On the Avenue [2003] QBCCMCmr 100 (4 September 2003)

Last Updated: 17 May 2005

REFERENCE: 0581-2003

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	23618
Name of Scheme:	On the Avenue
Address of Scheme:	69 Sixth Avenue WINDSOR QLD 4030

TAKE NOTICE that pursuant to an application made under the abovementioned Act by Ross Griffin, a Co-owner of Lot 2:

I hereby order that-

1.	Beverly McKinnon of McKinnon Body Corporate Administration, 57 Maryborough Street Bundaberg, Queensland, is appointed as Administrator to call, hold, and chair an annual general meeting ("the meeting"), of the "On the Avenue" 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-

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 shall 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 that an owner of each of the three lots is represented at the meeting either personally or by proxy.
4.	The Administrator shall 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.	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 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 0581-2003

"On the Avenue" CTS 23618

The Applicant, a Co-owner of Lot 2, has sought the following adjudicator’s order under the Body Corporate and Community Management Act 1997 ("the BCCM Act"), quote-

"That Beverly Joan McKinnon of McKinnon Body Corporate Administration be appointed to convene a general meeting of the Body Corporate."

Section 276(1) of the BCCM Act provides that adjudicators may make just and equitable orders to resolve disputes in community titles schemes. An order may require a person to act, or prohibit a person from acting, in a way stated in the order (section 276(2)).

Specifically, and without limiting the power of an adjudicator to make an order under section 276(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. Additionally, an adjudicator may make an order appointing an administrator, and authorise the administrator to perform obligations of a body corporate, a committee, or a member of a committee, under the BCCM Act or the community management statement (Schedule 5).

An adjudicator’s order may contain ancillary or consequential provisions the adjudicator considers necessary or appropriate (section 284(1)).

The "On the Avenue" community titles scheme was originally created pursuant to a group titles plan of subdivision (now known as a standard format plan) registered on 27 October 1991. The scheme consists of 3 lots and common property. The community management statement for "On the Avenue" indicates that the Body Corporate and Community Management (Standard Module) Regulation 1997 ("the Standard Module") applies to the scheme.

At the time of registration of "On the Avenue", 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 after 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 annual general meetings. 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".

If an original proprietor, or owner, fails to convene a first annual general meeting for a body corporate, or if a body corporate fails to regularly hold its required annual general meetings, it is necessary for an adjudicator to make an order appointing an administrator to call and hold an annual general meeting of the body corporate. The purpose of such an order is to re-establish the body corporate on a proper legal footing, and to facilitate the body corporate conducting its affairs in accordance with the legislation, including by maintaining required records and registers.

In the supporting grounds to this application, the Applicant indicates that while the first annual general meeting of the Body Corporate was conducted on 17 November 1994, there have been no further general meetings since that time.

The Applicant has provided written consent of the owners of Lots 1 and 2 to the application, and in addition, the Applicant has provided Ms McKinnon’s consent to the proposed appointment.

In the circumstances, I am satisfied that it is necessary and appropriate for me to appoint Ms McKinnon as Administrator for the purpose of convening an annual general meeting of the Body Corporate. I have also made an order setting the future financial years of the Body Corporate.

As a final note, I would like to point out to the Owners, that the Commissioner’s Office offers an Information Service for people involved in Queensland community titles schemes. The Information Service provides information about the BCCM Act and regulation modules to the community, primarily by responding to enquiries made on its freecall telephone service. The Information Service has also published a number of information brochures on various aspects of the body corporate legislation, which are available free of charge. The Information Service can be contacted on (Freecall) 1800 060 119.