The success of every body corporate depends greatly on the skill of the committee and the harmony with which the committee discharges its responsibilities. 

The recent changes to the BCCM Act and Regulations mean that some issues concerning composition and operation and the committee need reviewed. 

It is important that investor owners are part of the committee and the decision-making process, especially in buildings where most owners are investors.    

Many thousands of Australian investors have bought into both holiday and permanent letting properties in Queensland but have been chosen not to nominate for the committee because they cannot afford time to travel to committee meetings.  

The Queensland Resident Accommodation Managers’ Association (QRAMA) President Kim Cox points out that the Regulations do not prohibit the use of telephone hook-ups or other technologies for the conduct of committee meetings.   There are opportunities for an absentee owner to be a member of the body corporate committee and to help determine the management priorities for the community titled building. 

"So often in the past, the management committee compromised the owner occupiers who were mainly interested in maintaining the property as individual domestic living areas and keeping the levies as low as possible.  They had little interest in maximizing the investment potential of the property and attracting holiday guests or permanent tenants to the building,” he said. 

“The result of this narrow approach is that in buildings that have mainly investor owners, at times only owner occupiers are committee members because they are the only owners who can attend committee meetings.” 

Mr Cox said that there are more than 50,000 apartments in community title buildings that are let by resident letting agents for holiday purposes, generally on a self-catering basis. 

The great variety and flexibility of accommodation types available in Queensland have  been a feature of the industry.  Mr Cox said that this type of accommodation has attracted a significant investment in holiday accommodation in Queensland and the industry, with more than $10 billion in property investment; a noteworthy economic impact on the tourism industry. 

He said there continues to be significant investment interest for these properties and broadening the opportunities for committee representation can greatly enhance the services and the capital appreciation of the building as a whole and thus the individual units. 

The Regulations are silent on using telephone conferences or other media for the conduct of a committee meeting.  The Regulations do not prohibit telephone or other media links nor do they require each committee member to be physically present in the room where the meeting is held. 

For many investor owners to be elected to a committee, more flexible meeting procedures are needed.  With the removal of the resident manager as a voting member in the accommodation module, the issue has become more significant. 

The Regulations do not restrict how committee meetings may be held.  General understanding is that reasonable alternatives are permitted provided they are not prohibited in an Act or Regulation.  Some owners and some body corporate managers, however, have taken a literal interpretation of the Regulations and oppose any practice that is not described.  The body corporate manager and the resident manager must now abide by a Code of Conduct, which is part of the Act.  Among other requirements, both "must act in the best interests of the body corporate" and "must exercise reasonable skill, care and diligence in performing" their functions.  Encouraging a proper representation of owners to reflect the needs of all owners would seem to be a requirement of the Code as would be the use of technology to improve the functioning of the body corporate.    

In some buildings that have mainly investor owners, only owner-occupiers are committee members because they are the only owners who can attend committee meetings.  Clearly this structure does not provide a fair and representative committee and the interests of all owners are not adequately addressed.  These buildings are not using the skills of investor owners in their management. 

While there is provision for a committee member to ask for reimbursement of some expenses to attend committee meetings, many owners do not have time available for travel but are prepared to be committee members if commonly available communication options are used. Provision of proper communication facilities for the conduct of meetings is usually more cost effective that having people travel. 

 The real issue is about good governance.  The corporate world and the government regularly report their changes that reflect improved practices for better governance.  The operation of community-tilted schemes should be no different. 

Some committees already operate in this manner and find it quite successful.  QRAMA conducts all State Executive meetings with telephone hook-ups to members in Cairns and Port Douglas.  It is an effective means of inclusion. 

Electronic meetings by voice and visual are part of the Government's own network.  We see more public companies conduct their AGMs by satellite TV so more shareholders can be involved.  The practices are being increasingly used in many areas. 

The process for telephone conference meetings is quite straightforward.  A meeting time and venue is set and those who are unable to physically attend can request a telephone or other media link. 

Already in the legislation for the conduct of general meetings, the scope of technology is acknowledged where members are encouraged to participate by submitting voting papers.  Any member who submits a voting paper is considered to be present for the purposes of a quorum, which is all extremely sensible and practical. 

The Regulations accept electronic voting and have quite appropriately not defined or confined how such a practice would work.  The significant issue is that electronic voting is allowed. 

Using various available media for the conduct of a committee meeting should be no different.  Groups with a greater spread of views and interests would then be involved, which should be in the best interests of every fair-minded body corporate. 

The challenge for the resident manager and body corporate manager is to apply their obligations under the BCCM Code of Conduct and assist the body corporate address the issues of good governance.  This may involve better and different forms of communication for committee meetings.