for 2 quotes if the proposal involves spending over the relevant limit for major spending. Our website provides information about submitting motions and drafting motions.

If the committee do not wish a motion to pass, they can just delay 21 days.  What occurs if the committee does not respond in 21 days?

The 21 day time frame is in relation to a vote outside committee meeting (VOC) Under the expiring Standard Module there has been no time frame for a committee member to return their vote. Under the new Standard Module, a committee member will need to return their vote within 21 days. If the committee does not decide the motion within 21 days, it is taken that the motion has not been agreed to.

How is a vote outside committee meeting (VOC) conducted, for example decisions on spending between meetings?

Under the new Standard Module a committee member must return their vote within 21 days, otherwise the process is unchanged. More information about voting outside a committee meeting can be found on our committee voting page.

When a vote outside committee meeting (VOC) is required, does it have to be done electronically or can an email from the committee member suffice as not everyone has access to a printer to print out the voting paper.

There is no requirement under the expiring or new Standard Module that the notice or agreement of a VOC is by voting paper. An email is a common way to decide a motion by VOC. In an emergency a vote can be in another form of communication e.g. orally.

If a committee member does not record a vote for a vote outside committee meeting (VOC) after the 21 days are they automatically declared a no vote?

If a committee member doesn’t respond to the VOC within 21 days, they haven’t voted. Them not voting may not affect the outcome of the decision. The 21 day time frame is in place so that if a decision is not determined by the committee within 21 days it is taken that the committee has not agreed to the motion.

What was mentioned about approval of a vote outside a committee meeting (VOC) motion with regards to an emergency?

Under both the expiring and new Standard Module, the notice of the motion and the agreement to the motion must be in writing. However, the regulations provide that in an emergency, notice and the committee members agreement to the motion may be expressed orally or by another appropriate form of communication. The regulation does not provide a definition of emergency.

Is it standard that an owner needs to pay to request a motion be added to the agenda?

No, there is no requirement for an owner to pay a fee to submit a motion.

Can a chairperson rule an unlawful motion out of order at a committee meeting?

There is no specific provision for the chairperson to rule a motion out of order at a committee meeting unlike the provisions for general meetings, however there is clarity under the new Standard Module that provides that the committee must not decide on a motion if it is a restricted issue, conflicts with Act, regulations, by-laws or is unlawful or unenforceable for another reason.

Can you please clarify if the committee has 21 days to consider a motion or 6 weeks?

The 21 days is in relation to a vote outside a committee meeting (VOC), that is the maximum time frame for the committee members to cast their vote. The 6 week timeframe is for the committee to consider an owner’s motion. The new Standard Module provides that the committee have 6 weeks to decide the motion (they could do that by a meeting or a VOC). If no decisions is made within 6 weeks and the committee has not advised the owner that they need more time, the motion is considered not passed.

Must the committee meet a minimum number of times in a year or at an agreed interim period?

There are no minimum or maximum times that a committee must meet under both the expiring and new Standard Module.

Can the chairperson still chair the meeting if they owe a body corporate debt?

There is no change under the new Standard Module, they can chair a meeting if they owe a body corporate debt or are a debtor member. However, they cannot vote.

When a motion is put forward by an owner to the committee, who is responsible for obtaining the 2 quotes, the owner submitting the motion or the committee as part of their consideration?

The expiring nor new Standard Module provide who obtains quotes. An owner can put forward the motion without quotes but this may take longer as they are asking the committee to obtain the quotes. To achieve a quicker outcome the owner may wish to obtain the quotes themselves

Does a vote outside a committee meeting (VOC) need to be ratified at the next committee meeting?

Yes, that hasn’t changed under the new Standard Module.

Is the 21 day timeframe business days? For example, during the Christmas and New Year period is difficult to get a hold of people.

The legislation does not specifically provide a meaning of days. For more information on timeframes in legislation read the Acts Interpretation Act 1954

Can the committee set a shorter time period for committee members to vote on a vote outside a committee meeting (VOC)?  E.g. if something needs to be approved/purchased within 9 days.

If enough votes come back earlier than 21 days to form a majority there is no need to wait for votes that have not yet been returned as the motion is already decided. There is no specific provision in the new regulation to reduce that time frame

Should we know about a vote outside a committee meeting (VOC) before the decision is made and is there any avenue for an ordinary member to raise an objection for the committee to consider before or after the decision?

The expiring and new Standard Module provide that the notice of the motion is given to the committee members and advice of the motion is given to owners at the same time. If there are any objections to the motion, a committee member or owner could raise that with the committee before or after the vote is taken.

Is a committee allowed unlimited number of expenditures that have not been voted on formally between meetings?

All expenditure must be voted on formally. Decisions are made at either a committee meeting, vote outside a committee meeting (VOC) or at a general meeting of the body corporate. This will be determined by the committee’s spending limit, whether there is provision in the budget for the spending or whether it is a restricted issue of the committee.

If the committee needs to extend the timeframe for considering an owner’s motion, do they need the permission of the owner submitting the motion, or do they only need to advise them they require the extension?

Where the committee needs extra time, they must give an explanation to the owner and nominate the additional time, but no longer than 6 weeks. They do not need the owner’s permission.

If a committee member does not record a vote, how can the vote outside a committee meeting (VOC) be finalised as all members have the right to vote?

A VOC is passed by a majority, so if enough votes come back to declare a motion passed or failed, it would not matter if someone returns a no or yes vote after the outcome is declared.

Is there a difference between a motion to committee and motion to an AGM?

There is no difference. How the motion is decided will be determined by the committees spending limit, or whether the matter is a restricted issue for the committee.

Please outline the duties of the chairperson and committee members at committee meetings. Does the chairperson have any special powers?

The expiring and new Standard Module do not define the particular duties of committee members. Our website provides an overview of the general duties of the committee on the committee’s role page. The chairperson has no additional/special powers.

If an owner submits a motion does the committee have to put the motion to a vote outside a committee meeting (VOC) if there is no formal meeting held? Most of our requests, depending on who requests them, are simply ignored.

The new Standard Module sets time frames for the committee to decide a motion, it is up to the committee to decide whether they make the decision by a VOC or at a committee meeting. They must decide the motion within 6 weeks, or if the committee needs more time, they must advise the owner, they cannot take more than an additional 6 weeks.

Once an agenda has already been circulated can a new issue or motion be added to it?  How does that work? As a committee member I was provided with an agenda without prior consultation about agenda items and then it seemed difficult for me to be able to add to that agenda.

Whilst there must be an agenda for a committee meeting, the expiring and new Standard Module allow for issues not on the agenda to be considered at the meeting.

For a committee of 3 and 2 can’t vote, is the person who can vote able to pass the motion?

The provisions for committee voting have not changed. A motion passes by VOC if the majority of voting members entitled to vote on the motion agree to the motion. Once a quorum is established at a committee meeting, the motion is decided by a majority of voting persons present and entitled to vote, agreeing to the motion.

Should correspondence in and out be documented at each committee meeting?

The section which defines full and accurate minutes of a committee meeting provides that the minutes include correspondence, notices and other documents tabled at the meeting.

When a committee member is in dispute with the body corporate about an issue, can they vote on a vote outside a committee meeting (VOC) or at a committee meeting about other issues?

The only reasons a committee member cannot vote is if they have a conflict of interest or are a debtor member (under the new Standard Module).

Can all committee meetings be held as vote outside a committee meeting (VOC)? You said VOCs had to be ratified at the next committee meeting.

The legislation does not require a specific number of meetings, a committee could possibly make all decisions by VOC, however the legislation does provide that a decision made by VOC is confirmed at the next committee meeting.

For voting at a committee meeting, must the motion be recorded in writing showing who moves the motion and who seconds it? Does it need to show any discussion? Does it need to go to a show of hands?

Full and accurate minutes include the words of the motion and the number of votes for and against the motion. Details of any discussion about the motion or motions being seconded is not required. The regulations do not specifically provide for how people vote at a committee meeting.

What is a restricted issue?

A restricted issue is a decision the committee is not able to make and must instead be decided at a general meeting of the body corporate. Restricted issues are defined in section 52 of the new Standard Module.

If the committee votes equally (yes and no) to a motion and there is an even number of committee members, how is the vote decided?

If a motion received equal votes for and against the motion is not carried. The owner who submitted the motion could dispute the decision through our office or put the motion forward for all owners to consider at the next general meeting.

If the same person is chairperson and secretary, can the same person move and second a motion?

The legislation doesn’t provide that you need to ‘second’ a motion. Each voting committee member has 1 vote on a motion regardless on how many positions they hold.

Do I understand correctly that all owners must have a vote and voice about changing insurers?

The new Standard Module provides that the committee will be able to spend above the limit for committee spending to put in place or renew an insurance policy, provided it is not a restricted issue. If the committee is making the decision there is no requirement they consult with owners, however the owners will know when the decision is made as they should receive notice of a meeting, or advise of a VOC, they will also receive the minutes and record of the decision.

The committee will need to supply 2 insurance quotes if the cost of the insurance policy is above the major spending limit for the scheme.

Information about the body corporate insurance policy provided at the annual general meeting will have to include details of any insurance broker or intermediary involved with the policy.

In a full committee of 7 people, how many yes votes are needed for a motion to pass if some of the members abstain?

This has not changed in the new regulations. A motion passes if a majority of voting members entitled to vote on the motion agrees to the motion (votes yes). If a person abstains, they have not voted yes or no. If the decision were to be made at a committee meeting and all 7 voting members attended and were entitled to vote, you would need 4 yes votes for the motion to pass. If the decision was being made by VOC, the motion passes if a majority if all voting members entitled to vote agree to the motion.

Is a person who is a debtor member still counted for working out a quorum?

Yes

Does an owner need to specify that a request in writing to the committee is an actual motion. i.e. must be responded to within 6 weeks etc, or any request is assumed to be a motion?

Whilst the legislation does not specifically provide for how a motion is to be worded, it might be a good idea for an owner to advise that their ‘request’ is a motion to be considered.

Is a request by an owner for approval for installation of something or for approval of a pet considered a motion?

The legislation does not provide a definition of motion. A motion might be an action or decision that you want the body corporate to take. Our website provides information about submitting motions and drafting motions.