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The decision making power of the committee is defined by what it cannot do. It may make any decision of the body corporate except for decisions the Body Corporate and Community Management Act says it cannot make. The decisions it cannot make are called “restricted issues” (Standard Module Section 26). This means that the committee can do anything that is otherwise within the power of the body corporate, except for the following matters that can only be decided at a general meeting –
- Fixing or changing the body corporate contributions for the year
- Changing rights, privileges or obligations of the owners of lots in the scheme
- Matters that the body corporate at general meeting has decided must only be considered at a general meeting (i.e. reserved issue)
- Matters set out in the Act as requiring an ordinary resolution, a special resolution, a majority resolution or a resolution without dissent
- Certain litigation matters
- Certain payments to members of the committee (Standard Module 42(1)(f) & 43(1)).
While there is a general prohibition on the committee’s power to commence litigation, the committee can start proceedings to (Standard Module Section 42(1) (e)) –
- Recover a liquidated debt against the owner of a lot
- Counter claims or other third party proceedings to which the body corporate is already a party
- Enforce by-laws
- Enforce adjudicator’s orders.
The limitation on committee expenditure is calculated by multiplying the number of lots in the scheme by $200.00. Where the scheme is a principal scheme the total number of lots is taken to be the total number of lots for all the subsidiary scheme added together.
However, the limit can be increased unconditionally, if authorised by ordinary resolution of the body corporate.
There may arise circumstances where the relevant limit for committee expenditure is greater than the relevant limit for major expenditure. The committee will be compelled to obtain at least two quotations prior to resolving a motion to spend above the relevant limit for major expenditure.
A copy of the two quotations must be retained as an attachment to the minutes of the meeting where the quotations were considered.
