The Qld Government needs to legislate a set of clear preconditions for a lot owner in a strata scheme becoming a member of the Body Corporate Management Committee.
The current problem is that any lot owner can stand for and be elected to a member of a Body Corporate Management Committee, by popular vote despite not having:
- any or sufficient experience, qualifications or training in how to interpret legislation and By-laws;
- the necessary cooperative leadership and communication skills;
- Critical knowledge and training in how to partake in good corporate governance; and
- A basic understanding of the rights of lot owners to seek to protect their own interests without being labelled disruptive complainers.
This absence of experience leads to management committee members making decisions that are more about their perceived power than their responsibility; a penny-pinching reticence to take proper legal advice when necessary; and, in lieu of proper legal advice, an imposition on their contracted strata management companies to perform what often is the role of legal advisers which, in itself, would be a breach of the law by those companies.
The Australian Institute of Company Directors offers company directors courses for people wishing to become directors of corporate entities governed by the Corporations Act, yet people wishing to fill the equivalent role in strata schemes have no equivalent/s.
This situation is entirely unacceptable, given the responsibilities of management committees in governing in complicated and high-density environments where a significant proportion of lot owners’ wealth is directly invested.
NSW has already addressed the problem with implementation of new laws expected to be implemented in mid-to-late 2026. Most notably, section 37(2) of the amended Strata Schemes Management Act 2015 (NSW) now prescribes a compulsory educational requirement for all members of a Strata Committee.
All members will be required to undergo mandatory prescribed training to ensure a sufficient understanding of their duties and obligations, plus their legal responsibilities as a committee member. Failure to undergo training will result in the cessation of one’s committee membership.
This NSW reform is key to improving strata governance, ensuring all committee members have the required knowledge to protect and uphold the interests of owners in a scheme. The NSW regulators say that it will promote better decision-making and reduce strata disputes as members are adequately informed and trained to make operational and financial decisions.
The Qld Government should subsidise the creation of short and easily affordable Management Committee Governance Course aimed specifically at the Body Corporate strata scheme market.
People wishing to stand for election to Management Committees should have to successfully complete this course before standing for election. Such an outcome would redefine the quality of interrelationships and governance decisions in Body Corporates in Qld.
For an obligation free discussion please call
Jim Wilson- senior solicitor
Owner, Better Business Lawyers- Gold Coast/Tweed
M: 0415 645121
E: jim@bblawyers.biz