Committee Code of Conduct

COMMITTEE CODE OF CONDUCT EXPLAINED

Committee Code of Conduct Explained

A committee member who has the ability to vote is subject to a code of conduct. Committee members must have an understanding of the Body Corporate and Community Management Act 1997 (BCCM Act) and the code of conduct and must comply with the BCCM Act.

They must also act in the best interests of the body corporate, not cause a nuisance or attempt to exercise their vote or attempt to influence when they have a conflict of interest.

Committee Code of Conduct

Voting members of body corporate committees in Queensland have been bound to observe a Code of Conduct since 2007. This code contains six rules, which require those committee members:

1. To be committed to acquiring an understanding of the Body Corporate and Community Management Act 1997 (QLD) including the Code of Conduct for Committee Voting Members schedules 1A, 2, and 3.

2. To act honestly and fairly and not to unfairly or unreasonably disclose information held by the body corporate, including information about an owner, unless authorised or required by law to do so.

3. To act in the best interests of the body corporate, unless it is unlawful to do so.

4. To take reasonable steps to comply with the Act, including the code, in performing their duties.

5. Not to cause a nuisance on scheme land or otherwise behave in a way that unreasonably affects a person’s lawful use or enjoyment of a lot or common property.

6. To disclose to the committee any conflict of interest the member may have in a matter before the committee.

How Much Does a Committee Member Need to Understand the Act?

Even though no professional development experience is required by the Act, we recommend taking the necessary steps to be fully prepared.

• Undertake a course to understand the role of the committee

• Appoint a reputable body corporate management company

• Subscribe to industry educational newsletters

• Attend educational seminars put on by industry experts

What does it mean to act fairly and in the groups best interest?

What a person considers fair or reasonable can vary significantly to another, especially and when a committee is voting on homeowners’ largest assets, their home.

Disputes can arise as the committee to the body corporate are akin to a director making decisions for a company in the interest of shareholders.  A director has a duty to not breach, misuse or abuse their power.  Things like using confidential information improperly for personal gain, making secret profits or misusing the company’s assets.

Questions that committee members should ask when voting on a motion are:

1. Will my vote impact the outcome in a way that I will benefit unfairly?

2. If the decision is regarding a personal outcome, have I made sufficient disclosure?

3. Is this decision in line with legislation and for the best short- and long-term outcome to preserve the asset for all owners?

4. If a previous committee member made this decision, would it be for everyone’s benefit?

5. Do I have a relationship with the third party being considered for the works?

6. Am I discriminating based on nonfactual information regarding the decision?

When in doubt disclosure and abstaining are best practice.

Best interests of the body corporate

Acting in someone’s best interest is to take certain steps or follow rules that engender trust and ensure the community will be maintained and flourish. To act in the best interests of the body corporate requires a committee member to take an objective view as they are voting on behalf of all owners.

Disclosure 

The preferred interpretation is that the prohibition on disclosing information applies unless:

• It is fair and reasonable to disclose the information.

• The disclosure is authorised (presumably by the committee).

• The disclosure is required by law.

If there is any doubt, the safest course would be for the committee to pass a general authorisation in relation to information that is not specifically identified by the committee as being confidential. It must be kept in mind that committee members are elected representatives and part of their role is to keep their constituents informed about what is going on. This flow of information is also essential to open communication and smooth governance, and this should add weight to a “fair and reasonable” argument.

Conflict of interest

A conflict between personal and professional interest is where a decision maker can sway the outcome towards their personal gain over the gain of the whole.  It is essential committee members are seen to be making impartial decisions, which is done through following the correct communication channels and giving clear and explained information on decisions made.

You can read our prior publication with more details on this topic Here.