Delonga House [2004] QBCCMCmr 199 (16 April 2004)

Last Updated: 30 September 2005

REFERENCE: 0173-2004

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	7754
Name of Scheme:	Delonga House
Address of Scheme:	289 Boundary Street SPRING HILL QLD

TAKE NOTICE that pursuant to an application made under the abovementioned Act by Swansford Pty Ltd, the Owner of Lot 13:

I hereby order that- 1. Donald Saunders of B&D Body Corporate Management, 14/197 Bloomfield Street Cleveland, is appointed as Administrator to call, hold, and chair an annual general meeting ("the meeting"), of the "Delonga House" 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, and apart from 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 Administrator shall issue a notice of the meeting in accordance with section 42 of the Standard Module. 4. The meeting must be held at least 21 days after notice of the meeting is given to lot owners. 5. The meeting may consider any other matter before it, provided that a voter of each lot is represented at the meeting either personally or by proxy. 6. Except as provided in this order, the meeting must be called and held in accordance with the Body Corporate and Community Management Act 1997, and the Standard Module. I further order that for the purposes of determining the 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 0173-2004

"Delonga House" CTS 7754

1.	The application

On 19 March 2004, the Applicant (the Owner of Lot 13) filed an application with the Commissioner for Body Corporate and Community Management ("the Commissioner") under the Body Corporate and Community Management Act 1997 ("the BCCM Act").

The Applicant is seeking an order facilitating the calling of an annual general meeting of the "Delonga House" Body Corporate.

2.	The "Delonga House" community titles scheme

Department of Natural Resources, Mines and Energy records show that the "Delonga House" community titles scheme was originally created under a building units plan of subdivision (now known as a building format plan) registered on 1 September 1986. The scheme currently consists of 13 lots and common property.

A standard community management statement was recorded for "Delonga House" on 15 July 2000. The community management statement shows that the Body Corporate and Community Management (Standard Module) Regulation 1997 ("the Standard Module") applies to the scheme.

3.	Discussion

At the time of the establishment of "Delonga House", 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 (developers) 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".

In the supporting grounds to the application, the Applicant states that the Body Corporate has not held an annual general meeting since 1994. The Applicant also indicates that there is currently no body corporate committee for the scheme, and contributions toward body corporate expenses have not been levied on owners since 1998. The application has been co-signed by the registered owners of 10 lots included in the scheme.

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 circumstances, and particularly given that the Body Corporate has not regularly held its required annual general meetings, I am satisfied that it is reasonable and appropriate for me to appoint Mr Donald Saunders of B&D Body Corporate Management as administrator, for the purposes of convening an annual general meeting of the Body Corporate. I note that the Applicant has provided a copy of a letter from Mr Saunders consenting to the proposed appointment as administrator. I have also made an order setting the future financial years of the Body Corporate.