The Purpose of the Body Corporate

Your body corporate exists solely to manage those issues of necessary and mutual interest to all the owners. These matters fall into two categories:

• Physical property issues, and
• Issues related to the actions of occupants and owners.

Physical property includes gardens, common building structures, and shared assets such as pool furniture.
The issue of occupants’ actions relates to behavioural matters, such as noise and parking, where the actions of one particular owner or occupier may impact on one or more of the residents.

Legislatively, bodies corporate have deliberately been given only a very limited purpose (Body Corporate and Community Management Act Section 94). They must –

• Administer the common property and the body corporate assets for the benefit of the owners of lots included in the scheme. The body corporate must maintain common property in good condition, including, to the extent that common property is structural in nature, in a structurally sound condition.
• Enforce the community management statement (including by-laws affecting the common property). 
• Carry out other functions given to the body corporate under the Body Corporate and Community Management Act and the community management statement.

In undertaking these tasks your body corporate must act reasonably at all times.

The body corporate is not legally able to do anything other than fulfil these mandatory responsibilities. In performing its mandatory responsibilities however, your body corporate can enter into contracts, employ staff and generally deal with property. The body corporate is not like a commercial company; it cannot conduct business, such as a letting agency, tour operation or restaurant., although the body corporate may engage in business activities (like investing funds) necessary to discharge its other functions. (Body Corporate and Community Management Act Sections 95 & 96).

Body Corporate and Community Management Act Section 94: Body corporate’s general functions

1. The body corporate for a community titles scheme must—
   1. administer the common property and body corporate assets for the benefit of the owners of the lots included in the scheme; and
   2. enforce the community management statement (including any by-laws for the scheme); and
   3. carry out the other functions given to the body corporate under this Act and the community management statement.
2. The body corporate must act reasonably in anything it does under subsection (1) including making, or not making, a decision for the subsection.

Body Corporate and Community Management Act Section: 95 Body corporate’s general powers

1. The body corporate for a community titles scheme has all the powers necessary for carrying out its functions and may, for example—
   1. enter into contracts; and
   2. acquire, hold, deal with, and dispose of property; and
   3. employ staff.
2. Without limiting subsection (1), the body corporate has the other powers given to it under this Act or another Act.

Body Corporate and Community Management Act Section: 96 Body corporate must not carry on business 

1. A body corporate must not carry on a business.

   Examples—
   A body corporate must not carry on business as—