Running a Small Body Corporate Yourself

MBIE: "A property with 9 units or less doesn't need a committee. It can decide to set one up by ordinary resolution." A body corporate "can also hire a manager". Only large developments, with 10 or more principal units, must engage a manager, and even they can opt out by special resolution.

If you do hire a manager, MBIE says "responsibility remains with the chairperson or committee". A manager's contract must cover reporting, the code of conduct, performance reviews, how the contract ends and what records and money are returned.

• The body corporate elects a chair at each AGM. Anyone elected holds office until the end of the next AGM and can be re-elected.
• The chair prepares agendas, chairs meetings, keeps minutes and financial records, signs documents and keeps the register of unit owners.
• Candidates must be unit owners with no overdue levies.
• If the chair resigns, the body corporate must hold an EGM to replace them. The chair can be removed by ordinary resolution at an EGM, with a new chair elected at the same meeting.
• If the body corporate sets up a committee, its members must follow a code of conduct to act honestly and fairly, keep an interests register, and send minutes to every owner within 1 month of each meeting.

• AGM once every calendar year and no more than 15 months after the last one.
• Quorum: at least 25% of eligible voters and at least 2 members, not counting owners with levies owing. Without a quorum, the meeting is adjourned to the same day a week later.
• Ordinary resolution: more than 50% of votes. Special resolution: 75%. A poll weights votes by ownership interest.
• A resolution can be decided without a meeting on Form 13: an ordinary resolution signed by a majority of eligible voters, a special resolution by 75% of eligible voters.
• Owners can vote by post on Form 12 or by proxy on Form 11, attend online, and vote electronically.
• Voting records and proxy forms are kept for 28 days after the meeting.

• An operating account is required.
• A long-term maintenance fund is required unless the body corporate opts out by special resolution, and an opt-out must be reviewed every year.
• The long-term maintenance plan covers at least 10 years and is reviewed at least every 3 years. It must summarise the current state of the common property and state how the plan will be funded. MBIE publishes a template for developments of fewer than 10 units.
• The body corporate records every transaction and prepares annual financial statements on Form 17. The audit is required unless the body corporate opts out by special resolution.

Since the 2022 amendments, bodies corporate must keep these for at least 3 years, on paper or electronically: bank statements, financial statements and audit reports, levy records, the long-term maintenance plan, remediation and earthquake-prone reports, the register of owners, notices, agendas and minutes, the chair's contact details, current insurance policy details, court and tribunal papers, the operational rules, warranties, conflict of interest registers and service contracts. A document that does not exist need not be created. MBIE can ask for documents and must receive them within 10 working days.

The seller gives the buyer a pre-contract disclosure statement before signing and a pre-settlement disclosure statement at least 5 working days before settlement. A small body corporate's records feed both: levies, fund balances, the last 3 years of financial statements and minutes, the maintenance plan and the insurance summary. MBIE's pre-settlement template ends with a certificate from the body corporate signed by the chair.