September 2024
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The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 was passed into law on 9 May 2022 and is now in full swing, with all provisions of the Act now in force. We look at the latest changes.
The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 was passed into law on 9 May 2022. The object of the Act was to enhance safeguards for individuals who purchase or possess unit title properties.
Provisions of the Act have come into effect in stages: Provisions to support remote attendance at meetings came into force on 9 December 2022; most other provisions came into force from 9 May 2023; and additional revisions that needed more time to implement came into effect from 9 May this year.
The below changes have been brought in from 9 May 2024:
Amendments to the PCDS and PSDS for “off the plan” units (i.e. new developments) now include additional disclosure requirements. If available, reports must include details on the Long-Term Maintenance Plan (LTMP), contracts for the building manager and body corporate manager, operational rules, minutes from the most recent general meeting, and any contracts or court/tribunal decisions that will bind the Body Corporate or unit owners post-settlement.
Owners are now able to vote electronically both before and during meetings, with options including audio links, audio-visual links, or other remote access facilities. Any facility used must allow members to vote during the meeting. The Body Corporate must also take reasonable steps to verify members' identities.
Under transitional rules, for meetings already scheduled after May 9, bodies corporate must send electronic voting information to unit owners if practicable. If this information is not sent before the meeting, it will not affect the meeting's validity. Voting can still be done by other means.
Owners must now provide a statement on how the proxy should vote for proxy voting. Voting records must be retained for 28 days following the meeting or the result of a general meeting.
The regulator (MBIE) requires bodies corporate to retain specific information and provide it upon request. This information must be kept for a minimum of three years.
Documents to retain and provide include:
Financial and Operational Documents: Fund details, financial statements, levy information, maintenance plans, insurance policies, and details of ongoing legal proceedings.
Meeting Records: Notices, agendas, minutes, and a register of unit owners.
Management and Contact Details: Information on current and past managers and chairpersons, and conflict of interest registers.
Additional Documents to Retain: Documents related to utility interest decisions, notices from the body corporate, agreements, and service contracts.
From 9 May 2024 added regulations regarding long-term maintenance planning in larger bodies corporate came into effect; in particular, a requirement to have a 30-year long-term maintenance plan. Small bodies corporate (9 units or less) can continue with having a 10-year long-term maintenance plan.
For a breakdown of earlier provisions, see our previous blog New Provisions of the Unit Titles Amendment Act Explained.
The full regulations relating to the final changes can be read here: Unit Titles Amendment Regulations 2024 (SL 2024/52) Contents – New Zealand Legislation.
Understanding all the changes can be challenging. For more context watch our Unit Titles Amendment Act: Understanding the Changes webinar.
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