Who Makes the Decisions in a Body Corporate?

November 2023

Read Time: 3 Minutes

Who is Responsible for Decision-Making in a Body Corporate?

Body corporate decisions are made by unit owners or their representatives on the Body Corporate Committee. Owners gather to discuss and vote on matters of importance to the body corporate at least once a year at an Annual General Meeting (AGM). The body corporate also delegates tasks to their Body Corporate Committee. Committee members are principal unit owners who have been elected by the members of the body corporate.

How are Decisions Made in a Body Corporate?

During an AGM, the majority of decisions are made by ordinary resolution, which requires at least 50 percent of votes to pass. Decisions are made by special resolution if there is a significant effect on unit owners, such as changes to body corporate fees or the borrowing of money. A special resolution needs at least 75 percent of votes to pass.

The Body Corporate Committee makes decisions by majority vote.

Find out more about How Decisions Are Made in a Body Corporate.

What’s the Difference Between AGMs and EGMs?

An AGM (Annual General Meeting) is a meeting of all of the members of the body corporate, called in accordance with the requirements of the Unit Titles Act. A body corporate must have at least one Annual General Meeting a year. The members meet annually to elect a Body Corporate Chairperson and also a Committee who are in charge of the body corporate between General Meetings. At the AGM the owners also discuss and revise the budget. The owners then vote on a resolution to approve the budget, and where necessary raise the levies in instalments that will match the timing of cash requirements.

An EGM (Extraordinary General Meeting) is any General Meeting of the body corporate other than the AGM. When certain types of major issues crop up, an EGM may be called so everyone has a chance to get together and make a decision. According to the Unit Titles Act, only the Chairperson, Committee or owners representing not less than 25 percent of the principal units can call an EGM.

Here’s all you need to know about Preparing for Your Body Corporate AGM.

When Can’t Owners Vote at an AGM?

Body Corporate members can only vote at an AGM if their body corporate fees (also known as levies) are up to date, making it important to keep payments current.

Is it Important to Attend AGMs?

Each member contributes significantly to the effective operation of the body corporate. Your attendance at meetings is appreciated, so it's important to attend meetings when at all possible. If you are unable to attend a meeting, you can nominate and be represented by another person, or vote by post, to ensure your voice is still heard.

New provisions of the Unit Titles (Body Corporate Governance and Other Matters) Amendment Act are now in effect including the ability for members to virtually attend meetings.

Read more about the New Provisions of the Unit Titles (Body Corporate Governance and Other Matters) Amendment Act.

How Crockers Can Help

If you would like to find out more about playing your part in the decision-making process or body corporate meeting rules, contact Crockers’ Community Living experts on  09 968 3311 or email  bc@crockers.co.nz


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