- Body corporate rules – a body corporate can either keep its existing Schedule 2/Schedule 3 rules or elect for the rules to be replaced with the operational rules under the UTA 2010 (awaited in Regulations) and section 138 (which contains the new repair and maintenance responsibilities). In making this choice a body corporate will need to consider:
* the role of the secretary – under the UTA2010 now one of the service contractors to the body corporate
* committee make-up, appointment and procedures – is the body corporate ready for the change?
* AGM procedures – again, is the body corporate ready for the change?
* existing body corporate rules – are the existing rules all covered in the UTA 2010 and new Regulations, do the existing rules remain appropriate of not, are there any ultra vires issues that need resolving in the rules? A review of the rules will be needed and consideration given to what, if any, additional rules should be put in place.
* repair and maintenance – is the body corporate ready for the additional responsibilities under section 138 and has it been budgeted for?
- Long term maintenance plan – a long term maintenance plan will be required at the end of the transitional period. The only decision therefore is when to start. A body corporate might consider delegating this to the committee to get it ready in time.
- Long term maintenance fund – a body corporate has a choice whether to set up this fund or not. The UTA 2010 will require it at the end of the transition unless a body corporate has opted out by special resolution.
There are many other provisions that need to be considered when the UTA2010 is first passed. In following posts I’ll cover this, including what would be a useful agenda for a first AGM.
In terms of these transitional arrangements, watch the timing. A first AGM will need to be convened within 6 months of the UTA2010 being passed. The transitional arrangements above apply for 15 months from the first day of the month following the UTA2010 commencing. In general body corporate meetings are needed once every calender year and not later than 15 months after the previous one. If the decisions above are not covered in the first AGM then the following AGM might be too late and the default position will apply, or an extraordinary general meeting could be convened to get the necessary resolutions passed.