Owners corporation (OC) committees play a vital role in the management of OCs. They support fair processes and clear decision-making, oversee everything from financial reporting and annual general meetings (AGMs) to maintenance and repairs, and help lot owners manage disputes.
But something the Above OCM team are often asked is whether every OC needs a committee.
It’s an important question to explore. Below, we cover when OC’s require a committee, how the committee can and cannot act, and how to get started with electing your own OC committee.
Does Every Owners Corporation Need a Committee in Victoria?
In Victoria, any OC with ten or more lots must elect a committee at each AGM. Smaller OCs aren’t legally required to do so, but forming one voluntarily is still a smart move. If an OC with fewer than ten lots opts not to have a committee, lot owners must still elect a chairperson at a minimum.
A professional OC manager can make a real difference for committees of any size. From collecting fees and organising meetings, they handle the day-to-day so your committee can focus on the bigger picture.
Larger OCs benefit from the capacity that professional OC managers bring to the table, but smaller ones gain just as much from the expertise and peace of mind they provide.
What are the Powers of an Owners Corporation Committee?
OC committees play a significant role in the management of day-to-day operations. This can include things like:
- Overseeing routine activities of the OC to ensure smooth and efficient functioning, such as cleaning, gardening and facilities services.
- Making decisions on behalf of lot owners when needed, especially for things like maintenance and repairs.
- Handling financial oversight, such as preparing and managing budgets, collecting fees, and appropriately managing common property expenses.
What are the Duties of an Owners Corporation Committee?
OC committee members need to be available to attend AGMs and any other special meetings as required while they serve on the committee. Committee members are typically required to serve for the full year until the next AGM, though they can be re-nominated, and there is no maximum term any one member can serve.
Because of the powers they hold to make decisions on behalf of the entire lot, OC committee members need to be upstanding members of the entire subdivision and committed to acting in the best interest of all. This includes:
- Exercising due care and diligence.
- Acting honestly, transparently and openly, including being up front about any conflicts of interest.
- Not abusing their committee powers or role in the committee to gain personal advantage.
What are the Limits of an Owners Corporation Committee?
OC committees hold significant responsibilities while they’re in place, but there are also certain limits to what they can and can’t do. This includes:
- Not being able to make decisions that require special or unanimous resolution from the OC lot owners.
- Agreeing or deciding on certain matters outside of the AGM.
OC committees are required to hold an AGM once a year, and no more than 15 months apart. This is a requirement of the committee and ensures that lot owners are kept in the loop on major decisions and have a role in selecting who regularly serves on the committee.
How to Establish an Owners Corporation Committee
For small OCs that have never had a committee before, the first step is to hold an AGM and invite all lot owners to attend, letting them know in advance that you’re planning to create a committee. Before or during the AGM, lot owners should have the opportunity to nominate themselves or others for committee positions.
Once nominations are received, the election of committee members can take place. A valid OC committee must consist of between three and twelve members, all of whom must be lot owners or hold a proxy for a lot owner. If nominations exceed twelve, a formal ballot should be conducted to determine who will serve on the committee.
Key roles, including a chairperson and a secretary, should be defined, with all members holding office until a new committee is elected at the following AGM.
Working with a dedicated OC manager can make this entire process significantly smoother and less stressful. From organising the AGM to guiding nominations and ensuring elections are conducted correctly, professional support can save time and ensure compliance at every step.
Looking for support and guidance on all things OC committees? Above OCM can help. Contact us today.
