There are three codes of conduct under the BCCM Act in schedules 1A, 2, and 3. These codes of conduct are for committee voting members, caretaking service contractors and body corporate managers, and letting agents.
A committee member who has the ability to vote is a committee voting member and is subject to a code of conduct. Such a member must have an understanding of the BCCM Act and the code of conduct and must comply with the BCCM Act. They must act with honesty, fairness and confidentiality. They must also act in the best interests of the body corporate, must not cause a nuisance, and must avoid a conflict of interest.
Although a committee member is a volunteer, they must act in accordance with the code of conduct. This is enforceable by making an application to the Commissioner’s Office. The biggest part of this is to act in the body corporate’s best interests and to avoid a conflict of interest. If a person is on the committee, they must always put the body corporate first and must disclose and never vote on anything they have a personal interest in. In other words, a committee member can never use their position to benefit themselves, ever. Apart from the fact that it contravenes the BCCM Act, it might also have significant consequences such as an action against the committee member personally for a breach of fiduciary duty.
Apart from any personal action a lot owner or body corporate might have against a committee member for breaching the code of conduct, s 101B of the BCCM Act says that if a committee voting member breaches the code of conduct, then they may be removed from their position. This would require a general meeting of the body corporate to remove the person from their position on the committee.
This article is intended as general information only and should not be relied upon as legal advice. For specific legal advice please contact us here.