Neptune Island Court [2002] QBCCMCmr 729 (19 December 2002)

DJ ReardonREFERENCE: 0773-2002

ORDER OF AN ADJUDICATOR

MADE UNDER PART 10 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	7045
Name of Scheme:	Neptune Island Court
Address of Scheme:	18 Paradise Island, SURFERS PARADISE QLD 4217

TAKE NOTICE that pursuant to an application made under the abovementioned Act by the Owner of Lot 1, and the Owners of Lot 2,

I hereby order that-

1.	Geoffrey Cornish, of 2/18 Paradise Island Surfers Paradise, is appointed as Administrator to call, hold, and chair an annual general meeting (“the meeting”), of the “Neptune Island Court” Body Corporate in accordance with this order and within 3 months of the date of this order.
2.	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 the Owner of Lot 1.

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.	The Administrator must prepare an agenda for the meeting, including but not necessarily limited to, the matters set out in section 45 of the Body Corporate and Community Management (Standard Module) Regulation 1997 (“the Standard Module”).
3.	The meeting may also consider any other matter before it, provided both lots are represented at the meeting.

4.	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 7 days after notice of the meeting is given to lot owners.
6.	Except as provided in this order, the meeting must be called and conducted in accordance with 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.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0773-2002

“Neptune Island Court” CTS 7045

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 BCCM Act”), quote-

“We request that the Adjudicator appoint Geoffrey James Cornish of 2/18 Paradise Island, Surfers Paradise to convene a General Meeting of the Body Corporate.”

Section 223(1) of the BCCM 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 “Neptune Island Court” community titles scheme was originally created under a building units plan of subdivision (now known as a building format plan), registered on 25 February 1988. The scheme consists of 2 lots, and common property. The community management statement for “Neptune Island Court” indicates that the Body Corporate and Community Management (Standard Module) Regulation 1997 (“the Standard Module”) applies to the scheme.

While this application has been made in the name of one of the owners of Lot 2, the other co-owner of Lot 2, and the Owner of Lot 3 have also signed the application. As such, I am satisfied that all Owners are in agreement with the appointment of Dr Cornish to call and hold a general meeting of the Body Corporate.

At the time of establishment of “Neptune Island Court”, the Building Units and Group Titles Act 1980 (“the BUGT Act”) applied to the scheme. Section 29 of the BUGT Act imposed an obligation on original proprietors of schemes created under a building units plan or a group titles plan of subdivision, to convene the first annual general meeting of the body corporate within 3 months of the registration of the plan of subdivision. The intended purposes of first annual general meetings include reviewing body corporate insurance policies and budgets, deciding on committee positions, considering the by-laws for the body corporate and deciding whether or not to engage a body corporate manager for the scheme.

Section 29A(1) of the BUGT Act imposed a continuing obligation on bodies corporate to convene and hold an annual general meeting. The requirement continued with the commencement of the BCCM Act in 1997. Specifically, section 60 of the Standard Module of the BCCM Act 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”.
Part 9 of the Standard Module makes provision for administrative matters that must be addressed by bodies corporate, including records that bodies corporate must maintain.

In the supporting grounds to the application, the Applicants state

“We are the owners of the units in the community titles scheme and there are no up to date body corporate records. As unit owners we wish the body corporate records to be set up correctly so that they can be properly managed in future.”

Therefore, from the application I understand that there are no records of the Body Corporate. I also understand that meetings of the Body Corporate have not been held regularly.

In the circumstances, I am satisfied that it is necessary, and proper for me to make the order sought by the Applicants. This will enable the Body Corporate to be re-established on a proper legal footing, and to establish proper records. In addition, I intend to make an order setting the future financial years of the Body Corporate.

As a final note, I would like to point out to the members of the Body Corporate that this Office provides an Information Service for people involved in Queensland community titles schemes. The Information Service provides general information on the BCCM Act and regulation modules, and can be contacted on freecall 1800 060 119.