Yelrah Court [2003] QBCCMCmr 142 (30 September 2003)

TAKE NOTICE that pursuant to an application made under the abovementioned Act by Harley Foreman, the Owner of Lots 1, 3 and 4:

I hereby order that-

1. Harley Foreman of 55 Gordon Street Mackay, Queensland, is appointed as Administrator to call, hold, and chair an annual general meeting ("the meeting"), of the "Yelrah 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 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").

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 sections 45 and 62(3) 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.
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 1 day 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 the next end of financial year date for the Body Corporate shall be 31 August 2004, and thereafter, each successive financial year for the Body Corporate shall begin on 1 September and end on 31 August.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0640-2003

"Yelrah Court" CTS 1168

Section 276(1) of the BCCM Act provides that adjudicators may make just and equitable orders to resolve disputes in community titles schemes. An adjudicator’s order may require a person to act, or prohibit a person from acting, in a way stated in the order (section 276(2)), and may contain ancillary or consequential provisions the adjudicator considers necessary or appropriate (section 284(1)).

Some examples of adjudicator’s orders are set out in Schedule 5 of the BCCM Act. For instance, an adjudicator may make an order requiring a body corporate to call a general meeting of its members to deal with stated business. An adjudicator may also make an order appointing and authorising an administrator to perform obligations of a body corporate, a committee, or a member of a committee. Additionally, with its consent, an adjudicator may change a body corporate’s financial year.

Department of Natural Resources and Mines records show that the "Yelrah Court" community titles scheme was originally created by a building units plan of subdivision (now known as a building format plan), registered on 19 April 1985. The scheme consists of 4 lots and common property. The community management statement for "Yelrah Court" indicates that the BCCM Act’s Body Corporate and Community Management (Standard Module) Regulation 1997 ("the Standard Module") applies to the scheme.

At the time of registration of "Yelrah 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 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 states that the Body Corporate has not held an annual general meeting to date. The Applicant also states that the Body Corporate has not established or maintained required records. I note that the Applicant is the registered owner of three of the four lots included in "Yelrah Court", and that the Applicant is a director and shareholder of Superior Aluminium Products (Mackay) Pty Ltd, the Owner of the remaining lot.

In the circumstances, I am satisfied that it is necessary and appropriate for me to appoint the Applicant to convene a first annual general meeting of the "Yelrah Court" Body Corporate. I have also made an order setting the future financial years of the Body Corporate.

Number of Scheme:	1168
Name of Scheme:	Yelrah Court
Address of Scheme:	Victoria Street MACKAY QLD 4740

Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders

Yelrah Court [2003] QBCCMCmr 142 (30 September 2003)