Disclosing commissions, payments or other benefits

If certain people in a body corporate get a commission, payment or other benefit, they must disclose it to the body corporate.

This page has information about:

• insurance details to disclose at annual general meetings
• non-voting committee member disclosures
• committee disclosures.

Insurance disclosure at annual general meetings

At the annual general meeting, your body corporate must disclose information about any insurance policy being considered.

This information must be attached to the meeting notice or the proposed administrative fund budget.

The details must include information about the insurance policy, including:

• the amount of cover under the policy
• a summary of the type of cover
• the premium amount
• the excess payable if a claim was to occur
• the date the policy expires.

Other details that must be included are:

• the name of the insurer
• the name of any insurance broker or intermediary involved in obtaining the policy
• the amount, type and provider of any benefit that has or will be given—by the insurer, broker or intermediary for the insurance being taken out—to any of the following
  • the body corporate
  • a member of the body corporate
  • a member of the committee for the body corporate
  • a body corporate manager or service contractor
  • an associate of a body corporate manager or service contractor.

Non-voting committee member disclosures

Body corporate managers and caretaking service contractors for a body corporate are non-voting members of the committee.

Non-voting committee members must disclose commissions, payments or other benefits they are entitled to receive if a body corporate were to enter a contract.

New and existing body corporate managers or caretaking service contractors should ensure they know about contracts a body corporate:

• has entered into
• is thinking about entering into.

This is so they are aware of the disclosure requirements and can comply with them. It is an offence not to comply. The Magistrates Court can impose a fine of $3,000 or more.

Commissions, payments or other benefits

Before the body corporate decides on a contract, non-voting committee members must give written notice if they are to receive a commission, payment or other benefit. If the benefit is monetary they must disclose the amount they will get.

Existing contracts with an associate

At times, a body corporate will be in a contract with a supplier for goods and services. If a non-voting committee member is an associate of that supplier they must tell the body corporate they are connected when they become aware of the contract. The notice must be given in writing, and it must identify the contract and state the relationship with the supplier.

Entering a contract with an associate

If a body corporate is thinking about entering a contract with a supplier for goods and services, a non-voting committee member must disclose if they are the supplier’s associate. They must do this before the contract is voted on. This notice must be given in writing.

Committee disclosures

Committee members are bound by different disclosure requirements.

A committee member can only get a benefit from a caretaker or service contractor if the body corporate authorises it. The member must disclose the benefit to the body corporate. The body corporate can then authorise the benefit by ordinary resolution at a general meeting.

They must also disclose if they have a direct or indirect interest in a matter being decided by the committee that could affect the way they do their duties. If they have a conflict of interest, they must tell the committee and not vote on the issue.