What banking requirements must a body corporate meet?
In Queensland, a body corporate must have at least one bank account kept in its name and held at a financial institution such as a bank, building society or credit union.
The account can be run by either an authorised party of the body corporate (for example, at least two members of the committee), or a body corporate manager or their associate who is authorised to operate the account.
A body corporate manager must only spend money from an account in line with decisions made by a body corporate at a general meeting or by the body corporate committee.
Section 151 of the BCCM Act outlines all relevant requirements for body corporate bank accounts.
Do body corporate accounts need to be audited each year?
In Queensland, a body corporate must actively opt-out of an annual audit of its accounts.
That is, a body corporate can pass a motion at its Annual General Meeting not to audit its accounts. The motion must be passed by special resolution.
In general, the motion not to audit must be in the form: “that the body corporate’s statement of accounts for the financial year [year] not be audited”, and carry a voting instruction of the form: “If you want the accounts to be audited, vote No. If you do not want the accounts audited, vote Yes.” This is usually the most confusingly framed motion on an AGM agenda.
If the motion not to audit is unsuccessful, the body corporate must have its accounts audited.
To do so, a motion must be passed by ordinary resolution to appoint an auditor.
A body corporate that has voted at its AGM not to appoint an auditor has the freedom to vote by ordinary resolution at any time to audit the accounts for a particular period or for a particular project, and to appoint an auditor.
Further reading
- How should a body corporate’s finances be managed?
- Committees need to manage funds for the long-term
- What financial records must a body corporate keep?
- Can a body corporate invest funds or borrow funds?
- What are body corporate levies?
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