Discussion paper on regulations to support the Unit Titles Act 2010: Part A - Required regulations
Part A includes:
Section 1: Governance structures
1.1 Register of unit owners (section 85 of the Act)
The Act requires the body corporate to keep a register of all unit owners in accordance with the regulations. The regulation making power in section 217(e) of the Act allows regulations to be made specifying information to be included in the register of unit owners. Accordingly, the regulations about the register will need to prescribe the content of the register. Previous consultation has also indicated it would be useful to regulate the uses of and any rights of access to the register.
The Privacy Act 1993 promotes and protects individual privacy. It sets out 12 information privacy principles, which guide how to collect, use, store and disclose personal information. The Privacy Act applies to almost every person, business and organisation in New Zealand and was a key consideration in developing the following proposals.
Proposals:
P1
The content of the register must include:
- full name of every unit owner
- unit number
- address for service for every unit owner
- contact details (phone number, email, fax with preferred contact method identified)
- ownership interest and utility interest
P2
Restrict the use of the register to access unit owners’ details to:
- advise of body corporate meetings
- advise of resolutions of the body corporate
- serve documents on unit owners
- advise of other important matters connected to the body corporate and the development.
P3
Only the chairperson of the body corporate committee or an individual approved by the body corporate can access the register.
Effect of proposals
Requiring a body corporate to keep an up-to-date register will ensure the body corporate is able to contact unit owners to advise of meetings and resolutions, serve documents and advise of any urgent maintenance issues.
Restricting use and access to the register for specific body corporate business will protect unit owners’ privacy and ensure that nobody uses their details for unauthorised purposes.
Questions
Q1 Do you agree with the proposals on the content, uses and rights of access to the register of unit owners? Is there anything else we should consider? If you disagree, please explain why.
Q2 What are the advantages and disadvantages of the proposals for you?
Q3 Will the proposals have any financial implications for you? If so, please explain, giving as much information as you can.
1.2 Election of chairperson (section 89 of the Act)
The Act requires the election of a chairperson. The role of chairperson under the Act is limited to:
- calling the annual general meeting and any extraordinary general meetings of the body corporate
- collecting postal votes or nominating someone to collect those votes for the chairperson.
The Act requires that at the first annual general meeting the body corporate must nominate and elect a chairperson in accordance with the regulations. Therefore, the regulations must prescribe the process for nominating and electing a chairperson.
You should read this section alongside Section 6.1 Election and duties of chairperson ***add hyperlink, which details possible regulations concerning the chairperson.
Proposals:
P4
Any unit owner may nominate any person to be the chairperson. The nominee for chairperson must agree to the nomination.
P5
The body corporate must decide who runs the election process (collecting the nominations, advising vote collecting and counting) by ordinary resolution. This person must not be a nominee, nominator or the incumbent chairperson.
P6
The body corporate must decide whether the voting is by secret or open ballot by ordinary resolution.
Effect of proposals
Having clear regulations for electing a chairperson ensures the process is transparent and fair.
In addition, having standard rules means all bodies corporate will be using the same, consistent process – this means new unit owners who have lived in other unit title developments will know how the process works.
Finally, people who live in unit title developments will have a clear idea of what the rules are and a better understanding of how the election process works.
Questions
Q4 Do you agree with the proposed process for electing a chairperson? Is there anything else we should consider? If you disagree, please explain why.
Q5 What are the advantages and disadvantages of the proposals for you?
Q6 Will the proposals have any financial implications for you? If so, please explain, giving as much information as you can.
1.3 Body corporate meetings (Section 90 of the Act)
The Act states that the body corporate chairperson must call annual and extraordinary general meetings in accordance with the regulations. This applies to any body corporate meeting, including meetings called by a parent body corporate in a layered development.
You should read this section alongside Section 6.3 Quorum requirements and voting at body corporate general meetings, which details other possible regulations that may impact on body corporate meetings.
Proposals:
P7
The chairperson of the body corporate must give a minimum of 21 days’ notice of a meeting to all unit owners by their preferred contact method (which is noted on the register, see section 1.1).
P8
A parent body corporate in a layered development must give 28 days’ notice to the chairperson or nominated representative of their subsidiary bodies corporate of any general meeting.
P9
The following information must accompany a notice of a general meeting:
- an agenda including any matters that unit owners will vote on at the meeting
- postal voting papers
- proxy voting forms
- any documents necessary for a unit owner to vote on any resolution proposed at the meeting (for example, quotes for spending, audit reports, details of proposed contracts).
P10
Unit owners can submit agenda items for the annual general meeting by sending them to the chairperson. Unit owners must submit any agenda items at least four weeks before the annual general meeting takes place.
Effect of proposals
Regulations that prescribe the process for calling body corporate meetings will ensure that all unit owners receive sufficient notification of meetings and promote greater owner participation.
Regulations to prescribe the information to accompany the notice will ensure that all unit owners are aware of the issues for discussion and have all information necessary to make informed decisions.
In addition, notice requirements will give unit owners options for taking part in discussion and voting at meetings – either by attending themselves, nominating a proxy or sending a postal vote.
Questions
Q7 Do you agree with the proposed process for calling body corporate meetings? Is there anything else we should consider? If you disagree, please explain why.
Q8 What are the advantages and disadvantages of the proposals for you?
Q9 Will the proposals have any financial implications for you? If so, please explain, giving as much information as you can.
1.4 Body corporate committee reporting (Section 114 of the Act)
The Act provides for bodies corporate to form committees and delegate certain duties and powers of the body corporate to the committee. This should result in more efficient body corporate management.
The body corporate committee must report to the body corporate on the exercise of delegated powers and duties. Regulations must prescribe the matters to be included in the body corporate committee report.
Proposals:
P11
The body corporate committee must report to the body corporate at least once a year at the annual general meeting. The body corporate must decide on the reporting period for the next yearly report at each annual general meeting.
P12
The committee may report more often, either at a general meeting or by other means (such as a regular newsletter), as agreed by ordinary resolution. The body corporate may, in addition, require further reporting by written request.
P13
The matters contained in the annual report should include:
- all matters delegated to the body corporate committee during that year
- financial information (such as expenditure, auditing, investment performance) relating to matters delegated to the body corporate committee
- property information (such as repairs and maintenance issues) relating to matters delegated to the body corporate committee
- governance and administration (such as whether any members’ terms are due to expire)
- contracts (new contracts and contracts up for renewal) relating to matters delegated to the body corporate committee
- copies of minutes of all body corporate committee meetings.
Effect of proposals
Regulations prescribing the reporting requirements of the body corporate committee will ensure that all unit owners are aware of what is happening in their development – especially if the committee undertakes most of the administrative and day-to-day functions.
This also means the work of the body corporate committee is transparent and open to scrutiny and, if the body corporate finds deficiencies, it can move to correct matters.
Questions
Q10 Do you agree with the proposed frequency and content of the body corporate committee reporting to the body corporate? Is there anything else we should consider? If you disagree, please explain why.
Q11 What are the advantages and disadvantages of the proposals for you?
Q12 Will the proposals have any financial implications for you? If so, please explain giving as much information as you can.
Read section 2: Management and maintenance »