Honorarium policy
Body Corporate 178796 (Freemans Park)
July 2024
Purpose
The purpose of this policy is to outline how the honoraria for BC178796 Freemans Park are to be set, implemented, and managed.
This policy assists in ensuring fair and equal acknowledgment of the contributions made by all Elected Committee Members, based on the value of the services performed within the context of, and for the benefit of, the Freemans Park Body Corporate community.
The policy recognises that an Owner elected to membership of the Body Corporate Committee undertakes their responsibilities voluntarily, and any honorarium paid is a nominal recognition of the time and effort they contribute to Body Corporate matters.
Body Corporate chairperson honorarium
The Body Corporate Chairperson will not automatically receive an honorarium. Instead, the Body Corporate Chairperson will receive an honorarium aligned with both the responsibilities they undertake in relation to their membership of the Body Corporate Committee, and their attendance at Committee meetings.
Elected Committee members honoraria
Any honoraria for payment to Elected Committee Members, must be approved by an ordinary resolution of Owners at the Body Corporate’s Annual General Meeting (“AGM”). The AGM resolution must express:
a. the honoraria as a maximum monetary sum per annum payable to all Committee Members taken together; and
b. the honoraria divided into monetary sums reflecting the responsibilities of different Committee Members and their attendance at Committee meetings.
A Committee Member may decline to receive the annual honorarium, by providing written notification to the Chairperson of the Body Corporate Committee, prior to the Committee’s March meeting annually.
The draft honoraria resolution for approval at an AGM, shall be worded:
“That:
the total quantum of annual honoraria for Body Corporate Committee Members shall not exceed $[amount] during the financial year;
the total quantum of annual honoraria is to be divided amongst the Committee Members during the financial year, in accordance with their leadership of the Committee and/or SubCommittees, and their membership of the Committee, as follows:
Chair of Body Corporate Committee $[amount] per annum
Chair of a Body Corporate SubCommittee $[amount] per annum
Membership of the Body Corporate Committee $[amount] per annumthe Chairperson of the Body Corporate shall not receive an honorarium for holding office during the financial year;
the honorarium may be declined by an Elected Committee Member.”
Once approved by Owners at the Body Corporate AGM, any honoraria for payment will be included in the annual operating budget, for the purposes of funding the honoraria and the management of the payments.
The honoraria resolution may be approved at an Extraordinary General Meeting (EGM), if required.
Elected committee remuneration
Elected members of the Body Corporate Committee are able to request payment for the ad hoc reimbursement for actual out-of-pocket expenses relating to activity requested by the Committee. Any request for reimbursement of such expenses, shall be made in accordance with the Body Corporate’s Treasury Policy.
Disclosure of honoraria and expense reimbursement
The Body Corporate Committee will disclose in its Annual Report to Owners the honoraria paid to Committee Members, including a breakdown of honoraria for roles and meetings attendance, as well as the details of any reimbursements received by Committee Members.
The Body Corporate Committee will disclose in its Annual Report to Owners any other payments made to Committee Members, either directly or indirectly involving a third party transaction.
Payments of honorarium
Oversight of the payment of honoraria shall be part of the financial management responsibilities of the Body Corporate Committee. Immediate oversight of the honoraria should be undertaken by the Finance and Legal SubCommittee, if one exists.
Payment of honoraria shall be made annually in arrears, in the month of April, provided the Body Corporate Committee approves the payment at its March meeting annually.
References
Treasury Policy
Unit Titles Regulations 2011
Unit Titles Act 2010
Next policy review
March 2027