Understanding the Role of a Committee in an Owners Corporation
Most owners corporations rely on committee members to keep things moving. Maintenance issues need attention. Insurance needs renewing. Contractors need approving. Financial decisions need oversight.
While the role is voluntary, it comes with real responsibilities. Committee members are trusted to make decisions that support the building and the broader community.
In Victoria, the structure, powers and duties of committees are governed by the Owners Corporations Act in Victoria, particularly Part 5 of the legislation.
Whether you are already serving on a committee, considering nominating at the next AGM, or simply want to better understand how decisions are made, understanding owners corporation committee responsibilities helps create better outcomes for everyone involved.
What Is an Owners Corporation Committee?
An owners corporation committee is a group of lot owners elected to act on behalf of the owners corporation.
One of the most common misconceptions is that the committee and the owners corporation are the same thing. They are closely connected, but they are not identical.
The owners corporation includes all lot owners. The committee is a smaller group elected to make certain decisions on behalf of those owners between general meetings.
In most cases, committee decisions are treated as decisions of the owners corporation itself, provided they are made within the committee’s authority.
Under Victorian legislation, an owners corporation with 13 or more occupiable lots must elect a committee at its annual general meeting. For smaller schemes, a committee is optional, although many still choose to appoint one because it helps streamline decision-making and administration.
Even where no committee exists, the owners corporation must still meet its obligations under the legislation and applicable owners corporation regulations.
Many committees also engage professional owners corporation services to assist with administration, compliance and day-to-day management.
Committee Roles and Office Bearers
Every committee has specific responsibilities, but there are also formal office bearer roles that help keep the owners corporation organised.
Chairperson
The chairperson is responsible for guiding meetings and helping the committee work through decisions in a structured way.
Their role includes:
- Chairing meetings
- Keeping discussions focused
- Encouraging participation
- Supporting fair decision-making
The chairperson does not make decisions alone. Their role is to help the committee function effectively.
Secretary
The secretary manages much of the administration behind the scenes.
Responsibilities often include:
- Preparing meeting notices
- Distributing agendas
- Recording minutes
- Maintaining records
- Managing correspondence
- Monitoring statutory deadlines
Good record-keeping helps protect both the committee and the owners corporation.
A manager may assist with these tasks, but the owners corporation remains responsible for ensuring obligations are met.
Is There a Treasurer?
Many owners corporations appoint someone to oversee financial matters informally.
However, the Owners Corporations Act 2006 does not create a statutory treasurer position.
Financial responsibilities may be delegated by the committee, but legally the recognised office bearer roles are chairperson and secretary.
In some smaller schemes, the same person may perform both roles.
Duties of Committee Members
The legal duties themselves are relatively straightforward.
Committee members are expected to:
- Act honestly and in good faith
- Exercise due care and diligence
In practice, this means making decisions that benefit the owners corporation as a whole rather than individual interests.
It also means:
- Reviewing information before making decisions
- Considering multiple viewpoints
- Managing conflicts of interest appropriately
- Following the legislation and registered rules
- Recording decisions accurately
Good committee members do not need to know everything. They simply need to approach decisions thoughtfully and responsibly.
Well-run owners corporation committee meetings help support these obligations by creating a clear record of discussions and decisions.
How Committees Are Elected and Structured
Committee members are usually elected at the annual general meeting.
Lot owners can nominate themselves or be nominated by others.
Committee appointments generally run until the next AGM, where elections are held again.
Committee Size
Victorian legislation requires:
- A minimum of three committee members
- A maximum of twelve committee members by default
Owners can vote to increase the maximum number if needed.
There can only be one committee representative per lot.
Casual Vacancies
If a committee member resigns or sells their property during the year, the committee may fill the vacancy in accordance with the Act.
Co-opted Members and Sub-Committees
Committees may also appoint co-opted members or establish sub-committees to assist with specific projects or issues.
Any delegated authority should be clearly documented and properly authorised.
Powers and Limits of the Committee
Committees are given authority to make many day-to-day decisions on behalf of the owners corporation.
These often include:
- Maintenance decisions
- Contractor engagement
- Administrative matters
- Financial oversight within approved budgets
- Compliance monitoring
Not every decision can be made by the committee alone.
Certain matters must be referred to a general meeting or require a special or unanimous resolution.
Examples may include:
- Significant rule changes
- Certain major expenditure decisions
- Matters specifically reserved for owners under the Act
This is why accurate minutes and clear reporting remain so important.
Owners need visibility over decisions that affect the building and its future direction.
Liability and Protection for Committee Members
Many committee members are surprised to learn that their actions can have legal consequences for the owners corporation.
VCAT may consider the conduct of committee members when disputes arise, particularly where decisions have not been properly documented or where procedures have not been followed.
The good news is that committee members are generally protected when they act honestly, reasonably and within their authority.
One of the best ways to reduce risk is to maintain clear records and follow proper governance processes.
Regular reviews through owners corporation audit reporting can help identify governance or financial issues before they become more significant.
Insurance also plays an important role. Many owners corporations arrange office bearers liability cover alongside broader building insurance.
Regular insurance valuation body corporate reviews help ensure the building remains insured at an appropriate replacement value.
If insurance lapses, the consequences can be serious. Aside from having no cover for a major event, owners may also be required to notify their mortgage providers that the property is uninsured.
Taking a proactive approach to governance, documentation and insurance helps protect both the committee and the broader owners corporation.
Managing Difficult Issues and Disputes
Most committee decisions are straightforward.
Occasionally, however, a committee may need to deal with ongoing rule breaches, disputes between residents or non-compliance with the owners corporation’s obligations.
In those situations, committees generally need to follow the correct process before taking further action.
This may include issuing an owners corporation breach notice and documenting each step taken along the way.
Following the proper process helps protect both the committee and the owners corporation if the matter later proceeds to VCAT.
Why Committee Responsibilities Matter
The decisions made by a committee influence far more than administration.
They affect maintenance standards, financial planning, insurance arrangements, compliance obligations and the overall experience of living or owning within the property.
When committees understand their responsibilities and operate within the framework established by the Act, buildings tend to run more smoothly.
Owners feel informed. Problems are addressed earlier. Decisions become easier to understand and support.
Good governance rarely attracts attention because it works quietly in the background.
The value becomes most obvious when it is missing.
Frequently Asked Questions
A committee manages many of the day-to-day responsibilities of an owners corporation, including maintenance, compliance, financial oversight and administrative decision-making.
Committee members are generally lot owners or representatives of lot owners who are elected at a general meeting.
Committee members must act honestly and in good faith while exercising due care and diligence when making decisions.
Yes. These are the two recognised office bearer positions under the legislation.
Not formally. While many committees allocate financial oversight to a member, the Act does not establish a statutory treasurer role.
Generally between three and twelve members, although the maximum may be increased by resolution.
Committee members are generally protected when acting honestly, reasonably and within their authority. Problems typically arise where duties are ignored or proper procedures are not followed.
Committee members are usually elected at the annual general meeting and serve until the next AGM.
Good Committees Make a Real Difference
Most owners corporations do not struggle because of one major issue.
More often, problems develop when small decisions are delayed, maintenance is overlooked or responsibilities become unclear.
A well-functioning committee helps prevent those situations. It creates structure, keeps communication moving and gives owners confidence that important matters are being addressed.
Committee members do not need to be experts in legislation, finance or building maintenance. What matters is understanding their responsibilities, following the correct process and making decisions in the interests of the community.
When that happens, buildings tend to run more smoothly, owners stay better informed and committees are able to focus on long-term outcomes rather than constant problem-solving.
Over time, that consistency helps create stronger communities, better maintained properties and more confident decision-making across the owners corporation.