Burwell [2002] QBCCMCmr 459 (18 July 2002)

DJ ReardonREFERENCE: 0392-2002

ORDER OF AN ADJUDICATOR

MADE UNDER PART 10 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	12030
Name of Scheme:	Burwell
Address of Scheme:	29 View Street CHERMSIDE QLD 4032

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

Rita Reordan, the Owner of Lot 2

I hereby order that-

1.

Beverley Campbell of Australasian Body Corporate Management (Qld) Pty Ltd, 25 Terrence Street Aspley, is appointed as Administrator to call, hold and chair an annual general meeting (“the meeting”) of the “Burwell” 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-

1.	For the purposes 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.	Within 21 days of the date of this order, the Administrator must provide a copy of this order and the accompanying statement of reasons to each owner of a lot included in the “Burwell” community titles scheme (“lot owners”).

3.	Within 21 days of the date of this order, the Administrator must provide lot owners with a written notice inviting, and allowing owners at least 14 days to submit, motions for consideration by the Body Corporate at the meeting, and nominations for committee positions.

4.	After the time for owners to submit motions and nominations has expired, the Administrator must issue a notice of meeting to lot owners in accordance with section 42 of the Body Corporate and Community Management (Standard Module) Regulation 1997 (“the Standard Module”).

5.	The meeting must be held at least 21 days after notice of the meeting is given to lot owners.

6.	The meeting must consider, and determine the matters set out in sections 45(2) and (3) of the Standard Module.

7.	Except as provided in this order, the meeting must be called and held as an annual general meeting, in accordance with the provisions of the Body Corporate and Community Management Act 1997 and the Standard Module.

I further order that for the purposes of determining future financial years of the Body Corporate, the end of the financial year shall be the last day of the month immediately preceding the month in which the anniversary of the meeting authorised by this order falls.DJ Reardon


STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0392-2002

“Burwell” CTS 12030

The Applicant, the Owner of Lot 2, has sought the following order of an adjudicator under the Body Corporate and Community Management Act 1997 (“the Act”), quote-

“THAT Australasian Body Corporate Management (Qld) Pty Ltd of 25 Terrence Street, Aspley (PO Box 277 Chermside South 4032) be appointed as Administrator to establish the books of the Body Corporate in accordance with the Body Corporate and Community Management Act 1997 and to carry out such other matters as may be considered necessary.”

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 a 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 the Act or the community management statement (section 223(3)(v)).

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 “Burwell” community titles scheme indicates that the Body Corporate and Community Management (Standard Module) Regulation 1997 (“the Standard Module”) applies to the scheme.

In the supporting grounds to the application, the applicant states that records of the body corporate have not been properly maintained, and meetings have not been properly called as required by the legislation.

Section 60 of the Standard Module requires bodies corporate to call and hold an annual general meeting within 3 months after the end of each of the scheme’s financial years. Part 9 of the Standard Module makes provision for various administrative matters including the keeping of records of a body corporate.

On 18 July 2002, I contacted the Applicant to gather more information in relation to the application and the Body Corporate generally. From my conversation with the applicant, and the material before me, I understand that while the “Burwell” Body Corporate has previously held meetings, formal annual general meetings have not been consistently held, as required by the legislation. I also understand that the Body Corporate is not operating to a particular financial year.

In the supporting grounds to the application, the Applicant has provided the consents of a majority of lot owners to the appointment of Australasian Body Corporate Management (Qld) Pty Ltd as administrator for the Body Corporate.

It seems to me that it is in the interests of the “Burwell” Body Corporate to convene and hold a proper annual general meeting, and to establish a financial year for the Body Corporate. This will enable the Body Corporate to be “re-established” on a proper legal footing, and allow it thereafter to conduct its affairs, particular its meetings, in accordance with the legislation.

I consider that the appointment of a Body Corporate Manager to assist in this process as Administrator is warranted and will be for the benefit of owners. As part of the convening of this meeting, owners will be given an opportunity to propose motions for consideration by the Body Corporate at the meeting. If owners wish to engage a body corporate manager for a longer period, they are free to do so, provided sections 78, 87 and 104 of the Standard Module are complied with. These sections deal with the form of engagement of a body corporate manager, authorisation for the engagement of a body corporate manager, and the requirement to obtain quotations for major spending.

In the circumstances, and for the reasons outlined above, I am satisfied that the appointment is necessary to authorise a person to call and hold an annual general meeting of the Body Corporate, and allow it to proceed on a proper legal basis. In addition, I intend to make an order setting the financial year of the Body Corporate.

As a final point, I would like to point out to all owners that the Office of the Commissioner for Body Corporate and Community Management provides an Information Service, which provides information about the legislation to people involved in Queensland community titles schemes. The Information Service can be contacted on freecall 1800 060 119.

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