The business world is a world of infinity, say business people. It is a world full of obligations and responsibilities that corporations and businesses as a whole bear, but also obligations and responsibilities that employees, their superiors, and corporate leaders have. The business world recognizes many functions. Imagine a large corporation with a large number of people and each has its own function.
In reality, companies today are more powerful than ever and in their entire team has at least 400 employees along with all the leaders of the organization. People often complain about the functions and positions held by leaders and others at the top of companies, and one of these confusions is the confusion between Company and a Body Corporate.
Once you have gotten into strata communities, you must have come across various terminologies that can prove to be confusing. It is from body corporate management like www.ebcm.com.au, a body corporate, to even a company. Making you wonder what the difference between a company and a body corporate is? In this article, we have tried to cover the basics to better understand the terminologies thrown around.
What is a company?
Company is a broad term. When we say this term, many things come to mind first. We come up with an image for a large corporate building full of wonderful workers who do everything to make the entity’s mission successful. A large number of desks, conference rooms for meetings where all the tasks that stand as a challenge will be solved, many successful moments, and celebrated victories. But what exactly do these entities represent? How are they defined? This is an eternal dilemma because everyone describes them differently. But despite the many different ways, there is still something similar that connects all the versions. What is it, what version is it?
A company comprises a board of directors, shareholders, and stakeholders who help effectively run the entity. The directors and shareholders manage the running of the entity. A company can acquire assets either as an investment or to help in the development of the company, and the company owns these assets. From this, the shareholders will own a proportion of the assets owned by the company. Thus, as a shareholder of a company, you will find you own a proportionate share of the company’s total assets, the amount you own depending on the number of shares you have bought for the company.
What is a body corporate?
As we have already said, the business world is full of roles and functions. Some of them are known to everyone in terms of work tasks, the scope of the position, the responsibilities of the person who is appointed to the position, and other ancillary things that are familiar to many people. But what is not clear to them? Uncertainties often arise in the wake of those higher positions that often have a number of obligations, responsibilities, and rules. In addition, those positions have certain rights. One such position is the position or title called body corporate.
These two concepts are not so different; when we talk of a body corporate, this is not so different from a company, but this is smaller. Like a company owns shares, a body corporate owns several different lots, apartment units, and properties. So let’s take a body corporate owns apartment units. These apartment units each have their respective owners, like shareholders in a company; the apartment owners could either live in them or rent out the units. Now for the body corporate, it will own all the amenities surrounding these units; this is what is referred to as common property.
This is where it gets a little confusing; the apartment owners also own a proportionate share of the common area; this is the likes of lifts, the pool, or the beautiful garden. And since they also own a proportionate share of the common property, they are automatically members of the body corporate. So they also make necessary decisions in effectively running the lots or apartment units they own. If the owner wants to leave the body corporate, they would need to sell their lot.
Just like a company, a body corporate has been established as a single legal entity. This means that a body corporate can enter into a legal contract and manage legal proceedings. But all this will be carried out through a committee. Thus, it makes it easier to run things smoothly with a body corporate as there is an office in charge of decision making.
What is a body corporate manager?
A body corporate manager is contracted by the body corporate to undertake services on its behalf. Therefore, the manager would undertake the following services.
- They ensure adequate maintenance and management of the common property.
- They organize the needed facilities for the meetings carried out.
- They also administer financial services for the body corporate.
- Often they control everything that happens during the operation of the entity.
- They also give suggestions on how to continue to function further.
A body corporate manager makes it easy to run things within a community. It does not affect the individual’s rights or the collective property that the unit owner has held. On the contrary, it enables and strives to continue to function in the best way and in the appropriate course in order for the company to continue to successfully follow the path of success and the path of positive results that bring progress and development for the entity and the local and the wider economy.
In a nutshell, a body corporate comprises unit owners and the unit title development, which is not that different from a company because it is composed of directors and shareholders. A body corporate manager is contracted by the body corporate to help run things around the strata community. Thus organized entity with this properly set organizational structure can function in the right way that befits a large successful organization.
In this way, the road to success is long and unhindered for every organization, which means long and successful life and work. The explanation above should help you better understand these key terms that you will come across if you are considering getting a unit within a strata community. With this article we have tried to make things clearer for you, to solve all the confusions that existed before, and to explain the meanings of these positions, the differences between them, and what they actually cover.