What is a Body Corporate?
What is the Purpose of a Body Corporate?
- Physical property issues
- Issues related to people living together
Physical property includes gardens, common building structures and shared assets such as recreation clubs and tennis courts.
When people live together issues may include behaviour, noise and parking. Anything where the actions of one particular resident may impact on another.
Legislatively, bodies corporate perform only a limited purpose. They must:
- Administer the common property and the body corporate assets for the benefit of the owners of lots included in the scheme
- Maintain common property to the extent it is in 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 legislation, such as keeping records about its operations, meetings and owners.
The body corporate is not legally able to do anything other than fulfil these mandatory responsibilities. In performing these duties, the body corporate can enter into contracts, employ staff and generally deal with property. Unlike a commercial company, it cannot conduct businesses, such as a letting agency, tour operation or restaurant.
However, the body corporate may engage in any business activities necessary to properly carry out is functions (eg. investing funds).
How is a Body Corporate Financed?
There are two types of contributions set by the body corporate:
- The contributions to the administration fund.
- The contributions to the sinking fund.
How Does the Body Corporate Make Decisions?
- At a meeting of all the owners (a general meeting)
- At a meeting of the committee for the body corporate
No individual acting in isolation can make a decision.