Ajax [2002] QBCCMCmr 549 (3 September 2002)

DJ ReardonREFERENCE: 0519-2002

ORDER OF AN ADJUDICATOR

MADE UNDER PART 10 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	26656
Name of Scheme:	Ajax
Address of Scheme:	Russell Street, GOONDAWINDI QLD 4390

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

Ronald Moloney and Margaret Moloney, the Owners of Lot 1, and Bessie Harris, the Owner of Lot 2


I hereby order that-

1.	Russell Drummond, of Toowoomba Body Corporate Management, 63A Neil Street Toowoomba, is appointed as Administrator to call, hold, and chair an annual general meeting (“the meeting”), of the “Ajax” Body Corporate in accordance with this order and within 3 months of the date of this order.

2.	The meeting shall be deemed to be the first annual general meeting of the Body Corporate for the purposes of the Body Corporate and Community Management Act 1997 (“the Act”).

3.	The Administrator shall hold the appointment for the period beginning on the date of this order, until the close of the meeting ordered to be held.

I further order that within 7 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 “Ajax” community titles scheme (“lot owners”).

I further order that-

1.	For the purpose of calling, 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 those powers to another person; or
•	To incur any expenditure apart from that reasonably 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.	Within 7 days of the date of this order, the Administrator must issue lot owners with a written notice inviting, and allowing owners at least a further 14 days to submit motions for consideration by the Body Corporate at the meeting.

3.	The Administrator must prepare an agenda for the meeting, including but not necessarily limited to, the matters set out in section 62(3), and sections 45(2),(3) and (4) of the Body Corporate and Community Management (Standard Module) Regulation 1997 (“the Standard Module”).

4.	After the time for submitting motions has expired, the Administrator must issue a notice of meeting in accordance with section 42 of the Standard Module.

5.	The meeting must be held at least 14 days after notice of the meeting is given to lot owners.

6.	At the meeting, executive positions on the committee must be chosen in accordance with section 11(4) of the Standard Module.

7.	Except as provided in this order, the meeting must be called and conducted in accordance with the Act and the Standard Module.

I further order that for the purpose of determining future financial years of the Body Corporate, the end of the month immediately preceding the month in which the meeting authorised by this order is held, shall be deemed to be the end of the financial year.
STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0519-2002

“Ajax” CTS 26656

The Applicants, the Owners of Lots 1 and 2, have sought the following order of an adjudicator under the Body Corporate and Community Management Act 1997 (“the Act”), quote-

“That Toowoomba Body Corporate Management of 63A Neil Street, Toowoomba convene the first annual general meeting of the scheme.”

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)). Additionally, the adjudicator may make an order appointing 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 “Ajax” community titles scheme consists of 2 lots and common property. The community management statement for the 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 Applicants state that the Body Corporate has not held an annual general meeting since the establishment of the scheme. In making this application, the Applicants are seeking authority to convene an annual general meeting for the scheme, and to establish the records of the scheme.

Section 62(1) of the Standard Module imposes an obligation on the original owner of a community titles scheme to convene the first annual general meeting of the body corporate. If the original owner fails to convene the first annual general meeting for the scheme, section 62(4) of the Standard Module provides that an adjudicator may make an order appointing a person to convene the first annual general meeting of the scheme. After the first annual general meeting is held, section 60 of the Standard Module requires bodies corporate to call and hold an annual general meeting within 3 months of the end of each of the scheme’s financial years.

In the circumstances, I am satisfied that it is necessary, and proper for me to make the order sought by the Applicants. This order will enable the Body Corporate to conduct its first annual general meeting, and thereafter proceed on a proper legal footing.



As a final note, I would like to point out to the Owners that the Office of the Commissioner for Body Corporate and Community Management offers an Information Service for people involved in Queensland community titles schemes. The Information Service provides information on the legislation primarily by responding to enquires made to its freecall telephone service, which can be contacted on 1800 060 119.