Residents committees have been operating at many retirement villages for some time. The important role such committees can play in village life is formally recognised under the Retirement Villages Act 1999. This fact sheet explains some of the things you need to know about them.

What is a residents committee?

A residents committee is simply a group of residents, elected by their fellow residents, to represent their interests and to carry out specific functions under the Act. Residents committees also provide a channel for communication between all of the residents and the operator.

No. Residents committees are not compulsory. For instance, at a village with only a few residents it may seem as unnecessary to set up a formal residents committee.

How is a committee formed?

Firstly, a general meeting to which all residents are invited needs to be held. Any resident can call a special meeting or wait until the next general meeting is due. A committee can be formed if more than 50% of those residents voting agree to form one.

Residents should then discuss and agree upon such matters as how many members the committee should have and how votes are to be taken (i.e. show of hands or written ballot). Nominations should then be called and an election held. All of these steps can be taken at the one meeting.

Who can be a committee member?

Any resident can stand for election to a residents committee. Non-residents such as friends and family of residents, the operator, employees or agents of the operator, residents of Commonwealth funded hostels and nursing homes, or residents from another village are ineligible to be committee members.

What are the functions and rights of a residents committee?

Residents committees have a wide range of functions and rights such as:

• calling and conducting meetings of residents to consider and vote on matters requiring consent
• reporting to the operator decisions made by residents on matters requiring residents’ consent
• taking or defending matters before the Consumer, Trader and Tenancy Tribunal (CTTT) on behalf of some or all residents
• receiving financial accounts
• forming sub-committees
• proposing amendments to the village rules or the level of village services and facilities
• acting as another contact point for prospective residents, and
• meeting with the operator.

Residents committees are not decision-making bodies. They cannot make decisions on behalf of residents on matters requiring consent. They can, however, put recommendations to a general meeting of residents.

What are the benefits for the operator if a residents committee is formed?

There are a number of administrative benefits for operators if a committee exists. For example,

accounts need only be given to the committee rather than to all residents and the committee takes over the role of calling and conducting meetings of residents.

Each residents committee is free to determine its own procedures, although it is a good idea to have one member chosen to keep records and to have another member as Chair. There is no need to have a formal constitution or written rules but these may help. Fair Trading has developed a model set of rules that can be obtained from the Specialist Support Unit. 

Unless otherwise invited, only committee members should attend residents committee meetings. Separate meetings between the committee or a representative of the committee, and the operator can be held at the request of either party.

What must an operator do if a residents committee exists?

The operator must provide reasonable administrative assistance requested by the committee, if an amount for this purpose is in the statement of approved expenditure. This may include such things as photocopying or distributing notices.

The operator must not obstruct a committee from exercising its functions (e.g. not allowing meetings to be held in a community room).

What happens if no residents committee exists?

If there is no committee, the operator must call a meeting of residents at least once every year, or more often if required, to consider and vote on matters needing residents’ consent. An operator must not discourage or prevent the establishment of a residents committee at any time.