It is important to recognise that, even if the cost of a particular proposal is within a committee spending limit, that alone does not constitute an automatic green light for the committee to authorise the spending – there are other considerations.

Arguably, the most significant of these considerations is whether a body corporate has budgeted for the expense. Essentially, funds should be available before a committee can vote to spend them. If there is not enough in the budget for a particular expense, a special levy can be raised to pay for it at a general meeting by ordinary resolution. Alternatively, the body corporate may consider voting to amend its existing budget at a general meeting.

The legislation also sets out ‘restricted issues’ for committees. A committee cannot vote on restricted issues, even if they involve spending within the committee spending limit. For instance, where the legislation specifies that an ordinary resolution, special resolution, or a resolution without dissent is required, the committee cannot approve these motions, as they are general meeting resolutions.

A clear illustration of this point is the distinction between maintenance and improvements. On the one hand, a committee can authorise a motion about maintenance if the cost is within its spending limit and there is provision in the budget. Conversely, if the motion is about an improvement to common property, the cost of the improvement determines which resolution range it falls into – the higher the cost, the more likely it is to require an ordinary resolution or a special resolution at a general meeting.

You can read more about restricted issues for the committee and improvements on the BCCM  website.