Body corporate matters

Lin asks:
(updated on Tuesday, April 16th 2013)

I have an apartment in a building managed by a body corporate. At the usual annual meeting only 25% of the landlords vote and the annual accounts are approved in a second session having the body corporate manager collecting proxies and practically approving his own activity and accounts. Is this situation legal? It looks like the body corporate manager looks after just the few landlords acting as the body corporate committee. Is there any responsibility over the body corporate to require for example an annual quote to see if the body corporate manager is really offering a good deal to the building?  Is there any association protecting the landlord against the abuse of body corporate and its manager?

Our Experts Answer:

Conflict matters such as the one you have raised are prevalent amongst unit owners and body corporates. It is up to the owners when they appoint their executive committee (EC) members (also known as owners committee) to vote for those members whom they consider to be trustworthy, accountable and transparent. Owners with issues surrounding particular EC members need to discuss those issues with other members, and/or lobby for votes to remove that secretary from the committee or not vote for that particular person at the AGM when the EC members are next appointed, should they consider that that person is no longer fulfilling their duties with integrity and in the interests of the owners. Ultimately, if there are serious issues where the secretary is not appropriately carrying out his or her duties or acting in the best interests of the body corporate, an owner may file an application in the tenancy tribunal to have that secretary removed. In regards to proxy votes in favour of a body corporate secretary or committee member there have been a few high court cases that set a precedent, in these cases the judge ruled to void the proxy votes held by the body corporate secretary who voted for themselves retaining the management.  If you would like details please feel free to contact me directly.

Most Read

Unity First Home Buyer special 3.99
SBS FirstHome Combo 3.99
ICBC 4.25
Co-operative Bank - First Home Special 4.35
Co-operative Bank - Owner Occ 4.45
TSB Special 4.49
ANZ Special 4.49
ASB Bank 4.49
SBS Bank Special 4.49
Unity Special 4.49
Westpac Special 4.49
TSB Special 4.00
Kiwibank Special 4.49
Kainga Ora 4.49
Nelson Building Society 4.59
ICBC 4.59
Unity Special 4.65
SBS Bank Special 4.69
ANZ Special 4.69
BNZ - Std 4.69
Westpac Special 4.75
ASB Bank 4.75
ICBC 4.99
Kainga Ora 5.15
SBS Bank Special 5.29
Westpac Special 5.29
BNZ - Std 5.29
Kiwibank Special 5.39
TSB Special 5.39
ASB Bank 5.45
AIA - Go Home Loans 5.45
Co-operative Bank - Owner Occ 5.49
BNZ - Classic 5.59
SBS FirstHome Combo 3.29
AIA - Back My Build 3.34
SBS Construction lending for FHB 3.74
CFML 321 Loans 3.95
Co-operative Bank - Owner Occ 4.99
Co-operative Bank - Standard 4.99
Heartland Bank - Online 5.30
ICBC 5.39
Kiwibank - Offset 5.65
Kiwibank 5.65
Kainga Ora 5.69