Update: Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Bill
The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Bill (the Bill) is a member’s bill, which the Government is supporting.
The Bill includes amendments to:
- improve the information provided to prospective buyers of units,
- strengthen the governance arrangements in relation to a body corporate,
- increase the professionalism and standards of body corporate managers, and
- ensure that planning and funding of long-term maintenance projects is adequate.
As part of the Parliamentary process, the Bill was referred to the Finance and Expenditure Committee who have published their report and recommended changes to the Bill, taking into account the views of submitters.
The changes recommended by the Committee include:
- Retaining pre-settlement disclosure.
- Removing the limit on proxy voting.
- Removing restrictions on remote attendance at body corporate meetings and providing that members can vote electronically in advance of a meeting.
- Allowing large developments to opt out of the requirement to employ a body corporate manager by special resolution.
- Removing the requirement for the body corporate manager to be a member of an industry association and instead inserting a code of conduct in the regulations that will apply to all body corporate managers.
- Modifying the long-term maintenance (LTM) plan requirements to require medium and large developments to have a 30-year LTM Plan comprising of detailed cost estimations for the first 10 years and a high-level indication for the following years.
- Allowing all bodies corporate to opt out of LTM Funds by special resolution, clarifying that bodies corporate can decide on the level of funding contained in the LTM Fund, and requiring bodies corporate to specify how their LTM Plans will be funded.
- Reducing application fees to the Tenancy Tribunal, and removing the complex / non-complex fee structure.
- Increasing the Tenancy Tribunal’s jurisdiction to $100,000.
- Adding enforcement tools for the regulator (the Ministry of Business, Innovation and Employment).
You can read the Finance and Expenditure Committee’s report on the Parliament website.
Follow the progress of the Bill on the Parliament website.
Published: December 3, 2021