We act for a number of Body Corporates.
A common issue that we are asked for advice on is the process for election of Body Corporate officers such as the chairperson and the committee.
The legislation unfortunately is not totally clear on this process.
As many of our Body Corporate clients consist of lay people without legal background this can prove troublesome.
In the case of election of the chairperson subject to the chairperson meeting the statutory criteria, the legislation is clear that the chairperson is elected by “ordinary resolution”. This means that the candidate for chairperson must receive a majority of votes on the resolution in accordance with the standard practice for passing an ordinary resolution.
The position in respect to election of committee members is less clear.
This is because unlike the wording for election of a chairperson, the legislation states that committee members are to be “elected”.
There has been confusion in the past as to whether that process would be the same as for a chairperson i.e. a majority of votes on a resolution. Recently the tenancy tribunal has clarified the procedure and made it clear that election of committee members is not to be undertaken under a majority vote on an ordinary resolution but rather “a first past the post process”.
In practical terms if the number of nominees for the committee equal the number of committee positions available essentially no election is required as the positions are filled by the nominees.
However where there is a contested election for committee position, the nominees who receive the most votes are elected on a first past the post basis. There is not any majority threshold in the first past the post election process.
Of course the nominees for the committee must satisfy the other statutory criteria for election to the committee.
We are able to provide advice to Body Corporate’s in relation to all corporate governance and administration matters and are able to clarify any questions that may arise from this commentary.
If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:
Paul Farry
pfarry@farry.co.nz
09 353 6671
The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.