Submission on strengthening body corporate governance

The IoD submitted on the Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Bill (‘Bill’), a Member’s Bill under Nicola Willis. The Bill will amend the law relating to high-density housing set out in the Unit Titles Act 2010 (‘Act’). The changes are intended to ensure that the Act remains fit for purpose and effective in dealing with the change in circumstances of its use, in particular the increasing number of people living in apartments and other high-density living arrangements.

We support the introduction of the Bill to ensure there is up to date, relevant and effective legislation in place that is appropriate for the increasing amount of high-level intensity living in New Zealand. We also support:

• the introduction of requirements to strengthen body corporate governance including body corporate committee member duties in a code of conduct and new conflict of interest disclosure rules
• committees of large body corporates (ie those with 30+ units) and medium body corporates (ie those with 10-29 units) reporting on the performance of their delegated powers at all general meetings. Medium sized body corporates can opt out of complying by special resolution.
• limits on proxy voting to avoid proxy farming in the unit title context (consistent with some states in Australia which have introduced similar provisions)
• the ability of members to attend and vote at general meetings by remote access. With all the meeting developments over the last year as a result of COVID-19, we have suggested that the provisions should be more facilitative to enable better attendance and participation and to future proof the unit title regime.

We also encourage the Ministry of Business, Innovation and Employment to provide updated guidance material and assistance to bodies corporate and committees on their rights, duties and responsibilities.