Body Corporate issues have been garnering attention since Auckland Central MP Nikki Kaye embarked on a drive last month to find out whether or not the rules around bodies corporate are working.

Four issues are emerging as key concerns. They are transparency and accessibility of information; long-term maintenance plan issues; regulation of body corporate managers; and governance.

Auckland District Law Society vice- president Joanna Pidgeon says she would agree with that summary and is working with Kaye to try and implement some legislative change to address them.

However, she highlights body corporate manager regulation as an important issue – as the current legislation makes no mention of the role of body corporate manager at all.

“While there are a few small body corporates who choose to manage their own affairs, most do not. They require the help of professionals who have experience to help them operate their body corporate, and there should be regulation around this.”

Body corporate managers can hold millions of dollars of owners’ money in their trust accounts, particularly when there are remediation projects.

Yet their trust accounts have no regulation unless they are attached to a real estate agency, Pidgeon says.

“In Australia there have been cases of theft, and it is probably only a matter of time before there will be a body corporate theft here.”

In response to this situation, a Code of Conduct for body corporate managers has been suggested.

Pidgeon says the idea has been gathering momentum since a meeting late in 2015 – thanks to the involvement of Strata Communities Australia which is launching a chapter in New Zealand.

“We would expect a Code of Conduct to cover ethical matters, rules on handing over body corporate information, proper behaviour, and not bringing the industry into disrepute.”

The industry itself is supportive of the introduction of a Code of Conduct.

Crockers body corporate team leader Carly Edwards says they support the implementation of a Code of Conduct

“We think it is good idea as it is both common sense and best business practice. But, like everyone else, we are not sure how it would work. For example, how would you enforce it and what happens to someone who breaches it?”

Crockers believes a Code of Conduct should be developed and managed by an independent body, like the Body Corporate Chairperson Group (BCCG).

While body corporate management is currently attracting a lot of negative attention, most body corporate managers adhere to good procedures and practices, Edwards adds.