The Body Corporate is a legal entity made up of all the owners in a scheme. Membership of the Body Corporate is compulsory and occurs automatically when a section is transferred into a buyer’s name. It continues until that person is no longer the owner of a section in the scheme. The Body Corporate exists to manage and control the scheme by ensuring that its financial, administrative and physical needs are attended to.
The functions of the Body Corporate include:
- running the ‘levy fund’;
- operating the scheme’s bank accounts;
- insuring the buildings for full replacement value;
- maintaining the common property;
- keeping owner records;
- providing various types of information;
- ensuring that there is an address where the scheme’s correspondence can be received;
- lodging notifications of rule changes with the Registrar of Deeds; and
- enforcing the scheme’s rules.
The way in which a Body Corporate makes decisions is by owner resolutions at duly convened meetings. The Annual General Meeting (“AGM”) is the principal meeting at which the Body Corporate makes important decisions such as electing Trustees, appointing an Auditor or Accounting officer, approving the budget of expenditure for the following year and any other decisions that may be necessary because of the inclusion of items of special business on the agenda.
In the time between AGM’s, Special General Meetings of owners may be called by the Trustees, or by the Owners themselves in certain circumstances. These meetings arise if or when business needs to be considered and/or decided upon before the next AGM. Instead of calling a Special General Meeting, owners can also make certain decisions using the ‘round robin’ process, in which they sign a circulated text setting out the text of the resolution.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
