For our Body Corporate clients you will be aware that The Unit Titles Amendment Bill (Strengthening Body Corporate Governance and Other Matters) was passed earlier in the year.

The Government has recently released a staged commencement process. There are three stages to the implementation of the Act which are as follows:

Stage 1 – came into effect on 9 December 2022

Key changes include: Section 88 has been added making attending meetings remotely a permanent right; Section 16 has also been added stating owners can vote remotely, and Regulation 27(a) has been added stating Committee meetings can also be held remotely.

Most people are already familiar with online meetings since the temporary law allows for these since the pandemic. These changes are already standard practice for apm our team.

Stage 2 – in effect from 9 May 2023

This stage includes the most changes including: Clarifying resolution thresholds, Chairperson and Committee election requirements, Code of Conduct and Conflict of Interest regime for Committees, Conflict of Interest register in AGM Agendas, definition of a Body Corporate Manager, large bodies corporate requirement for a BC Manager, new disclosure regime, keeping records for disclosures, and various other minor edits in sections and regulations.

From 9 May 2023 there is a higher level of compliance needed regarding codes of conduct, conflict of interest registers and disclosure document requirements. We will be working with our advisors and team to be ready with the documentation needed to meet the new requirements.

Stage 3 – in effect from 9 May 2024

This final stage of changes includes among others: being able to produce records on request, large bodies corporate LTMP matters, clauses included in BC management service agreements, electronic voting system, and among others, Government’s ability to make rules regarding legal costs on levy recovery matters.

We will be working on the final stages of changes with our team to be prepared for 9 May 2024.

For full information about the stages please visit: https://www.hud.govt.nz/news/changes-to-the-unit-titles-act/

You can read the amendments to the Act here: https://www.legislation.govt.nz/act/public/2022/0019/latest/whole.html#LMS368042

If you have any questions, please reach out to your Body Corporate Manager.

For our Residents Society/Association Incorporated clients you will be aware that the 1908 Act was significantly updated earlier this year and the transition period during which existing societies may choose to re-register under the Incorporated Societies Act 2022 commences in October 2023. If you have any questions, please reach out to your Residents Society/Association Manager.

We will be holding workshops next year for both to assist committees with the transition.