Body Corporate Manager Carrying Out the Functions of the Committee and its Executive Members

Where the owners of the lots fail to provide adequate numbers of committee members then the body corporate may, at a general meeting by a special resolution decided by secret ballot, appoint in place of the committee a body corporate manager to carry out all the functions of the committee and each executive member of the committee (Standard Module Part 5).

The body corporate manager may only be appointed in place of the committee and the executive members under the following circumstances (Standard Module Section 122)–See Also Section 120.

• If one executive committee position is not filled at the annual general meeting or an extraordinary general meeting called under Standard Module Chapter 3 Part 5 to fill committee positions not filled at the annual general meeting or a general meeting called under Standard Module Section 58 to fill committee positions where the number has dropped below a quorum.
• If there are less than three voting members of the committee elected at the annual general meeting or an extraordinary general meeting called under Standard Module Chapter 3 Part 5 to fill committee positions not filled at the annual general meeting or a general meeting called under Standard Module Section 58 to fill committee positions where the number has dropped below a quorum.
• The motion may be considered at any general meeting if there are only two lots in the scheme or if there is only one or two owners in the Scheme.
• The original owner control period must have expired.
• Proxies may not be used for the motion.
• The contract appointing the body corporate manager must be included in the meeting material.
• There must be an explanatory note that explains the nature of the appointment of the body corporate manager. (See Section 58 (2) (d) (i) & (ii)
• The motion to appoint the body corporate manager must be the last item of business considered at the general meeting.

Where there may be a committee member elected at a general meeting, and then at the end of the meeting, a proper motion is passed appointing a body corporate manager to perform the functions of the committee and its executive members, then the election of those committee members does not take effect.  The body corporate manager replaces them.

Where the motion to appoint a body corporate manager in place of the committee is passed, but earlier in the meeting a motion was passed appointing a body corporate manager under the usual terms and conditions, then to the extent that the two appointments may conflict, the appointment in place of the committee takes precedence (Standard Module Section 58).

An appointment of a body corporate manager to perform the functions of the committee ends at the earlier of the close of the next annual general meeting, or 12 months after the day of engagement. (Standard Module Section 60 (1).

Irrespective of the terms of the engagement, the body corporate manager may not exercise the power to consent to a new community management statement. This consent must always be given at a general meeting (Body Corporate and Community Management Act Section 62(7)).  Also the body corporate manager must not appoint a person as a committee member (Section 60 (3)).

Any body corporate manager appointed under Part 5 has stringent reporting duties set out at Section 62.  Upon request by 50% of the owners, or alternatively at least within 3 weeks of the end of each 3 months after the date of the appointment the body corporate manager must give to the owners a report on the administration of the scheme containing at least the following content –

• Details of the body corporate repairs and maintenance proposed to be carried out in the next 3 months
• Details about any matters known to the body corporate manager about the  condition of the common property, or future maintenance
• The balance of the administration fund and sinking fund and a reconciliation statement for each fund (See Standard Module Section 101A)
• The list of amounts, payees, dates, and reason for each of the body corporate expenses for the previous 3 months
• The list of decisions of the body corporate manager made under the appointment. Note that this list is a complete list for all decisions made, and not just those for the previous 3 months, like all the other information in the report. This seems inconsistent with the other parts of Section 62.