Westminster House Meadowbrook [2000] QBCCMCmr 404 (7 August 2000)

C G YOUNGREFERENCE: 0361-2000

ORDER OF AN ADJUDICATOR

MADE UNDER PART 10 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	15051
Name of Scheme:	Westminster House Meadowbrook
Address of Scheme:	12-14 Yeates Crescent Meadowbrook QLD 4131

TAKE NOTICE that pursuant to an application made under the abovementioned Act by

Sablebrook Pty Ltd ACN 010 507 239, the owner of Lot 8,


C G YOUNGI hereby order that –

(1)

Matthew Joosen of Prudential Body Corporate Management Pty Ltd of Unit 4, 1293 Logan Road, Mt Gravatt Qld 4122 (PO Box 4, Holland Park Qld 4121) is appointed Administrator to call, hold and chair an annual general meeting of “Westminster House Meadowbrook” within three (3) months of the date of this order for the purpose of -

• the consideration of motions included on the agenda of the meeting; and

• the election of committee members.

(2)	The Administrator shall hold appointment for the period beginning from the date of this order until the close of the meeting ordered to be held.

I further order that within fourteen (14) days of the date of this order the administrator must give a copy of this order to each person whose name appears on the roll as the owner of a lot in the scheme.

I further order that –

(1)	For the purpose of calling, holding and chairing the meeting, the Administrator shall have all the powers of the chairperson, secretary and treasurer of the body corporate, and of the committee, with the exception of the following powers -

• to further delegate any of those powers to another person; or

• to incur any expenditure apart from that necessary for the calling and holding of the meeting, except in regard to expenses that must necessarily be met and are capable of being authorised and incurred by a committee under the legislation.

(2)	The nomination and election procedures for the election of committee members shall be in the same manner as provided for in sections 14 and 15 of the Body Corporate and Community Management (Standard Module) Regulation 1997.

(3)	The Administrator must give at least two (2) weeks written notice inviting owners to submit motions for inclusion on the agenda of the meeting.

(4)	The meeting shall be otherwise called and held as an annual general meeting in accordance with the Act, particularly sections 42 and 45 of the Standard Module, and all other provisions relating to meetings under Part 4 of the Standard Module.

The Administrator must not give the notice of meeting to owners earlier than twenty-one (21) days from the date of this order. 2n
C G YOUNG 2n
STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0361-2000

“Westminster House Meadowbrook” CTS 15051

The applicant, Sablebrook Pty Ltd of Lot 8, has sought the following order of an adjudicator under the Body Corporate and Community Management Act 1997 (“the Act”), quote -

That Matthew Joosen of Prudential Body Corporate Management Pty Ltd ACN 010 440 963 be authorised to issue all relevant notices and take all requisite steps for the convening of an Annual Genera Meeting of the Body Corporate.

Section 223(1) of the Act provides that an adjudicator may make an order that is just and equitable in the circumstances to resolve a dispute, in the context of a community titles scheme, about a claimed or anticipated contravention of the Act or the community management statement. An order may require a person to act, or prohibit a person from acting, in a way stated in the order (section 223(2)).

Specifically, without limiting the power of an adjudicator to make an order under section 223(1), an adjudicator may order the body corporate to call a general meeting of its members to deal with stated business or to change the date of an annual general meeting (see section 223(3)(p)) or alternatively, the adjudicator may order the appointment of an administrator, and authorise the administrator to perform obligations of the body corporate, its committee, or a member of its committee under this Act or the community management statement.

The administrator has the powers given to the administrator under the order (section 248(2)). Section 248(3) provides that the order may –

a)	withdraw all or particular stated powers from the body corporate (and any delegate of the body corporate) or from stated officers of the body corporate until the administrator has taken the necessary action to secure compliance with the obligations; and
b)	require officers or delegates of the body corporate to take stated action to help perform the work the administrator is required to perform; and
c)	fix the administrator’s remuneration.

An order appointing an administrator may be the only order the adjudicator makes for an application (section 223(4)(a)). An adjudicator’s order may contain ancillary or consequential provisions the adjudicator considers necessary or appropriate (section 230(1)).

Section 60 of the Body Corporate and Community Management (Standard Module) Regulation 1997 (the “Standard Module”) provides that an annual general meeting (other than the first annual general meeting) must be called and held within 3 months after the end of each of the scheme’s financial years. A general meeting (which includes an annual general meeting) may be called by a person authorised or required to call a general meeting by an order of an adjudicator acting under the dispute resolution provisions (see section 40(c) of the Standard Module). Moreover, the agenda for an annual general meeting must include the items set out in sections 45 of the Standard Module.

The applicant owns one of the lots which comprise the scheme. “Westminster House Annerley” was registered as a building unit plan on 2 July 1997. The applicant states that apart from the initial general meeting of the body corporate (presumably the First Annual General Meeting) held on 11 July 1997 no other meetings have been held. The result is that the body corporate is not functioning, for example, there is no elected committee or contributions levied to fund body corporate costs nor are there any financial accounts available. The applicant has sought an appointment of an Administrator to regularise the operations and administration of the affairs of the body corporate by establishing its records and holding a meeting for owners to determine statutory and other matters.

A notice was forwarded to the solicitors for the applicants, Thomson Redhead, Solicitors, of Level 8, Flight Centre Building, 157 Ann Street, Brisbane Qld 4000, to distribute to all owners, inviting them to respond to the application. The solicitors have confirmed having distributed the notice however I note that only one submission has been made. That submission, from the owner of Lot 4 Ross McLellan, supports the application. While no other owners have supported the application, they have not opposed it. In any case the present situation cannot continue and in the circumstances I believe an appointment is necessary to put the body corporate onto a proper legal footing. The appointment will cease at the close of the meeting ordered to be held, and it will then be a matter for owners themselves to determine how they will administer the body corporate in the future.2n