CODE OF CONDUCT FOR BODY CORPORATE COMMITTEES

Body corporate committees will be subject to a Code of Conduct under legislation passed by Parliament today.

Fair Trading Minister Margaret Keech said the Body Corporate and Community Management and Other Legislation Amendment Bill would also strengthen the statutory Code of Conduct for body corporate managers.

“Bodies corporate will have the power to enforce the Code of Conduct against a voting committee member by removing that member from office,” Mrs Keech said.

“Most bodies corporate are required to elect a committee with responsibility for day-to-day administration.

“Clearly, a committee has a significant and important role in the ongoing management of a body corporate.

“Stakeholders have expressed concern about the conduct of committees. In particular, it is claimed that many committee members do not understand their roles and do not act in the best interests of the body corporate.

“It is apparent that these issues contribute to the cause and escalation of body corporate disputes.”

Mrs Keech said the Code of Conduct provided guidelines for voting committee members without increasing their existing obligations.

The Code requires committee members to:

• understand the Act;
• act honestly;
• disclose to the committee any conflicts of interest; and
• ensure their behaviour does not affect a person’s enjoyment of common property.

Mrs Keech said the Code of Conduct for body corporate managers would also be strengthened and she would develop a regulatory regime for managers.

“A body corporate manager is engaged by a body corporate to provide administrative services, such as secretarial or financial management services,” she said.

“The Body Corporate and Community Management legislation includes a number of consumer protection provisions regulating the relationship between body corporate managers and bodies corporate, including a Code of Conduct for managers.

“Concerns have been expressed about the competence, performance and conduct of some managers.

“At present, a manager is not subject to a specific regulatory or licensing regime, although my Department is currently considering possible regulatory options.

“The statutory Code forms part of the manager’s contract and includes obligations to act honestly, fairly and in the best interests of the body corporate.

“This Bill includes a requirement that managers must not attempt to unfairly influence the outcome of body corporate committee elections.

“It has been alleged that some managers influence the election of members so they can manipulate committees for their own purposes.

“This proposed amendment will swing the pendulum back in favour of the residents.”

Media contacts: Jo Gibbons 3224 2007 or David Smith 3225 1005