We recently reviewed a Body Corporate administration renewal of a four lot scheme. The total remuneration of the Body Corporate Manager was in excess of $3,000 not including insurance commission. The BCM had engaged the Body Corporate with a Chapter 3 Part 5 engagement. That remuneration seems excessive! However, in partial defence of the BCM, the use of the Chapter 3 Part 5 engagement was probably in response to the inability to form a Committee which requires a minimum of three. A Chapter 3 Part 5 engagement does away with a Committee. The more appropriate response is to change the regulation module to the Small Schemes (applicable for six lots or less) by submitting a new Community Management Statement to Titles. Once done, the minimum requirement for a Committee is only one. There was at least one lot owner who was interested in managing the affairs of the Body Corporate and ensuring that Body Corporate expenses (in particular Body Corporate Manager fees!) were not excessive.
