Ululah [2004] QBCCMCmr 605 (1 December 2004)

Last Updated: 30 September 2005

REFERENCE: 0748-2004

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	5891
Name of Scheme:	Ululah
Address of Scheme:	8 Ricardo Street Kelvin Grove, Queensland

TAKE NOTICE that pursuant to an application made under the abovementioned Act by the Body Corporate for Ululah community titles scheme 5891:

I hereby order that the 2004-2005 financial year for the "Ululah" Body Corporate shall operate from 1 October 2004 to 30 September 2005. I further order that thereafter and for the purposes of the Body Corporate and Community Management Act 1997, the financial year of the "Ululah" Body Corporate shall operate from 1 October to 30 September each year.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0748-2004

"Ululah" CTS 5891

1.	The application

The Body Corporate for "Ululah" has made an application to the Commissioner for Body Corporate and Community Management under the Body Corporate and Community Management Act 1997 (the BCCM Act). The Body Corporate is seeking an order formalising a change of its financial year from 1 November to 31 October each year, to 1 October to 30 September each year.

The Commissioner has referred the application to me for consideration.

2.	The "Ululah" community titles scheme

Department of Natural Resources, Mines and Energy records show that the "Ululah" community titles scheme was originally created under a building units plan of subdivision (now known as a building format plan) registered on 28 July 1989. The scheme land consists of six lots and common property.

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

3.	Determination

Bodies corporate for Queensland community titles schemes do not necessarily operate on a normal business financial year of 1 July to 30 June. The financial year for a particular body corporate is important for financial reporting purposes, as well as for determining the timing of annual general meetings of members, as required by the legislation (see section 60 of the Standard Module).

At the time of establishment of "Ululah", the Building Units and Group Titles Act 1980 (the BUGT Act) applied to the scheme. The transitional provisions of the BCCM Act include a section (section 330(9)) which stipulates how the financial year for a scheme established under the BUGT Act is determined after the commencement of the BCCM Act. Provided a referee under the BUGT Act has not made an order determining the financial year, the financial year for such a scheme is "each year ending on the last day of the month containing the anniversary of the first annual general meeting" held for the Body Corporate.

In the supporting grounds to the application, the Body Corporate explains that its first annual general meeting was held on 3 October 1989. Technically therefore, its financial year is 1 November to 31 October each year. However, it explains that at some point, the scheme started operating on a 1 October to 30 September financial year. As the Body Corporate’s financial arrangements (including budgets) are based on a financial year of 1 October to 30 September and not 1 November to 31 October, the Body Corporate is seeking an order formalising the change of its financial year to 1 October to 30 September.

Section 283 of the BCCM Act provides that "with the consent of the body corporate, the order of the adjudicator may include a change of the body corporate’s financial year and of the dates when later financial years begin".

The Body Corporate has provided a copy of the minutes of its annual general meeting held on 17 November 2004 (adjourned from 10 November 2004 for lack of quorum). The minutes of that meeting show that the Body Corporate considered the following motion (motion 7):

"That the body corporate manager applies to the Commissioner of Natural Resources (sic) for an order making the body corporate financial year end fall on 30 September of each year henceforward, in accordance with Section 283 of the Body Corporate and Community Management Act 1997".

The minutes record that the motion was carried with 1 vote in favour of the motion and nil votes against the motion.

In the circumstances, I am satisfied that the Body Corporate has consented to the proposed change of financial year, and that it is reasonable and appropriate for me to issue an order to that effect.