Good Governance with Committees in Community Titles

As Body Corporate managers, we work with a number of Community Titled properties across South Australia and see that many committee members are passionate about their communities but unsure of the full scope of their responsibilities. The Community Titles Act 1996 (SA) provides a clear framework—but interpreting and applying it effectively is where good governance truly begins.

The Community

The primary purpose of the Body Corporate is to provide for the business and governance aspect of the Community which relies upon providing benefit to owners through the ethical and professional delivery of services to the common property.

The common property is held for the benefit of all lot owners and the Committee are elected members with responsibility for the maintenance and repair of the common property, management of finances, accounts, records, insurances and by-laws.

When appointing a body corporate manager, the manager will run the financial and insurance management for the lot owners, while then supporting and assisting the committee with the management of maintenance and by-laws.

Who forms the Management Committee?

Under Section 90 of the Act, a community corporation may establish a Management Committee by ordinary resolution. This committee is entrusted to carry out the functions and duties of the corporation within the limits of its powers which the committee must understand in addition to the legal nature of their community scheme.

The roles of the Committee members are as elected at the Annual General Meeting and must include the Presiding Officer, Secretary & Treasurer with all members being natural persons, and in residential schemes, they must be lot owners.

The Presiding Officer’s role is to chair meetings in a way that encourages decision making and allows fair open discussion of matters.  The Presiding Officer is the leader of the committee and oversees the business of the community as the main contact point with the strata manager.

The Secretary is responsible for the convening of meetings, preparation and distribution of minutes and notices, maintenance of the strata roll, enabling the inspection of documents, provision of search documentation, answering communications for the corporation, attending to matters of an administrative or secretarial nature; these duties are delegated to the strata manager inline with the management agreement.

The role of the Treasurer includes the issuance of levy notices, receiving and banking of funds, tracking expenditure against budgets, preparation of financial statements, drafting of budgets for the next financial year; these duties are delegated to the strata manager inline with the management agreement.

While the duties of preparing the budget are delegated to the strata manager, the draft budget for a small corporation is generally completed by the strata manager, while the budgets on mid-sized and large corporations are generally developed in partnership between the strata manager and the committee inline with sinking fund forecast reports/maintenance plans. While this is the case for the draft budget ahead of the Annual General Meeting, it is the voting of all owners which determines the annual budget and sets the quarterly levies paid by lot owners.

The role of the Management Committee

The Management Committee can transact any business of the corporation unless restricted by the by-laws or requiring a special/unanimous resolution and the members are elected for a term until the next Annual General Meeting where they may or may not be re-elected.

An important part of the business of the community is maintaining the common area for the benefit of all lot owners and this falls into the following three main categories:

• Routine – recurring upkeep such as cleaning, grounds maintenance etc

• Preventative – periodic maintenance to avoid disruptive breakdowns such as lift maintenance

• Emergency – attending to unpredictable problems such as burst water pipes, roof leak, lift breakdown

Rights and Responsibilities

Committee members have both legal and ethical obligations to:

• Act honestly and transparently: Misuse of position or failure to disclose conflicts of interest can result in penalties up to $15,000 or imprisonment.

• Maintain confidentiality and integrity: Members are immune from personal liability unless their actions are dishonest or negligent.

• Keep proper records: Minutes of meetings, financial statements, and correspondence must be maintained and accessible.

Principles of Good Governance

Good governance isn’t just about compliance—it’s about fostering trust, transparency, and community wellbeing. Here are some best practices:

• Clear communication: Provide advance notice of meetings and major decisions, especially those affecting levies or property use.

• Inclusive decision-making: Encourage feedback from lot owners and ensure decisions reflect the broader interests of the community.

• Financial stewardship: Prepare forward budgets, maintain sinking and administrative funds, and ensure audits are conducted as required.

• Conflict resolution: Use mediation where possible and understand the pathways for legal recourse under the Act.

The Strata Community Association has developed a respect pledge around the leadership behaviours which committees should act upon and we at Strata Management SA have taken this pledge and we encourage our committees to commit to: https://www.strata.community/takethepledge

How do we Support You?

As strata managers, we are here to:

• Assist with meeting preparation, facilitation and documentation

• Provide guidance on interpreting the Act and by-laws

• Help manage service contracts and maintenance schedules

• Ensure compliance with insurance and financial obligations

If you're a committee member, remember: your role is vital to the health and harmony of your community and your duty is to administer and maintain the common area for the benefit of all lot owners. 

When in doubt, reach out—we’re in this together.