108 Flinders Street [2001] QBCCMCmr 325 (14 June 2001)

C G YOUNGREFERENCE: 0367-2001

ORDER OF AN ADJUDICATOR

MADE UNDER PART 10 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	1525
Name of Scheme:	108 Flinders Street
Address of Scheme:	108 Flinders Street TOWNSVILLE QLD 4810

TAKE NOTICE that pursuant to an application made under the abovementioned Act by Worrells Solvency & Forensic Accountants as Trustee and Liquidator for Lakeward Pty Ltd the owner of all Lots 1 to 13,

C G YOUNGC G YOUNGI hereby order that -

1.	Body Corporate Services Pty Limited, of Suite 2, 175 Sturt Street, Townsville Qld 4810, is appointed administrator to call, hold and chair a general meeting (“the meeting”) of “108 Flinders Street” within three (3) months of the date of this order.
2.	For the purpose of calling, holding and chairing the meeting, the administrator shall have all the powers of chairperson, secretary and treasurer of the body corporate, and of the committee, with the exception of the following powers –

• To further delegate any of these powers to another person; or

• To incur expenditure apart from that necessary for the calling and holding of the meeting.

3. The administrator shall hold the appointment for the period beginning from the date of this order until the close of the meeting ordered.

I further order that –

1.	Under section 42(4) of the Body Corporate and Community Management (Standard Module) Regulation 1997 (the “Standard Module”) no notice of meeting need be given.

2.	The meeting must consider and determine the matters set out in section 62(3) of the Standard Module.

3.	The meeting may consider any other motion before it.

I further order that the meeting shall be deemed to be the first annual general meeting of the scheme.

I further order that for the purposes of determining the future financial year of the body corporate, the end of the month preceding the month in which the meeting is held shall be deemed to be the end of the financial year. C G YOUNG 2n
2n
STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0367-2001

“108 Flinders Street” CTS 1525

The applicant, Worrells Solvency & Forensic Accountants as Trustee and Liquidator for Lakeward Pty Ltd the sole owner of all Lots 1 to 13, has sought the following order of an adjudicator under the Body Corporate and Community Management Act 1997 (“the Act”), quote -

“That Body Corporate Services Pty Ltd be appointed to call a general meeting of the owners. That the anniversary date be determined as 01 July 2001.”

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 (section 223(3)(p)). 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 (section 223(3)(v)).

An order appointing an adjudicator 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 62 of the Body Corporate and Community Management (Standard Module) Regulation 1997 (the “Standard Module”) provides that the original owner must call and hold the first annual general meeting of the body corporate within one month after the first of the following to happen –

(a) more than 50% of the lots included in the scheme are no longer in the ownership of the original owner;

(b) 6 months elapse after the establishment of the scheme.

Moreover the agenda for the meeting must include the items set out in section 62(3) of the Standard Module. If the original owner does not call and hold the first annual general meeting as required by the section, the order of an adjudicator under the dispute resolution provisions may include an order appointing a person to call the first annual general meeting within a stated time (section 62(4)).

Worrells is the Trustee and Liquidator for the sole owner in liquidation, and has authorised Body Corporate Services Pty Limited to convene a meeting to initiate an operating body corporate. There is no evidence that the statutory first annual general meeting has been held. The applicant wishes to establish an operating body corporate administering itself in accordance with the legislative requirements.

2yAs the applicant represents a sole owner, notice of the ordered meeting may be dispensed with under the provisions of section 42(4) of the Standard Module. However the matters contained in section 62(3) need to be considered and the meeting minuted.

In the circumstances I am satisfied that an order should be made in the terms authorised by section 62(4) of the Standard Module.

The applicants have also sought a variation in the “anniversary date” to 1 July 2001– I presume that the financial year-end date was intended. As part of the order I am able to set the year-end date as the end of the month preceding the month in which the ordered meeting is held – this is a practical measure allowing the meeting to consider a complete year budget.