Promotion fund
A body corporate registered under the Commercial Module can set up a promotion fund.
A promotion fund:
- contains estimates of necessary and reasonable spending for the financial year to cover the cost of promoting the scheme (e.g. leasing, installing, maintaining and operating advertising signs)
- set the amount that owners—who have agreed to make contributions—must pay into the fund.
Owners can agree to set up a fund by voting by ordinary resolution at a general meeting.
Preparing budgets
The committee must prepare the budgets for owners to consider at each annual general meeting. A copy of the proposed budgets must be included in the notice of an annual general meeting.
Owners can also propose budgets to be considered at an annual general meeting or an extraordinary general meeting. A proposed budget must be submitted as a motion.
Read more about:
Changing budgets
A promotion fund budget can only be amended at another general meeting.
Owners cannot adjust the proposed promotion fund budget at the same general meeting (this can only be done for sinking fund or administrative fund budgets).
Owners can be asked to pay a special levy if the body corporate wants more money for the promotion fund.
Investing promotion funds
The body corporate may invest money from the fund if it’s not needed immediately. This is similar to the way a trustee can invest funds.
See section 96(2)(b) of the Body Corporate and Community Management Act 1997 (QLD).
It is up to the body corporate to decide how to manage and invest its funds.
More information
- Read about annual general meetings
- Find out what happens at extraordinary general meetings