Redgums Two [2002] QBCCMCmr 226 (22 April 2002)

DJ ReardonREFERENCE: 0123-2002

ORDER OF AN ADJUDICATOR

MADE UNDER PART 10 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	6407
Name of Scheme:	Redgums Two
Address of Scheme:	158 North Road LOGAN CITY QLD 4114

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

3 Plus Pty Ltd, the Owner of Lot 8

I hereby order that-

1.	Patrick McCaul is appointed as Administrator to call, hold and chair a general meeting (“the meeting”) of the “Redgums Two” Body Corporate in accordance with this order and within 3 months of the date of this order.
2.	The Administrator shall hold the appointment from the period beginning on the date of this order until the close of the meeting ordered.

I further order that within 7 days 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 by a committee under the legislation.
2.	Upon receipt of this order the Administrator must give at least 2 weeks written notice inviting owners to submit motions for inclusion on the agenda for the meeting, and to nominate themselves or another individual for election as a member of the committee.

3.	The meeting shall be otherwise called and held as an annual general meeting in accordance with the Act and the Body Corporate and Community Management (Standard Module) Regulation 1997.
4.	The Administrator must not give notice of the meeting to owners earlier than 3 weeks from the date of this order.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0123-2002

“Redgums Two” CTS 6407

1.	Order Sought

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

“No meeting held 3 years

A meeting with unit owners

To know financial situation of our sinking fund

Payment to me for Insurance claims

Payment to me for repairs”

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 (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)).

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 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)).

The community management statement for the “Redgums Two” community titles scheme indicates that the Body Corporate and Community Management (Standard Module) Regulation 1997 (“the Standard Module”) applies to the scheme.

This application is one of five applications currently before the Office of the Commissioner for Body Corporate and Community Management relating to the “Redgums Two” community titles scheme. Each of the applications appears to be seeking an order authorising the convening and holding of a general meeting of the body corporate.

From the supporting statements in each of the five applications, it appears that

•	There has not been a general meeting of the body corporate held for 2-3 years.
•	Certain repairs need to be carried out.
•	There is uncertainty regarding the capacity of the Body Corporate Manager to perform particular functions.
•	There is also concern regarding payment of insurance.

Owners of 3 of the 8 lots included in the scheme have consented in writing to the appointment of Patrick McCaul to convene a general meeting for the scheme. 2 of the remaining owners have made application to this office seeking an order that a meeting of the body corporate be convened, however, these owners have not nominated a person to convene the meeting. The remaining 3 owners were invited to make a written submission about the application, however, no response to this invitation has been received to date.

In the circumstances, I am satisfied that an order should be made appointing Patrick McCaul to convene a general meeting of the “Redgums Two” body corporate to re-establish the body corporate and to allow it thereafter to conduct its’ affairs in accordance with the legislation.

I note that in the grounds of the applications owners have raised concerns regarding issues such as insurance, repairs and maintenance and the engagement of a body corporate manager. Owners will have the opportunity to address these concerns by proposing motions for consideration at the meeting authorised by this order. If any specific disputes arise regarding these matters, an interested party could make a further dispute resolution application to this office.