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What is the difference between body corporate and corporate body?

24 June 2021

What is the difference between body corporate and corporate body?

The business world is full of obligations and responsibilities that corporations have to understand. Their variation in functions characterizes these large corporations, and without paying much attention, it can easily lead to confusion. Among the most complicated terminologies in the corporate world is body corporate and corporate body. Even though you might have been using them interchangeably, there is a slight difference between the two. This article explains the variation between them.

Corporate body

A corporate body is a legal entity that consists of shareholders, stakeholders, and a board of directors who are responsible for making managerial decisions. It usually has several assets from which the shareholders own a proportion.

Body corporate

Body corporate is a legal entity that accommodates all unit and apartment owners. It owns several individual lots and share on common property. The common property includes the swimming pool, lifts, gym, gardens, and other shared amenities. As a unit owner, you automatically become a member of the body corporate. It handles management, financial and administrative services regarding the common areas. Resultantly, it compliments the strata management systems making it easy to manage the apartments. The unit owners are mandated to contract a body corporate management to perform some of their duties. This has no impact on their collective property rights.

The body corporate functions under clearly stipulated rules and regulations that focus on maintaining and managing the common building facilities. It is tasked with handling external and internal conflicts resulting from a disagreement between the unit owners. It is a requirement that all unit owners pay owner’s corporation fees which are mainly used for maintenance purposes, partake in any volunteered tasks, and comply with the set body corporate rules.

Part of the owners’ corporation fees is used for administrative tasks such as issuing rate notices to owners and hiring a building manager. Additionally, the owners can opt to have another special purpose fund for capital investments that benefit the building later. Incorporating a special levy fund is also critical to service any debt the owner corporations have, and it was not budgeted in the financial year.

Rules and regulations

Together with the unit owners, the volunteered body corporate manager is expected to enforce the following rules and regulations.

  • Managing administrative duties, finances, and other funds, as well as insurance.
  • Holding everyone accountable without causing the unit owners any delay or inconvenience.
  • Keeping proper records of all documents, such as the register of committee members and lot owners, the budget expense, financial records, and meeting minutes.
  • Ensuring that all records are accessible to property owners.
  • Resolving any conflicts that can occur between unit owners.

Difference between the two terms

Firstly, there is a difference in ownership style between the two. The body corporate (BC) does not limit the number of individual owners, while corporate body (CB) restricts the number of its owners. Additionally, in BC, the management is delegated from the unit owners to a corporate committee. In contrast, CB management is conducted by a board of directors who double up as shareholders.

The other difference between the two entities is statutory obligations. In the CB, the pass-through taxation is done. This is where the profit and losses pass down to the owners. On the other hand, BC, the individual owners do not profit or incur loss from the entity.


With the emerging technologies in strata communities, it can be easy to confuse the two terms. In a nutshell, the CB comprises of shareholders and directors. But, the BC consists of unit owners and handles the management of the common property.

Body corporate and corporate body difference

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