Q&As from Committee Membership under the new Standard Module

Are there any recommended systems for electronic secret voting?

We can’t recommend systems. The regulation only provides what the system adopted by the body corporate needs to cater for in the regulation. You may be able to ask your body corporate manager.

Is it an ordinary resolution to engage a body corporate manager under a chapter 3 Part 5 engagement and an open ballot or secret ballot?

Currently the decision must be made by special resolution and secret ballot. Under the new Standard Module, the body corporate can by ordinary resolution choose to conduct an open ballot instead of a secret ballot.

Is the process of filling a casual vacancy the same?

Yes, there are no changes.

What are penalties for non-compliance?

The body corporate legislation does not provide our office the ability to issue or deal with penalties. Our office deals with dispute resolution applications.

Does a committee structure need to change after 1 March 2021, or can they continue until next AGM?

The changes start the 1 March 2021, if you have your meeting before the commencement of the new Standard Module, that committee stands.

Why is a committee member entitled to receive benefits from a contractor? I don't understand why that can happen?

Under the expiring Standard Module there was no restrictions on a committee member receiving a benefit. The new Standard Module provides certain benefits must be approved by the body corporate by ordinary resolution.

What is a 'benefit'? Is it cash monies, products?

The legislation does not provide for what a benefit is. An example might be the caretaker providing a service such as lawn mowing to a committee member at a reduced price or for free.

What is the minimum number of body corporate members on a 5 lot scheme at present and what will it be under the new regulations?

Under the expiring and the new Standard Module, the minimum number is 3.

Is breaching a committee member the only way to remove a committee member?

There has always been two ways to remove a committee member. An owner can put forward a motion by ordinary resolution to remove the person from the committee, without a reason. Or, they can put forward a motion to issue a breach of code of conduct notice by ordinary resolution. There would need to be a second meeting to remove the person from the committee. This hasn’t changed, the new Standard Module just makes it clearer that there are two distinct processes.

There is currently the ability to vote electronically, has there been a change to that?

There is the ability for the body corporate to approve electronic voting under the expiring Standard Module. Under the new Standard Module there are now specific requirements for the systems for electronic voting. Also, there is now provision under the new Standard Module for a committee election to be held electronically.

Can we add a committee member after our AGM?

The legislation does not provide for adding members after the AGM. If there is a casual vacancy (e.g. someone resigns or sells their lot) then the vacancy must be filled.

If at an AGM, the minimum amount of committee members is not filled or no committee members are appointed, and owners do not wish to call an extraordinary general meeting to fill the vacant positions, what is the process required to rectify?

The process is to call an EGM, the legislation requires the EGM to attempt to fill the vacancies and to put forward a motion to engage a body corporate manager under a chapter 3, part 5 engagement. You may wish to consider including a motion on the agenda of the AGM to engage a body corporate manager chapter 3, part 5 engagement to save calling an EGM.

If no one is willing to become chair when a committee lacks one, can the chair be appointed, in other words 'required' to become chair?

No, you can’t make someone be on the committee, the person needs to nominate for the position, or they can show interest to fill a casual vacancy if one arises.

If a committee member is removed with no reason given, is there an appeal process in the new legislation?

Nothing has changed. A person has the ability to dispute a decision of the body corporate provided that they have grounds for lodging an application. You could search for previous adjudicators orders on Austlii.

If you have 1 nomination for all executive positions and they are elected unopposed, are the positions filled from the floor just the ordinary members?

If all executive positions are filled prior to the AGM by nominations received prior to the AGM, nominations will be called from the floor of the meeting if there are ordinary member positions still available.

What about if you try and try but only get 1 committee nomination even after calling from floor.

If at the AGM you are unable fill the minimum number of committee members the body corporate can consider a motion to appoint a body corporate manager in place of the committee. The motion can be on the agenda for the AGM or otherwise the body corporate must call an EGM to attempt to fill the vacancies.

Do you have a link or direction where I can find the code of conduct for the standard module?

The code of conduct for committee voting members is Schedule 1A of the BCCM Act.

Just to clarify, if there are only 6 committee members elected at an AGM can a 7th be brought in later or does 6 become the maximum for the year?

You must attempt to reach the maximum number of committee members for your scheme at the AGM. If you are unsuccessful but have at least reached the minimum number 3 you continue with that number for the remainder of the year. You cannot add extra members throughout the year unless there is a vacancy (i.e. someone resigns or sells).

I understood that 1 person could hold a maximum of 2 executive positions, can you please confirm 1 person can hold all 3?

A person can hold 1, 2 or 3 executive positions at the same time.

Do executive members have more voting rights compared to a committee member?

No, each voting committee member regardless of their position has one vote.

If our AGM is in February 2021 do we still operate under the expiring Standard Module?

Yes, if you hold your meeting before 1 March 2021 the expiring Standard Module applies. If you call the meeting prior to 1 Match 2021 and the meeting is held after 1 March 2021 the expiring Standard Module still applies.